Changing the way we work - London Chamber of Commerce and ...

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Jul 2, 2012 - Group Marketing Director, Harvey Nash plc ... Our research shows that the majority of companies offer tele
Changing the way we work

The role teleworking can play in how, when and where we work

CONTENTS 1 FOREWORD 2 1. EXECUTIVE SUMMARY

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2. INTRODUCTION

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3. WHO TELEWORKS AND HOW

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4. WHY OFFER TELEWORKING

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5. CONCLUSIONS

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APPENDIX: WHAT THE LAW SAYS

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London Chamber of Commerce and Industry (LCCI) LCCI represents London businesses’ interests to the Mayor and the GLA, national government, opposition parties and other relevant stakeholders. LCCI’s research focuses on business-related matters led by the views and experiences of our member companies and is characterised by its independence and solution-focused approach.

Harvey Nash plc Established in 1988, Harvey Nash has supported many of the world’s leading organisations to recruit, source and manage the highly skilled talent they need to succeed in an increasingly competitive and technology driven world.  With 4,000 professionals in 40 offices across the USA, Europe and Asia the Group has the reach and resources of a global organisation, whilst fostering a culture of innovation and agility that empowers its people to respond to constantly changing client needs. We work with clients, both large and small, to deliver a portfolio of services: executive search, professional recruitment and outsourcing. 

Any data reproduced from the report should be fully referenced. We would like to thank everybody that contributed to this report.

For further information on this report, please contact: Dr Olalla Linares Segade Head of Research, LCCI E: [email protected] T: +44 (0)20 7203 1925

Rob Grimsey Group Marketing Director, Harvey Nash plc E: [email protected] T: +44 (0)20 7333 0033

July 2012 Changing the way we work. The role teleworking can play in how, when and where we work

FOREWORD 2

Employers realise that their staff have different demands in their everyday lives and are happy to adapt to those as much as possible. Teleworking has been a reality in many London companies for some time now. This is often the result of a good relationship between the employer and the employee and the former’s goodwill, rather than the acknowledgement that flexible working can be an incredible competitive advantage. Teleworking can lead to savings, motivational effects and growth opportunities. However, the successful implementation of teleworking is not something that will happen overnight. It requires time as well as open and honest communication. Applied wrongly, teleworking can have negative consequences for both a firm and its employees. Companies, therefore, need to plan carefully if they want to reap the benefits. Colin Stanbridge, Chief Executive, London Chamber of Commerce and Industry

I have a special reason to be delighted Harvey Nash is partnering with LCCI on this report. When the Harvey Nash Group made the decision to relocate our headquarters to the City of London we made one other very significant decision; to put teleworking at the heart of much of what we do. As a professional services organisation with senior consultants spending much of their time on client assignments and away from the office we have always had an open approach to mobile working, but to formally introduce teleworking was inevitably a step into the unknown. This report makes fascinating reading, and certainly ties up with our own very positive experience. From helping employees juggle their domestic priorities, to saving costs, to improving employee retention we have seen many benefits. But like any major change programme it comes with challenges. I hope you find this report a useful addition to the discussion and debate around this important subject. Albert Ellis, CEO, Harvey Nash Group

Changing the way we work. The role teleworking can play in how, when and where we work July 2012

1. EXECUTIVE SUMMARY 3 Flexible working has become part of how we understand work. More and more employees request non-traditional working arrangements so that they can balance the demands of their working lives whilst maintaining a rewarding social and family life. Most employers see flexible working as a way of helping their workers to achieve that balance. This informal approach to flexible working not only increases the probabilities of conflict amongst a company’s staff but, more importantly, it means that many businesses are not achieving its full benefits. Flexible working can provide access to a wider talent pool, contribute to operational savings or improve a company’s output, staff retention levels and motivation. The problem is that there is not a unique implementation formula that guarantees its success. Using the example of teleworking, also often referred to as ‘remote working’ or ‘virtual working’, this report aims to provide businesses, especially small and medium firms, with information on its potential benefits as well as negative effects, and to offer some guidance on the elements required to achieve it. Our findings are the result of 11 interviews with London businesses that offer different forms of teleworking to their staff; some of those interviewed were teleworkers themselves, providing a unique perspective into the challenges and benefits of teleworking from the point of view of both the manager and the teleworker. The information so gathered complemented the results of a survey of 178 businesses of different sizes and sectors in the capital undertaken in February 2012. Teleworking is widespread Our research shows that the majority of companies offer teleworking as and when needed, although they do not usually have a formal policy on it. Workers in smaller (1 to 19 employees) and bigger companies (500+ employees) are those that generally telework the most, whilst the more senior a position one holds, the more likely one is to work remotely. Yet, this seems to be because those in higher positions tend to be more experienced and, therefore, the more comfortable companies are with their ability to work on their own. The benefits of teleworking Companies that offer remote work do so because technology allows them to do it (70 per cent). Better work-life balance (54 per cent) and reduced stress levels (43 per cent) seemed to be the main practical benefits of implementing teleworking, as well as increased employee satisfaction (51 per cent) and work being completed more quickly (46 per cent). On the other side of the spectrum, feelings of isolation and loneliness amongst those working from home and lack of social interaction (29 per cent), increase in the actual number of working hours (25 per cent), technological glitches (25 per cent) and deterioration in communication (24 per cent) were the most common issues reported by those offering teleworking or working remotely themselves.

