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Transmittal Memorandum

TO: Rachel Smith, Human Resource Director

FROM: Business Development Manager

DATE: December 18, 2015

SUBJECT Implementing a telecommuting policy

The Business Development department has noticed that Platinum Company lacks a telecommuting policy. Some employees have complained about the lack of such a policy, given that our organization has locations all over the world. They say that reporting to a main location is not necessary for them to do their work.

Telecommuting is the practice of working outside a company’s primary business location, either at home or another remote location. This policy has been a practice exercised by many businesses for more than 20 years, both in United States and abroad. The Internet, faxes, phones, webcams, and instant messaging are some of the tools required for this practice. This ideal business practice may suit for any modern business including ours. The benefits this policy would bring to the workplace include

• Cost and time efficient for both companies and employees

• Flexible work-hours for telecommuters

• Increased productivity

• Working offsite

• Worldwide recruitment

Along with the benefits, there are a few potential problems that might affect this business practice. There are certain risks that businesses must take into consideration before developing a telecommuting policy in the workplace. These risks include

• Fraud or hacking

• Employee isolation from the social bonds of the office or from management

• Reduction of face-to-face interaction with other employees and management

• Connectivity issues

To implement a successful telecommuting policy the business must put in place greater filters and spam protectors to avoid being hacked, obtain advanced technology to support teleworkers, invest in training for potential teleworkers, and structure monitoring prior to implementing a telecommuting practice.

My research shows that telecommuting could make Platinum Company more competitive in the business world. The benefits of implementing this policy allow companies to work from multiple locations worldwide and keep their customers in contact with the teleworkers at any place and time. In addition, employees can accomplish their jobs from their homes. Developing a telecommuting policy at Platinum Company would help the business, employees, and customers. We hope you will take this policy into consideration. Thank you for your time.

Table of Contents

Transmittal Memorandum...........……………………………...……………………… ii

Executive Summary…..……......………………………………………………………. iv

1.0 Introduction 1

1.1 Topic Investigation 1

1.2 Objectives 1

2.0 Findings and Discussion 1

2.1 Definition and History of Telecommuting 1

2.2 Benefits of Telecommuting 2

2.3 Potential Pitfalls of Telecommuting 2

2.4 Requirements of Telecommuting 3

2.4.1 Connectivity and Accessibility 3

2.4.2 Data Sharing 3

2.4.3 Communication 3

3.0 Implementing Telecommuting Policy 3

3.1 Eligibility 4

3.2 Management Responsibility 4

3.3 Work Hours 4

3.4 Applications and Security 4

4.0 Conclusions 5

5.0 Recommendations 5

References 6

Executive summary

Purpose and Method

The purpose of this report is to describe the process of telecommuting, examine the advantages and disadvantages, and discuss ways of implementing this policy in the workplace. Methods of analysis include interviewing eight employees from different departments at Platinum Company and a research at different educational databases and web search engines.

Findings and Conclusion

Results show that telecommuting can have enormous positive impacts on business practices if properly implemented. Thanks to its potential to cut costs, increase productivity, and expand the supply of potential employees, telecommuting is emerging as a standard business strategy for a large number of organizations.

This unique business practice comes along with benefits and a few challenges. However, with the necessary tools telecommuting can be reliable and efficient.

The benefits of telecommuting can help employees be more productive. In addition, employers also get benefitted from telecommuting since this can be a good technique for employee retention and to decrease expenses that incur from employees working at the office.

Although telecommuting has a few disadvantages, these can be solved. Data security is a major issue that organizations face with telecommuting. Working from home puts employees and their companies at risk of fraud and hackers, but having a good system in place can prevent data security problems.

The report finds that telecommuting can be of great benefit. Platinum Company should consider implementing this policy and follow these recommendations

· Examine who is eligible to telecommute

· Implement the necessary telecommuting equipment

· Put in place a telecommute trial period for eligible employees

· Conduct performance evaluation for teleworkers and analyze the results

· Evaluate telecommuting policy and come up with a final result

After following these procedures Platinum Company should be able to determine if telecommuting policy is beneficial or not to the organization and its employees.

Implementing a Telecommuting Policy

1.0 Introduction

1.1 Topic Investigation

According to Global Workplace Analytics, 2.5% of the United States workforce work from home at least half the time and 80% to 90% of the US workforce would like to telework at least part time. They consider that two to three days a week seem to be a good balance of concentrative work at home and collaborative work at the office.

After interviewing eight employees from different departments at Platinum Company, I learned that 90% of their daily tasks involved the use of technology. This includes email, software/programs, and the Internet. Evidently, this is an indicator that employees can access and perform their daily tasks from anywhere in the world where a computer with Internet access was available.

