| To overcome the challenges brought by the ongoing | | | | who work in the office. |
| global economic crisis, companies are starting to | | | | How to implement |
| implement ways to reduce their overhead expenses. | | | | Managing a virtual workforce is a lot different than |
| Several different strategies have been brought | | | | overseeing to people who come into the office. |
| forward, including the idea of using reduced work | | | | Implementing the reduced work week or managing |
| schedules to manage costs. From telecommuting to | | | | telecommuting programs will require training and the |
| implementing a four day workweek or a condensed | | | | development of a different set of metrics for |
| workweek, one can find a form of these cost-saving | | | | monitoring employee productivity statistics. |
| approaches in practically every workplace these days. | | | | There are certain things to consider before a |
| Better than layoffs | | | | company implements flextime work arrangements. |
| Implementing a reduced work week arrangement is a | | | | The same applies for the implementation of the cost |
| good alternative to drastically downsizing the company. | | | | saving 4 day work week. For instance, companies |
| People need their jobs to survive - especially in these | | | | have to identify which production areas will be suitable |
| trying times -and many will appreciate the reduced | | | | for the condensed work week set up and which ones |
| work schedules more than getting fired from their jobs | | | | will thrive even when employees do not work in the |
| entirely. So instead of following the tide of the recent | | | | office site. |
| layoffs, companies are now encouraged to explore | | | | From there, benchmarking should be implemented. This |
| options that will allow employees to keep their jobs | | | | will create quality of service metrics as well as |
| while at the same time reducing the costs of keeping | | | | determine how much work should be assigned to |
| everyone for the employer. | | | | employees working from home. It's also important to |
| Low overhead, maximum productivity | | | | devise a set of guidelines that will serve to educate |
| The idea of telecommuting is not entirely new, although | | | | employees on how the four day work week or |
| it has risen to fame over the past year due to the | | | | telecommuting program works. The guidelines should |
| need for more innovative workforce management | | | | be agreed upon by the local union and submitted for |
| programs that will allow employers to save on | | | | approval to labor-related agencies that have to be |
| overhead expenses. It has proven to be beneficial for | | | | notified about the arrangement. |
| most organizations and has brought forth the concept | | | | Training should also be provided for both employees |
| of flextime into business management. | | | | and supervisors who are managing telecommuting |
| Thanks to the development and increased accessibility | | | | programs. Virtual employees need to learn how to |
| of the internet, it's easier for companies to establish | | | | resolve basic networking issues on their own while |
| virtual workplaces where employees can simply log in | | | | supervisors have to be equipped with skills that allow |
| and work on their daily tasks from the comfort of their | | | | them to manage people working in a different location. |
| own homes. The virtual workforce has also | | | | To gauge the effectiveness of the cost saving 4 day |
| broadened the reach of various businesses, allowing | | | | work week, managers are also supposed to be |
| them to tap into cheaper services from all over the | | | | educated on how to review the 4 day work week |
| world. Outsourcing various business functions such as | | | | stats. Establishing metrics to define efficiency of the |
| HR and marketing has become more feasible. | | | | condensed work week should in place for businesses |
| Let the numbers do the talking | | | | to find out if using reduced work schedules to manage |
| Telecommuting arrangements saves the company a | | | | costs really is working to their advantage. On average, |
| lot of money in equipment, electricity, and office space, | | | | employers should be able to improve the bottom line |
| to name a few. It's not surprising why even giants like | | | | by around $8,000/year per new telecommuter. These |
| AT&T, Merrill Lynch, IBM, and Nortel have rolled | | | | savings result from lower office space, electricity, |
| out work at home programs for its employees. On | | | | turnover, and absenteeism costs. |
| average, expenses for each employees who works | | | | The recent layoffs show that downsizing the |
| from home (even just once or twice a week) are | | | | company and putting people out of work may end up |
| lower by 30 to 70 percent, which can translate to | | | | doing more harm than good to the business in the long |
| millions in companies with a sizeable workforce. Nortel | | | | term. Relieving people of their jobs will only pull |
| management says that the costs of the equipment | | | | employee morale down, and companies are left |
| given to an employee to enable telecommuting is | | | | short-handed in the event of quick turnaround. |
| negligible compared to the savings. | | | | Alternatives such as the reduced work schedule |
| The work from home arrangement also impacts | | | | appear to be more appropriate these days. Based on |
| productivity positively. Some success stories include | | | | the 4 day work week stats that most businesses are |
| British Telecom, which found a 31 percent rise in | | | | coming out with, the setup has allowed for increased |
| productivity among its 9,000 telecommuters (about | | | | efficiency in operations making it one of the wisest |
| 10% of its workforce). This success is shared by | | | | modes of action to address the current financial |
| Edwards, where telecommuters were proven to be | | | | meltdown. |
| 20 to 25 percent more productive than employees | | | | |