July 2012 Changing the way we work. The role teleworking can play in how, when and where we work

Success factors The success or failure of teleworking depends on the culture of the company. Those interviewed for this report believed that without mutual trust between the employer and the employee, and constant and open communication, teleworking cannot succeed. Firms, therefore, need to have a very clear definition of what teleworking means, what is expected from each party, and how often and what kind of positions can telework. Moreover, businesses must put in place clear and regular mechanisms of communication to avoid isolation issues, lack of information and communication failure. Culture, management and communication Companies also need to train their staff in essential managerial skills such as delegation and communication. If teleworking is about giving employees more responsibility, managers need to know how to manage from a distance. They also need to know how to recognise the work of those who are not always physically present and to establish continuous, open communication between their reportee(s) and themselves, and between the members of the team, regardless of their physical location. Promoting Higher Apprenticeships in management and leadership will contribute to good practice amongst the workforce, whilst sending a strong message to employers about the importance of good management for the future of the business itself, as it helps to ensure the generational takeover of the company, and provides it with the skills required to take the firm to the next level of growth. The effort and time spent in implementing teleworking must be seen as an investment, rather than a cost. Teleworking adds to the resilience of the business, as companies can continue to function beyond eventualities such as transport delays or extreme weather, adding to the overall competitiveness of the wider economy. Moreover, teleworking can enhance the opportunities for expansion, as it enables growing firms to do so incrementally and without having to take on too many expenses, such as rent or employment costs, at one time. It also makes easier and more cost-effective international collaborations, as firms do not need to have offices in different countries and are more flexible to adapt to different time zones. The importance of technology For all this to happen, however, investment in technological infrastructure across the country is needed. If businesses are expected to work from anywhere, at any time, they need to have access to quality, high-speed broadband connection so the demand for remote working can be met without any technological limitations.

Changing the way we work. The role teleworking can play in how, when and where we work July 2012

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2. INTRODUCTION 5 In May 2011 the government began a consultation process on its intention to extend the right to request flexible working to all employees, rather than limiting it to parents of children under 17 (or disabled children under 18) and to certain carers as it currently stands. Flexible working refers to “any agreement for an employee to work in a way that best fits their other responsibilities whilst also ensuring that the job gets done”. In other words, under flexible working the employee can work when, where and how s/he chooses, and it includes practices as varied as part-time, flexi-time, compressed hours, homeworking, annualised hours, term-time working, structured time off in lieu, job-sharing, varied-hours working or time banking.1 Currently under consideration, the May 2011 consultation aims to “stimulate a cultural change to make flexible working practices the norm”. 2 Yet, flexible working is already a highly extended practice amongst companies of all sizes. According to the government’s own data, around 80 to 90 per cent of requests of flexible working are accepted, 3 whilst 7,938,809 jobs in the UK are part-time positions.4 Besides part-time arrangements, teleworking is perhaps one of the most popular forms of flexible working. For the purpose of this research, teleworking refers to any work done away from the company’s premises at any time, and includes hot-desking, homeworking (either with the office as base or with the home as base) and ‘on the move’ work. It does not include time off sick or time spent going to meetings, for example, and it can vary from working one to five days a week away from the traditional office. If properly applied, teleworking can be a cost-saving exercise, improve a company’s output, and increase the talent pool and retention and motivational levels. With the London 2012 Olympic and Paralympic Games around the corner, many have seen this as a unique opportunity to put in practice and expand teleworking. Yet, of those companies currently offering teleworking, only 24 per cent said they would extend their policy to cope with any potential disruption, compared to 47 per cent that said they would not. Businesses seemed to have missed an exceptional opportunity to try and expand their policies around flexible working. It is not clear whether the reason for this is lack of awareness of the impact the Games may have on deliveries and transport links. This, however, seems unlikely considering the extended campaign governmental and transport organisations have undertaken during the last six months. An alternative explanation may be that companies do not know how teleworking works and what it entails. This report hopes to solve this issue. It will look at what kind of flexible working businesses offer to their employees; what motivates companies to offer teleworking or not; what the effects of offering it are for both employers and employees; and whether those firms that do not offer teleworking to all their staff are missing out on operational savings and efficiencies. The aim is not only to provide companies, in particular SMEs, with a better understanding of the competitive advantages teleworking can give them, but also to give those who are thinking about offering it the necessary tools to make it a success.

