Private Sector Telework and Its Implications for Economic Development: Results of a Case Survey

1. Private Sector Telework and Its Implications for Economic Development: Results of a Case Survey Nathan W. Moon Enterprise Innovation Institute and School of Public Policy Science, Technology & Innovation Policy (STIP) Program Georgia Institute of Technology Atlanta, Georgia September 11, 2007

2. Summary • Private sector telework programs address issues relevant to economic development: • Recruiting and retaining talent (human capital) • Increasing employer productivity and profitability • Reducing employer operating expenses and real estate costs • Implementation of organizational changes • Top benefits: Productivity, improvements in employee work-life balance and job satisfaction, employer savings • Challenges for telework: Technological, organizational, and social issues • Few indications of any interface between telework programs and public policy

3. Purpose • Understand telework programs beyond the public sector and their stated focus on air pollution and traffic mitigation • Assess telework characteristics relevant to economic development: • Implementation rationales and challenges • Costs and savings • Telework benefits • Policy aspects • Determine what, if any, policy interface exists for private sector telework initiatives

4. Methodology • Case survey method • 60 cases selected for inclusion • Five categories of variables developed: • Program characteristics • Implementation factors • Operation factors • Outcomes • Policy interface • Case studies coded into data for analysis • Data analyzed • Baseline policy assessment: Determine extent of telework legislation in relevant states

5. Program Locations • 52 case studies from municipal clean air and transportation initiatives • and 8 cases from the business literature

6. Characteristics Nature of teleworking done in company (N=59) • 40% - Part-time teleworking • 22% - Full-time teleworking • 37% - Both part-time and full-time teleworking Purpose of telework (N=60) • 65% - Telecommuting for already employed workers • 35% - Shift jobs from centralized office to offsite locations Telework centers (N=60) • Availability of telework centers evident in 10% of cases • Among participating six employers, 50% require their use Source: N. Moon, Analysis of 60 Case Studies, 25 June – 9 July, 2007

7. Implementation Top five reasons for program implementation (N=60) Source: N. Moon, Analysis of 60 Case Studies, 25 June – 9 July, 2007

8. Challenges Top five challenges to implementation (N=60) Source: N. Moon, Analysis of 60 Case Studies, 25 June – 9 July, 2007

9. Operation Components of telework program (N=60) • 85% - Formal telework policies • 83% - Feedback mechanisms (surveys, evaluations, focus groups) • 33% - Teleworker training programs • 15% - Manager training programs Employer subsidies (N=60) • 75% of employers: Telecommunications/computer costs • 25% of employers: Home office furniture/equipment Source: N. Moon, Analysis of 60 Case Studies, 25 June – 9 July, 2007

10. Costs and Savings Employer savings greater than costs in all but 2 cases (N=9) Source: N. Moon, Analysis of 60 Case Studies, 25 June – 9 July, 2007

11. Outcomes Productivity • 97% of teleworkers: Increase in productivity (N=34) • 88% of managers: Increase in productivity (N=43) • 60% of teleworkers: Claim productivity increases of 20-40% • 64% of managers: Claim productivity increases of 0-20% Employee Impacts • 100% of teleworkers and managers: Better work-life balance for employees (N=39: teleworkers; N=27: managers) • 100% of teleworkers and managers: Improved job satisfaction or employee morale (N=42: teleworkers; N=44: managers) Source: N. Moon, Analysis of 60 Case Studies, 25 June – 9 July, 2007

12. Outcomes Attitudinal Factors • 96% of employees: Support from managers (N=48) • 96% of teleworkers: Support from co-workers (N=24) • 83% of employees: Teleworking a positive initiative (N=60) • 95% of managers: Teleworking a positive initiative (N=60) Time and Traffic Impacts • 98% of employees: Time savings from teleworking (N=49) • All case studies reported a decrease in miles driven by teleworking employees (N=40) Source: N. Moon, Analysis of 60 Case Studies, 25 June – 9 July, 2007

13. Success Factors Factors identified as most important to program success (N=60) Source: N. Moon, Analysis of 60 Case Studies, 25 June-9 July, 2007

14. Policy Interface Response to policy • 17% of case studies: Policymaking or legislation a major impetus in telework programs (N=60) • Legislative mandates: Clean Air Act (1990), Americans with Disabilities Act (1990), Family and Medical Leave Act (1993), various state clean air laws Funding and tax incentives • 18% of case studies: Funding from governmental or nonprofit sources for telework programs (N=60) • By contrast, none (0%) reported receiving any tax incentives (N=60) Source: N. Moon, Analysis of 60 Case Studies, 25 June-9 July, 2007

15. State Telework Policy States with statutes that address the availability of telework Source: Sloan Work and Family Research Network (2005), and N. Moon, Survey of LexisNexis, 3-6 August, 2007

16. Employer tax credits for telework programs Arizona California Georgia Washington Employee tax credits for telework participation Arizona California Washington Telework Legislation Laws relating to air pollution/traffic reduction Arizona California Connecticut Illinois North Carolina New Jersey New York Texas Washington Source: Sloan Work and Family Research Network (2005), and N. Moon, Survey of LexisNexis, 3-6 August, 2007

17. Telework in Metro Atlanta Components of Operation Source: N. Moon, Analysis of 60 Case Studies, 25 June-9 July, 2007

18. Telework in Metro Atlanta Challenges to Implementation (tie) 1. Telecommunications problems 1. Establishing management support (tie) 2. Non-specific computer problems 2. Social issues 2. Childcare related issues Success Factors (tie) 1. Individual implementation between manager and teleworker 1. Technological considerations 2. Telework training programs 3. Involvement/support of upper management 4. Employer telework policies Source: N. Moon, Analysis of 60 Case Studies, 25 June – 9 July, 2007

19. Opportunities for Georgia • Telework’s potential: Bolstering human capital, increasing productivity, and decreasing costs • Management support: Major challenge for programs, but also important success factor • Georgia addressing private sector telework in policymaking: Outcomes of legislation not clear • Policymaking in other states: More may be done to promote private sector telework (e.g., employee-side benefits and public-private initiatives)

20. Recommendations 1. Educate managers about telework benefits and costs 2. Develop employer peer networks: 1) address managerial challenges to telework acceptance, and 2) bolster management’s role as success factor 3. Employer networks for other telework challenges: technology and social issues 4. Encourage Georgia employers to take advantage of recent tax incentives through awareness campaigns 5. Reframe thinking of policymakers and employers about telework as an economic development opportunity (i.e. cultivate new stakeholders to add to Clean Air Campaign’s involvement)

21. Acknowledgements This project was supported through the Georgia Innovation Internship Program of the School of Public Policy and Enterprise Innovation Institute’s Science, Technology & Innovation Policy (STIP) Program. The speaker wishes to acknowledge Dr. Jan Youtie, Mr. Robert Lann, and Mr. Todd Greene for their guidance and advisement of this research project. Special thanks to Dr. Catherine Ross, Dr. Paul Baker, Mr. Matthew Hicks, Dr. Elisabeth Shields, Ms. Hazel Taylor, Mr. Taner Osman, and Mr. Steven Simms for their assistance with this project.