A Study of Telework and Human Resource Management
Graeme Stembridge
Siena Heights University
MGT 360- Human Resource Management
Dr. Ball; Winter 2015
A Study of Telework and Human Resource Management
Telecommuting, also known as teleworking, is an arrangement between employer and employee to work from a venue away from the company’s offices, usually working from home. Most work-at-home employees want this arrangement in order to enjoy a better balance between work and life. Working away from the office is not new, jobs such as journalism, real estate agents, etc., by the nature of their work, have to work largely away from the office. Telework, however, includes only work normally done at the office where under an agreement between employer and employee permission is given for the employee to work, usually under flexible hours and away from the office, mostly at home.
The ability to work at a distance from a principle business location is referred to as both teleworking and telecommuting. Although the term telecommuting is more often used, this term merely refers to the substitution of a physical travel process between home and work. In today’s business environment, the term teleworking is actually more appropriate because it encompasses an alternative work arrangement performed electronically by one person or between or among people away from a central location, regardless of whether travel to that location was typically part of the process. (Raiborn, & Butler, 2009, p.32)
A Social Justice Issue
Many employers now recognize telecommuting as a social justice issue that focuses on a more healthy balance between work and family in an age where the breakdown of family life and responsibilities is on the increase. Telecommuting presents many social, legal, technological, and economic challenges for the human resource manager in order to develop an effective “…’people plan’ and address the ever-changing work environment” (Dias, 2011, p.3) and in developing a strategy aligned with the company’s overall strategic plan. “…the recent trend in flexible work schedules (allowing employees to set their own schedules) and telecommuting (allowing employees to work from home or a remote location for a specified period of time, such as one day per week) are external factors that have affected HR. HRM has to be aware of these outside issues, so they can develop policies that meet not only the needs of the company but also the needs of the individuals” (Dias, 2011, p.12).
Over the last few decades telecommuting has become more and more in demand. Many employees want to spend quality time with their families for numerous reasons such as, avoiding the need for child or elderly care, saving on transportation, saving time, and a growing competency in the use of technology that enables workers to keep in touch with the office. There are benefits in teleworking of which perhaps the most important is taking steps to improve family relations and thus the quality of life. Mothers favor the telework arrangements because it allows them to be mothers and have a career without major interruptions. For others it may be that for family reasons an employee may have no alternative but to relocate; with telework the employee will be able to continue his or her employment with the same company, working from home or at a location that provides for telework opportunities Overall, the flexibility that telework provides, allows employees to enjoy a greater level of job satisfaction, and a reduction in employee turnover for the employer.
The Case of Yahoo
Even though working from home has become more popular, some businesses have taken steps to limit the practice or even to abandon it altogether. “Yahoo is taking on one of the country’s biggest workplace issues: whether the ability to work from home, and other flexible arrangements, leads to greater productivity or inhibits innovation and collaboration.” (Rampell, 2013, p.1). Many disagree with Yahoo’s evaluation of telework and find it to be lacking in its argument that telework does not allow work-at-home employees the opportunities for being innovative and collaboration. “Were there other ways to foster collaboration within Yahoo? Of course, Ms. Mayer could have insisted on core work hours or days for all employees, when everyone works on-site, Or Yahoo could have developed collaborative work spaces off-site, closer to the neighborhoods where employees live, to provide them with opportunities to connect to others doing similar work.” (Glass, 2013, p.2). Nevertheless, there is a growing trend toward teleworking. The Bureau of Labor Statistics “…says 24 percent of employed Americans report working from home at least some hours each week. And 63 percent of employers said last year that they allowed employees to work remotely, up from 34 percent in 2005, according to a study by the Families and Work Institute, a nonprofit group studying the changing work force.” (Rampell, 2013, p. 2).
Benefits and Problems with Telework
Naturally, there are also some problems with telework, including supervising, concerns about how productive the at-home worker is performing, not having the same opportunity to brainstorm or share ideas with colleagues as effectively as when being at the office, working at home means that the worker is not as visible and this could have a negative impact on career advancement. For the employer there is the challenge of being sure that employment related laws are complied with. Improved and more effective management, the greater use of strategic planning and implementation of a more participative style of management, has motivated employees to rather be at the office, and in fact more willing to work late before going home to the hustle and bustle of family needs and issues. The lack of social connections and not relating to colleagues at work is also a factor. The work place often meets needs that are not met in the home, as evidenced by the fact that when employees face major adjustments when they decide to retire, they miss the work place. Home often means chores, disciplinary actions, concerns and problems dealing with children, work can become a refuge for some. Nevertheless, businesses need to be more involved in valuing a healthy family environment; annual family vacation time is not a complete answer to resolve the growing deterioration in family values and home life. If telework can in any way help with this social issue, and if it is a viable option, then this needs to be seriously considered. After all the children of today are the employees of tomorrow. It is of course understood that all work does not lend itself to be done at places away from the regular workplace, e.g., bank tellers, receptionists, hospital and medical related jobs, to name a few.