Department for Business, Innovation and Skills (BIS) (2011): Consultation on Modern Places, at http://c561635.r35.cf2.rackcdn.com/11699-consultation-modern-workplaces.pdf. Definitions of the listed working practices can be found in the same document 2 Ibid., p. 31 3 Ibid., p. 33 4 Office for National Statistics (ONS): Labour Market Statistics Data (April 2012), at http://www.ons.gov.uk/ons/dcp171766_261081.pdf 1

July 2012 Changing the way we work. The role teleworking can play in how, when and where we work

3. WHO TELEWORKS AND HOW 6 Teleworking has traditionally been offered to working parents, carers and women to facilitate their return to work after maternity leave. In terms of jobs, sales, freelance journalists, entrepreneurs, online business and web-designers are often used as examples of successful teleworking jobs. But this vision no longer represents the reality of our workplaces. According to our research, two per cent of those companies that allowed teleworking offered it to parents and carers only, whilst 32 per cent extended teleworking to “all employees if requested” and 44 per cent had it as “part of the company’s policy and employees do not need to request it” (see Figure 1). 5 More significantly perhaps, only 20 per cent of those taking part in our survey worked for an organisation that “has never allowed teleworking” or that “used to allow teleworking but no longer does”. In other words, most firms saw teleworking practices as part of the working environment and have embraced them openly. Figure 1: London companies’ teleworking practices

44%

32% 22%

2%

My company offers teleworking to parents and carers only

My company offers teleworking to all employees if requested

Teleworking is part of my company’s policy and employees do not need to request it

Other

This openness, however, does not necessarily come from a formal flexible working policy: “if people need to work from home because they have something delivered or there is something going on at home, managers are quite lenient. It takes the additional stress out. As long as the job is done, it’s fine. But this isn’t formally recognised, even if everybody knows that that is the culture of the company” (HR manager in the property and construction industry). Perhaps this ‘human’ approach to teleworking is the reason why more than half (57 per cent) of those who offered teleworking, even if this was not part of a formal policy, were companies with 1-19 employees. It is generally accepted that in this type of firms relationships of friendship and familiarity are easier to develop amongst members of staff, making managers more aware of potential problems, needs and ‘out of work’ pressures of their employees.

Despite the overall response rate for this survey being 178 responses and the fact that only 34 businesses did not allow teleworking, the final number of companies offering teleworking responding to this survey was 138. The other six respondents decided not to continue with the survey 5

Changing the way we work. The role teleworking can play in how, when and where we work July 2012

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It is employees in smaller companies who also enjoyed teleworking more frequently: 33 per cent of the companies with 1-19 employees surveyed for this report had between 90 and 100 per cent of their staff teleworking at least once a month; whilst 60 per cent of firms with 500 employees or more had 1 to 10 per cent of their workforce working away from the office at least once a month (see Figure 2). Figure 2: Percentage of employees typically teleworking at least once a month according to size

