telecommuting/telework programs - at&t business · pdf filei t i a t i v e united states...

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United States Air and Radiation EPA 420-S-01-007Environmental Protection Transportation and Air Quality September 2001Agency

ORDERINGThis publication may be ordered from the National Service Center for Environmental Publications (NSCEP) at:

U.S. Environmental Protection AgencyNSCEPP.O. Box 42419Cincinnati, OH 45242-2419Phone: (800) 490-9198, Fax: (513) 489-8695

FOR MORE INFORMATIONThis guidance document and other information about the Commuter Choice Leadership Initiative are availableat www.commuterchoice.gov or by calling the Commuter Choice voicemail request line at (888) 856-3131.

ACKNOWLEDGEMENTSThis document was prepared for EPA's Office of Transportation and Air Quality under contract 68-W6-0029,by Michael Grant and Liisa Ecola of ICF Consulting, 9300 Lee Highway, Fairfax, VA 22031, (703) 934-3000.

We would like to thank the various reviewers who provided comments and feedback on the document.

Recycled/Recyclable. Printed with Vegetable Oil Based Inks on Recycled Paper (Minimum 50% Postconsumer) Process Chlorine Free

COMMUTER CHOICE LEADERSHIP INITIATIVEThe National Standard of Excellence for Commuter Benefits

Telecommuting/TeleworkImplementing Commuter Benefits under theCommuter Choice Leadership Initiative

● Telecommuting, also known as telework, is a work arrangement in which employeeswork part- or full-time from alternate locations, such as their homes or telework centers.

● Telecommuting has a number of important benefits for employers: it can serve as a valu-able recruitment and retention tool, increase employee morale and productivity, andreduce costs through office space and parking savings.

● Current estimates show that over 10 percent of the U.S. workforce telecommutes eitherpart- or full-time. Improvements in information technology and remote computingaccess make this number likely to rise in the future.

● Studies have shown that telecommuters tend to drive less on the days they telecommute,which reduces both road congestion and air pollution.

● Telecommuting is one of the primary benefits under the Commuter Choice LeadershipInitiative (CCLI). Employers must offer at least one of three primary benefits to theiremployees in order to participate in the CCLI (the other two are transit or vanpool benefitsand parking cash out).


This document is one in a series of Commuter Choice Leadership Initiative briefing papers designed to helpemployers implement commuter benefits.

The U. S. Environmental Protection Agency (EPA) and the U. S. Department of Transportation (DOT) haveestablished a voluntary National Standard of Excellence for employer-provided commuter benefits.Commuter benefits help American workers get to and from work in ways that cut air pollution and globalwarming pollution, improve public health, improve employee recruiting and retention, improve employeejob satisfaction, and reduce expenses and taxes for employers and employees. Participants in the CommuterChoice Leadership Initiative (CCLI) agree to meet the National Standard of Excellence, and qualify asCommuter ChoiceSM Employers. CCLI participants agree to:

● Centralize commute options information so that it is easy for employees to access and use;

● Promote the availability of commuter benefits to employees;

● Provide access to a guaranteed ride home program;

● Provide one or more of the following primary commuter benefits:

✓ Vanpool or transit benefits of at least $32.50 per month✓ Parking cash out of at least $32.50 per month✓ Telecommuting program that averages six percent of daily work force✓ Other option proposed by employer and agreed to by EPA

● Provide three or more of the following additional commuter benefits:

● Exceed a minimum benchmark of either 14 percent of employees who do not drive alone to work or anaverage vehicle ridership (the number of vehicles divided by the total number of employees) of 1.12.

Please see the CCLI Agreement and Agreement Particulars documents for specific information aboutemployer participation requirements.

✓ Ridesharing/carpool matching✓ Pre-tax transit/vanpool benefits✓ Shuttles from transit station✓ Parking at park-and-ride lots✓ Provision of real-time transit information✓ Preferred parking for ridesharers✓ Reduced parking costs for ridesharers✓ Employer-sponsored vanpool or subscription bus

programs✓ Employer assisted vanpools✓ Secured bicycle parking, showers, and lockers✓ Electric bicycle recharging stations

✓ Employee commuting awards programs✓ Discounts/coupons for bicycles and walking shoes✓ Compressed work schedules✓ Telecommuting✓ Lunchtime shuttle✓ Proximate commute (working closer to home)✓ Incentives to encourage employees to live closer to work✓ On-site amenities (dry cleaning, etc.)✓ Concierge services✓ Active membership in a Transportation Management

Association (TMA) or similar organization✓ Other options proposed by employer


Disclaimer

EPA provides this briefing as a service to employers participating in the CCLI. Information about privateservice providers is intended for informational purposes and does not imply endorsement by EPA or thefederal government.

The information presented here does not constitute official tax guidance or a ruling by the U.S. Government.Taxpayers are urged to consult with the Internal Revenue Service of the U.S. Department of Treasury or a taxprofessional for specific guidance related to the Federal tax law.

CCLI: Telecommuting/Telework

Table of Contents

TELECOMMUTING: A SUMMARY ...................1

BRIEF HISTORY.....................................................1

EMPLOYER BENEFITS ........................................2RECRUITING AND RETENTION.............................................2COST SAVINGS ..........................................................................2INCREASED PRODUCTIVITY .................................................2

BENEFITS AT INDIVIDUAL EMPLOYMENT SITES ............3

TAX CONSIDERATIONS.......................................3

EMPLOYEE BENEFITS ........................................3

WHEN TELECOMMUTING MAKES SENSE ...3EMPLOYERS WITH INFORMATION WORKERS..................4ESTABLISHED EMPLOYEES...................................................4EMPLOYEES WITH PERSONAL NEEDS ...............................4COMPETITIVENESS IN A CROWDEDEMPLOYMENT FIELD..............................................................4

IMPLEMENTATION ISSUES AND COSTS........5ELIGIBILITY...............................................................................5AMOUNT OF TIME SPENT TELECOMMUTING ..................5TELECOMMUTING PROGRAM TURNOVER........................5COSTS..........................................................................................5COST SAVINGS ..........................................................................6TELECOMMUTING AND USE OF OFFICE SPACE...............6MANAGEMENT ISSUES...........................................................6

GUIDE TO IMPLEMENTATION .........................7

EMPLOYER QUESTIONS AND ANSWERS......6QUESTION: HOW PRODUCTIVE ARE EMPLOYEESWHEN THEY ARE NOT IN THE OFFICE? ...........................10QUESTION: HOW DIFFICULT - AND COSTLY - IS ITTO ESTABLISH AND ADMINISTER THE PROGRAM?......10QUESTION: HOW DOES WORKING AT HOMEAFFECT DEPENDENT CARE ISSUES?.................................10QUESTION: WHO PAYS FOR CHARGES SUCH ASINCREASED ELECTRICITY AND TELEPHONE COSTS?..11QUESTION: IS THERE AN IDEAL PERCENTAGE OFEMPLOYEES WHO SHOULD TELECOMMUTE?................11QUESTION: HOW DOES TELECOMMUTING AFFECTMORALE AND PRODUCTIVITY AMONG WORKERSWHO CONTINUE TO WORK ON-SITE? ...............................11QUESTION: DO EMPLOYEES AND SUPERVISORS NEEDTRAINING BEFORE STARTING A TELECOMMUTINGARRANGEMENT?....................................................................11

QUESTION: CAN I REQUIRE EMPLOYEES TOTELECOMMUTE? ....................................................................11QUESTION: DO ANY STATE OR LOCAL GOVERNMENTSOFFER INCENTIVES FOR DOING THIS? ............................12