Employers need to consider the possible implementation of a telework program on a job- by-job basis, as well as considering the workers experience, ability and desire to work from home. Clear policies need to be in place such as a core time when the employee guarantees to be at the work station at home, how the productivity of these employees will be measured for the work that they do, opportunities for them to participate in special events at the main office, security concerns to reduce the possibility of home computers being hacked. Not every employee has the right kind of personality to work away from the office. Personality testing needs to be seriously considered. Telework offers unique benefits to the employer as well, such as being able to increase the number of individuals who apply for positions with the business because they have the option to work from home every day, or some days during the work week, work space at the office is reduced resulting in savings in rent, construction costs, and property taxes. Employees who are given the benefit to work from home are often willing to work for a lower wage because of their savings in time and money spent in commuting to the office each day.
Raiborn & Butler (2009) addressed the issue of telecommuting and telework more specifically from a cost point of view, the article being published during the economic climate in mid-2009, a time of uncertainty and recession. Their emphasis was on how employers may contain costs while still retaining their better or key employees, and in this way reduce the expense of replacing and training new employees when the economy improved. They then took a look at the benefits and drawbacks of telework for both the employee and the employer. They suggest that as the Industrial Revolution had a major impact on the workplace so too has the Technology Revolution brought about major changes as to how work is performed today (p.32). They go on to discuss the advantages of telework to the employee and to the employer, followed by the disadvantages to each. Employees enjoy the advantages of a “virtual raise” because of savings in gasoline, automobile maintenance, lunches, dry cleaning, and wardrobe enhancements; a better work life balance because of saving hours per day in travel time and allowing for more quality family time. Increased job satisfaction because of the flexibility and autonomy to control their own work time and pace. Advantages to the employer are determined as including: increased worker productivity, with a caution that “Most studies claiming increased productivity are based on self-reported data, but it seems reasonable that workers who were solid contributors to the workplace before they teleworked and who now have the trust of their supervisors are likely to be more productive than they were when tethered to their office desks” (p.34). Cost savings to the employer. Even though the employer will need to pay for the equipment necessary for the employee to work at home, there is a savings on office space, utility costs are reduced, and equipment wear, maintenance, and overhead costs are reduced. Better employment recruiting and retention can be a benefit because of a larger pool of applicants, employees who relocate, or if the business opens additional branches or work sites, the employees can be retained and work from home, this allows work force stability.
Raiborn & Butler (2009) note what they found to be the drawbacks of telework to employees and employers. Teleworkers may become at-home workaholics working more hours because they can, “workers with limited space in the home or with busy families or roommates may find it challenging to carve out a quiet place to work without interruptions” (p35). Social isolation and non-involvement in office social networking, less or no on-site technical support, teleworkers could be subject to state tax in the employing company’s state of residence. The major drawback for the employer is loss of control, “micro managers and managers who rose to supervisory positions by putting in eight-hour plus days often have the most difficulty accepting teleworking” (p.35). Employers are concerned about security issues, the possibilities of external cyber-attacks and the potential for legal and financial damages impacting the company’s computer systems. There probably will be equipment maintenance and acquisition costs at numerous telework sites, some which are likely to be located at home sites some distance from the office. Employee morale problems may occur in work relationships between employees on-site and at telework sites. Tax issues may exist because teleworkers could create a “physical business presence” in a state where the employer’s business did not have a presence, and will now be subject to additional taxes. Lastly, employers need to be sure to comply with numerous legal requirements. These will be briefly addressed below.