70%

1-19

20-199

200-499

500+

60% 50% 40% 30% 20% 10% 0%

Percentage of employees teleworking

This figure supports the idea that most firms use teleworking to respond to the occasional needs from a limited number of employees. Most of the interviewees described teleworking as something their staff enjoyed whenever they had a ‘domestic issue’, such as a sick child or having something delivered that day, or when working on a project or under a tight deadline because, as the HR manager of a display specialist company explained, “the difficulty sometimes in any work environment is that you are tied up in meetings, you are having lots of different conversations and discussions with employees so it doesn’t always give you the ability to focus on a particular piece of work. It’s helpful to get away, focus on that completely and then come back to the office.” It is perhaps because of this that teleworking is generally identified as something that only certain types of sectors and positions can enjoy. Unsurprisingly, therefore, our research shows that people in areas where a physical presence is not necessarily required teleworked more often than other sectors which by their nature have to be done on site (such as retailing and manufacturing) or outside the office, such as sales (see Figure 3). Thus, 39 per cent of those surveyed in “sales and customer service positions” work away from the company’s premises, compared to only two per cent of those in “process, plant and machine operative positions”. Even then, “if you want to push boundaries, you could say to the warehouse workers to work from home one day every few months to think how we can improve processes in the warehouse, then come back with a proposal. One shouldn’t see teleworking as practical from the employer’s point of view. It can also be quite motivating and prestigious to be asked to do it” (regional general manager of an electronics distributor). The positions that used teleworking the most, however, were management and senior posts (79 per cent), followed by professionals, non-managerial positions (49 per cent each), and administrative and secretarial jobs (25 per cent); mainly in companies in Inner London, with 1-19 and 20-199 employees and within the professional and finance sectors.6 Inner London is defined as the London Boroughs of Tower Hamlets, City of London, City of Westminster, Kensington and Chelsea, Camden, Islington, Southwark, Lambeth, Wandsworth, Hammersmith and Fulham, Greenwich, Lewisham and Hackney. The professions sector refers to jobs in accountancy, law, consultancy, etc. 6

July 2012 Changing the way we work. The role teleworking can play in how, when and where we work

Figure 3: Percentage of employees typically teleworking at least once a month according to sector

60% 50%

Finance/Business Service

Professions

Retail/Wholesale

Other services

Manufacturing/Transport/Logistics

40% 30% 20% 10% 0%

Percentage of employees teleworking

Although the quantitative results support the idea that the more senior a person is in the company the more s/he teleworks, those interviewed did not focus so much on positions as on age: “part of your working life is about career progression and learning, and you learn from other people so teleworking for a junior member of staff will be difficult and, I believe, far less rewarding for the individual. I think it works much better when you’ve established your own skills set and you are comfortable in what you are doing” (owner of a specialist marketing SME). The problem, therefore, is not age but “the lack of experience that comes only with practice. A junior member of staff that works from home wouldn’t be mentored as efficiently and s/he will not have the answers to deal with certain issues” (HR manager in the property and construction industry). In other words, the link between seniority and frequency of teleworking may be the result of people in these positions requesting it more than younger staff. Additionally, many see teleworking as only applicable to individuals of certain characteristics. Although some interviewees mentioned features such as “self-motivated”, “responsible” and “organised”, the majority did not link the success of teleworking to individual traits but to issues such as communication and trust, which will be discussed later on in the report. We can say, then, that despite being a practice broadly extended in contemporary workplaces, teleworking does not happen too often and it is exercised by a limited number of employees, especially in smaller companies. Furthermore, most people who teleworked did so from home, either with the office as base (57 per cent) or their houses as base (43 per cent), and ‘on the move’ (43 per cent). The desire to work from home can also be limited by more mundane problems. As an independent transport consultant put it, “you need to have the right home environment. You need to have a room, basically, that is your own, that isn’t disturbed. You can’t just set up your office in the corner of the dining room. You’ve got to have your own space.” This view was shared by the HR manager of a display specialist company who said: “homeworking is about making sure that this person has the facilities to work from home and whether the environment is conducive because, with the best will in the world, if you’ve got a young family and you don’t have the space, can you really work from home?”

Changing the way we work. The role teleworking can play in how, when and where we work July 2012

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Teleworking, therefore, can be offered to everyone because it is not about the post-holder per se, but about whether it makes sense for both the employee and the employer, helping them to work as effectively and efficiently as possible. Moreover, although the current potential for teleworking to change how we work on a big scale is limited, its importance should not be underestimated. More and more employees see it as an essential feature of their working lives. So much so that 30 per cent of those businesses surveyed reported an increase in the proportion of teleworkers this year compared to last, in contrast to four per cent that saw theirs decrease.

