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Increased availability of human resources
Working from a distance provides access to a wider range of workers, and an increase in employment possibilities and thus the workforce pool. Workers can be enlisted wherever they may live - from anywhere in the country, and even beyond its borders.
Significant decrease in absence levels
Sick child, urgent matters, or bad weather conditions are no longer reasons for tardiness or absence, nor do these delay work tasks. "Sick leave" is almost non-existent among e-workers. Since they are located in relatively comfortable surroundings, many continue working even when they are not feeling well or are sick.
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Savings in direct expenses
Telecommuting saves on the cost of rent, real estate, taxes, maintenance, and property that is generally located in expensive city centre areas or industrial parks
Increased motivation
The creation of more attractive working conditions increases worker motivation. It can be assumed that this in turn will increase the individual's level of job satisfaction (Pratt, 1993).
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Creation of a positive image of the organization
An organization that facilitates telecommuting is perceived positively by the public as modern and progressive, since it makes use of new work methods.
Disadvantages of telecommuting for the organization
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Difficulties in application of centralized management
Telecommuting is liable to hinder managers who tend to centralize, and therefore need employees to be at their side in order to supervise their work closely.
- Investment in training and new supervision methods
Telecommuting necessitates new training and methods of supervision that are in contrast to the centralized managerial style common to many organizations. Managers who work with telecommuters have to consolidate a new managerial approach that is more decentralized.
- Possible harm to organizational commitment and identification
"Out of sight, out of mind' - showing up at the workplace, close to the hub of things, may have the potential to create a greater sense of loyalty, identification and commitment to and with the organization and its goals. From a distance, it is more difficult to control, influence and instill motivation and commitment.
Change is not necessarily a disadvantage, although every change usually brings about the need for an extra investment of effort and other expenses. Telecommuting necessitates a change in existing working methods, and organizations need to set clearer goals for the e-worker. Supervision, reporting and communicating become more complex.
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Costs involved in the transition to telecommuting
Noteworthy among these costs are needs analysis, training and adjustment to change. Likewise, the purchase of special equipment for the worker, and providing technical support at home, necessitate special logistics.
Organizations must take various legal issues into account that are likely to arise as a result of the transition to telecommuting. Among others, these may include issues such as the question of workers' insurance, deciding on work hours and overtime, establishing holidays, sick leaves, and confidentiality (Harpaz 2002)
- Management Loss of Control
It is difficult to adjust a corporate culture from one of monitoring and control to one of trust. Adjusting the culture is, however, the only solution. If extensive controls are put into place to monitor the work-at-home employee, the beneficial effects for the employee (and the resulting productivity) will be lost.
- Issue of security: confidentiality, privacy, integrity, authenticity and accountability
If the work-at-home employee needs access to company proprietary information to do the job, how can the company be comfortable that the information will remain confidential?
The employer can normally expect higher productivity from a teleworker with corresponding lower wage costs. They can reduce office costs by reducing the amount of office space required.
But how will employers change when the number of available teleworker’s increases? Senge (1993) said that companies must adapt to survive. Organisations must learn as they evolve. During the nineteen eighties several people proposed the flexible firm model. This suggests replacing . . .
. . . A system of homogenous employment patterns, standardised contracts, uniform payment schemes and traditional labour deployment practices with more varied and flexible arrangements.
The flexible organisation is seen as having a core of highly trained workers, supported by a complex periphery of temporary, part-time and low skilled workers.
(Blyton & Morris, 1991)
Organizations that face the choice of implementing more flexible working arrangements, such as telecommuting, should pay attention to the personal suitability of candidates for these positions, and the special demands entailed in carrying out the job.
When an organization adopts a telecommuting work pattern, or even when individuals take it upon themselves to work independently in this manner, it is important to examine the potential suitability of the individual for the job, in order to improve the chances of success and satisfaction for all parties involved. Different variables that are likely to be instrumental in success or failure should be considered.
Several writers, notably Senge (1993), are now suggesting that organisations will change radically with the introduction of teleworking. Employers must be aware of the social consequences and how they can benefit from them.