In addition to recognizing that teleworking has benefits and drawbacks for employees and employers, there are a number of legal issues to be complied with. In this paper we examine those issues that could directly affect teleworkers and their employers. Hager & Klein (2008) discuss ten legal issues that employers need to be aware of before permitting telework arrangements. (1) Wage and Hour Compliance. The Fair Labor Standards Act requires wages to be paid at the rate of at least time-and- a-half for overtime work, this includes teleworkers. The challenge is to find a way of monitoring the hours worked by a teleworker. This could be controlled by having the teleworker agree that they will not work any overtime without first getting management’s approval. (2) Workers Compensation. It can be very difficult to be sure that any injury incurred by a teleworker was in fact work-related. Precautionary steps could be taken if conscientious employers “… inspect telecommuter home offices periodically for safety and ergonomics” (p.1). (3) Occupational Safety and health Act (OSHA). All work-related injuries and illnesses must be recorded, including those incurred by teleworkers. Employers must insist that all teleworkers comply with work safety measures and requirements. (4) Liability Coverage. Employers need to be sure that teleworkers are insured against injuries to third parties and to property caused by a teleworkers negligence. “…employers should make sure that their liability insurance covers the teleworkers home whenever it is being used for the employer’s business. Requiring telecommuters to maintain homeowners or renters insurance is also a good idea’ (p.2). (5) Trade Secrets and Confidential Information. Employers need to be careful to track information relating to the business that teleworkers are using and are exposed to, by having the teleworker sign a nondisclosure or confidentiality statement. (6) Tax Concerns. A teleworker may live in and thus work from home in a state other than where the employer’s office is, this may raise tax issues, e.g., state tax laws for reimbursing teleworkers mileage may be different. (7) Zoning, Some zoning laws do not permit an employee to work from home. (8) Privacy Issues. Teleworkers could be asked to sign a waiver allowing the employer to monitor their work, and even to allow employers access to the teleworkers workspace. (9) Americans with Disabilities Act (ADA). “A telecommuting arrangement may be considered or provided as a reasonable accommodation to employees who have a disability under the ADA that prevents them from performing their jobs or parts of the job at a traditional work location” (p.3). (10) Discrimination Issues, If employers are selective in whom they permit to work from home they need to be very sure that their actions are not discriminatory in any way. Allowing teleworkers to work away from the employer’s location does not change their employment terms and conditions except in certain specific ways. “Ultimately, by keeping the same conditions of employment for telecommuters as non-telecommuting employees can prevent claims of unfair and discriminatory treatment” (p.3). In addition to the ten legal considerations briefly discussed above, employers are well-advised to have a written agreement signed by the teleworker and the employer giving clear information as to the responsibilities and expected behaviors of both parties to the agreement.
Telework Research Findings
Bailey & Kurland (2002) set out to review research into telework to find answers to three questions: who participates in telework, why, and what are the outcomes of teleworking? Telework has been claimed to reduce various business costs such as real estate, improve social skills, lessen pollution from commuting, and address the social justice issue of encouraging a healthier balance between work and family. The authors believed that there were too many assumptions about telework. Job suitability or work factors were found to feature high in the reasons for telework. More professional males compared to females and more female clerical workers compared to their male counterpart participated in telework. Commuting costs were not found to be a major cause for telework. It was also found that women did not make up the majority of teleworkers, and that family concerns were not necessarily a strong reason either. Being competent and familiar with technology was positively related to the reason for choosing telework. It was also not clear that job satisfaction and productivity increased for those who participated in teleworking, when increases were found it was mostly when productivity and work satisfaction were self-reported. But before we accept these findings we need to recognize the limitations of the research. To quote the authors, “Despite research in telework spanning nearly two decades, the three questions we posed (who teleworks, why, and what happens when they do? Remain largely unanswered. In part, as we have noted, challenges such as defining and locating the telework population hinder researchers’ ability to answer these questions “(p. 23). There are challenges relating to whether or not the teleworker is working full-time at home or part-time at home and the rest of the time at the office, some work just a few days in the month at home, in fact there is a preference for part-time teleworking as opposed to fulltime. This means that the teleworker and the business for that matter get the best of both worlds, or do they? The question of course is, what does this variation in number of days worked at home have on productivity, collaboration, innovation, and above all work family balance? In fact a part-time teleworker may be put under even more family anxiety caused by uncertainty and lack of a routine, as they constantly try to make the system work, and as a result family routines are stressed to the limit. Even researching into whether mothers with young children participate more or less in telework arrangements can be distorted because some may choose rather to work full-time at the office when compared to some days at home and some days at the office. Full time in only one place can be less stressful because of a more organized life style that is preferable for a healthy work family balance.
Mayo, Pastor, Gomez-Mejia, & Cruz (2009) analyzed data from one hundred and twenty-two Spanish firms to determine what makes a firm implement a telework option. A quantitative analysis was used including descriptive statistics, correlations among study variables, and regression analysis. The research was conducted in order to understand “why do some organizations offer telecommuting while others do not? It is important to understand what contingency factors motivate organizations to adopt this practice, given the increasing social expectation that telecommuting helps employees balance their work and family domains” (pp, 939-931). Firm size was found to be inversely related to telecommuting. Small firms are more likely to allow telework mostly because it matches a small firms financial and operational style and their entrepreneurial culture. The higher the percentage of international workers employed, mostly through outsourcing, the more likely the business will support implementing a telework option. Adopting a telework arrangement was found to be positively related to outcome-based systems of control and variable compensation based on performance results rather than time.
