What Telework can do for you A guide for business

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1 What Telework can do for you A guide for business

2 This guide was written to help you understand the benefits of telework and assist you in introducing it into your business. The guide explains the health, safety and legal issues surrounding telework. The telework guide has been produced by Business TravelWise, an initiative aimed at changing people s attitudes towards the use of their car by promoting other methods of travel to, from and during work. TravelWise believes that telework may help improve both a company s financial status and environmental image as it enables staff to work away from their usual office base, saving money whilst reducing pollution and congestion. CONTENTS Section Page What is telework? 2 Introducing telework into your workplace 5 Health and Safety Issues 8 Legal and financial implications 10 Managing your telework programme 11 APPENDICES 13 a) Sample Health and Safety assessment for homeworkers b) Glossary c) Who to contact for further information

3 What is Telework? The phrase telework comes from the Greek word tele which means at a distance. Telework in an organisation is about being flexible, and allowing your workforce to work at varying times and locations, rather than from a specific desk in an office. This can include working from home, from other parts of the office, at other sites and while travelling on passenger transport. It may also include working from other organisation s workplaces, telecentres, or from remote locations like telecottages. Telework is about working where it is best to work - that means best for the company, customer, business partner and employee. In 1998, 907,000 people in the UK were employed either full or parttime as teleworkers, 3.5% of the workforce 1. Why telework? Telework allows businesses to introduce flexible working and change the way the office is used. Telework is not only beneficial in attracting and Expansion motivating employees; it can also create a competitive advantage for businesses, plus valuable savings on property and maintenance costs. Reduce office space & need for relocation Attract skilled staff Telework has evolved because of technical advances in information and communication systems. For example, call centres were very rare ten years ago; today people can regularly access information and purchase goods or services by phone or through the Internet. Who can telework? Increase productivity A wide range of jobs are suitable for teleworking and this can have advantages for people with disabilities or parent/carer commitments. What can be teleworked? Reduce staff travel time & company travel expenses Improve access to customers Increase flexibility Happier, more motivated staff Greener image Longer, flexible operating hours Employ more staff CASE STUDY Surrey County Council Surrey Workstyle aims to introduce new forms of flexible working to many of Surrey CC s employees. The authority plans to rationalise its existing network of offices to end up with one corporate headquarter, four area offices and up to twentysix local satellite offices. Type of work Research & Development Publicity Secretarial Promotion Personnel Legal Front line Finance Management Development Task Report writing. Research. Consultation. Project management. Design. Writing press releases. Event and campaign preparation. Administration. Preparing letters. Meetings. Sales. Writing articles for and creating newsletters and magazines. Training. Protocol preparation. Writing contracts and recruitment adverts. Writing policies, procedures and standards. General legal. Call centre. Telephone reception. Ordering. Book keeping. Taxation. Accounts. Payroll. Supervision. Delegation. Project development. Service planning. Quality management. 1 A Statistical Portrait of Working At Home in the UK. Evidence from the Labour Force Survey Leicester University, Centre for Labour Market Studies. A Felstead, N Jewson, A Phizachlea, S Walters 2

4 One way of assessing whether telework is appropriate is by performing a survey of how much time employees actually spend at their desks. Desk use varies by job, but on average a desk is occupied only 30% of the time when taking into consideration evenings, holidays, weekends, bank holidays and sickness. Telework is most appropriate for employees who are either rarely at their desk, or constantly working from database or electronic files. CASE STUDY ADAS Consulting ADAS Consulting have introduced IT-based working practices and have reduced their office sites from 90 to 25. Over 500 people now work permanently from home, each saving around 2,000 miles per year travelling for work. How telework works The facilities needed for telework will depend on the type of job being undertaken. At home For many jobs a teleworker will require a workstation and telephone, but they may also require a fax and computer with or without networking facilities. Company premises There are a number of different approaches that can be adopted by a company. Such as: Drop in/touch down workstations. These are quiet areas usually with computer terminals to allow Library employees from other sites and Serviced office/copy shop organisations to work. They enable employees to work between meetings, making more effective use of their time. At home Hot-desking. Each desk is Cybercafe equipped with appropriate facilities, allowing employees to work from any desk. Telecottage Telecentre By phone/fax/ video conferencing In Professional Institutions/touch down work stations Hotel office/ conference facility Satellite Office Meetings Travelling on public transport Audio/video conferencing. This allows groups of people at different locations to hold discussions using IT or telephone links. Desk sharing. In some cases two employees may be able to share one desk between them. Satellite office. Other offices containing computer links with networking facilities may be created as an alternative to the main office. Other premises There are other ways of working flexibly, such as: Serviced or virtual offices: These provide flexible workspaces with secretarial services, computers, computer network facilities, meeting rooms, telephones and fax machines. Spaces may need to be pre-booked, but this may be cheaper than leasing property and installing equipment. Telecentres/telecottages: These provide remote facilities similar to those in serviced offices. Hotelling: Many hotels now provide formal workspaces and conference rooms. Professional Institutions: Some Professional Institutions and bodies provide meeting rooms, telephones, fax machines, plus terminals for laptops. Most organisations charge by the hour/day/week for facilities; but these services may be useful if it is impractical for an employee to return to the office following a meeting. 3

