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
Employers allow telecommuting for many reasons, including the ability to recruit better talent, decrease overhead expenses, increase productivity, expand the employee base to include those with disabilities (Anderson, Bricout & West, 2001; Lipin, 2010; Myungjung & So Hee, 2017), and to support
Free cash flows of the project for next five years can be calculated by adding depreciation values and subtracting changes in working capital from net income. In 2010, there will be a cash outflow of $2.2 million as capital expenditure. In 2011, there will be an additional one time cash outflow of $300,000 as an advertising expense. Using net free cash flow values for next five years and discount rate for discounting, NPV for the project comes out to be $2907, 100. The rate of return at which net present value becomes zero i.e.
Telecommuting has been shown to reduce absenteeism, improve retention, and reduce recruitment costs for the organization (Family, pg. 730). Increased employee moral is also a benefit associated with telecommuting (Professional Isolation, pg. 512). Offering this new benefit that is such a satisfier for employees will likely result in reduced turnover within the organization and higher productivity. A study found pubic employees who were satisfied with their telework/telecommuting benefits were less likely to leave their positions (Family pg. 732). With the reduction of office time, an increase in employee productivity is likely due to fewer interruptions from fellow employees (Lessons pg. 10). With telecommuting having benefits to both the employer and employee, this new policy should bring positive results to the
Working in the ITS field, we have been asked to research the plausibility of allowing our 600+ employees the ability to telework. Currently half of our managers have the ability to work from home. With this ability we have security concerns, but we also have the expectation to be available to work no matter what the time of day is or how the weather is outside. When the credit union is closed for snow day’s managers with the ability to
MedEx should roll out the telecommuting on a voluntary basis for employees with high performance evaluations. I feel this will show the employees the organization cares and has addressed their concerns based on the survey. If the telecommuting policy is implemented correctly, telecommuting can increase productivity and overall job satisfaction. If the policy is crafted to tied the privilege of telecommuting with positive performance evaluations, it will motivate employees to not lack off while working remotely. The option of telecommuting can work as a way to attract high performing top professional to the organization. Telecommuting should also reduce turnover and absences. Work life balance will always be a very important part of keeping
Telecommuting programs are also aided with the arrangement of appropriate technology, which makes working from home easier. As one of the large-scaled companies Deloitte and the Westpac Group understand the challenges associated with employee satisfaction. Both of these companies improved their IT and Information and Communication Technology structure respectively by providing their staff with the appropriate technology to carry out tasks from the comfort of their homes. Westpac allows applicable employees the option to work from home and telecommute, this is mutually sustainable with the company philosophy that acts a vital contributor to attract lateral hires (Deloitte, 2013). Not only did Deloitte and Westpac recognize that in order for their telecommuting program to work they needed to provide the staff with the right tools to do the job efficiently and compliantly, they were also able to connect to a wider range of their staff. Empirical research conducted by Deloitte shows that to “Only 62% of employees without access to flexible IT policies report feeling satisfied at work. Up to 83% of employees with access to flexible IT policies (such as social media access) report feeling satisfied at work” (Deloitte, 2013). Telecommuting plays a substantially large role in the strategic HR department, which includes employee satisfaction. A categorical and strategic plan that leaves no room for
I would recommend MedEx to implement the work arrangement of telecommuting as an option for its employees. The first step is to ensure the telecommuting environment is aligned with the corporate strategy. Top management executives must support and embrace the telecommuting environment and its technologies. The telecommuting environment must become a part of the company culture. Input must be given from all areas of the company including top management from information technology, human resources and legal counsel. The company must develop policies and procedures for the telecommuters. The policies and procedures should define the company’s purpose and goal. The policies and procedures should also include rules for use. The manager of the workers
The first course of action this tech firm should take is to create a productivity report to analyze the current state of the company’s workforce. It was mentioned that the organization already has fifty employees telecommuting. However, the head executives have yet to make a formalized plan. This was a large oversight that could have potentially caused a lot of tension between the two groups of employees. Although guidelines should have been created before telecommuting began, it will help show any differences between the two groups in the productivity report. A suggestion for how the report should be created and implemented would be to weigh whatever task is most important for each job and compare the performance between onsite and telecommuting staff members. Having this information will help determine if the company should even allowing working off site all together.