July 2012 Changing the way we work. The role teleworking can play in how, when and where we work

4. WHY OFFER TELEWORKING 10 Almost three quarters of companies (70 per cent) offered teleworking simply because “technology allows (them) to do it” (see Figure 5). An independent transport consultant put it this way: “I would have struggled if I had started ten years earlier. Although I am still reliant to a certain extent on post, the email is a brilliant way of communication. Besides, you have all the information and documentation you may need on the internet. There is no need for an office any more.” But most of our interviewees allowed teleworking because of the flexibility it gave them and their staff; a flexibility that translated into having access to a better and wider pool of workers because “it’s far more sensible to get the right skills than worrying too much about where they are geographically” (owner of a specialist marketing SME). For the HR manager in the property and construction industry, teleworking may not necessarily help with recruiting “because it’s not a formalised policy, but it definitely helps with retention. People like and appreciate being able to tailor their job to other requirements”. This view was shared by 25 per cent of businesses who reported lower turnover of staff, whilst 28 per cent saw lower absence rates and 24 per cent reduced their sickness rate (see Figure 4). Moreover, as the owner of a specialist marketing SME explained, “sometimes small companies aren’t in a position to give salary increases or huge salaries so if by giving people flexibility I can keep someone good within the company… it’s a tradeoff and an affordable way of compensating them.” Figure 4: Positive effects of implementing teleworking practices according to London businesses7 54% 51% 46%

43% 42% 36% 36% 30% 29% 28%

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20%

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Respondents were asked to select as many as applied to them; it is because of this that the percentages do not add up to 100

Changing the way we work. The role teleworking can play in how, when and where we work July 2012

Teleworking can also be a cost-saving exercise. A regional project manager, for example, has “reduced costs for recruiting and training because we have reduced our (staff) turnover 75 per cent; so now we take people on, train them and they don’t leave. At the same time, our client retention has improved because they see the same face year to year rather than constant new people.”

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Moreover, teleworking is usually associated with reducing costs of premises. The savings from this, however, are somehow limited. In fact, less than a quarter of those surveyed (30 per cent) chose this as a reason to offer teleworking (see Figure 5), whilst 59 per cent of those allowing teleworking reported no difference in their business costs. 8 For those being interviewed the savings associated to teleworking were a nice, if very important, add-on rather than the main reason why they decided to implement it. What is more, some pointed out the initial costs associated with these practices, as they needed to invest in technological tools or upgrading their internet connection, for instance; whilst others commented on the fact that an office space is still required, even if only for hot-desking, because teleworking must be an option available to employees rather than compulsory.9 These saving opportunities can be especially beneficial for smaller businesses looking to grow. According to the owner of an HR consultancy, “teleworking enables you to expand when you are very small slightly more quickly because you take on incremental costs; rather than immediately committing to at least £20,000 in staff costs, you can have someone working for you for four hours a week. I wouldn’t have had the resources to expand if I hadn’t gone that way.” Figure 5: Businesses’ reasons to offer teleworking 10 70%

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25%

23%

4%

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At the same time, 25 per cent of respondents said they had saved money from the implementation of teleworking practices. Savings might include property, increased productivity or lower turnover and sick days. The amount of money saved on a yearly basis varied hugely form £3,000 to £100,000 9 In fact 10 per cent of businesses experienced an increase in costs but, again, these costs varied from £1,000 to £10,000 10 Respondents were asked to select as many as applied to them; it is because of this that percentages do not add up to 100 8

July 2012 Changing the way we work. The role teleworking can play in how, when and where we work

Moreover, although less than a quarter (22 per cent) of those surveyed saw an increase in profitability itself, respondents identified a kind of profitability not necessarily measurable in monetary terms as such. Thus, 46 per cent of those asked thought that work was done more quickly (see Figure 4), compared to 40 per cent of businesses that expected this to happen when deciding to allow teleworking (see Figure 5). At the same time, 29 per cent thought the work produced was of a better quality and 23 per cent experienced an increase in creativity (see Figure 4). These positive effects were supported by our interviewees who also reported an increase in productivity, partly because teleworkers could concentrate on particular projects when away from the distractions characteristic of the work environment, and partly due to a more effective and efficient use of time. This is particularly important since 15 per cent of businesses that did not offer teleworking did not do so because they felt it would reduce the productivity of their employees. According to the HR manager of a display specialist company, “when teleworking, staff are able to start work earlier, are less tired and use the time more effectively rather than spending, for example, three hours in traffic and then having to leave either much later or earlier to get home at a reasonable time. The time they spend at the site is less efficient for them than if they work from home (providing they have the resources to do this effectively).” More importantly and in the words of the owner of an HR consultancy, “if the relationship is working well, selfishly, you will find that your teleworkers actually do more for you than they’re contracted to do.” This was supported by our quantitative research which showed that 25 per cent of respondents saw the working hours increased amongst teleworkers, compared to only one per cent who reported a decrease in the number of working hours (see Figure 6). Figure 6: Negative effects of implementing teleworking (according to London businesses) 29% 25% 25%

