Michigan State University Extension
Home-Based Business - 09159407
10/01/98
It has been more than a decade since American workers, helped by advances in computers and telecommunications, began going downstairs instead of downtown. There were about 6.6 million "TELECOMMUTERS" -- employers of businesses and government agencies working part or full time at home instead of the office -- nationwide in 1992, up 20 percent from 1991, according to Link Resources, a New York market research firm. Although they are growing in numbers faster than any other kind of home worker, TELECOMMUTERS represent only about a sixth of the 39 million Americans who worked at home r. Among the rest, 11.7 million were part-time self- employed, 12.1 million ran a business full time from home and 8.6 million took work home from the office after- hours.
The number of TELECOMMUTERS is expected to rise sharply. From the employer's standpoint, working from home has proved a winner. The 10 supervisors interviewed for the article all reported either an increase in the employee's productivity or no change; none saw a decrease. Recent studies in government and business also found higher productivity. The gains were attributed primarily to fewer interruptions by co-workers, meaning better concentration on the task at hand.
Employers also said an offer to work at home allowed them to retain and recruit valuable employees, and sometimes to make double use of desks at headquarters, meaning lower overhead for office space. On the other hand, an employee's absence from the office can mean delays in urgent work and meetings. The arrangements, however, can be a fiasco if the employee has children who are unattended, or if the employee does not have the discipline to work without continuous supervision.
From the employees' standpoint, telecommunications has proved to be a mixed blessing, but not one they would relinquish. TELECOMMUTERS say they miss the social contact and feel compelled to work at all hours because the office is right there; a sense that they are captives to the job even in the home. Some telecommuters expressed fear that their absence from the office might lead co-workers to think they are goofing off and bosses to forget them for promotions.
Telecommuters pointed to the many benefits. Those with children mentioned the value of spending more time with them. Those who had endured long commutes talked about saving time and were also pleased with saving money they would have spent on transportation, business clothes and meals.
Advances in technology are making remote offices not only possible but appealing. Personal computers, FAX machines, and cellular phones have grown more powerful and cheaper; new hardware and software connect home PC's and office networks allowing for a "virtual office" almost anywhere.
Telecommuting will also be propelled by environmental demands over the next decade. The Federal Clean Air Act amendments of 1990 mandate that businesses with 100 or more employees in urban areas deemed to have certain air- quality problems reduce the use of cars by employees. Some companies in New Jersey, Connecticut and Texas are expected to begin implementing their plans next year, with those in eight other states, including New York, Pennsylvania and California, expected to comply by 1996.
Another trend points to increased reliance on telecommuters; the use of part-time and contract workers, many of them not covered by benefit plans, as companies shrink their "core" work forces to cut costs.
Most telecommuters, about 5.1 million, were white-collar workers. More men (3.5 million) than women (3.1 million) telecommuted last year. Small businesses lead in the adoption of Telecommuting because they are less procedure-bound than bigger companies, but bigger companies are discovering Telecommuting as an outgrowth of streamlining.
Experts say that Telecommuting should not be used as a form of day care. "This is not a good child-care solution" said Gal Gorgon, president of Gil Gordon Associates, a Monmouth Junction, N.J., telecommuting consulting firm and publisher of Telecommuting Review. "It takes a fair amount of work to make telecommuting successful."
According to Mr. Gordon, telecommuting works best when limited to one to three days a week to continue to give the telecommuter opportunities for interaction or to do things that can only be done in the office. Many telecommuters said it's better not to work at home on Monday or Friday, to quell resentment among co-workers who might suspect their work-at-home colleagues are taking long weekends.
Among the big business that have embraced telecommuting are Bankers Trust, American Express Travel Related Services, The Travelers Companies, Sears Roebuck and Tele-Communications, Inc.
Telecommuters tell why
Four telecommuters were interviewed for the article. Some of the reasons they give for telecommuting include:
- Conforming schedule to meet children's demands, being home with the children.
- Avoiding the long commute to work, ranging from 1 to 2 hours each way.
- Fewer interruptions, less stress and more satisfaction with life.
- The freedom to wander into the kitchen for a cup of coffee or to run a load of laundry while waiting for calls.
- The ability to concentrate better at home.
Source: "Working at Home, for Better or Worse", The New York Times, April 18, 1993.