Sunday, August 15, 2010

Telecommuting: There is no productivity paradox

The US government's recent plans to increase the number of employees who telecommute reignites the productivity paradox debate. Is telecommuting a boon or bane on productivity? A slew of new telecommuting studies provide support for home workers while introducing new concerns.

Productivity concerns have been a key cause of management resistance to telecommuting in the government, and elsewhere, according to a newly released telecommuting report by the Partnership for Public Service and Booz Allen Hamilton. Uncle Sam's position is clear. The federal government expects to realize huge gains in productivity with as many as 600,000 at-home workers by 2014.

With many of the world's most productive companies allowing anywhere from 20 to 70 percent of their staff to telecommute, there is a growing respository of knowledge and best practices to draw from. For a telecommuting arrangement to be productive, it must build in employee accountability and performance measurements. Benefits include:

1. Work-life balance results in more hours spent working. A newly released study of IBM employees by Brigham Young University concludes that telecommuting combined with flex time can add as many as 19 hours to the work week.
2. Flexible workplaces recruit and retain a more educated and experienced workforce. Cisco's teleworker survey finds that telecommuting benefits contribute to $277 million in annual savings.
3. Service continuity is a big productivity booster. It is possible to maintain productivity during weather and other service interruption events (Uncle Sam says it saved $71 million during blizzards last year).
4. Office rental and equipment expenses and carbon footprints are reduced.
5. Face-time can equal waste-time. Telecommuting employees are more productive when using formal virtual meeting and collaboration tools.
6. Time saved is redirected to work. Cisco employees report that they dedicate 60 percent of the time saved from telecommunicating to work.

Telecommuting still has a few obstacles to overcome. Loss of promotion opportunities is a major concern of telecommuters. A just released UC Davis Graduate School of Management study concludes that the employee with face time is more apt to climb the ladder. To ensure the best candidates are not overlooked, managers are being encouraged to discount "face-based dynamics," such as being a "good leader."

A study by the Lally School of Management & Technology at the Rensselaer Polytechnic Institute has introduced an often ignored downside to telecommunication. In-office worker productivity can fall as a result of resentment over the daily commute, work overload and demotivation due to less direct interaction. These obstacles can be overcome by introducing performance measurements and accountability, providing more communications tools, creating face-to-face time and developing teams.