EMPLOYER CASE STUDIES .............................12NEW YORK CITY, NEW YORK - MERRILL LYNCH..........12MINNEAPOLIS, MINNESOTA - SOPHEON RESOURCENETWORK CORPORATION ...................................................12NEW JERSEY - PHARMACEUTICAL MARKETINGFIRM ..........................................................................................13MINNEAPOLIS, MINNESOTA - ABBOTTNORTHWESTERN HOSPITAL................................................14MULTIPLE LOCATIONS - DAVIS WRIGHTTREMAINE LLP .......................................................................14

SERVICES THAT SUPPORTIMPLEMENTATION.............................................15

ASSOCIATIONS AND CONTACTS ...................15ORGANIZATIONS THAT PROMOTETELECOMMUTING .................................................................15ONLINE RESOURCES .............................................................16

REGIONAL RESOURCES........................................................16

EMISSIONS AND TRANSPORTATIONBENEFITS ..............................................................18

REFERENCES AND PUBLICATIONS ..............19

TELECOMMUTING: A SUMMARY

Telecommuting is a workplace arrangement inwhich employees work part- or full-time awayfrom the primary workplace. Most telecommuterswork out of their homes, but a smaller numberwork out of "telecenters:" offices with communi-cations access to the main workplace, but closerto the employee's home.1

Most telecommuting is based on exchanginginformation via telephone and computer.Telecommuting has been increasing as communi-cations technology improves and becomes cheap-er, and as employers and employees have becomemore comfortable with it. However, manyemployees and employers have also begun toregard telecommuting as having a positive impacton employees through reducing long commutes.As a result, in addition to providing emissionsbenefits, telecommuting is also a valuable recruit-ment and retention tool for employers.

The term "telework" is generally interchangeablewith telecommuting. However, some authors usethe term "telework" for a broader category ofemployees who are able to work from any loca-tion (e.g., hotels, airports, client offices) usingcommunications technology, and are not tied to afixed location. The distinction between theseterms may become more blurred with the growthof communications technologies. However, mostsurveys of telecommuting do not make this dis-tinction, and accurate estimates of the number ofteleworking employees are not available, so thispaper uses the term telecommuting for both typesof work.

BRIEF HISTORY

Telecommuting is linked to the proliferation andadvance of telecommunications technology. Untilthe 1980s, most office arrangements requiredemployees to be physically present to performtheir jobs. However, with the ability to exchangedocuments over phone lines via modems, manyjobs (in whole or in part) can be performed fromremote sites. Such tasks as entering and analyzingdata, writing and editing documents, and comput-er programming are no longer tied to specificlocations. The term "telecommuting" was coinedby Jack Nilles in 1973, during a period in whichinterest in the concept was high due to the growthin computer technology and the oil crises.

Telecommuting has increased dramatically overthe past several decades, for several reasons:advances in computer and remote access technol-ogy, longer commutes, and the desire of employ-ees to spend more time with family. However, theactual number of telecommuters is difficult tomeasure accurately because of varying definitionsand the small sample size of many surveys.Current estimates from the International TeleworkAssociation & Council (ITAC) put the number oftelecommuters in the U.S. at 16.5 million in 2000(ITAC, 2000). According to the U.S. Departmentof Labor, 17.7 million non-agricultural workersworked on their principal job from home in 1997,the most recent year for which figures are avail-able (Dept of Labor, 1999, table 3-10). These fig-ures imply that approximately 12 percent of theworkforce telecommutes at least occasionally. Onthe other hand, market research firm IDC puts thetotal number of home-based offices at 34.3 mil-lion, of whom only 8.7 million are classified astelecommuters (IDC, 2000).


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1 Telecommuting does not include the followingemployment arrangements: home-based businesses (smallcompanies with their main offices co-located in a resi-dence), work in branch offices, and employment in whichthe regular work location is not fixed (for example, truckdrivers and airplane pilots would not be considered to betelecommuters).


EMPLOYER BENEFITS

Telecommuting can assist a business in severalkey areas.

Recruiting and Retention

Many employers are looking at telecommutingprimarily as an employee benefit, not a cost- orspace- saving measure. The literature aboundswith anecdotal evidence that employees seek outjobs and firms with telecommuting possibilities:

Schilling [owner of telecommuting consultingfirm TCS] cites the case of a competitor ofAmerican Express, one of TCS' earliestclients. "They didn't have any of the issuesthat ordinarily lead to a formal program,"says Schilling. "So I [say], 'OK, we don't getit. Why do you want to do telecommuting?'And they [say], 'Because American Express isdoing telecommuting.' We are after the samepeople as it is, and we're starting to get anincreased number of people coming throughthe door, and they ask us 'Do you offer work-at-home programs?' When we say 'No,' theysay, 'Thank you very much.' So we have allthis space, we have all these great things,we're rural, and the cost of telecom and net-work is under control, but we've got to offerthis because those guys offer it." (Hotch,1999)

In addition, many employers have found thattelecommuting allows them to retain employeeswho would otherwise leave for personal reasons,such as moving out of the area or the birth of achild. Fitzer (1997) makes a typical case:

Some companies have come to view telecom-muting options as important components oftheir competitive strategies for attracting andretaining valuable talent. For example, aConnecticut-based insurance companyarranged for one of its most productive soft-ware programmers to telecommute from

Canada. The company calculated it was lesscostly to pay for the employee's regular officevisits and for installation of the needed technol-ogy in the worker's home than to lose the pro-grammer's business knowledge and creativity.

Cost Savings

Many companies find that telecommuting savesmoney in the long run, because cost savings canbe achieved in a number of areas:

● Reduced rent costs if telecommuting employ-ees use less office space;

● Reduced recruiting and retention costs; and● Increased productivity for telecommuting

employees.

Fitzer (1997) speculated that the net savings pertelecommuting employee could reach $12,000annually:

Another powerful driver spurring the use oftelecommuting is potential real estate costsavings from housing fewer employees on-site. These savings easily offset the expenseof equipping telecommuters with hardware,software, and other needed supplies. JuneLanghoff, author of the recently publishedbook, The Telecommuter's Advisor, says thatemployees telecommuting two days a weekcan save companies 15 to 25 [percent] inhigher productivity, as well as decreaseturnover, reduce space requirements, anddecrease sick-time usage by two days, result-ing in a total savings per employee of an esti-mated $12,000 annually.

Increased Productivity

Many telecommuters report higher productivitywhile working from home, due to reduced work-place distractions. For example, according to the1999 Telework America National TeleworkSurvey, almost one-half of telecommuters

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surveyed reported higher productivity at homethan in the office (40 percent said their productiv-ity was unchanged, while only 10 percent saidtheir productivity had declined.) (Pratt, 1999) Inaddition, use of sick leave tends to decline whenemployees telecommute. This may be due to aseveral reasons: employees are less likely to callin sick for spurious reasons, less likely to needtime off for doctor's appointments, and less likelyto need time off because of a sick child.

Benefits at Individual Employment Sites

Employers that institute telecommuting programsmay be able to reduce parking at their workplacesif the number or percentage of telecommuters issufficiently high.

TAX CONSIDERATIONS

There are currently no federal tax incentives orimplications for establishing a telecommutingprogram. Legislation introduced at the federallevel would allow a $500 tax credit for employersor employees who begin telecommuting over 75days per year. Rep. Frank Wolf (R-VA) mostrecently introduced a bill in March, 2001 (aFebruary, 2000 introduction of identical legisla-tion died in committee), and companion legisla-tion was introduced in the Senate by Sen. RickSantorum (R-PA). The tax credit could be takenby either the employer or the employee, depend-ing on who incurred the expense of setting up ahome office.

