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Telework Case

Decent Essays

With the use of technology increasing substantially as well as with the new generation who relies on such technology, telework has become the future of work. Companies embrace and adopt telecommunicating practices, as the benefits are clear. For this reason, telework was chosen as a project to be implemented in the business in order to gain profit and in turn reduce turnover. Berkeley College conducted a comprehensive program that analyzed companies such as AT&T. This study was conducted to discern the percentage of savings that would result from such action. Thus, AT&T initiated 30,000 employees nationally to begin to telecommute from home. Through the next five years, they studied this program and found that AT&T was able to save …show more content…

For years 1-5, we then calculated the Net Cash Flow by finding the difference between the recurring benefits and costs. We found that for each year the estimated costs of implementing telework came out to be $112100 and the benefits were $399400, meaning the Net Cash Flow is $287300. We used a Cost of Capital of 9% and then calculated the Net Present Value by using the table and multiplying each year’s net cash flow by the factor found in the table. Our calculated NPV came out to be $1130015.6. Because our NPV came out to be a positive number, it is an indicator that we should go forward with implementing telecommuting in the company. Next, we calculated the Internal Rate of Return through the formula in excel, which was 142%. The internal rate of return tells us that when the net present value is 0, what the rate of return is. With our calculated internal rate of return of, it makes it seem that this is an very attractive project to invest in and it seems that it will be beneficial to the company in generating …show more content…

Telecommuting requires little investment compared to the projected return on the project. Though financially it seems that implementing telecommuting is a positive investment, the Blue Apron company is still relatively small and new compared to other larger companies such as AT&T who have implemented telework into their company. This means that are certain precautions that the company should take prior to investing. The recommendations are that in making decisions about which employees will be designated for telework. Companies should review their quality of work of the employee and their productivity levels. Telework can be said to increase productivity of the employees, but it is possible that if telecommuting put into place that the quality of the employees’ work could begin to suffer. Furthermore, it is imperative to ensure that their positions are appropriate. For instance, telecommunicating would best serve data processing tasks, bookkeeping, or accounting jobs. For positions within the Blue Apron company that are more geared towards collaboration and innovation as telecommunicating can lead to isolation in the workplace because it can create a barrier between teams, one that in the traditional workplace is not present. Also, make sure that smaller start-up companies wait until they have had continuous profit growth for

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