Some limitations in the study include a contingent leadership style as opposed to a more entrepreneurial or charismatic style, and the data analyzed ranged from 2001 and 2005 in Spain. Since that time period businesses have available to them new rapidly improved technology. In addition, work family balance continues to be a growing social injustice as family values, lifestyle, and unity deteriorates.
A study by Madsen (2003) focused on the reduction of work-family conflict (WFC) and the increased use of telework. A survey questionnaire was sent to full-time employers who worked at the business’ location and to full-time teleworkers. The target population in the study was all teleworkers who teleworked at least two days per week, the sample size used was 172 teleworkers and 172 non-teleworkers. Thirty-six of the telework surveys from one of the companies did not meet the study’s criteria for teleworking and so were excluded, leaving a total sample of 136 teleworkers and 172 non-teleworkers. The purpose of the study was to determine whether teleworking led to a reduction in WFC, and whether various demographic variables: gender, age, marital status, number and ages of children, total hours worked per week, and health status had an effect on telework and thus WFC. The literature review revealed that work-family conflict is on the increase and leads to negative results for both work and home life, the more children at home the higher WFC. Females experienced higher levels of WFC. If the organization was more understanding of WFC then retention was higher and loyalty and commitment to the organization increased. In addition, WFC led to greater employee stress and adverse health problems. However, if telework is designed and implemented effectively there are benefits to both the organization and the employee.
The Madsen (2003 study) applied the t-test, multiple analyses of variance (MANOVA), and one-way analysis of variance (ANOVA). Overall it was found that teleworkers experienced lower perceptions of the various dimensions of WFC when compared to the perceived experiences of non-teleworkers. “Relationships were also found between work-family conflict and gender, health, number of hours worked, and number of children” (Madsen, 2003, p.35).
Fifty-one teleworkers employed in a financial organization in Canada were studied in a paper by Hilbecht, Shaw, Johnson, & Andrey (2013), using semi-structured interviews. Some of the workers were employed with teleworking as a condition of employment while others requested the telework arrangement. The background context of the study revealed that problems occur when work and work time interfere with family time, that leisure reduces work-life tension, a needed trend toward better mothering and parenting is evolving, that fathers are expected to be more involved in the lives of their children, but not everyone agrees that telework is the answer to these and other work-family conflicts and tensions, All teleworkers emphasized the importance of set work hours to protect work time from conflicting with home demands. Women tended to be as determined as men, but even more active, in protecting their work time. Women were also more aware of social expectations of the family, Fathers were primarily concerned in having more time with their children and to be there for special events in their children’s lives, but wanted their children to be clear that work needed to come first. Interviews with the women revealed that they were mostly concerned about being available for their children. A few participants mentioned that telework gave them the opportunity for leisure and free-time, mostly because of the time that they saved in not having to commute to the office. Other teleworkers reported that through teleworking they had more control over their work time and workload. Some mothers found that having to work at home actually increased their stress as they used evening time to work so as to make up for the time during the day that they spent looking after the children. A loss of social time was reported by some men.
Three main themes emerged, including the need to not only protect, but also containing work time and space; the significance of family and being available for children and, the relative devaluation of leisure. Although it was anticipated that differences between involuntary and voluntary teleworkers would be evident, gender and family stage were more influential in structuring daily life. The flexibility of telework was valued, but there was little evidence of a reconfiguration of life spheres except for women with children at home. (Hilbrecht, Shaw, Johnson, & Andrey, 2013, p.1)
Conclusion
In an age where family values and life-style seem to be eroding, it appears that flexible time and telework are becoming a social justice concern in order to provide quality time for parents, men and women, and the entire family with more opportunity for time with their children, and with each other. There are opinions that telework also has its drawbacks, particularly for the business organization. However, there can be real advantages for the organization as well. “According to a Salary.com survey the ability to work from home and flexible schedules are benefits that would entice an employee to stay in their job….for many professions it is a viable option worth including in the retention plan and part of work life balance,…” (Dias, 2011, p.230).
References
Bailey, D.E. & Kurland, N.B. (2002). A review of telework research: findings, new directions,
and lessons for the study of modern work. Journal of Organizational Behavior, 23 (4).
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Dias, L. (2011). Human resource management. Saylor.org/books. ISBN 13:978-1-4533194-3-7.
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Glass, J, (March 8, 2013 Tuesday). It’s about the work, not the office. The New York Times.
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Hager, A.Z., & Klein, K.N. (2008). Telecommuting: 10 legal considerations. Employees Benefit
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Hilbrecht, M., Shaw, S.M., Johnson, L.C., & Audrey, J. (2013). Remixing work, family and
leisure: teleworkers’ experiences of everyday life. New Technology, Work and
Employment, 28 (2), 130–144. doi:http://dx.doi.org/10.1111/ntwe.12010.