Telecommuting will continue to grow as a benefit to the modern day workforce. Recently there has been much discussion and research on whether telecommuting is benefiting companies or whether it is actually lowering worker’s production. Marissa Mayers, upon taking the helm of Yahoo at a time of the company’s perceived decline, banned her workers from telecommuting. This caused quite a stir in the global workplace. Would this set workers back; especially working moms? According to Gallagher (2013), “Despite moves by Yahoo! Inc., and Best Buy to end policies that allowed employees to work from home, eight in 10 employers say they will maintain some form of telecommuting” (para. 1). Although Mayers’ announcement was considered controversial, research based on current day telecommuting indicates that telecommuting is a benefit that is here to stay.
Telecommunication may already be a reality in some companies but there are many that are backtracking, bringing all employees back to the traditional office setting. The business problem that needs to be solved is how to effectively balance telecommuting with green computing and keeping productivity and morale high as well as costs of overhead and expenses low.
The pros and cons of telecommuting from a human resource professional perspective is that they are able to attract and retain good employees who may have a high morale and some of their effects may enhance the competitive status of the organization. For purposes such as the development of working relationship, a combination of telecommuting and on-site work is preferred over a full time telecommuting work arrangement (Kurland & Bailey, 1999; McNerney, 1995; HR Focus, 2002; Telecommute Connecticut, 2002). Some of the pros are the ability to concentrate more on their job without distractions, no or reduced time in traffic, less wear and tear on your car, reduction in gas expense, less money for lunches and having more time with the family or whatever. You can or will be able to work for the company at any location in the world and this alleviates the need for travel time or getting an office setup for you in another location. This saves on recruitment and retention which in turn saves the company in high turnovers. The company saves on recruitment because they want have to pay for advertising, timer consumption for interviewing, searching for recruiting agencies, hiring a company recruiter and giving bonuses for relocation. Absenteeism is reduced because of less stress and obligations. With a better working arrangement this helps to improve productivity and better health of a worker. Organizations are able to employ disabled, elderly or other individuals who are
Since Nilles first defined the term ‘telecommunicating’ (Nilles 1975), or alternatively, teleworking, this new method of performing the job has been more and more exercised as a cure for various ‘organisational ills’, for example, work-family balance (Bailey & Kurland 2002). By the end of last century, there were 1.1 million employees in USA working out of office (Bailey & Kurland 2002).
Moreover people are working less than eight hours and day and 40 hours a week because of down time (Mahoney 31). As we move further into the technological age the need for an alternative work schedule is greater and more easily achieved. There are many options for alternative work schedules but the most common proposals for a change in work schedules are the compressed work week and the flex-time schedules (Mahoney 31). A compressed work week is a four-day/40 hours work week; there is also the option of a four-day/32 hours work week however this is less common due to the problem of reduced salary. A flex-time schedule maintains the 40-hour work week and at times the eight-hour workday but allows the employee the flexibility of arranging their own working hours during the day (Henderson 127). As the shift to the alternative work schedule becomes more and more obvious starting with telecommuting which is also known as working from home, we see more and more organizations implement flexible work schedules and arrangements to appeal to the greater work force (Hayman 76). The advantages of this arrangement are plenty but it also raises concerns regarding the income and productivity of the organization.
Telecommuting is a general term for an increasing trend of employees working away from a home office using electronic contact. As the economy has shifted and technology has advanced, telecommuting positions have become, and continue to be, more prevalent within organizations. Golden (2009) shared that the growth of teleworkers in industrialized nations is “‘increasing by more than 30% per year’” (as cited in Belle, Burley, and Long, 2014, p. 78). A variety of individuals benefit from teleworking positions. As with most new trends, there are still some concerns and questions regarding the effect of these jobs. Although telecommuting in the workplace may have some downsides, telecommuting offers more flexibility, resulting in a positive impact on employee and organizational success.
Telework, a new trend in management starting from the 1970’s most notably depicting the new information age where most people felt that teleworkers were definitely out there, has significantly and progressively increased with no global consensus on how to clearly define and unify both the criteria and the requirements for a universal telework system. Shockingly, when we studied the history of work, we discovered that working from home preceded working from the office. In fact, in the middle ages, the routine was for artisans to work on raw materials from home and then supply them to traders, buyers, and/ or merchants. It was only when the industrial revolution began that the workers had to commute to where the factories and the large machinery were functioning. (A