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Changing the way we work. The role teleworking can play in how, when and where we work July 2012

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Teleworking, however, has to be “beneficial for both parties. It has to work for us as an organisation so we are able to respond to the business’ needs and changes. But if it was only beneficial to the company, we will have unhappy inefficient employees and that is not going to help the business one little bit” (HR manager of a display specialist company). In other words, there needs to be a culture of “making sure that staff are well looked after (within the organisation)”. Accordingly, 48 per cent of businesses who offered teleworking did so “to improve work-life balance of the staff”, whilst 43 per cent did it “to reduce stress of commuting” and 28 per cent “to make it easier for working parents” (see Figure 5). More significantly perhaps, more businesses offered it “to respond to staff demands” (34 per cent) than “to comply with current regulation” (4 per cent; see Figure 5). The results were positive: 54 per cent of respondents reported a better work-life balance, 42 per cent experienced a better quality of life and 43 per cent saw stress levels amongst staff reduced (see Figure 4). At the same time, 51 per cent of businesses perceived an increase in their employees’ satisfaction whilst 36 per cent reported higher morale, probably because “if you have the ability to give time when people want time, you will be able to get better, more motivated, happier people who are allowed to do what they want when they want it and deliver what you ask for. The emphasis is on trust, rather than measuring them by the time they spend at the office” (owner of an HR consultancy). If difficult to measure, develop and even define, trust is, according to all our interviewees, the essential element of teleworking and it must be a vital component of the company’s culture. But trust also needs to be mutual. That is, not only must employees feel comfortable communicating and informing managers about any potential problems around being a teleworker, but managers must trust their staff to do their work away from direct supervision. In this sense, trust is about giving the employee back some of the responsibility for their work. Undoubtedly, at times those in the office will ask themselves “are they at home? are they working? So you couldn’t do it at all without the trust element” (HR manager in the property and construction industry). The owner of an HR consultancy compared it to being a student: “at school you started at 9am, you followed a timetable and then you go home to do your homework. It’s a rigid structure but this changes slightly when you go to university, where you are expected to manage your time more, although you still have to fit into someone else’s timetable. Then, when you go on to do a Masters or PhD degree, you are completely independent. You are supervised but you meet him once a month or maybe talk on the phone and you may want to work from 11pm till 4am. It’s completely flexible. We forget that we trust our employees to handle confidential information or controlling budgets, but we don’t trust them to manage their own time.” The issues, then, may be more with some managers and directors than with members of staff because, in the words of a specialist marketing SME’s owner, “if you like to micromanage everything, you will be very uncomfortable with teleworking and you will have lots of sleepless nights. Personally, I believe that if you give people respect and autonomy, you tend to get it back.” Interviewees also pointed out that there was no real difference between a teleworker and an office-based employee when assessing their performance; “I 100% per cent know that I’m getting full attention and commitment from someone, whether or not they’re physically in the same room as me. As their boss you know what work needs and is coming out every week” (specialist marketing SME’s owner). Interestingly, only nine per cent of the businesses surveyed saw the “lack of trust in staff to carry out duties” as a negative effect of teleworking, whilst ten per cent perceived “resistance from managers” to its implementation (see Figure 6). Yet, it was managers’ opposition to teleworking that stopped 15 per cent of businesses from offering it.

