The bottom line on alternative workplace strategies

Just three short years ago, saving money was low on the list of reasons organizations turned to flexible workplace strategies. They did so because their workforce demanded it, and—in the face of talent shortages—they were eager to comply. Then came the recession, and the bottom line benefits of telework and alternative work arrangements stole the limelight. As a former banker, and veteran entrepreneur, they were finally singing my song.

We'd been studying telework for 5 years (and doing it ourselves for more than 20 years) and found it amazing that no one had quantified its potential, so we set out to do just that. After combing through hundreds of august studies, and working with some of the top telework organizations in the US, UK, and Canada, we developed a model to estimate the bottom line impact of flexible work for businesses, government agencies, and communities. Our U.S. model shows that an organization with just 50 half-time telecommuters can save over $650,000 a year—the result of increased productivity, and reduced real estate, absenteeism, and turnover costs.

Turnover hasn't been something organizations have had to think much about during the recession. Employees were just glad to have a job. But with the bad times (hopefully) behind us, employers can expect labor shortages to return with a vengeance.

Already in Canada, McDonalds is paying $14 an hour because they simply can't find help. Retail businesses are closing at 4pm because their help-wanted ads go unanswered.

In the post-recession days, it's more than just demographic and socioeconomic realities fueling the labor shortages. Employees have been pushed too far.

Recent research by Gallup shows than 70% of the workforce is not engaged. They label twenty percent as 'disengaged'—something they define as either wandering around in a fog, or actively undermining their co-workers’ success. They're burned out, disenfranchised, and according to a survey by Right Management, over 80% are ready to jump ship.

On top of all that, there are the pre-recession realities. Boomers who haven’t already made their exit are anticipating it. Gen X-ers watched their workaholic parents, and aren't about to make the same mistakes. Gen Y-ers grew up independent, tech savvy and were taught to question authority. Now they’re questioning their employers.

Clearly, this is not your father’s workforce.

Once considered “just an HR perk”, innovative, successful organizations have embraced workplace flexibility as an essential business strategy. Why? Because it helps expand their talent pool and attract top performers. It increases their competitive advantage. It exposes under-performers and eliminates workplace saboteurs. It uncovers weaknesses and improves efficiency. It ensures business continuity in the event of a disaster. It offers an inexpensive and even popular way to reduce their carbon footprint—something that's increasingly part of value chain and customer choices.

*Kate will be co-presenting our next webinar titled "How to build the business case for Telework and Hoteling."  For more information on this webinar and to register, please click here.

It’s time to make the road less traveled, the way to work.™ Kate Lister, President, Telework Research Network

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