1.2 Objectives

The report objectives are to provide the reader with key knowledge on the process of telecommuting, the advantages and disadvantages, and best practices. It also includes information on how organizations can utilize this efficient and successful business trend.

2.0 Findings and Discussion

The findings of the study will be presented in four sections:

· Definition and history of telecommuting

· Benefits of telecommuting

· Potential pitfalls of telecommuting

· Requirements of telecommuting

2.1 Definition and History of Telecommuting

Telecommuting is an emerging business practice that offers many job opportunities and increasing productivity. Telecommuting is defined as any work done at a remote work site using computers and telecommunication technologies. Types of telework include home-based telework, satellite commuting, and functional relocation (e.g. management at distance).

Information technology plays a key role in making telecommuting possible. A few years ago, teleworkers were only been able to send and receive emails and communicate with management using mobile phones. Nowadays, teleworkers are allowed to share information via Cloud, communicate with anyone at anytime via video conferencing, and gain access to company’s critical and confidential information using a virtual private network (VPN). The idea is to allow employees to perform their work in places other than the company’s offices. As technology advances, job opportunities have increasingly diversified.

Most people believe that telecommuting has been introduced through technology advances during the 21st century. However, telecommuting goes back to before the 18th century. The use of telecommuting has been evolving and becoming more popular over the years.

There are advantages and disadvantages that come along with telecommuting although, the disadvantages are limited and have little-to-no affect on the job assignments. Some of the advantages are reduction of middle level management, productivity gains, and reduction in space and rental fees. Some of the examples of disadvantages in telecommuting include social isolation and possible costs for new work methods and training.

2.2 Benefits of Telecommuting

The main benefits to consider are increase in productivity, reduce turnover, and cost effective. There are misconceptions that employees would be less productive when telecommuting. According to a Stanford study, call center employees increased their productivity by 13% when allowed to work from home. Another study from University of Texas, Austin showed that telecommuters worked 5-7 hours more than their in-office colleagues.

Employees who are given the option to telecommute are reportedly much happier (73%) with their employers and their ability to telecommute than traditional office workers (64%). Being happier in their jobs means that employees are much more likely to stay in their positions, which saves a company a lot of money in the long run. Employees that do not telecommute tend to be unhappy with their commutes, they might be more apt to call in sick or look for another position that will allow them to work remotely and subsequently quit. Lost productivity can cost a company thousands of dollars and that number can increase when the employee actually does resign.

Employees are not the only ones that benefit financially from working from home. Employees who telecommute avoid added expenses that come with working in an office such as commuting costs, office attire and daily lunches, but employers save thousands of dollars as well. It’s estimated that for each employee who telecommutes, a company saves about $11,000 annually.

2.3 Potential Pitfalls of Telecommuting

Some of the disadvantages that come long with telecommuting are data security, and isolation. Data security can be a big issue for teleworkers. The employer loses the ability to control the security of sensitive work related information in the teleworker’s computer once the employee steps outside the office. It is up to the employee to prevent sensitive data leaks that can occur due to theft, hacking or viruses. Employees need to be aware and use login passwords on all of their devices, and password-protect folders containing important information. Protocols should be put into place to shore up any gaps in security, including training on remote access security and frequent password updates.

Working from home can be ideal for introverted personalities who are able to focus better when they're alone, but many people find that they thrive on the company of others for creativity and motivation. Telecommuters who enjoy the social aspect of their job may be unhappy with the isolation of working from home. It’s possible to remedy this feeling with e-mail, phone calls, instant messaging, and video conferencing, but it’s no substitute for face-to-face interaction. Some telecommuters find that working from a coffee shop or library satisfies their people fix, but others prefer the office environment to solitude. A co-working space might solve this problem by allowing you to telecommute and work from an office setting.

2.4 Requirements of Telecommuting

Teleworkers use a variety of technologies to stay in a better contact with the management, colleagues, and customers. The minimum system required for home computer use for telecommuting includes “Windows XP, MS Office, 2GB RAM, Minimum 5Mps Internet connection and a virus protection software”

(Johnsey, 2013). Other requirements include connectivity and accessibility, data sharing, and communication.

2.2.1 Connectivity and Accessibility

Most of teleworking activities can be made through Virtual Private Networks (VPN). A Virtual Private Networks (VPN) provides network connectivity over a long distance enabling file sharing and video conferencing. VPN allows employees to communicate using instant messaging (IM) applications and access confidential information of the company. Furthermore, VPN allows encrypted and secured communication at a low cost.

2.2.2 Data Sharing

Cloud computing is a great tool in sharing data effectively. Cloud computing means the use of distributed, network-connected facilities for both storage and data-processing tasks. Cloud computing provides teleworkers to have self-service anytime so they can complete tasks from anywhere at any time. The benefit of Cloud computing is that it requires minimum space for teleworkers to access, save, or share information in any device they desire to use for telecommuting.