As teleworking has captured the interest of the employer, it has also caught the attention of the trade unions. Trades unions came about with the Industrial Revolution when large factories replaced the cottage industries. Trades unions are very concerned that teleworking may see the return of the cottage industry and be used as an excuse for low-pay and long hours. They are also aware that the advance of teleworking is outside their control and is putting their efforts into ensuring their members are not exploited by its arrival.
Olson (1987) suggests four scenarios for remote working and teleworking that have been used as a basis for evaluation by other researchers, notably Huws, Korte and Robinson (1990).
The Privilege group
Are a small elite and some observers include them in the trade-off group and consider only three scenarios for teleworking (Stanworth & Stanworth, 1991).
The Exploitation group
Typically covers data-entry staff, word-processing operatives and other relatively low skilled workers who have to work from home because of factors such as children or lack of transport.
The Autonomy group
Consists mainly of entrepreneurial types who telework as a means of achieving some other work ambition. They would see many of the social problems discussed as challenges to be overcome and not as detrimental to their telework.
The trade-off
Teleworker’s consist mainly of professional workers who work at home because of family commitments or to save relocating. This is often a short term solution to a particular problem.
The privilege scenario
This describes those who are fortunate enough to be able to work from home by choice. Often they are skilled computer professionals who have a programming skill that is in great demand.
The sex of the teleworker has a bearing on the human aspects of teleworking. This is primarily because the housekeeping and child rearing responsibilities fall mainly on to women and men are still likely to be the major wage earners in a household. For example, a male teleworker usually has a separate room to carry out his work whereas a female teleworker typically works in the kitchen or living room (Huws et alia, ibid).
Another factor for consideration is the employment of disabled people as teleworker’s. Although telework may seem an ideal form of work for a disabled person, the great majority of telework schemes are introduced for the employers' benefit.
An understanding of the reasons for the individual teleworking is important when the social effects of large groups of teleworker’s are considered. There are many advantages and disadvantages of telecommuting for the employee which can be seen overleaf.
Legal Implications
Homeworking means using the home or part of the home as a workplace. Homeworkers, whether referred to as 'workers' or 'employees' or 'self-employed' are covered by existing health and safety law in the same way as any other worker i.e. by HSWA and legislation such as the:
- Management of Health and Safety at Work Regulations 1999
- Health, Safety (Display Screen Equipment) Regulations 1992
- Manual Handling Operations Regulations 1992
- Provision and Use Of Work Equipment Regulations 1992
Enforcement of health and safety legislation where the home is being used as a workplace is the responsibility of HSE inspectors, not local authority enforcement officers. HSE inspectors will normally only visit domestic premises in response to complaints or to investigate reported incidents. Inspectors will take into account the extent of the employer's duty and the amount of control they can reasonably exercise over an employee's home.
Recent developments
In 1997 the Health and Safety Commission (HSC) issued a discussion document, 'The Health and Safety Implications of Changing Patterns of Employment', which looked at new employment patterns including homeworking. Responses to the discussion document reflected concerns that homeworkers of all kinds faced major health and safety problems which were not being addressed. The HSC agreed that further research on a firmer scientific and evidential basis might be needed. The HSE has therefore begun to draw up plans for a research project into homeworking in 1998, which will:
- Assess if recent reports and research give a true picture of homeworking
- Identify what action can be taken to reduce or eliminate risks faced by homeworkers, and
- Inform a review of HSE's current policy on homeworking
It is intended to involve as many of the key interested parties as possible when developing the research proposal. The results of the research will be used to inform the review of HSE's current policy and guidance on homeworking.
Appendix 1 represents a charter that has been formulated to protect the rights of home workers. This takes into considerations matters such as:
- Working Conditions
- Privacy
- Data Protection
- Trade Unions
- Equipment
- Health and Safety
- Training
- Collective Rights Issues
This is a voluntary framework, which will protect the employees that are telecommuting, and inform them of their rights as employees. There maybe aspects within this charter, that the employer may keep to themselves to reduce the power that the employee has.
BBC Pilot’s Home-Working
Many firms are now starting to offer home-based working opportunities to their staff as demands for more flexible arrangements have grown.
BBC News is currently running a pilot scheme where 17 employees, including journalists, correspondents and producers, a management accountant and a documentary-maker all work from home.