Madsen, S.R., (2003). The effects of home-based teleworking on work-family conflict. Human
Resource Development Quarterly, 14 (1), 35-38. Retrieved from http://search.proquest
com/docview/234904291?accountid=8313
Mayo, M., Pastor, J., Gomez-Meija., Cruz, C. (2009). Why some firms adopt telecommuting
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Raiborn, C., & Butler, J. B. (2009). A new look at telecommuting and teleworking. Journal of
Corporate Accounting & Finance, 20(5), 31 – 39.
Graeme Stembridge
Siena Heights University
MGT 360- Human Resource Management
Dr. Ball; Winter 2015
A Study of Telework and Human Resource Management
Telecommuting, also known as teleworking, is an arrangement between employer and employee to work from a venue away from the company’s offices, usually working from home. Most work-at-home employees want this arrangement in order to enjoy a better balance between work and life. Working away from the office is not new, jobs such as journalism, real estate agents, etc., by the nature of their work, have to work largely away from the office. Telework, however, includes only work normally done at the office where under an agreement between employer and employee permission is given for the employee to work, usually under flexible hours and away from the office, mostly at home.
The ability to work at a distance from a principle business location is referred to as both teleworking and telecommuting. Although the term telecommuting is more often used, this term merely refers to the substitution of a physical travel process between home and work. In today’s business environment, the term teleworking is actually more appropriate because it encompasses an alternative work arrangement performed electronically by one person or between or among people away from a central location, regardless of whether travel to that location was typically part of the process. (Raiborn, & Butler, 2009, p.32)
A Social Justice Issue
Many employers now recognize telecommuting as a social justice issue that focuses on a more healthy balance between work and family in an age where the breakdown of family life and responsibilities is on the increase. Telecommuting presents many social, legal, technological, and economic challenges for the human resource manager in order to develop an effective “…’people plan’ and address the ever-changing work environment” (Dias, 2011, p.3) and in developing a strategy aligned with the company’s overall strategic plan. “…the recent trend in flexible work schedules (allowing employees to set their own schedules) and telecommuting (allowing employees to work from home or a remote location for a specified period of time, such as one day per week) are external factors that have affected HR. HRM has to be aware of these outside issues, so they can develop policies that meet not only the needs of the company but also the needs of the individuals” (Dias, 2011, p.12).
Over the last few decades telecommuting has become more and more in demand. Many employees want to spend quality time with their families for numerous reasons such as, avoiding the need for child or elderly care, saving on transportation, saving time, and a growing competency in the use of technology that enables workers to keep in touch with the office. There are benefits in teleworking of which perhaps the most important is taking steps to improve family relations and thus the quality of life. Mothers favor the telework arrangements because it allows them to be mothers and have a career without major interruptions. For others it may be that for family reasons an employee may have no alternative but to relocate; with telework the employee will be able to continue his or her employment with the same company, working from home or at a location that provides for telework opportunities Overall, the flexibility that telework provides, allows employees to enjoy a greater level of job satisfaction, and a reduction in employee turnover for the employer.
The Case of Yahoo
Even though working from home has become more popular, some businesses have taken steps to limit the practice or even to abandon it altogether. “Yahoo is taking on one of the country’s biggest workplace issues: whether the ability to work from home, and other flexible arrangements, leads to greater productivity or inhibits innovation and collaboration.” (Rampell, 2013, p.1). Many disagree with Yahoo’s evaluation of telework and find it to be lacking in its argument that telework does not allow work-at-home employees the opportunities for being innovative and collaboration. “Were there other ways to foster collaboration within Yahoo? Of course, Ms. Mayer could have insisted on core work hours or days for all employees, when everyone works on-site, Or Yahoo could have developed collaborative work spaces off-site, closer to the neighborhoods where employees live, to provide them with opportunities to connect to others doing similar work.” (Glass, 2013, p.2). Nevertheless, there is a growing trend toward teleworking. The Bureau of Labor Statistics “…says 24 percent of employed Americans report working from home at least some hours each week. And 63 percent of employers said last year that they allowed employees to work remotely, up from 34 percent in 2005, according to a study by the Families and Work Institute, a nonprofit group studying the changing work force.” (Rampell, 2013, p. 2).
