As one way to combat the spike in fuel costs for employees, many employers are offering commuter benefits, such as telecommuting. This trend spiked in the 1990s for professionals who could do their jobs at an off-site location. As gas prices continue to rise, and pollution increases and traffic congestion reach new heights, this option is more popular than ever. But this doesn’t mean that just employees benefit from telecommuting. There are also perks for the employer when offering telecommuting as a scheduling option.

Telecommuting means that employees work from home or at another alternate location and communicate with their employer using electronic means. Many companies cite tremendous benefits from this practice, both for the organization and their employees. According to business network site Bnet.com, Sun Microsystems, Inc. offers a telecommuting option to its employees. The average employee works from home two and a half days a week, which translates into a significant decrease in carbon dioxide emissions as employee commutes are cut in half. This option also saves employees an average of two and a half weeks of commute time per year and translates into a $1,700 raise for each employee from both gas and general wear and tear on their vehicle, without costing Sun Microsystems, Inc. anything.

Here are some other benefits to offering a telecommuting option to employees.

Benefits for the Employer

• Reduces workplace costs such as monthly heating, cooling, water and sewer bills
• Companies save money on office space when employees are not physically present. According to the International Telework Association & Council (ITAC), AT&T saves $25 million per year in office space costs by offering a telecommuting option.
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  Typically increases employee productivity partially because the home environment is often more comfortable than the company environment. ITAC reports that AT&T saves $65 million as a result of increased productivity by its teleworkers.
• Employees can work during the time that they would normally be driving to and from work.
• Employees have fewer interruptions and less time to socialize with coworkers.
• Reduces absenteeism and tardiness amongst employees.
• Serves as a great employee retention and recruitment tool as many individuals value this added flexibility.
• Cuts labor costs to combat the cost of commuting. According to the Department of Transportation (DOT), it costs $.50 per mile to operate a car and an average annual commute is roughly 213 hours. That makes commuting quite costly.

Benefits for the Employee

• Option makes dealing with the work-life balance easier for working parents and individuals caring for elderly family members.
• Working from home is generally easier for people with disabilities.
• Saves money on gas, parking, car wear and tear, etc.
• Typically spend less money on food due to eating lunch at home instead of grabbing something from a restaurant.
• Spend less on business attire, which is generally more expensive than casual clothing worn at home.

On top of these benefits for both employers and employees, telecommuting means less traffic congestion and pollution. And since employees can work from almost anywhere with adequate technology, this may help to reduce overpopulation in more urban areas.

Uncertainty

Despite the benefits, there is also some uncertainty in offering this type of policy:

• Employers must make an initial investment in equipment for an employee’s home office.
• Employers have less control over employees’ time while off-site.
• Technology problems may be an issue if employees do not have access to onsite IT assistance.
• Limits promotional opportunities because employees are not “seen” as often as workers who are constantly in-house. Therefore, telework employees may not have as many opportunities to advance as workers who are physically involved in day-to-day operations.
• Option may not be suitable for all employees at your workplace

Recommendations

If telecommuting sounds like an option that would benefit your work population, consider these recommendations:

• Select telecommuting employees carefully – they should be trustworthy, motivated and disciplined. They should also be able to self-manage and handle this freedom appropriately.
• Ensure that teleworkers’ home offices are safe and conducive to productive work.
• Establish a written policy that outlines the guidelines of teleworking, the working environment, breaks and working hours. The policy should specifically address the following:

-    When is the teleworker expected to work, take lunch and take breaks?

-    What is the teleworker expected to achieve and with what equipment and materials?

-    What are the teleworker’s rights, liabilities and obligations?

-    Statement addressing that telecommuting is a privilege and can be terminated at any time.

-    Description of teleworker’s hours that must be completed onsite, if any.

• Require all telecommuting employees, both full and part time, to sign a policy agreement establishing an acknowledgment and agreement with the policy.
• Outline violations of the telecommuting policy for employees and post them on your company’s intranet site. Also outline applicable disciplinary actions that will result if the policy is violated.

Legal Considerations

• Reporting and recording hours – Employees who are not exempt from the Fair Labor Standards Act’s (FLSA) overtime requirements must adhere to strict management of their hours to avoid working overtime. If they do work overtime, FLSA requires that they receive overtime pay.
• Investigating workers’ compensation claims – Inspect teleworkers’ home offices to ensure a safe working environment, as workers’ compensation claims made off-site are harder to investigate. Also create a policy outlining the proper way to record work-related injuries. This will comply with the Occupational Safety and Health Act’s (OSHA) requirements for adhering with safety policies.
• Obtaining liability insurance – Make sure that your company’s liability coverage protects against injuries to a third party and damage to property caused by an employee’s negligence while the employee is working remotely. Also require employees to possess homeowner’s or renter’s insurance.
• Protecting confidential information – Take precautions to track the information employees are using at home. To do so, take the same measures that you would if your employees were working on-site.
• Handling tax concerns – Employers must determine where taxes are owed for employees working remotely out of state.
• Zoning considerations – Many municipalities require home businesses to have a permit to operate. Companies must decide who will pay for the permit to fulfill these zoning requirements.
• Privacy concerns – Make employees aware that part of their communications will not be private, even if they are working from home, as they are working on company time and with company equipment.
• Adhering to the Americans with Disabilities Act (ADA) – When selecting employees to telecommute, employers must be certain that they are not discriminating against employees with disabilities based on their selections.
• Avoiding discrimination – When implementing a telecommuting policy, companies must take the necessary precautions to avoid violating state and federal discrimination laws. Exclusion from being allowed to telecommute should be based on legitimate business criteria.

Telecommuting can be a great option for employers and employees alike. Contact Maschino, Hudelson & Associates for more information on determining whether this scheduling option suits your organization.