For tax purposes, telecommuters are consideredregular employees (not persons running a busi-ness out of a home). If a telecommuting employ-ee lives in a different state than the employer'smain office, s/he should consult a tax expert todetermine applicable state tax laws. Generally,most telecommuters will not be eligible to claimthe home-based office tax deduction. Accordingto IRS regulations, in order for a telecommuterhome office to qualify for the home office deduc-tion, it must be regularly and exclusively used for

business, and the arrangement must be at theemployer's request (i.e., if the telecommuterchooses to work out of the home for convenience,the deduction would not be allowed). (Flynn,1999)

At the state level, Oregon allows employers totake a tax credit of 35 percent for investmentsmade in telecommuting (i.e., costs of purchasingand installing office and computer equipment).The credit, which employers must be approvedfor in advance of their investments, is spread overa five-year period: 10 percent in the first twoyears, and five percent annually for the next threeyears. Telecommuters must work from their homeor telework center at least 45 days per year tomake the program eligible.

EMPLOYEE BENEFITS

Employees generally react very positively totelecommuting programs. The main benefit iscommute time savings, which can amount to sev-eral hours per day or more. Employees can spendthis extra time with their families, or on otherpersonal needs.

Employees also enjoy the following benefits:

● Decreased stress. Many drivers find solocommutes in heavy traffic stressful.Telecommuting allows them to avoid traffic.

● Reduced costs. Telecommuters save on gas,depreciation, and general wear and tear ontheir vehicles.

WHEN TELECOMMUTINGMAKES SENSE

Many disparate factors affect employers' abilityto offer telecommuting, and the effectiveness oftelecommuting programs. While the followingdiscussion is not exhaustive, it covers the mainfactors.


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Employers with Information Workers

Only employees who can perform their tasks awayfrom the main workplace can telecommute. TheU.S. Office of Personnel Management (OPM) sug-gests the following types of jobs as most suitablefor telecommuting (OPM, 2001):

● Jobs that involve thinking and writing● Data analysis● Writing decisions or reports● Telephone intensive tasks● Computer-oriented tasks (data entry, web page

design, word processing, programming, engi-neers)

● Payroll transaction processing● Analysis-type work (investigators, program

analysts, financial analysts)● Engineers● Architects● Researchers● Customer service jobs

As the list above describes many white-collar jobs,offices with high concentrations of such workersare good candidates for telecommute programs. Onthe other hand, jobs that require face-to-face com-munication, access to on-site materials or files(including confidential material), and site-specificoccupations are not as amenable to telecommuting. Within companies whose primary occupations arenot right for telecommuting, there may still be posi-tions with the potential to telecommute (for exam-ple, a large construction company with an in-househuman resources department might allow anemployee in the payroll section to telecommute).There may also be positions whose duties wouldlend themselves to telecommuting on a part-timebasis. In general, however, telecommuting has themost promise in offices with large concentrationsof information workers, whose outputs dependlargely on computer access.

Established Employees

Because telecommuting requires supervisingemployees not at the workplace, telecommutingtends to work better for employers who are alreadyassured of their employees' work quality and relia-bility. Most employers are reluctant to allow newemployees to telecommute, because of concernsthat they may not perform well or that they will notbecome sufficiently acquainted with the company'sinternal structure and culture. Similarly, at a verynew company, the importance of face-to-face inter-action among all employees may outweigh thepotential benefits of telecommuting.

Employees with Personal Needs

Telecommuting may be used by employers toretain established employees who would otherwiseresign for personal reasons (moving, child- oreldercare issues). In addition, some employers havefound that disabled employees can be accommodat-ed through telecommuting when physical accessissues are problematic.

Competitiveness in a Crowded Employment Field

Many companies have begun to view telecommut-ing as primarily an employee benefit, rather than atransportation strategy or means to reduce costs.For example, one survey of 3,400 high tech work-ers in the Washington, DC area asked whatemployer perk they would most appreciate; thelargest response (548 respondents, or 16 percent)was telecommuting, followed by training and flex-time. (Behr, 1999)

However, employers should also be aware thatbecause not all positions are suitable for telecom-muting, they may not want to characterize telecom-muting as a "benefit." Rather, they may wish topublicize a telecommuting program or arrange-ment, so as to minimize the perception thattelecommuting will be available to all employees.

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IMPLEMENTATION ISSUES AND COSTS

This section addresses a variety of implementa-tion issues, including supervision and evaluation.

Eligibility

An employer should establish guidelines fordetermining which employees can telecommute.There may be two components to eligibility:which activities within a company are suitable fortelecommuting, and which employees have thejob skills that make them eligible to telecommute.Even if a particular activity or position lendsitself to telecommuting, the employee may not beallowed to telecommute until after a training peri-od, or obtaining a certification. Telecommutingguidelines and policies should address bothissues.

Amount of Time Spent Telecommuting

Few telecommuters spend their entire workweekoff-site. One study (Varma, et al., 1998) foundthat the average number of days worked at tele-work centers by California employees was 1.1per week. Handy and Mokhtarian (1996), review-ing the research, found that the average numberof days telecommuters spent working off-site wasone to two per week. While this may vary withthe type of work performed, most firms find thatfull-time telecommuting is far less common thanoccasional telecommuting.

Telecommuting Program Turnover

If programs are solidly implemented and telecom-muters selected well, telecommuting programsare generally successful. However, a few studiessuggest that some employees encounter problemswith the arrangement and return to regular com-muting. In a study of approximately 275 telecom-muters at telework centers in California, 50 per-cent stopped telecommuting within nine months.(Varma, et al., 1998) Most reasons were job-relat-ed (e.g., a change in position or request from

supervisor to return to a regular office schedule),rather than personal dissatisfaction with thearrangement. Also, turnover may be higher attelecenters than for home-based telecommuters,and some telecenter employees find it is just aseasy to work at home.

Costs

Employers usually pay the costs of telecommut-ing arrangements for their employees. Costsmight include computer equipment, networkingaccess (including internet, intranet, and/or com-pany servers), additional phone lines, faxmachines and printers, and in some limited casesgeneral office equipment (ergonomic chairs, files,cabinets, etc).

Costs to implement a telecommuting programwill vary dramatically depending on the type ofequipment currently owned by the employer;according to one recent article, "Starting fromscratch, you'll pay anywhere from $1,500 to$30,000 for network server alone," in addition tomonthly costs (Sandlund 2000b). Another studyadvised companies that average investment peremployee would be $3,000 to $5,000, with anadditional $1,000 incurred in costs each year(Cascio, 2000). JALA International's general esti-mate claims that the average employer will spend$5,500 in establishing each individual employeeas a telecommuter (estimate available athttp://www.jala.com/homecba.htm). Most costsare depreciable, so the bottom-line costs will beless.

In addition, employers should consider liabilityissues, such as responsibility for lost data, theft ofequipment, or damage due to power spikes, andinsure telecommuters appropriately. There is asmall field of telecommuting law that considersunder what circumstances employers could beheld liable for workplace injuries incurred in theemployee's home (Sandlund, 2000a).


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Cost Savings

Although implementing a telecommuting pro-gram requires investment, many find that it pro-duces long-term savings. For example, telecom-muting consultant JALA International estimatesthat the average business will achieve net benefitsof $6,400 in the first year of telecommuting,through a combination of increased productivity,reduced sick leave, decreased turnover rate, andreduced need for parking and office space (seewww.jala.com/twctrcba.htm). ITAC (InternationalTelework Association & Council) found that theequivalent values in 1999 were $11,850. (Pratt,1999)

Not surprisingly, cost savings vary. In a pilotproject in which 60 employees at the MinnesotaDepartment of Administration telecommuted for12 months, supervisors reported no change in theuse or amount of new office space needed. Inaddition, only eight percent of supervisors report-ed reduced operating costs; most reported nochange. (Minnesota Office of Technology, 1997)Potential cost savings depend on many factors:current operating costs, investment in telecom-muting infrastructure (for example, if a firminvests in a computer server for only onetelecommuter, savings will be much less than ifthe same investment handled 10 telecommuters),and whether telecommuting is linked to changesin organizational structure.