Benefits and Problems with Telework
Naturally, there are also some problems with telework, including supervising, concerns about how productive the at-home worker is performing, not having the same opportunity to brainstorm or share ideas with colleagues as effectively as when being at the office, working at home means that the worker is not as visible and this could have a negative impact on career advancement. For the employer there is the challenge of being sure that employment related laws are complied with. Improved and more effective management, the greater use of strategic planning and implementation of a more participative style of management, has motivated employees to rather be at the office, and in fact more willing to work late before going home to the hustle and bustle of family needs and issues. The lack of social connections and not relating to colleagues at work is also a factor. The work place often meets needs that are not met in the home, as evidenced by the fact that when employees face major adjustments when they decide to retire, they miss the work place. Home often means chores, disciplinary actions, concerns and problems dealing with children, work can become a refuge for some. Nevertheless, businesses need to be more involved in valuing a healthy family environment; annual family vacation time is not a complete answer to resolve the growing deterioration in family values and home life. If telework can in any way help with this social issue, and if it is a viable option, then this needs to be seriously considered. After all the children of today are the employees of tomorrow. It is of course understood that all work does not lend itself to be done at places away from the regular workplace, e.g., bank tellers, receptionists, hospital and medical related jobs, to name a few.
Employers need to consider the possible implementation of a telework program on a job- by-job basis, as well as considering the workers experience, ability and desire to work from home. Clear policies need to be in place such as a core time when the employee guarantees to be at the work station at home, how the productivity of these employees will be measured for the work that they do, opportunities for them to participate in special events at the main office, security concerns to reduce the possibility of home computers being hacked. Not every employee has the right kind of personality to work away from the office. Personality testing needs to be seriously considered. Telework offers unique benefits to the employer as well, such as being able to increase the number of individuals who apply for positions with the business because they have the option to work from home every day, or some days during the work week, work space at the office is reduced resulting in savings in rent, construction costs, and property taxes. Employees who are given the benefit to work from home are often willing to work for a lower wage because of their savings in time and money spent in commuting to the office each day.
Raiborn & Butler (2009) addressed the issue of telecommuting and telework more specifically from a cost point of view, the article being published during the economic climate in mid-2009, a time of uncertainty and recession. Their emphasis was on how employers may contain costs while still retaining their better or key employees, and in this way reduce the expense of replacing and training new employees when the economy improved. They then took a look at the benefits and drawbacks of telework for both the employee and the employer. They suggest that as the Industrial Revolution had a major impact on the workplace so too has the Technology Revolution brought about major changes as to how work is performed today (p.32). They go on to discuss the advantages of telework to the employee and to the employer, followed by the disadvantages to each. Employees enjoy the advantages of a “virtual raise” because of savings in gasoline, automobile maintenance, lunches, dry cleaning, and wardrobe enhancements; a better work life balance because of saving hours per day in travel time and allowing for more quality family time. Increased job satisfaction because of the flexibility and autonomy to control their own work time and pace. Advantages to the employer are determined as including: increased worker productivity, with a caution that “Most studies claiming increased productivity are based on self-reported data, but it seems reasonable that workers who were solid contributors to the workplace before they teleworked and who now have the trust of their supervisors are likely to be more productive than they were when tethered to their office desks” (p.34). Cost savings to the employer. Even though the employer will need to pay for the equipment necessary for the employee to work at home, there is a savings on office space, utility costs are reduced, and equipment wear, maintenance, and overhead costs are reduced. Better employment recruiting and retention can be a benefit because of a larger pool of applicants, employees who relocate, or if the business opens additional branches or work sites, the employees can be retained and work from home, this allows work force stability.
Raiborn & Butler (2009) note what they found to be the drawbacks of telework to employees and employers. Teleworkers may become at-home workaholics working more hours because they can, “workers with limited space in the home or with busy families or roommates may find it challenging to carve out a quiet place to work without interruptions” (p35). Social isolation and non-involvement in office social networking, less or no on-site technical support, teleworkers could be subject to state tax in the employing company’s state of residence. The major drawback for the employer is loss of control, “micro managers and managers who rose to supervisory positions by putting in eight-hour plus days often have the most difficulty accepting teleworking” (p.35). Employers are concerned about security issues, the possibilities of external cyber-attacks and the potential for legal and financial damages impacting the company’s computer systems. There probably will be equipment maintenance and acquisition costs at numerous telework sites, some which are likely to be located at home sites some distance from the office. Employee morale problems may occur in work relationships between employees on-site and at telework sites. Tax issues may exist because teleworkers could create a “physical business presence” in a state where the employer’s business did not have a presence, and will now be subject to additional taxes. Lastly, employers need to be sure to comply with numerous legal requirements. These will be briefly addressed below.