July 2012 Changing the way we work. The role teleworking can play in how, when and where we work

Problems around the application of teleworking can be solved as long as there is a clear understanding by both parties on what is expected of them, not only in terms of daily, weekly or monthly objectives and deadlines, but also on what working away from the office means. The owner of an HR consultancy explained as follows: “the difficulty is trying to get those involved to agree what it is all about. If one party thinks flexible working is where they can go home and work when it suits them, and the other party thinks it means that they can go home but they actually need to be working the same hours as those in the office, it’s simply not going to work.” In short, to ensure a successful and smooth implementation of teleworking practices, decisions around the following need to be taken and agreed by both the employer and the employee: • • • • • •

the frequency of teleworking the type of teleworking that will take place how often updates will take place what format these updates will take place in what the (daily/weekly/monthly) objectives and deadlines are what the responsibilities and obligations of both the employer and the employee are in terms of health and safety regulations, and working tools

Communication then is critical. But communication is also directly linked to trust because, according to the HR manager of a display specialist company, “trust is about openness, about having people come in at any time to talk and share problems and ideas.” This face-to-face communication can take different forms; some companies arranged weekly lunches, others arranged regular socials and even small trips, whilst those with an international presence usually chose the conference format. All of them, however, agreed on the importance of meeting regularly, although how often and in what type of set-up will depend on what works better for each company. The reasons for these regular meetings are multiple. First, they make sure that teleworkers are kept informed of what is happening in the company, although this can also be done through the intranet, newsletters or via email. The latter is a good means for discussion and brainstorming (when meeting face-to-face is not possible) as it not only involves everybody, but it also allows the quieter workers to take part in important decisions. Second, regular visits to the site will ensure that teleworkers keep in contact with their colleagues and that they feel part of the company, as well as providing them with a social contact and the ‘coffee machine gossip’ that they may not get when working at home. Moreover, these regular visits help teleworkers to not lose sight of the firm’s objectives and how what they do relates to overarching corporate objectives. At the same time, regular visits ensure that more formalised processes are developed, and meetings become more productive and efficient because decisions need to be taken there and then, when everybody is present. Finally, regular meetings will make teleworkers and their contribution to the firm ‘visible’ to both their own teams and other teams within the company. Communication, however, needs to be constant. “In the office people have the opportunity to see their line manager on a day-to-day basis and talk to them even in the corridor. You don’t have that same ability to meet if you are working from home” (HR manager of a display specialist company). Furthermore, “it’s very easy (for a manager) to get absorbed by the day-to-day activities in the office so it’s very easy to say ‘I’ll meet you next week’, and then it’s the following week, and then the following one…” Managers, therefore, need to empathise with teleworkers and communicate with them even on a daily basis to make sure that that person has talked at least to someone in the course of the day, mitigating any potential feelings of isolation and loneliness reported by 29 per cent of teleworkers (see Figure 6).

Changing the way we work. The role teleworking can play in how, when and where we work July 2012

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These regular conversations and face-to-face meetings are also a way of ensuring that the teleworker feels valued and that her/his job is being recognised. Moreover, they contribute to making remote workers part of the company, as well as being an opportunity for them to bring up issues around their work or even their working tools, tackling them before they affect the employee’s performance and productivity. Dealing with any latent problem before it becomes an issue is important because it could potentially create tensions between teleworkers and other members of the team; “if someone is not performing, you have to tackle the situation immediately because, otherwise, it will have an immediate negative effect on everybody else who will be asking themselves why they should work when someone else is clearly getting away with it” (owner of a specialist marketing SME). In this sense, 11 per cent of businesses reported a “negative effect on other teams or workers” and 19 per cent felt there was “resentment from those unable to work from home” (see Figure 6), although 16 per cent also saw an improvement in the working relationship between teams and 17 per cent did so in the working relationships within teams (see Figure 4). Companies that offer teleworking then must ensure that “the lines of communication are kept open, that workers understand everything that is going on in the site, and kept up-to-date and feel they are an integral part of the company, even though they are not always in the office” (HR manager of a display specialist company). This communication must also be continued and multidirectional if the potential negative effects of teleworking are to be prevented (or at least mitigated). The aim is to avoid any disconnect between managers and staff so that mutual trust is not broken. Communication is, therefore, essential. The difficulties around ensuring open communication and creating mutual trust make teleworking a practice not suitable for all companies. Some sectors and job positions do not adapt to this practice as easily as others − 56 per cent of those businesses that did not allow teleworking did so because they thought it did not suit their companies. Additionally, the successful implementation of teleworking does not happen based on good intentions and goodwill and a huge cultural shift will be needed in some firms, but teleworking brings unique competitive and operational advantages to those implementing it, and some general although important benefits that many firms just seemed to be missing out on.

