Technology company Sun Microsystems has been growing its telecommuting ranks through its 'Open Work' programme for more than a decade, and today nearly 20,000 employees worldwide (or 56% of its workforce) work from home at least one day a week. In Singapore, about 50% of the 560 employees are on a flexi-work arrangement that allows them to work away from the office.
Sun's programme involves an integrated suite of technologies, tools and workplace practices that enable employees to work effectively from virtually anywhere in the world. The company's research has found that it saves employees both time (about 2.5 work weeks per year) and money (more than US$1700 a year in fuel and vehicle wear).
But 'Open Work' also saves the company precious resources. Measuring how much energy was consumed while working in a Sun office, a recent internal study found employees averaged approximately 64 watts per hour at home compared with 130 watts per hour at a Sun office. Sun has also seen a significant reduction in operating costs. Over the last six years, the company has saved about US$387 million in office space and utility expenses.
These results clearly show some of the benefits derived from adopting telecommuting policies. Yet Sun Microsystems's embrace of the concept remains by and large an exception in Asia. Until now, very few companies have considered it a feasible alternative to traditional work arrangements. But the tide is slowly, very slowly, turning and more Singaporean firms are now embracing flexi-work models that will allow for limited telecommuting.
Adam Bowden, a senior consultant with Robert Walters, believes the biggest concerns for Asian companies remain security issues and the additional costs attached to them, along with issues of productivity. "Companies are still concerned about security in terms of losing vital information and system access," he explains. "There is also a big lack of trust, which is why telecommuters tend to be more senior employees. And that's unlikely to go away in the foreseeable future."
Another common obstacle limiting the reach of telecommuting in many organisations is the fact that many still measure work performance based purely on output, adds Anderson Lim, Director of HR, Republic Polytechnic. Seeing staff in the office reassures organisations that they are working diligently on their projects. It also allows employees themselves a sense of security that they are working as required. "It is perceived as an easier way to measure staff performance. The lack of proper and adequate performance appraisal tools and competencies in terms of measuring staff output and performance also often lead to staff reluctance to telecommute even if there is such a scheme available," Lim says.
But perceptions about productivity are slowly changing in the region. According to a recent survey conducted by consulting group IDC, a growing number of Asia Pacific managers are coming to understand the value of telecommuting. They have found that contrary to the popular beliefs, telecommuting can actually improve productivity. The survey shows that 80% of managers in the region agree that telecommuting improves performance, up from 60% in a similar survey from 2005. The most recent research also found that 78% of Asian managers believe their organisations trusted their telecommuting employees, an increase from 66% in 2005. In Singapore, the mood is particularly accepting. 78 percent of local respondents see telecommuting as a means of improving work-life balance among their employees, a figure that was above the 60 percent average recorded for the wider region.
Pete Baker, HR manager with Procter & Gamble Prestige Products, says telecommuting is an important part of the company's employer brand. "For us, telecommuting is a genuine productivity enhancement tool," he says. "We believe telecommuting allows employees to concentrate on priorities, which can be more difficult to do in the office when you're interrupted throughout the day," Baker said, "We've found employees tend to do their planning and more strategic work when they're doing their work at home."
Lim agrees, saying telecommuting has proven particularly useful for employees who are doing 'individual work' such as planning, policy development and writing reports or papers. Both Procter & Gamble and Republic Polytechnic allow their staff to telecommute one day a week.
There are several important factors that need to be in place before telecommuting can be seriously considered. First and foremost, the company must embrace a culture of trust. "If you've got that, the other things will take care of themselves," says Baker.
Secondly, companies must ensure employees have the right working environment at home including a quiet space that is free of distractions. "Telecommuting is not a quasi-childcare arrangement. You can't have a situation where you're trying to take care of kids and work from home simultaneously. That's not what's it's designed to do," Baker points out, "As a parent of young children myself, I've certainly learned that you can't take care of kids at the same time as you are working from home. You end up not doing either well."
During their working hours employees must be available and in touch with colleagues, customers and other partners. "For that to happen, the organisation must have the necessary IT support and other telecommunications infrastructures in place," Lim says.
Paul Greene, head of HR, UBS Singapore, believes there must be an alignment between the company's flexi-work policies on paper and the mindframe of line managers.
"My advice is that we should focus not so much on the policies and official arrangements and opportunities, and focus more on whether managers are able to effectively allocate the work flow to staff that may not be physically present. They must also ensure employees are evaluated and compensated appropriately for their level of contribution. You cannot have a situation where the manager is not intimately aware of the work being done by the individual not working in front of his eyes," he says.
Lim points out that while telecommuting should not be used against staff during appraisals, employees should also not abuse the trust that the employer has placed in them. "Employees should not use office hours for personal matters when telecommuting. Instead, they should take the initiative to update their employer should they need to handle personal emergency matters when telecommuting."
For telecommuting to work, it is important for both parties to adopt the right mindset and attitude. "For an organisation that is new to telecommuting, this is perhaps one of the main challenges to overcome," Lim says.
Elizabeth Eu, HR Director, Asia Pacific Region, Sun Microsystems, says HR should not forget the social needs of employees who are telecommuting. "Behind the individual there is a natural need for social affiliation. You must supplement communication with formal town hall meetings, informal networking events, and volunteering," she explains, "You have to look at alternative ways in terms of engaging and pulling in employees, including those working from home, to partake in company events."
One of the unspoken advantages of telecommuting is that it allows the organisation to be prepared and remain functional in times of national disaster. A pandemic or terrorist strike could force people off the streets but if staff are able to work from home, it can significantly reduce the business impact of such events. Telecommuting can also prevent smaller disruptions from having an effect. During the recent Singapore Formula One Grand Prix, UBS encouraged many of its employees to telecommute to avoid the traffic and access restrictions around its Suntec office.
Telecommuting has also been found to improve staff engagement. Lim points out that employees see it as an important employee benefit that doesn't necessarily cost the organisation anything, "Staff often cite telecommuting as the main reason why they will think twice before leaving our organisation."
Eu believes Sun Microsystem's programme enhances its ability to attract and retain the best talent available. "We've reviewed attrition by category, and it is the lowest for those working from home," she says.
But many companies that are embracing flexi-work arrangements, including UBS, still believe that telecommuting should be mainly used as a 'tool' on a situational or periodical basis rather than as a permanent employment strategy. "In our industry, many jobs simply cannot be done from home. For example, private bankers cannot access confidential client information at home, and transactions are agreed upon and executed in the office," Greene explains.
Baker also points out that there are still "a lot of benefits" for collaboration and team building that derive from the strong interpersonal relationships that can only be built in face-to-face situations.