In addition to recognizing that teleworking has benefits and drawbacks for employees and employers, there are a number of legal issues to be complied with. In this paper we examine those issues that could directly affect teleworkers and their employers. Hager & Klein (2008) discuss ten legal issues that employers need to be aware of before permitting telework arrangements. (1) Wage and Hour Compliance. The Fair Labor Standards Act requires wages to be paid at the rate of at least time-and- a-half for overtime work, this includes teleworkers. The challenge is to find a way of monitoring the hours worked by a teleworker. This could be controlled by having the teleworker agree that they will not work any overtime without first getting management’s approval. (2) Workers Compensation. It can be very difficult to be sure that any injury incurred by a teleworker was in fact work-related. Precautionary steps could be taken if conscientious employers “… inspect telecommuter home offices periodically for safety and ergonomics” (p.1). (3) Occupational Safety and health Act (OSHA). All work-related injuries and illnesses must be recorded, including those incurred by teleworkers. Employers must insist that all teleworkers comply with work safety measures and requirements. (4) Liability Coverage. Employers need to be sure that teleworkers are insured against injuries to third parties and to property caused by a teleworkers negligence. “…employers should make sure that their liability insurance covers the teleworkers home whenever it is being used for the employer’s business. Requiring telecommuters to maintain homeowners or renters insurance is also a good idea’ (p.2). (5) Trade Secrets and Confidential Information. Employers need to be careful to track information relating to the business that teleworkers are using and are exposed to, by having the teleworker sign a nondisclosure or confidentiality statement. (6) Tax Concerns. A teleworker may live in and thus work from home in a state other than where the employer’s office is, this may raise tax issues, e.g., state tax laws for reimbursing teleworkers mileage may be different. (7) Zoning, Some zoning laws do not permit an employee to work from home. (8) Privacy Issues. Teleworkers could be asked to sign a waiver allowing the employer to monitor their work, and even to allow employers access to the teleworkers workspace. (9) Americans with Disabilities Act (ADA). “A telecommuting arrangement may be considered or provided as a reasonable accommodation to employees who have a disability under the ADA that prevents them from performing their jobs or parts of the job at a traditional work location” (p.3). (10) Discrimination Issues, If employers are selective in whom they permit to work from home they need to be very sure that their actions are not discriminatory in any way. Allowing teleworkers to work away from the employer’s location does not change their employment terms and conditions except in certain specific ways. “Ultimately, by keeping the same conditions of employment for telecommuters as non-telecommuting employees can prevent claims of unfair and discriminatory treatment” (p.3). In addition to the ten legal considerations briefly discussed above, employers are well-advised to have a written agreement signed by the teleworker and the employer giving clear information as to the responsibilities and expected behaviors of both parties to the agreement.
Telework Research Findings
Bailey & Kurland (2002) set out to review research into telework to find answers to three questions: who participates in telework, why, and what are the outcomes of teleworking? Telework has been claimed to reduce various business costs such as real estate, improve social skills, lessen pollution from commuting, and address the social justice issue of encouraging a healthier balance between work and family. The authors believed that there were too many assumptions about telework. Job suitability or work factors were found to feature high in the reasons for telework. More professional males compared to females and more female clerical workers compared to their male counterpart participated in telework. Commuting costs were not found to be a major cause for telework. It was also found that women did not make up the majority of teleworkers, and that family concerns were not necessarily a strong reason either. Being competent and familiar with technology was positively related to the reason for choosing telework. It was also not clear that job satisfaction and productivity increased for those who participated in teleworking, when increases were found it was mostly when productivity and work satisfaction were self-reported. But before we accept these findings we need to recognize the limitations of the research. To quote the authors, “Despite research in telework spanning nearly two decades, the three questions we posed (who teleworks, why, and what happens when they do? Remain largely unanswered. In part, as we have noted, challenges such as defining and locating the telework population hinder researchers’ ability to answer these questions “(p. 23). There are challenges relating to whether or not the teleworker is working full-time at home or part-time at home and the rest of the time at the office, some work just a few days in the month at home, in fact there is a preference for part-time teleworking as opposed to fulltime. This means that the teleworker and the business for that matter get the best of both worlds, or do they? The question of course is, what does this variation in number of days worked at home have on productivity, collaboration, innovation, and above all work family balance? In fact a part-time teleworker may be put under even more family anxiety caused by uncertainty and lack of a routine, as they constantly try to make the system work, and as a result family routines are stressed to the limit. Even researching into whether mothers with young children participate more or less in telework arrangements can be distorted because some may choose rather to work full-time at the office when compared to some days at home and some days at the office. Full time in only one place can be less stressful because of a more organized life style that is preferable for a healthy work family balance.