July 2012 Changing the way we work. The role teleworking can play in how, when and where we work

5. CONCLUSIONS 16 Teleworking is about finding a balance between what is good for the company and what is good for the employees. It is essential, therefore, that firms are very clear about what they want to achieve before offering teleworking, as well as what types of work and jobs can be done remotely and what is expected from each party. Having a culture of mutual trust and open communication will allow a successful implementation of teleworking practices, whilst ensuring that potential gains are maximised and possible problems quickly identified and dealt with. However, the capitalisation of the positive effects of teleworking will not happen overnight and careful planning needs to go into its implementation. This is important because, although more than three quarters of London businesses (80 per cent) offered some form of teleworking, our research has shown that most employers offered it on an informal and ad hoc basis. This means that most companies do not have the skills or the experience to manage those working remotely. The promotion of Higher Apprenticeships in management and leadership will contribute to filling this gap. It will also help to ensure a smoother generational transition as more employees would be ready to take on more responsibilities. Moreover, it will send a strong message to employers about the importance of good management for the future of the business itself. Teleworking can add to the flexibility and contingency of a business, allowing companies to continue working despite certain problems. It can also enhance opportunities for national and international expansion, as firms do not need to have a physical presence in other countries and because costs can be taken on incrementally. For all this to happen, however, investment in technological infrastructure across the country is needed. If businesses are expected to work from anywhere, at any time, they need to have access to quality, high-speed broadband connection so the demand for remote working can be achieved without any technological limitations.

Changing the way we work. The role teleworking can play in how, when and where we work July 2012

APPENDIX: WHAT THE LAW SAYS 17 The legislation providing the right to request flexible working would not give workers a right to change their contractual arrangements; it would simply allow them to request a change in their contract, whether temporarily or permanently, after 26 consecutive weeks in the post in order to be able to balance personal and work-related responsibilities. Moreover, if the changes proposed by the government were to go ahead, staff could request flexible working twice every 12 months (but only if they had stated in the original request that they expected it only to be temporary) as opposed to the present once every 12 months. Employers could still deny requests to flexible working based on the following business reasons: 1. 2. 3. 4. 5. 6. 7.

the burden of additional costs detrimental effect on ability to meet customer demand inability to recruit additional staff detrimental impact on quality detrimental impact on performance insufficiency of work during the periods the employee proposed to work planned structural change

Furthermore, companies would be able to put in place their own system to consider requests, as long as those requests are looked at within a reasonable time period, and conducted in a fair and reasonable manner.11 Finally, companies have the same obligations to protect employees who work virtually, as they do for employees who are based on-site. This includes provision of information, instruction, training and supervision. For those who are homeworkers, employers are required to carry out a risk assessment of the work undertaken by the member of staff both to identify potential risks and to decide whether enough steps have been taken to prevent them. However, the employer is also responsible for the health and safety of visitors and third parties. If the teleworker has a ‘home office’, this may not be an issue, but if the equipment provided by employer is in a communal part of the home, other members of the family (children in particular) need to be considered; for example, loose cables will need to be tied safely. Of the work equipment used at home, employers are only responsible for the equipment they supply.12 Teleworkers, on the other hand, have the responsibility to take reasonable care and look after their own health and safety and that of others who may be affected by their work, as well as to use the equipment provided properly and cooperate with their employer’s health and safety regulations. Moreover, they need to check their household insurance13 and if the property is leased, they need to check that work can be carried out from there. It is recommended that employers review risk assessments at least annually, or when there has been a significant change in working practice.14

Department for Business, Innovation & Skills (BIS) (2011): Consultation on Modern Places, at http://c561635.r35.cf2.rackcdn.com/11699-consultation-modern-workplaces.pdf 12 Equipment provided by the employer needs to be insured by the employer, whilst personal equipment needs to be insured by the teleworker 13 Sometimes there is a higher premium required if the property is being used for business purposes, particularly if there is an exclusive area within the property used for business 14 For more general information, please visit http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1074426698, or see Health and Safety at Work etc. Act 1974 (HSWA), the Management of Health and Safety at Work Regulations 1999, the Provision and Use of Work Equipment Regulations 1998, and Health and Safety (Display Screen Equipment) Regulations 1992 11

July 2012 Changing the way we work. The role teleworking can play in how, when and where we work

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Changing the way we work. The role teleworking can play in how, when and where we work July 2012

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