Telecommuting and Use of Office Space

Telecommuting can be performed:

● From the employee's home; ● From an employer's satellite office close to

the employee's home;● From a telecenter (an office in which employ-

ers rent space for telecommuters); or ● Entirely remotely (from locations such as

hotels, airports, or client offices).

Most telecommuting is currently done from theemployee's home. According to ITAC's TeleworkAmerica 2000 survey, only seven percent oftelecommuters work exclusively from telecenters,while another four percent work from both homeand telecenters. Entirely remote work is uncom-mon; it is most likely to be practiced by a mobilesales force or other employees who travel exten-sively.

In a "hotelling" arrangement, employees nolonger have a permanent workspace in the mainoffice, but are assigned an office based on theirneed for space. This arrangement can reduce rentcosts, since several telecommuting employees canshare a single office, on different days. Thisarrangement tends to work best when telecom-muting employees use the main office infrequent-ly, and need relatively few physical files-that is,they need only phone and computer access.However, there are many varieties of hotellingand space-sharing, and in some cases they areused by telecommuters in the office as many asthree days a week.

Management Issues

Managing employees who are not at the work-place daily poses a number of challenges.Duxbury and Neufeld (1999) studied how work-place communication changed when employeesbegan telecommuting, and reported that employ-ees and managers raised three main issues:

● Communications between managers andemployees became more formal (increaseduse of phone and memos, with a concurrentdecrease in face-to-face meetings);

● Loss of informal office culture and decreasein the ability to make spontaneous workassignments and decisions;

● Perceptions by co-workers that the telecom-muter was not working while at home (e.g.,"Co-workers seem afraid to call me at home.They think they'll be bothering me.") andoccasional jealousy of telecommuters.

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These potential problems can be avoided throughcareful selection of telecommuting participantsand training.

GUIDE TO IMPLEMENTATION

Telecommuting can reward businesses in terms ofrecruitment, retention, and cost savings.However, implementing a telecommuting pro-gram involves a high degree of investment ininformation technology, trust in workers, changesin supervisory techniques and expectations, andsupport from management. The following sug-gested 12 steps are drawn from two sources:OPM and the American Health InformationManagement Association (AHIMA). The stepsare meant as a rough guide for interested employ-ers; specifics will necessarily vary from employerto employer depending on the size of the firm,the nature of the work, and the potential numberof telecommuters.

1) Designate a telecommuting coordinatorand/or implementation committee.

Before proceeding with a telecommuting project,key stakeholder personnel should be identified.This committee include representatives fromhuman resources, information management, riskmanagement, facilities management, and seniormanagement, as well as employee representa-tives.

2) Obtain support from senior management.

Senior management should be involved and sup-portive from the inception of the program. Telecommuting may raise issues such as changesin supervisory techniques and productivity meas-urement that senior management should be awareof; in addition, telecommuting will involve bothstart-up and on-going costs.

3) Determine employee interest.

The program coordinator or committee shoulddetermine the extent of employee interest intelecommuting, perhaps through survey or orien-tation sessions. General parameters of a possibleprogram could be discussed.

Two other groups should be considered at thistime. First, unions should be included in the deci-sion-making process. Employers sometimesencounter concern from unions, from fear thatemployees will be forced to work at home whenthey prefer to remain in an office setting, or thattelecommuting may become a way to squeezemore work out of employees. Second, managerswill benefit from orientation and education abouttelecommuting. Early involvement by managersmay avoid the fear that telecommuting is some-thing being "done to them," and can also alert thecoordinator or committee to real or perceivedproblems.

4) Explore which arrangement - home-based,hotelling, telework center, or other - will bemost feasible and productive.

Companies can set up telecommuting programsin many ways, as described above. The bestarrangement for a particular employer willdepend on many factors - the type of work (forexample, data entry from home one day perweek, or most time at sales and client meetings),the size of the company (will there be enoughemployees to make setting up or renting telecen-ter space economically feasible?), and the type ofremote computer access needed.

If there are area telecenters, the committee shouldmake a recommendation as to whether they are apossibility. The decision should be made withinput from affected departments and senior man-agement. Telecenters offer the advantage of beingalready set up with computing equipment and inmany cases professional staff; on the other hand,fees may be several hundred dollars per month ormore to use the facility one day per week.


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5) Identify specific positions appropriate fortelecommuting arrangements.

Not all positions are suitable for telecommuting.Generally the most likely positions for telecom-muting are knowledge- and information-intensivepositions (analysts, researchers, data entry, pro-gramming, etc.), positions that require outsidemeetings (sales representatives, etc), and otherpositions whose duties can be performed out ofthe office (telephone work, reading, writing).Positions that require face-to-face interactionwith co-workers or clients (medical/nursing,receptionist, elementary school teaching), accessto site-specific files (military personnel dealingwith classified information), and other jobs thatrequire presence in a particular location (photog-rapher) are generally not be suitable for telecom-muting. Also, telecommuting does not have to beall or nothing; many positions may require someface-to-face contact, but still be suitable for part-time telecommuting.

6) Determine equipment, technology, security,and liability needs and costs.

Telecommuting requires, in most cases, sophisti-cated information technology equipment to giveemployees access to company files, internal net-works, e-mail, and the like. In addition, manyemployees may require additional phone lines,fax and printers, and standard office equipment.The information technology department shouldassess the company's current infrastructure anddetermine whether upgrades or new equipmentare needed, and what level of security should beprovided. Employees should have access to simi-lar equipment that they have in the office tomaintain the same level of productivity. In gener-al, the older the current equipment, the more cost-ly and difficult it will be to implement telecom-muting.

The technical issues around remote access are toocomplicated to explore in depth in this paper. Auseful list of articles reviewing broadband andDSL options can be found at http://www.gilgor-don.com/resources/reports.htm Also, the ITACe-Work Guide has a chapter dedicated to technologyissues; it is available at http://www.telecom-mute.org/brp/ework_guide.shtml

Cost estimates for equipment procurement andinstallation may take time to prepare, especially ifa company has complex security or proprietaryinformation issues to address.

In addition, employers should explore potentialliability issues regarding loss or damage to home-based employer-owned equipment, loss of valu-able company information through computer fail-ure or hacking, and workplace injuries that occuroff-site. The company's insurance policies shouldbe updated accordingly.

7) Prepare and present a telecommutingproposal.

Before beginning any telecommuting program,the following parameters should be well-defined:

Pilot program. Will there be a pilot program tobe evaluated before an organization-wide adop-tion of telecommuting? If so, these guidelinesshould be drawn up.

A telecommuting policy for the organization.This would define eligible positions, guidelinesfor participation (e.g., an employee must workfull-time for a year before becoming eligible, orhave certain defined work skills), financialresponsibility (e.g., the employer pays for equip-ment and installation, but the employee agrees topay for additional insurance against theft), andany change in status or benefits for telecom-muters.