2.2.3 Communication

Communication is one of the most important elements of telecommuting. Teleconferencing, remote connection to networks, Instant Messaging (IM), computer conferencing, and videoconferencing enable teleworkers to keep their connection with the company and customers worldwide (Kirk &Belovics, 2006).

3.0 Implementing Telecommuting Policy

The purpose of a telecommuting policy is to promote telework as a means of achieving efficiency, reducing work congestions, and sustaining a highly qualified workforce by enhancing work balance. Advantages such as increasing human resource capacity and savings in direct expenses, a decrease in environmental damage, solutions for special-needs populations, and savings in infrastructure and energy can expand businesses worldwide. Additionally, business can reduce everyday expenses by having a smaller office space leased that limit electricity, heating and, cooling needs.

According to a study conducted by PC World, “Results of the study pointed to multiple reasons why telework is linked to high job satisfaction, namely that employee working remotely are, on average, shielded from much of the distracting and stressful aspects of the workplace, such as office politics, interruptions, constant meetings and information overload” (Tony, 2011), this serves as a huge advantage for those who desire completing their job functions without the everyday distractions that happen in the workplace.

Teleworkers are able to use their workday down time for efficiently allowing homework to be completed, instead of surfing the web or other time wasting techniques. Telecommuting is perceived to have a positive outcome on job satisfaction and performance. This outcome is only possible with proper implementation of the policy that includes: eligibility, management responsibility, work-hours, and applications and security.

3.1 Eligibility

A good candidate for telecommuting may be any business looking to expand. Telecommuting is suitable for skilled people that desire to work overseas without moving their physical residence. Telework may also be appropriate for any individualthat does not wish to be restricted to the traditional workday yet, still desires to produce quality work. In order to implement appropriate telecommuting policy, management must ensure that candidates are self-motivated to work from an offsite location, fully skilled in effective time-management, independent to fulfill the work assignments, able to complete tasks with minimum face-to-face interaction with colleagues/management/customers, and sustainable work confidentiality.

3.2 Management and Responsibility

When arranging a telecommuting policy, management must fully understand the technology involving telecommuting. Also, management should ensure that connectivity and accessibility of teleworkers are at its optimum. Lastly, management must create and maintain telework related reports, records, and evaluation.

3.3 Work Hours

Due to the characteristics of telecommuting, work hours may vary from each individual. Thus, work hours for telecommuters must state specific guidelines so that teleworkers can complete job assignments in time while maintaining communication with colleagues and managers. Some of the guidelines may include

· Teleworkers must record all hours worked

· Management may require teleworkers to attend physical meetings

· Teleworkers must ensure to finish the work assignment on time

3.4 Applications and Security

Although productivity is the most important in telecommuting, ensuring security of the data teleworkers are accessing offsite may be critical. Platinum Company must set a specific policy in terms of application and security teleworkers use, so they can have structured guidelines on the programs and software they use in order to be protected from any potential hacks or breaches. Teleworkers must receive an approval to all devices they may use to perform work assignments, as well as follow the specific application or software instructed by the company. They should alsoensure that all applications they use are up-to-date and acknowledge that all information containing in applications are confidential and a property of Platinum Company.

4.0 Conclusions

The use of telecommuting has been proven to be beneficial to companies if properly implemented. Businesses are finding many benefits in the flexibility that this policy promotes. Telecommuting tends to improve morale, as employees take advantage of the opportunity to work offsite. The mentioned advantages make telecommuting an attractive policy that benefit the employer and the employee.

5.0 Recommendations

Telecommuting policy could be implemented as Platinum Company determines. This should be with careful consideration, examining who is eligible for the program, the work hours needed, the types of applications, and security ensured. We recommend Platinum Company make telecommuting arrangements to be on a trial basis for a few months to see the increase or decrease of productivity, as well as job satisfaction. Previous to implementing a telecommuting policy, Platinum’s management should make sure that appropriate equipment is prepared in order to have a successful telecommuting system for teleworkers. To implement telecommuting equipment this may include software, data lines, modems, hardware, and photocopiers.

Through trial months, the telecommuting policy must be continuously updated in order to establish and improve work environment for teleworkers. Also, conducting performance evaluation for teleworkers are recommended through trial months so that Platinum Company is able to blueprint how telecommuting affects. Platinum can also conduct a customer satisfaction survey that evaluates the performance to see the grade of satisfaction and to retrieve suggestions.

After the trial months, telecommuting policy needs to be evaluated. This is to see if telecommuting has been cost and time effective, teleworkers’ job performance have met company’s expectations, both teleworkers and employees are satisfied with work arrangement and communication, and how much productivity has increased after implementing telecommuting.

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