Mayo, Pastor, Gomez-Mejia, & Cruz (2009) analyzed data from one hundred and twenty-two Spanish firms to determine what makes a firm implement a telework option. A quantitative analysis was used including descriptive statistics, correlations among study variables, and regression analysis. The research was conducted in order to understand “why do some organizations offer telecommuting while others do not? It is important to understand what contingency factors motivate organizations to adopt this practice, given the increasing social expectation that telecommuting helps employees balance their work and family domains” (pp, 939-931). Firm size was found to be inversely related to telecommuting. Small firms are more likely to allow telework mostly because it matches a small firms financial and operational style and their entrepreneurial culture. The higher the percentage of international workers employed, mostly through outsourcing, the more likely the business will support implementing a telework option. Adopting a telework arrangement was found to be positively related to outcome-based systems of control and variable compensation based on performance results rather than time.
Some limitations in the study include a contingent leadership style as opposed to a more entrepreneurial or charismatic style, and the data analyzed ranged from 2001 and 2005 in Spain. Since that time period businesses have available to them new rapidly improved technology. In addition, work family balance continues to be a growing social injustice as family values, lifestyle, and unity deteriorates.
A study by Madsen (2003) focused on the reduction of work-family conflict (WFC) and the increased use of telework. A survey questionnaire was sent to full-time employers who worked at the business’ location and to full-time teleworkers. The target population in the study was all teleworkers who teleworked at least two days per week, the sample size used was 172 teleworkers and 172 non-teleworkers. Thirty-six of the telework surveys from one of the companies did not meet the study’s criteria for teleworking and so were excluded, leaving a total sample of 136 teleworkers and 172 non-teleworkers. The purpose of the study was to determine whether teleworking led to a reduction in WFC, and whether various demographic variables: gender, age, marital status, number and ages of children, total hours worked per week, and health status had an effect on telework and thus WFC. The literature review revealed that work-family conflict is on the increase and leads to negative results for both work and home life, the more children at home the higher WFC. Females experienced higher levels of WFC. If the organization was more understanding of WFC then retention was higher and loyalty and commitment to the organization increased. In addition, WFC led to greater employee stress and adverse health problems. However, if telework is designed and implemented effectively there are benefits to both the organization and the employee.
The Madsen (2003 study) applied the t-test, multiple analyses of variance (MANOVA), and one-way analysis of variance (ANOVA). Overall it was found that teleworkers experienced lower perceptions of the various dimensions of WFC when compared to the perceived experiences of non-teleworkers. “Relationships were also found between work-family conflict and gender, health, number of hours worked, and number of children” (Madsen, 2003, p.35).
Fifty-one teleworkers employed in a financial organization in Canada were studied in a paper by Hilbecht, Shaw, Johnson, & Andrey (2013), using semi-structured interviews. Some of the workers were employed with teleworking as a condition of employment while others requested the telework arrangement. The background context of the study revealed that problems occur when work and work time interfere with family time, that leisure reduces work-life tension, a needed trend toward better mothering and parenting is evolving, that fathers are expected to be more involved in the lives of their children, but not everyone agrees that telework is the answer to these and other work-family conflicts and tensions, All teleworkers emphasized the importance of set work hours to protect work time from conflicting with home demands. Women tended to be as determined as men, but even more active, in protecting their work time. Women were also more aware of social expectations of the family, Fathers were primarily concerned in having more time with their children and to be there for special events in their children’s lives, but wanted their children to be clear that work needed to come first. Interviews with the women revealed that they were mostly concerned about being available for their children. A few participants mentioned that telework gave them the opportunity for leisure and free-time, mostly because of the time that they saved in not having to commute to the office. Other teleworkers reported that through teleworking they had more control over their work time and workload. Some mothers found that having to work at home actually increased their stress as they used evening time to work so as to make up for the time during the day that they spent looking after the children. A loss of social time was reported by some men.
Three main themes emerged, including the need to not only protect, but also containing work time and space; the significance of family and being available for children and, the relative devaluation of leisure. Although it was anticipated that differences between involuntary and voluntary teleworkers would be evident, gender and family stage were more influential in structuring daily life. The flexibility of telework was valued, but there was little evidence of a reconfiguration of life spheres except for women with children at home. (Hilbrecht, Shaw, Johnson, & Andrey, 2013, p.1)
Conclusion
In an age where family values and life-style seem to be eroding, it appears that flexible time and telework are becoming a social justice concern in order to provide quality time for parents, men and women, and the entire family with more opportunity for time with their children, and with each other. There are opinions that telework also has its drawbacks, particularly for the business organization. However, there can be real advantages for the organization as well. “According to a Salary.com survey the ability to work from home and flexible schedules are benefits that would entice an employee to stay in their job….for many professions it is a viable option worth including in the retention plan and part of work life balance,…” (Dias, 2011, p.230).
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