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Develop a telecommuting agreement. BothOPM and AHIMA recommend formal agree-ments between employers and individual employ-ees who want to telecommute. The agreementshould include such topics as trial period, officialduties, work schedule, timekeeping and leave,equipment and supplies (including ergonomicstandards and other OSHA issues), security andliability, worksite criteria, costs, injury compensa-tion, and performance evaluation. Sample agree-ments are available at:

● www.opm.gov/wrkfam/telecomm/Tele-Sam.htm#Sample%20Agreement

● www.ahima.org/journal/pb/99.02.ex3.html● www.telecommute.org/brp/ework_guide.shtml

Screening criteria. Subject to equal employmentopportunity criteria, an employer should screenpotential telecommuters via survey form or per-sonal interview. Criteria might include the type ofjob duties to be performed, the degree to whichthe employee can be evaluated based on workproducts, not physical presence, and suitability ofemployee's home as office space. The companyshould have a clear policy on telecommuting eli-gibility to diminish perceptions or possible accu-sations of favoritism or discrimination.

Similarly, employees should screen themselves ifthe home situation is not suitable in some way, orif the person does not have the self-disciplineneeded to work from home. Also, employeesshould be clear that they cannot both telecom-mute and care for dependents simultaneously.

Evaluation criteria. If the employer sets up aninitial pilot program before implementing a full-scale telecommuting program, evaluation criteriashould be selected. These could include employeeproductivity (along with basis for measurement),employee satisfaction, client or customer satisfac-tion (for example, if a customer service represen-tative begins working from home), and degree to

which other employees in a section are affectedby a telecommuter (e.g., is other employees' workhindered by the telecommuter's absence) If a for-mal evaluation is to be completed, baselinebenchmarking data should be established so thatbefore-and-after comparisons can be made.

8) Take final steps toward implementation.

This includes procuring and installing equipment,selecting telecommuters, disseminating telecom-muting guidelines and policies, signing telecom-muting agreements, and setting an implementa-tion date.

9) Train all personnel involved.

Telecommuting involves new ways of working aswell as supervising and evaluating, so participat-ing personnel - whether employees or supervisors- should receive training. Some companies evenset up a simulation lab in which potentialtelecommuters can work for several weeks underconditions similar to their potential home officeset-up: no face-to-face contact with other employ-ees and remote computing access. This allowsthem to determine their suitability for telecom-muting.

In addition, a company may wish to develop atraining program for supervisors so they will befamiliar with the demands and issues raised bytelecommuting - lack of direct personal contact,potential difficulties with on-site employees, andmeasuring productivity. Some consider supervisortraining as important as employee training.

10) Administer pre-telecommuting evaluation.

If a before-and-after benchmarking survey is tobe done, the pre-telecommuting survey should beadministered at this point, before program imple-mentation begins.


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11) Implement the program.

Once equipment, guidelines, agreements andtraining have been signed and completed,telecommuting can be implemented.

12) Assess results.

After a period of time, the firm should assess theprogram's effectiveness. If a before-and-after sur-vey was carried, the after data should be assessed.Those results, as well as other measures of cost,productivity, and morale, should be compared toevaluation criteria established earlier. This willform the basis for determining whether the pro-gram should be continued in its current form,expanded, or otherwise modified.

Implementation Costs and Administrative BurdenUnlike many other commuter benefit programs,telecommuting involves a major commitment ofboth financial and staff resources. The heaviestburdens tend to fall on two groups. Supervisorsmust revise their methods of managing employ-ees out of their direct contact and deal with thetensions that can arise between employees at theworkplace and those working remotely. However,this can yield benefits, according to one telecom-muting expert:

In fact, we consistently hear that managerswho manage remotely report that doing somakes them better managers not only of theremote workers but also of their in-officestaff. (Gordon, 2001)

Information technology departments will beresponsible for carrying out an IT gap analysis todetermine telecommuting infrastructure start-upneeds and costs and providing ongoing support totelecommuters, who rely more heavily on com-puter networks and remote access.

EMPLOYER QUESTIONS AND ANSWERS

These questions might commonly be asked by anemployer (e.g., a human resources administratoror business manager) considering a telecommut-ing program. Several are variations of each other.

Question: How productive are employees whenthey are not in the office?

Usually as productive as they are in the office, ifnot more so. Many telecommuting employeesreport that they experience fewer distractions.Some employers have been pleasantly surprised tofind that employees are more accessible when theyare working from home, because managers knowexactly where they are, and they have fewer meet-ings and/or spend less time with co-workers.

Question: How difficult - and costly - is it toestablish and administer the program?

It depends on several factors: the scale of the pro-gram (size of company and number of employeeswho will telecommute), the type of informationtechnology selected, and the goals of the program(will telecommuting mean a few employees per-forming their regular duties out of their homes, ora more fundamental re-engineering of the work-place?) Large-scale programs require substantialcommitment for planning and implementing theprogram, and the involvement of the informationtechnology departments will be much more sig-nificant and critical. In addition, telecommutingprograms require continuing investments of bothmoney and staff time.

Question: How does working at home affectdependent care issues?

Telecommuting employees should not expect tosimultaneously work and care for their depend-ents (children or elders). Although many employ-ees who telecommute do so because they preferto be near home in case of an emergency, or tohave additional time to spend with their families,

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employees must make arrangements for depend-ent care. This understanding should be part of aformal telecommuting agreement, so that employ-ees are aware of the need to separate dependentcare from work.

Question: Who pays for charges such asincreased electricity and telephone costs?

This is generally covered under the telecommut-ing agreement. In the federal government, theOPM guidelines allow reimbursement for officialtelephone calls, but not for increased electricitycosts resulting from use of computing equipment.

Question: Is there an ideal percentage ofemployees who should telecommute?

No. Some firms have only a small percentage ofemployees telecommuting; others have near-vir-tual offices, where everybody works independent-ly. It depends on the nature of the business, thetype of work performed by the employees,employees' suitability to working independently,the company culture, and the technological capa-bilities available.

Question: How does telecommuting affectmorale and productivity among workers whocontinue to work on-site?

It depends on a number of factors, including thenumber or percentage of telecommuters and theirroles within the office, how their work affectsother co-workers (i.e., is work collaborative orindependent? Do co-workers require face-to-faceinteraction?), and how well supervisors managethe transition to telecommuting. Some employershave found feelings of jealousy and resentmentfrom on-site co-workers who may believe thetelecommuter is not really working. Others findthat on-site workers have no interest in telecom-muting themselves and do not mind their col-leagues' absence. Supervisors must take care toensure that all employees, regardless of location,are selected and treated equitably and with simi-

lar expectations. Also, most telecommutingguides recommend that even full-time telecom-muters come to the office periodically to establishand maintain personal relationships with col-leagues and supervisors.

Question: Do employees and supervisors needtraining before starting a telecommutingarrangement?

Training is generally a good idea, because of themajor change in the working relationship and riskmanagement issues related to telecommuting.Some guidelines even recommend setting up asimulation for employees who want to telecom-mute, so that they can experience remote workfor several weeks and judge whether they wouldsuitable candidates for the arrangement. Supervisors might also be trained in managementtechniques for distance employees, such as howto manage by results and assess productivity.

Question: Can I require employees to telecom-mute?

Although private employers may require telecom-muting as a condition of employment for certainpositions, most guides do not recommend it.Telecommuting has become an employment perk,and forcing employees to telecommute mayremove that status. Further, while an employee'sposition may be suitable for telecommuting, hisor her personality may not be. Some telecom-muters complain of isolation, and being "left outof the loop." Some begin telecommuting withhigh hopes and find that they have a hard timemanaging their time, that there are too many dis-tractions at home, or that that casual contact withcolleagues was more important to their work thanthey realized.

OPM regulations prohibit federal agencies fromrequiring an employee to telecommute.


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Question: Do any state or local governmentsoffer incentives for doing this?