5 For the Company For Staff For Managers For the Environment Competitive advantage Advantages of telework: Introducing telework may incur expense, but it can potentially result in up to a 40% saving in office space. The reduced office costs may then be passed onto customers. Reduced travelling time and costs Increased productivity Reduced mileage Reduced relocation needs and overheads Reduced company car mileage costs Improved environmental image More accessible to customers Attractive to skilled staff Able to work at home/ in own environment Able to manage work peaks and troughs Less pollution Work flexible hours Able to retain staff Less congestion Family friendly Less stressed and happier Work without interruptions The advantages in more detail Advantages Reasoning Increased flexibility and operating hours More motivated staff Reduced sick leave Reduced need for expansion of premises Flexible travelling times Reduced peak hour traffic CASE STUDY Herts County Council HCC is currently rolling out its flexible working programme to its office staff. This builds on the experiences gained from almost six years work on flexible working practices. So far this has resulted in a saving of 25% in the numbers of workstations. Competitive advantage Reduced relocation needs and overheads Improved environmental image/reduced company mileage The company may become more responsive to clients, as their staff may be based closer to their work. Telework can improve work quality as it can help companies attract a flexible workforce and retain people with specialist or core skills from further afield. Introducing telework practices e.g. hotdesking, for those who are often out of the office can help companies save space, thus reducing property costs and overheads, whilst employing more staff. 17% of the UK s gross domestic product is spent on transport. Enabling staff to work flexible hours and/or from home helps to reduce congested roads and lost business time. Company benefits can include an improved environmental image, and a reduction in business travelling times, mileage and costs. Work flexible hours/in own environment Many potential employees are attracted to the possibility of telework as they prefer to work flexible hours and/or in their own environment. Working at home may reduce an employee s travelling time, stress and costs. However employees working at home will need a quiet place in which to work, therefore this option may not be suitable for all. Family friendly Increased flexibility and operating hours Teleworking is family-friendly and can help staff with disabilities or caring commitments. Working at home regularly may also reduce an employee s travelling time and costs, while allowing them more time with the family. Telework can also increase a family s transport flexibility e.g. sharing a family car. Telework may help reduce absenteeism and sick leave. Studies also suggest that employees working at home may be 20% more productive, as they are generally better motivated and able to work more consistently without interruption. It may also help manage company workload peaks and troughs. Less pollution Working from home not only reduces mileage directly, but flexible working can mean travel takes place outside peak times, so that a journey with fewer stops and starts can reduce car emissions. Additionally, occasional working from home or a nearby office, could free up a car for local journeys by another member of the family, saving both the environment and the cost of an additional car. 4

6 Introducing Telework into your workplace Framework for implementing telework Consider impact on: Propose scheme New issues to consider Company Managers Staff Customers Training Equipment Build support within organisation Assess employees needs and desire to telework Finance Promotion of scheme Finding a Champion Staff survey Demand/Opinion Work practices Work management Pilot scheme Timescale Staff morale Finance Productivity Equipment Training Assess benefits and costs of pilot Relocation Expansion Timescale Recruitment Health & safety Legal issues. Work locations Managing staff Equal opportunities Create new policies for telework Staff contracts, Managing from a distance Allowances for homeworkers Furniture Telephone systems Computer networks Provide new equipment/ procedures New equipment & technology New phone extensions Teleconferencing facilities Technical e.g. computer Company policy and procedures Health and Safety Consider training New procedures/policy New equipment New work culture Managers Employees Implement Time taken to implement Pilot scheme New places to work Finance Performance Training Monitor Career progression Management procedures Suitability. After survey Work location Recruitment Review situation Value for money Use of office space 5 Managerial support Sustain the company s commitment