Geoff Adams-Spink, project manager for the scheme said: "It is very popular with staff. They are happier, use their time more productively, and are less stressed. They are saving money commuting and are able to spend more time with their families.
"Good information technology support is absolutely crucial to the success of any home working scheme. It can make or break it.
"It is also vital to make sure that staff, do not overwork and that the equipment they are using at home is safe."
BBC decided not to continue with the project after the pilot scheme was completed as they found the costs involved were too high ()
British Gas
Call centre workers from British Gas have joined the Automobile Association’s telework programme. Around 25 employees of British Gas Services, which shares the same parent company as the AA - US-based energy supplier Centrica- now work from home on a full-time basis answering customer enquiries.
Teleworking at the AA started in 1997 with a pilot involving 10 call-handling staff based near the organisation’s Leeds call centre.
By the end of 1998 the success of the pilot had boosted the number of teleworkers to 25 with plans for a total of 150. In April 1999, shortly before its demutualisation and acquisition by Centrica, the AA decided to close the Leeds call centre, but to carry on with the teleworking programme. The staff based at the centre was given priority for the 125 teleworking posts, but most took voluntary redundancy.
The remarkable productivity of the teleworkers in the pilot – measured at between 37% and 45% higher than normal call handlers, has settled back at a still creditable 30% but this was one of the factors that convinced Centrica to carry on with the programme. Another was the low turnover rate among home-based staff of 5% a year, half the AA’s normal rate and one fifth of the average rate for UK call centre agents.
Telework Continues to Grow
A June press release from the Office for National Statistics says that there were over 2 million teleworkers in the UK in spring 2002, about one in fourteen of all those in employment. The release says "There has been a dramatic increase in the number of teleworkers - up by between 65 and 70 per cent over the period 1997-2001".
5.0 CONCLUSION
In conclusion, it is difficult to anticipate the future impact of telecommuting, although it seems that telecommuting can offer the employee an efficient solution in the search for a more balanced and satisfying lifestyle, and can contribute to an improvement in the quality of work and family life as well.
In general, it seems that the advantages of telecommuting outweigh the disadvantages, although before this can be concluded, more systematic research needs to be done on the different aspects related to the phenomenon.
6.0 RECOMMENDATIONS
- The organisation also needs to consider the emotional impact on the employee, carrying out a pilot scheme to ensure that teleworking is effective, both for the employee and employee.
- A detailed plan should be developed outlining the various rules and regulations as well as a guide of policies and procedures, so that both parties are happy with the arrangement, and are aware of their rights.
- It is recommended that the organisation carries out Training Needs Analysis to ensure the employee is trained in the right areas to be able to work independently and at a remote location.
- An effective procedure of monitoring performance should be put into place. Should performance be measured by output or by time spent online?
- An in-depth arrangement on Health and Safety issues should be considered. Will checks be made at each employee’s house? If so how often? Will this invade privacy laws?
APPENDICES
Appendix 1
Teleworking Guidelines
- Teleworkers should be employees of an enterprise and not deemed self-employed.
- To avoid isolation, contracts of employment should require home workers to periodically attend the office.
- There should be a separate room available at home for teleworking, a separate telephone and payment for additional costs such as heating and lighting.
- There should be regular meetings between teleworkers and the provision of electronic mail and telephone links with other teleworkers, all to be provided at the employer's expense.
- There should be regular weekly liaison discussions between a teleworker and his or her supervisor / manager.
- Teleworkers should enjoy the same rates of pay and employment benefits as office based workers including child care provision and family leave. There should be a defined number of working hours. They should be included in career development and appraisal schemes including training opportunities.
- All computer equipment should be provided, paid for and serviced by the employer who will be responsible for installation, maintenance, insurance and compliance with health and safety requirements. The employer should also accept legal responsibility for any accident or injury.
- Teleworkers should have access to trade union representation and be able to attend meetings within working hours. Health and safety advisors and trade union representatives should be able to visit teleworkers.
- Teleworking should be voluntary with a right to return to working from the office.
(MSF Information Technology Professionals Association)
Appendix 2
Trends
Who are the teleworkers?