Some regional organizations offer technical assis-tance for implementing telecommuting programs;see below under Associations and Contacts formore information. In addition, the state of Oregonoffers a tax credit for implementing telecommut-ing programs; see above under the TaxConsiderations section for more information. Inspring 2001 Virginia introduced a Telework!VApilot program through which employers in north-ern Virginia could receive state reimbursementfor certain telework start-up or expansion costs,up to $35,000 over two years.

EMPLOYER CASE STUDIES

New York City, New York - Merrill Lynch

Merrill Lynch, an investment services firm, hasover 400 employees in a telecommuting program.Employees wishing to participate must first com-plete a formal training program, which includes adetailed employee proposal outlining their workschedule and home office needs. They also par-ticipate in a series of meetings with both supervi-sors and the firm's alternative work arrangementsgroup. Finally, employees must go through a two-week simulation at a company lab, working onsimilar projects with similar equipment to get afirst-hand feel for what telecommuting will belike.

A Fast Company article explaining the programpoints out four lessons learned for implementinga telecommuting program:

● The importance of keeping up ties with col-leagues;

● Organizational skills;● Creation of new routines to replace office

routines; and● A well-equipped and ergonomic home office.

The article notes that for telecommuters, produc-tivity has increased and turnover decreased,although no numbers are provided. (Chadderdon,1997)

Minneapolis, Minnesota - Sopheon ResourceNetwork Corporation

Sopheon, an information services company, begana telecommuting program in 1994 after the loss oftwo valued employees due to a move and a longcommute. The program currently encompasses 27percent of a workforce of over 100 employees.There are various categories of telecommuters,including mobile workers, virtual home office,hotelling, and flexible scheduling (part-time). Thenational sales force was effectively telecommutingprior to the current program; the pilot program wasextended to research staff.

Benefits to the company include improvedemployee morale and competitive advantage.There is no difference in productivity betweentelecommuters and on-site employees.

The company provides different computers and con-nectivity to employees depending on their job. Inorder to minimize dependence on information tech-nology staff, who experienced a significant increasein workload after program inception, all telecom-muters must complete a hardware/software certifica-tion program before beginning to telecommute.Telecommuting employees receive a furnitureallowance; purchases must meet company ergonomicguidelines. If an employee leaves the companywithin one year of beginning to telecommute, s/hemust repay 100 percent of the computing start-upcosts and 50 percent of the furniture costs.

The program has become more formalized sinceits inception. For example, a Telecommuting TaskForce reviews employee requests to telecommute.Employees wishing to begin telecommuting mustcomplete a formal agreement and have a homesite evaluation. Managers have also had to learnto include telecommuters in office decisions and


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team meetings. Because some telecommuters hadcomplained of isolation, there are monthlytelecommuter conference calls, and the companybrings all full-time telecommuting employees,many of whom live outside the area, into theoffice once or twice yearly. (MITE, 1999)

New Jersey - Pharmaceutical Marketing Firm

A company that provides marketing and distribu-tion for the pharmaceutical industry implementeda telecommuting program for its 20-member salesforce. The impetus to institute the program camefrom the firm's executive board, which thoughtthat a move to telecommuting would increaseproductivity and sales. The program required amajor upgrading of the firm's information tech-nology infrastructure to allow remote access andautomation of sales tracking data that had previ-ously been entered manually. The informationtechnology department had to hire two newemployees to plan and implement the project; theimplementation period lasted six months.

Not all members of the sales force were able tomake the mandatory adjustment to telecommut-ing; two were terminated, partly due to poorrecords and partly due to their failure on qualify-ing tests to measure their ability to use the newtechnology. Two others requested and receivedearly retirement. Those who remained were oftenreluctant to ask the IT department for assistance,because of embarrassment at their unfamiliaritywith the technology. However, the remainingsales people became more productive, because ahigher proportion of their time was spent onsales. The firm estimated that sales increasedapproximately 18 percent per year for the firstthree years of the project, and revenues increased21 percent. The nature of sales work changed aswell; where previously the sales force had operat-ed largely independently from the main office,their new technological capabilities gave themcontinuous access to up-to-the-minute informa-tion. As the case study explains:

The program affected every level of theorganization. At the strategic level, the pro-gram helped the company maintain existingaccounts, develop a new image, enhance rela-tionships with clients, increase forecastingcapabilities, and improve responsiveness. Atthe tactical level, the program helped increasemanagement control, improve resource man-agement, and promote accountability. At theoperational level, the program freed moretime for sales, thus increasing productivity. Itenabled high-quality presentations, created anew information flow with clients, and sim-plified business procedures. Any negativeimpact on IT personnel and sales representa-tives, while costly, was only short term. Real-estate savings and other benefits of havingindividuals work remotely were simply "icingon the cake."

Average cost for a new telecommuter was approxi-mately $5,600 to $5,800, with annual support costsof $1,000. (Net cost per telecommuter was $25,500during the first year, because of the price of thenew technology infrastructure, but costs dropped astelecommuting increased.) The firm saved$183,000 in rent because it was able to close onebranch office and avoid an expensive move at themain office. Finally, the firm saved approximately$35,000 annually in clerical costs, because the newtechnology eliminated data entry functions.

The company also identified three unexpectedconsequences of the project:

● Twelve non-sales employees began telecom-muting part-time;

● The new cost accounting system, originallyintended for exclusive sales use, became thecompany's main cost accounting system; and

● Managers were better able to track salesactivity and make sales predictions.

After several years almost one-quarter of thecompany's 150 employees were telecommuting


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either part- or full-time. The start-up costs of thenew information technology infrastructure wererecouped in the same period. (Watad andDiSanzo, 2000)

Minneapolis, Minnesota - Abbott NorthwesternHospital

Abbott Northwestern Hospital began a pilot pro-gram in 1994 to allow some of its 51-personmedical transcription staff to telecommute. Theprogram began with three full-time telecom-muters, and had over 30 telecommuters by 2001. The hospital found that medical transcription wasa good fit for telecommuting because productivitycould be quantified: minutes of dictation perhour. After the program had been in place forfour years, telecommuters were found to be moreproductive than on-site employees: the 38 percentof the staff who telecommuted produced 46 per-cent of the output. The increased productivitywas attributed to fewer distractions and side proj-ects within the office.

Abbott's telecommuters do so full-time. However,most telecommuters come into the office on aquarterly basis, either for formal meetings or tore-establish contacts with colleagues. Bothtelecommuters and supervisors have found thatfull-time telecommuting forces them to be moreefficient in managing their time - instead of mak-ing several phone calls during the course of aday, a supervisor and telecommuter may insteadhandle several issues in one conversation.

The hospital committed to providing telecom-muters with the same standards of equipment thaton-site employees enjoy, but early in the programit was assumed that outfitting telecommuters withappropriate equipment would be a one-time cost.However, it was found that upgrading and main-tenance were ongoing costs.

Telecommuters at Abbott have high job satisfac-tion and loyalty. Although supervisors feared thatthe program might cause resentment among

employees who did not telecommute, manyemployees chose not to telecommute. (MITE,1999)

Vienna, Virginia - Southern ManagementCorporation

Southern Management Corporation, a residentialproperty management firm, initiated a pilottelecommuting project at its suburbanWashington, DC headquarters, which houses 75of its 1000 employees. Ten employees participat-ed in the pilot program; their duties involvedmostly phone-related work, writing and editing,data management, and general administration.Internal telecommuting guidelines address eligi-bility, work schedules and planning, performancemeasurement, customer and colleague support,home office set up, equipment and supplies, pro-prietary information, and taxes and insurance.