7 Things to be considered before introducing Telework Companies considering telework should work with their Trades Union or staff association to ensure that telework is implemented fairly and correctly. Telework needs to be a voluntary choice by staff and companies should consider the following: What are the company s key priorities: cost saving, improved services, increased revenue, maintaining staff, customer relations, or saving office space? Who will manage the introduction of telework and deal with resistance to change? Can management and work systems support telework? How will employees use of time, career progression and opportunities be managed? How will technical and social networks be managed? Can telework promote equal opportunities? Company policies and contracts Introducing telework may require changes in management structures and systems. Some company policies may need to be updated, including: Mission statement New programming and management policies Transport expenses and systems e.g. mileage to meetings Insurance to include covering employees working at home Confidentiality and data protection of company records Leave and sickness arrangements Health and safety policy CASE STUDY Lewisham Council The Council provides homeworkers with a PC, chair, table, BT chargecard and 100 allowance towards heating and lighting costs. The Council carries out a risk assessment of the employee s house and employees are advised to tell their insurers that they work at home. The employee s contract may also need updating to consider: Place of work and procedure for returning to work at the office if telework proves unsuitable Hours of work (Managers may set core working times, weekly meetings) Specific times during which employees should be contactable Access arrangements to the employee s home for health and safety assessments Providing basic allowances to homeworkers for furniture, heating, electricity costs etc. Balance between telework and office work What is required? Although some forms of work will only need papers, most teleworkers will require other systems and facilities. These may include a work station, computer, laptop, PDA (personal digital assistant) and telephone. It is worth assessing the cost and viability of providing equipment in each case. For example, company documents may be stored on computer databases to enable employees to access them from different locations; the employee will need the appropriate facilities to open them. 6

8 A number of technological systems can help with telework. However, the following should also be considered. Confidentiality - Where the information being used is commercially confidential or contains personal data, it will be necessary to consider its security (e.g. computer passwords, lockable disk boxes and filing cabinets). - All information containing personal data will need to comply with the Data Protection Act (1984). What is required to Telework? Possible Requirement Systems Available Advantages Disadvantages Phone Home telephone Mobile phone Charge card PABX switchboard extension Voic copying Staff with a mobile phone are always contactable Charge cards may be set up only to ring the office. These can be used anywhere Consider how to reimburse the cost of calls made from home An additional line may be needed in the employee s home Calls made via a charge card or mobile are more expensive than standard calls Fax Fax machine Fax back storage system Mobile phone Laptop Desk top computer Able to send faxes via computers, laptops and mobile phones, without the need for a fax machine Can provide fax machine and telephone in a single unit An additional line may be needed in the employee s home Consider how to reimburse the cost of faxes sent from home Post Fax Document image processing Virtual mail box Serviced office Post may be opened centrally and then faxed to where the employee is working Post may be scanned and then forwarded by May need to supply a fax machine if you intend to fax information At least a day s delay with virtual mail box and serviced office information Virtual mail boxes are expensive Computer network e.g. Workflow Database e.g. intranet, website, extranet Able to send faxes via computer Able to scan documents and then them Able to place company documents onto the database, so employees may access them remotely at home Able to monitor where work is and should be passed to May need an additional telephone line Need to ensure that the laptop/home computer has the facilities to open company documents May need to provide internet access to the employee s home Teleconference Audio Video Able to hold a meeting with several people in different locations Audioconferences may work well when there is a clear agenda Video links can be achieved using a video phone, computer or video conference systems Cannot see or assess body language in audio conference Video link equipment is expensive Teleconferences should not be too long There may be problems with system compatibility of video conference systems 7

