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The Benefits of a Virtual Workforce

by Erika Blanchard - January 13, 2014

The Benefits of a Virtual Workforce by Erika Blanchard,  321.442.3785


 In today’s digital world, the opportunities for a virtual workforce are endless and more and more companies (and employees) are embracing virtual working arrangements because of the many benefits it provides. Telework opens up new labor sources, global collaboration, reduced turnover and overall satisfaction for customers and employees; which in turn, increases productivity and drives business growth and success.

In many cases, all that is needed for someone to telecommute is a dedicated phone line and high-speed Internet, but the most important factor is hiring the right people.

Many companies are still hesitant and uncomfortable with not having their employees on-site, even in the wake of a disaster. The biggest fear is that they won’t be able to control their employees and that their employees will watch television or their chores during working hours. My response to that is if you are a competent manager, you will be able to tell, fairly quickly, based on the output and quality of their work whether they are slacking or not. If it’s clear that they are not producing; then it becomes a performance issue – as with any employee.

Hiring the right people is crucial to the success of a virtual workforce, from the front-lines to management. We’ll discuss the qualities to look for below. If you put the right people in place, you should be able to trust them to produce, regardless of their location.

Employer Benefits

Increased Productivity and Shrinkage:

  • Disaster Recovery and Inclement Weather – Telecommuters are able to work during office closures due to inclement weather. There is no lost time due to driving in bad conditions and the time saved can be spent working.
  • Uninterrupted and focused work – Working from home allows for large blocks of uninterrupted time without distractions.
  • More time to work – Time saved commuting can be spent working
  • Reduced sick time – Employees who work at home take considerably less sick time than employees who commute to work. Some studies say the reduction is upwards of 25%. Also, at-home workers are less likely to get sick, as they are not surrounded by a lot of people with colds and the flu.

Reduced Real Estate Costs and Overhead Expenses: In the contact center world, the cost of a workspace is approximately $800-$3,000 per agent annually; therefore a call center with 20 home-based agents can save a company upwards of $60K per year. Some companies can eliminate their corporate office altogether – reaping even greater savings.

Reduced Labor Costs: Employers with a virtual workforce can hire lower cost workers in suburban labor markets saving a significant amount of money. Also, due to the cost savings that the employees will gain, companies can pay telecommuting employees less per hour based on their reduced expenses.

Expanded Talent Pool: Employers who have a virtual workforce are not limited to employees in their local area, giving them the ability to hire highly qualified employees across the US and beyond.

Elimination of Relocation Expenses: There is no longer a need to pay relocation expenses for top talent.

Reduced Travel Expenses: With the technologies available, there is no longer a need to travel for meetings. Meetings can be held virtually face-to-face with programs such as GoToMeeting or Skype.

Access to a flexible workforce: Employers are more likely to obtain employees that are willing to work non-conventional hours. For example, someone that cannot afford daycare may be willing to work nights when their spouse is home to care for their child.

Additionally, employees that can work from home are willing to work more often and on weekends and holidays, which can help accommodate seasonal workload fluctuations.

Happier Employees: HR departments are always looking at new and enticing benefits to obtain top talent – Telecommuting is a benefit that employee’s desire and one that can actually save you money. Happier employees are more likely to stay with a company for an extended period of time, significantly reducing employee turnover. Also, having happier employees increases customer satisfaction and productivity, no matter what business you’re in.

Employee Benefits

Increased Opportunities for all Workers: A virtual workforce opens up opportunities outside of the local area and provides opportunities for disabled veterans, persons with disabilities, military spouses, etc.

Work/Life Balance: As commuting is essentially eliminated, employees can spend more time with their family and friends. Childcare or elder-care can be more easily accommodated.

Increased Productivity:

  • In some heavily populated areas, commuters spend up to 10 hours per week traveling to and from work (that’s 40 hrs/wk and 2,080 hrs/yr). With the lack of a commute, home-workers can devote a greater part of their day to their job.
  • Working from home prevents the often unnecessary and/or unwelcome interruptions by co-workers that hinder productivity.

Increased Overall Quality of Life:

  • No Dress Code Required! In many HR employee satisfaction surveys, the ability to dress down is a highly desired benefit.
  • Office politics are non-existent allowing for a stress-free work environment.
  • Home workers can control the lighting, temperature and their workspaces allowing for a comfortable working environment.

Economic Benefits: Employment expenses for home workers are significantly reduced or eliminated.

  • Public transportation costs such as bus or train fare or personal transportation costs such as gas, maintenance and tolls. In urban areas these costs can easily exceed $4-5K per year. Some may even decide to not have a car, thus eliminating the cost of an automobile or finance charges on an auto loan.
  • Costs associated with lunches, pot-lucks, birthdays or other work based social gatherings.
  • There is no longer a need for formal business attire, reducing wardrobe expenses.
  • Many home workers may be able to claim some home office and utility costs as personal income tax deductions, further adding to their real income.

Benefits for Everyone

Decreased Carbon Footprint: The average length of a commute is approximately 30 miles each way. This commute can emit over 7,000 pounds of carbon into the air annually.

Better Use (or reduction) of Taxes: The need for maintaining or building expensive transportation infrastructures is also reduced, allowing tax payer money to be used for more beneficial endeavors.

Better Health and Increased Life Expectancy: Telecommuting is a great way to help you, and your team, remain healthy. Workplace germs can no longer be spread – and it eliminates contempt when your office neighbor comes in with the flu. Moreover, telecommuting reduces the risk of being involved in a fatal car accident, therefore, increasing the odds of a longer life.

Increased Collaboration: It is now easy to collaborate with a global team for little to no cost. No longer do you miss out on the opportunity to meet with someone due to budget or travel restraints. Also, virtual meetings tend to be more productive and concise.

As you can see, the move to a virtual workforce can provide significant benefits to everyone; however, keep in mind that it will not work for every company or individual.

It is important to evaluate and research all of the factors involved and have a process in place before closing your office doors. It is equally as important to note that not all managers are cut out to supervise telecommuters and not all individuals are cut out for telecommuting. The A type micro-manager probably wouldn’t be the best person to put over a telecommuting staff. Managing employees remotely can be very challenging, and it is ultimately the manager’s responsibility for ensuring that the work gets done.

Whoever you hire needs to be motivated, self-disciplined, and comfortable with the type of work they will be performing. People who do their best work independently are often the best fit for telecommuting. If someone is very social and needs to have regular interaction with others, they probably won’t be a good fit.

For companies that are interested in transitioning to a home based model, but aren’t quite ready yet; we recommend implementing an occasional telecommuting arrangement, say one day per week, so that you can be ready to when the need arises or disaster strikes.

 
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