The company spent $16,500 to set up its telecom-muters, and another $5,300 in indirect staffingcosts over a six-month period. A survey complet-ed after the program was implemented revealedthat telecommuters reported higher productivity,better morale, less stress, and good support frommanagers and co-workers. The main complaintfrom supervisors was that meetings became moredifficult to schedule (most telecommuters workedfrom home or a satellite office two to three daysper week). (Washington Metropolitan Council ofGovernments, 2001)

Multiple Locations - Davis Wright TremaineLLP

The law firm Davis Wright Tremaine became atelecommuting firm in 1990, investing between$4 and $5 million in technology and equipment.Many of the firm's 350 lawyers take advantage ofthe ability to telecommute, as do paralegals andoffice managers. With offices in both East andWest Coast locations, as well as China, lawyersin one office often work on cases in another geo-graphic area - or example, a group of health


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care lawyers in North Carolina have clientsthroughout the country.

The firm has found that employees generallybecome more productive when they begintelecommuting. One lawyer estimated that he hasadded 200 billable hours per year simply throughthe ease of working out of his home. A financialanalyst who works at home with two computerscan use one for budget numbers while the other isprinting a monthly report; she covers a workloadthat would typically require 1.5 employees. Although law firms have traditionally been averseto telecommuting because of the paper and legalreferences involved, the firm has found that need-ed opinions and cases are increasingly availableonline through either commercial providers or thecourts. Most lawyers find that they need access toa law library only occasionally.

Perhaps surprisingly for a law firm, Davis WrightTremaine does not have a detailed or formal tele-work policy. Telecommuting requests are handledon a case-by-case basis. The firm's own employ-ment lawyers say that telecommuting requiresmore common sense than complex rules.

SERVICES THAT SUPPORTIMPLEMENTATION

Many regional and local governments provideservices to help employers implement telecom-muting programs. Metropolitan planning organi-zations (MPOs), city and county transportationagencies, transportation management associations(TMAs), and transportation management organi-zations (TMOs) throughout the U.S. provideassistance to employers in starting and maintain-ing transportation demand management programssuch as telecommuting. They often provide infor-mation to employers about options to reduce driv-ing to work, implementation issues, and localprograms that support employer initiatives. Someof these resources are listed in the next section,Associations and Contacts.

Depending on the nature of the work, the abilityto telecommute effectively may be linked to theavailability of high speed internet connections.Access to these services varies throughout thecountry.

ASSOCIATIONS AND CONTACTS

This section includes information on regional andnational groups that EPA and regional, state, andlocal governments might wish to utilize forexpertise in understanding, promoting, or provid-ing technical information on telecommuting.Individual employers are directed to contact EPA,their local MPOs, telecommuting consultingfirms, or other groups that provide services tosupport telecommuting implementation.

Organizations That Promote Telecommuting

International Telework Association and Council 204 E. Street N.E.Washington, DC 20002 Tel: 202-547-6157 Fax: 202-546-3289

www.telecommute.org

The International Telework Association andCouncil (ITAC) is a membership organization forbusinesses that sponsors research and surveys ontelecommuting. ITAC maintains an extensive listof member consultants, available atwww.telecommute.org/resources/consultant_members.shtml.

The American Telecommuting Association 1220 L Street, NW, Suite 100 Washington, DC 20005 Tel: 800-ATA-4-YOU

www.knowledgetree.com/ata.html

The American Telecommuting Association (ATA)is a membership organization whose members areemployees who telecommute.

National TDM and Telework ClearinghouseUniversity of South Florida4202 E. Fowler Ave.CUT100 Tampa, FL 33620-5375 Tel: 813-974-3120

www.nctr.usf.edu/clearinghouse/

The National TDM (Transportation DemandManagement) and Telework Clearinghouse is acompendium of research and information onTDM and telecommuting. TDM refers to a set ofprograms and policies that are designed to makethe best use of existing transportation resourceswithout additional infrastructure investment.Much of the Clearinghouse information is avail-able electronically at their website. The site con-tains information for employers interested inestablishing various kinds of trip reduction pro-grams, including telecommuting.

Clean Air Council135 South 19th Street Suite 300 Philadelphia PA 19103Tel: 215-567-4004 Fax: 215-567-5791

www.cleanair.org/green/index.html

The Clean Air Council supplies information ontelecommuting as a means to reduce air pollution.

National Environmental Policy InstituteShelley Rappaport, Project Manager1401 K Street, NWSuite M-103Washington, DC 20005Tel: 202-857-4784Fax: 202-833-5977

www.ecommute-nepi.org

The National Environmental Policy Institute(NEPI) administers the eCommute pilot project infive cities (Washington, Denver, Philadelphia,Houston, and Los Angeles) to encourage busi-nesses to participate in telecommuting.Businesses can gain tradable emissions creditsthrough implementing telecommuting programsand calculating their emissions reduction. Theproject began its second phase in January 2001and runs through December 2002.

Online Resources

Several other private firms and organizationshave online information regarding telecommut-ing; the list below is a sample.

www.gilgordon.com

Gil Gordon Associates maintains a web site witha wide variety of information, including links toresearch articles and "how-to" tips. www.jala.com

JALA International is a consulting firm foundedby Jack Nilles, who originally coined the terms"telecommuting" and "telework."

www.workathomesuccess.com/telecomm.htm

This site is aimed more at employees wishing tobeing telecommuting, but it also offers advice toemployers thinking of implementing telecommutingprograms.

Regional Resources

Some regions have programs offering technicalassistance to local businesses that are interested insetting up telecommuting programs. The type ofassistance offered depends on the program; it mayinclude technical assistance tailored to a company'sindividual needs, presentations for business audi-ences on telecommuting issues, and/or compila-tions of case studies of other area employers.Several of these programs are listed following:

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Atlanta, GA

Metro Atlanta Telecommuting Advisory Council704 Beacon CoveLawrenceville, GA 30043Tel: 770-831-6630www.matac.org

Arizona

Valley Metro302 N First AvenueSuite 700Phoenix, AZ 85003Tel: 602-262-7433www.valleymetro.maricopa.gov/telecommute

Colorado

Telework ColoradoTel: 303-458-8353www.teleworkcolorado.org

Connecticut

Telework ConnecticutC/o Rideworks389 Whitney AvenueNew Haven, CT 06511Tel: 203-777-RIDE Fax: 203-773-5014www.telecommutect.com/

Houston, TX

Commute SolutionsHouston-Galveston Area CouncilP.O. Box 227773555 Timmons LaneHouston, TX 77227Tel: 713-627-3200 Fax: 713-993-4508www.commutesolutions-hou.com/telework/index.htm

Los Angeles area

Southern California Economic Partnership21865 E. Copley DriveDiamond Bar, CA 91765Tel: 909-396-5757 Fax: 909-396-5754the-partnership.org

Minneapolis, MN

Midwest Institute for Telecommuting Education1900 Chicago AvenueMinneapolis, MN 55404Tel: 612-752-8010 Fax: 612-752-8001www.mite.org

Oregon

Oregon Office of Energy625 Marion Street, NESuite 1Salem, OR 97301Tel: 503-373-7560

www.energy.state.or.us/telework/teletax.htm

Seattle, WA

Commuter Challenge1301 Fifth AvenueSuite 2400Seattle, WA 98101-2611Tel: 206-389-8656www.commuterchallenge.org

Washington State

WSU Cooperative Extension Energy Program925 Plum Street SE, Bldg. #4P.O. Box 43165Olympia, WA 98504-3165Tel: 360-956-2178 Fax: 360-956-2217www.energy.wsu.edu/telework/


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Washington, DC/Northern Virginia

Commuter Connections777 North Capitol Street, NESuite 300Washington, DC 20002Tel: 202-962-3286 Fax: 202-962-3202www.mwcog.org/commuter/telresctr.html

Commuter Connections also administers theTelework!VA financial assistance program foremployers located in Northern Virginia, andadministers the eCommute pilot program with theNational Environmental Policy Institute (seeOrganizations that Promote Telecommuting).