9 Health and Safety Issues Employers have a statutory duty of care to protect so far as is reasonably practical, the health, safety and welfare of their employees, regardless of where they work. Currently work accidents and/or ill health, costs UK employers between 4 and 9 billion pounds a year. To minimise this cost and avoid liability in an accident, employers need to assess the risks and modify their policies to cover all work locations, and provide adequate Health and Safety training. Employees also have a duty of care to take reasonable care of their own health and safety, as well as that of anyone else who might be affected by their employment, e.g. neighbours, if home based. Therefore they should receive training on the health, safety and legal issues of telework before they work at home. Such training could be mandatory or part of a career development plan where homeworking is an incentive. Health and Safety Law Legislation on Health and Safety at work, including telework, is covered in six main directives: 1. Management of Health and Safety at Work Regulations 1992, amended (Requires risk assessment) 2. Workplace (Health, Safety and Welfare) Regulations Manual Handling Operations Regulations Health and Safety (Display Screen Equipment) Regulations Personal Protective Equipment at Work Regulations Provision of Work Equipment Regulations 1992 Risk Assessment Risk assessments reduce the possibility of accidents and the potential of employer s liability. Employers must carry out a risk assessment of all their work premises, equipment and activities, including homeworking. The degree of risk in any job needs to be balanced against the time, trouble, cost and physical difficulty of taking measures to avoid or reduce the risk. Risk assessments may be performed by a company visit or by the employee completing an official form (see Appendix A). The latter approach can help avoid intrusive home visits by the company. However, employers may wish to make an assessment mandatory. Once the risk assessment has been completed its findings, together with any action taken to control the risk, need to be reported and signed by both the employer and the employee. Risk assessments must: Identify the hazards e.g. trailing leads. Assess who may be harmed and how significant the risk is, i.e. the potential extent of harm if the risk remains. Remove or reduce the risk as much as reasonably possible. Record any significant findings - this allows an employer to prove that an assessment was performed, if an accident occurs. Communicate any changes required for health and safety reasons. Employees must tell managers of any health and safety issues they have identified. Review the hazards/risks and procedures regularly. 8

10 CASE STUDY RM Consulting RM Consulting introduced a pilot scheme in 1995 and now have 145 location independent workers who either hot desk or work from home. By doing this over 10% of these workers have halved their mileage, and the total mileage reduction has been approximately 0.5 million kilometres per year. Risk Assessment for Homeworkers The following aspects of the home environment are the minimum requirements for assessment: The general condition of the work space e.g. no carpet trips, cable trips. Lighting - should be at an appropriate level. Heating - the working environment should be at a comfortable temperature. Ventilation and air circulation - there needs to be a flow of clean air. Electrical installations - cables, plugs and sockets should be in a safe working condition. Fire prevention - fire escapes should be checked for access and ease of escape. Smoke detectors and fire extinguishers should be fitted where appropriate. Data protection - under the Data Protection Act (1984) all confidential files must be secured. Work station - the computer, chair, and desk need to be safe, of the correct height and adjustable. Anti-glare facilities for the computer may be required. WELL & POORLY ADJUSTED SEATS Too low Correct Too high POSTURE mm ANGLES A,B AND C SHOULD BE APPROXIMATELY 90 B B C ADJUSTABLE BACK REST & SEAT HEIGHT 720 mm 9 FOOT REST IF REQUIRED

11 Legal and Financial Issues Legal Implications of telework and homework Homeworkers should check whether there are any legal implications in their mortgage, leasehold or tenancy agreement. Sometimes a covenant may prevent householders from running a business from home. These may possibly be removed by writing to the Local Authority. Under some circumstances a Local Authority impact assessment may be needed. This may cover noise, pollution, public access and transport. If this is not carried out, a complaint could lead to an injunction against continued homeworking. Homeworkers should liase with their local planning officer from the start, as planning permission may be required for structural alterations to their home. Taxation In some instances it may be possible to claim work expenses against income tax, but only where they are wholly exclusive and necessary. For this reason employees are advised to separate, where possible, work and personal facilities. Employers paying for an employee s home expenses should either pay PAYE or declare these expenses on the employee s end of year P11D return. Working at home may make an employee liable for capital gains tax when their property is sold. It is therefore wise to discuss the tax implications with an accountant. For example, any person with a study at home that is used only for work purposes could be liable for business tax rates. Company Insurance The following details should be checked with the insurance company: Corporate Insurance. The company should increase its insurance premium to cover other places of work. This should result in only a slight increase in cost. Third Party Liability. The employee and employer need to establish who is liable, if for example, a computer caught fire in the employee s home resulting in a fire that destroyed a neighbour s house. Public Liability. The employer should provide public liability insurance to cover other employees or customers entering the employee s property. Indemnity Insurance. Paid by the company to cover confidential work files. Employees Insurance The employee will need to check the following with their insurance company: Home Property Insurance. Whether they may use company equipment at home. Home Contents Insurance. The employee should inform their insurers that they will be working at home and using their employer s equipment (which the employer insures). Employees Costs Costs to an employee for working at home will include heating, lighting, telephone calls, insurance, wear and tear. Opportunity costs will also exist if they are using their spare room or workshop to work for their employer. The employer may pay allowances to overcome these costs but amounts must be agreed. However, the savings made on reduced travelling may be the principal benefit of homeworking. 10