Seven out of ten teleworkers (69%) are men, despite the fact that men make up little more than half (56%) of those in employment. Women are more likely to be working at home, whilst men are more likely to be work from several different locations, using the home as a base.
Over a quarter of all teleworkers (27%) work in the business services sectors with another 25% in the public and voluntary sectors
Most teleworkers are in senior jobs: 28% are managers, 22% are professionals and 18% are in associate professional or technical occupations.
Compared with the rest of the working population, teleworkers are more likely to be graduates, to be married and to be in mid-career (in their thirties or forties)
What are the trends?
- The increase in teleworking in the past year has been proportionally greater among women (at 24%) than men (at 17%)
- The fastest-expanding teleworking occupation is management, with an increase of 25% in managers working from home
- Growth has been especially strong in the financial services sector which has seen an increase of 34% in teleworking.
- Despite an overall decline of 1% in the numbers of clerical workers in the British workforce, there has been a 12% increase in clerical teleworking
- The 21% increase in working at home has been somewhat greater than that in multi-location working from a home base, which increased by 15% over the year.
Teleworking is increasing more rapidly amongst employees (at 22%) than the self-employed (at 15%). The self-employed now make up only 44% of teleworkers, compared with 46% in 1999 and 48% in 1998. This is in line with the general decline in self-employment in the United Kingdom, which fell by 2.3% in a year in which employment as a whole grew by 1.3%.
BIBLIOGRAPHY
Beardwell, I Human Resource Management
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Pitman Publishing
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Bratton, J Human Resource Theory and Practice
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Corbridge, M Employment Resourcing
Pilbeam, S First Edition
Prentice Hall, Financial Times
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Curtis, Susan Second Edition
Pitman Publishing
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Stoner, J Management
Freeman, E Fourth Edition
Prentice Hall
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Wilkinson, A Prentice Hall
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REFERENCES
Ajzen, I, Fishbein, M, 1980, Understanding Attitudes and Predicting Social Behavior, Prentice-Hall, Englewood Cliffs, NJ.
Blyton, P, Morris, J, 1991, A Flexible Future? Prospects for Employment and Organisation, Berlin, New York
Bussing, A., 1998, "Teleworking and quality of life", Jackson, P.J., Van Der Wielen, J.M., Teleworking: International Perspective, Routledge, London.
Caldwell, B, Gambon, J, 1996, the Dilema of Telework
Harpaz, H, 2002, Work Study,
Volume 51, Number 2, 2002 pp 74-80, Telecommuting
Huws, U, Korte, W, Robinson, 1990, Telework Towards the Elusive Office, Chichester, J Wiley and Sons
Huws, U, 1993, Teleworking In Britain, A Report to the Department Of Employment
Mehlmann, M, 1989, Social Aspects of Telework, Amsterdam, Elsevier Publishers
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Olson, M, 1987, An Investigation Of the Impacts Of remote Work Environments and Supporting technology, New York University
Pratt, J.H., 1993, Myths and Realities of Working at Home: Characteristic of Home-based Business Owners and Telecommuters, National Information Technical Service,
Senge, P. 1993, The Fifth Discipline, London, Random House UK
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ADDITIONAL SOURCES OF INFORMATION
ACAS Northern Regional Office
Commerce House
St Alban’s Place
Leeds
LS2 8HH
0113-243-1371
DTI Publications Orderline
Admail 528
London
SW1W 8YT
0870-150-2333
Legal Advice Service Voluntary Action Sheffield
69 Division Street
Sheffield
S1 4GE
0114-249-3360
National Council Voluntary Organisations
Regent’s Wharf
8 All Saints Street
London
N1 9RL
0207-713-6161
MSF Information Technology Peter Skyte, National Secretary, Association
Professionals 50 Southwark Street
London
SE1 1UN
England.
World Wide Web page (no author)
(Contemporary Issues in HRM Assignment Sheet 2003)
LEARNING OUTCOMES
- The major issues facing HR managers and departments in the current business climate
- The major employment strategies that employers develop, including the drive for greater workforce flexibility and skills development.
The learning outcomes above, have been achieved in completion of this assignment
Sejal Patel David Williams