Commuter Choice Leadership InitiativeFor more information on the Commuter ChoiceLeadership Initiative, contact the CommuterChoice Hotline at 888-856-3131, or seewww.commuterchoice.gov

EMISSIONS AND TRANSPORTATIONBENEFITS

Telecommuting has great potential to reducevehicle travel and emissions of air pollutants andgreenhouse gases, because it eliminates manycommuting trips. Most studies of the air qualityand emissions benefits of telecommuting agreethat telecommuters drive significantly less whentelecommuting. That is, the vehicle miles traveled(VMT) reduced are not usually replaced withmore local non-work driving.

A review of the telecommuting research by theNational Environmental Policy Institute foundthat the average round-trip commute distance fortelecommuters is 36.1 miles, and that on the daysthey telecommute they saved an average of 26.3miles. However, only 74 percent of telecom-muters drive alone, so that even on the days theytelecommute, total vehicle miles traveled mayremain unchanged (for example, if the telecom-muter rides with a carpool). (NEPI, 2000)

The two studies that looked at total travel bytelecommuters (including non-work trips on daysthey telecommute) found that the average numberof miles traveled per day was 52.9 beforetelecommuting, and 13.1 miles per day ontelecommuting days. (NEPI, 2000)

A study using travel diaries found similarly posi-tive results. An evaluation of the Puget Sound(Washington State) TelecommutingDemonstration project compared a control groupof non-telecommuters to a group of telecom-muters, and telecommuting days to non-telecom-muting days. Telecommuting had demonstrableeffects in reducing VMT and emissions. Ontelecommuting days, the number of daily tripsdecreased by 30 percent, VMT decreased by 63percent, and the number of cold starts decreasedby 44 percent. A "cold start" is particularly prob-lematic for emissions, because the engine andemissions control systems work well only afterwarming up. A substantial portion of a cars' totaltrip emissions occur at start-up, so avoiding a tripaltogether is far more "valuable," from a pollu-tion perspective, than shortening the trip. Thestudy calculated, using an emissions model, thatfor each telecommuting day, the telecommuter'svehicle released 50 to 60 percent less pollutantsthan if the telecommuter had worked in theoffice. This includes additional non-work tripsmade while at home - telecommuters drove lesson the days that they telecommuted than they didon regular commute workdays.

While this study concluded that telecommutinghas a demonstrable effect on emissions, it alsonoted several reasons why more widespreadtelecommuting might not produce proportionallylarger results. First, telecommuters had averagecommutes 2.5 times longer than the controlgroup. Indeed, this is probably one of the reasonsthis group chooses to telecommute, because theysave more time by not commuting.

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This implies that as telecommuting increases, andtelecommuters' commute length falls, the relativebenefits produced by new telecommuters will fallsomewhat-although they should still be positive.

Second, the benefits are confined to the daystelecommuted; if people telecommute only oneday per week, those benefits amount to only 20percent of the potential benefit of telecommutingfive days per week. Finally, the study notes thatemissions benefits will differ with the time ofyear, because atmospheric conditions affect boththe amount of pollutants released by vehicles andthe formation of ozone. (Henderson, et al, 1996)

Telecommuting is one of the most effective trans-portation demand management (TDM) emissionsreductions measures. A study done by theMetropolitan Washington Council ofGovernments of four transportation emissionreduction measures found that its TeleworkResource Center (a program that assisted busi-nesses in implementing telecommuting) was themost effective of the four, reducing the number ofvehicle trips by almost 35,000 per day. The pro-gram was also estimated to reduce NOx emis-sions by .9 tons per day, and VOC by .5 tons perday. However, the evaluation also noted that theeffectiveness of telecommuting as a measure toreduce emissions is limited by two factors. First,although it was predicted that telecommuterswould work remotely 2.65 days per week, theaverage was only 1.59 days. Second, only 71 per-cent of telecommuters drive alone on the daysthat they go into the office. (MetropolitanWashington Council of Governments, 2001)

The National Telecommuting and Air Quality Actestablished a pilot program through which compa-nies can receive emissions credits for creation of atelecommuting program; credits will be traded on amarket basis. The pilot program is limited to fivecities - Washington, Philadelphia, Denver, LosAngeles, and Houston - and will run for a year (theinitial study was done in mid-2000). If the conceptproves successful, it may be expanded to other areas.

REFERENCES AND PUBLICATIONS

American Health Information ManagementAssociation. 1999. Practice Brief:Telecommuting. Available atwww.ahima.org/journal/pb/99.02.html

Behr, Peter. 1999. "Tech Wish List." WashingtonPost, p E 7, February 11.

Cascio, Wayne. 2000. "Managing a VirtualWorkplace." Academy of Management Executive,v14 n3 pp 81-90. August.

Chadderdon, Lisa. 1998. "Merrill Lynch Works -At Home." Fast Company, issue 14, p. 70. April.

Duxbury, Linda and Derrick Neufeld. 1999. "Anempirical evaluation of the impacts of telecom-muting on intra-organizational communication."Journal of Engineering and TechnologyManagement, v16, pp 1-28.

Fitzer, Mary Molina. 1997. "Managing from afar:performance and rewards in a telecommutingenvironment." Compensation and BenefitsReview, v29 pp 65-73 January/February.

Fletcher, Donna M. 1999. "Practice Brief:Telecommuting." .Journal of American HealthInformation Management Association. February.

Flynn, Michael. 1999. "Taxing Situation: Howthe IRS Views Your Home Office Deduction."Telecommute Magazine.com. November.

Gordon, Gil. Gil Gordon Associates. Personalcommunication with Liisa Ecola, ICF Consulting,2001.

Handy, Susan and Patricia L. Mokhtarian. 1996."The Future of Telecommuting." Futures, v28,n3, pp 227-240.


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Henderson, Dennis K., Brett E. Koenig, andPatricia L. Mokhtarian. 1996. "Using TravelDiary Data to Estimate the Emissions Impacts ofTransportation Strategies: The Puget SoundTelecommuting Demonstration Project." Journalof Air and Waste Management Association. V46,n1, pp 47-57.

Hotch, Ripley. 1999. "S. Schilling'sTeleCommute Solutions handles Telecommuters."Communications News v36, no10 pp 12-14.October.

IDC. 2000. U.S. Home Office Forecast andAnalysis: 1999-2004. Reported in E-BusinessWorld. Available at www.e-businessworld.com/english/crd_ebiz_259964.html

International Telework Association and Council.2000. Telework America 2000, available atwww.telecommute.org/twa2000/research_results_summary.shtml

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United States Air and Radiation EPA 420-S-01-004Environmental Protection Transportation and Air Quality September 2001Agency

ORDERINGThis publication may be ordered from the National Service Center for Environmental Publications (NSCEP) at:

U.S. Environmental Protection AgencyNSCEPP.O. Box 42419Cincinnati, OH 45242-2419Phone: (800) 490-9198, Fax: (513) 489-8695

FOR MORE INFORMATIONThis guidance document and other information about the Commuter Choice Leadership Initiative are availableat www.commuterchoice.gov or by calling the Commuter Choice voicemail request line at (888) 856-3131.

ACKNOWLEDGEMENTSThis document was prepared for EPA's Office of Transportation and Air Quality under contract 68-W6-0029,by Michael Grant and Liisa Ecola of ICF Consulting, 9300 Lee Highway, Fairfax, VA 22031, (703) 934-3000.

We would like to thank the various reviewers who provided comments and feedback on the document.

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