12 Managing your Telework Programme How can I manage teleworkers? Some key concerns There can be resistance to the introduction of telework at all levels in a company. Below are some examples of potential problems. For the Company For Staff For Managers For the Environment Cost of implementation and monitoring Need to adjust to new technology/changes in working practices Adapting to the new work culture/ responsibilities and management styles Travelling, as employees are able to live further away from their office base. Time taken to implement Need support and training Implementing new procedures and policies New offices for teleworkers Need to gain support Job security and career prospects Managing and monitoring staff from a distance Removing and transporting old office equipment Creating new policies and procedures Pressure to telework. Resistance to change from employees Disposing of old office equipment Choosing the right technology Prefer to work in an office/fear interruption at home Measuring output, not time worked Manufacturing and installing new technology and office equipment The above concerns may be offset by the following: Practical help and guidance for implementing telework and its associated policies and procedures is available from organisations such as Trades Unions or the Health and Safety Executive. Policies should be developed with managerial involvement, and set out equal opportunities/career prospects for teleworkers and office based workers. Employees may be paid for output, as opposed to time worked, but work programmes need to be realistic. Telework needs to be a voluntary choice and employees must be able to return to the office base. High profile support from either a champion or executive manager (who can highlight the benefits of telework, monitor progress and propose new ideas) may aid the introduction of telework. Introducing telework with pilot schemes may help employees adjust and so reduce resistance to change. To enable employees to work at home, employers may need to buy new technology and furniture. Suppliers will be able to advise on the most suitable user-friendly technology and its potential for monitoring employees work and training needs. Homeworkers should be encouraged to speak to other teleworkers and maintain other interests to separate work and home. 11

13 Homeworkers should inform friends and family when they may be contacted, and notify neighbours that they are working at home. Initial costs of implementation and monitoring may be offset by increased productivity. Managing Teleworkers There are some very important areas that need addressing in order to work flexibly, such as training, managing teleworkers and performance monitoring. Personnel Team Electronic Individual meetings and appraisals Supervise productivity and timesheets Monitor work load and programme Monitor productivity and programmes Team meetings/events Project management Monitor use of phone, fax and possibly install videophones Monitor computer use e.g. GroupWare, s Monitor computer access e.g. passwords, lockable files Agree contact times Social contact Electronic diaries Employees and managers may need to be trained in new skills such as working in virtual teams and time management. To gauge the level of training needed, managers need to monitor employees training needs, workloads and performance. Managers also need to be able to manage at a distance and manage productivity as opposed to time worked. Meetings such as staff appraisals and social evenings may also help to maintain contact and morale. Some IT systems can help managers monitor an employee s performance, such as systems; project management software; videophones and electronic diaries Agree working times Project Management Agree programmes Agree contact times Video phone Monitor communication/ work loads Individual staff meetings/appraisals Encourage regular breaks Regular team events, meetings Monitor timesheet entries Monitor productivity Provide support e.g. telephone, Agree ground rules for home/work interface 12

14 APPENDIX A - Sample Health and Safety Assessment for Homeworkers A health and safety assessment of the working environment in an employees home To be completed by the homeworker Name of Homeworker:... Address of Homeworker: Postcode:... Job title:... Line manager... Your Job - Type of work/activity you intend to do at home Hours 1. Total contracted hours per week 2. Average hours working at home: hrs per day or days per week 3. Hours spent on VDU per week Work Area/Room: 1. Location e.g. dining room, spare room 2. Dimensions, Layout and Content - please provide a sketch overleaf Attach a rough sketch of the work area to this form Please include dimensions of the room and the position and size of all equipment to be used. Please indicate where windows, doors, electrical and telephone sockets are. Workstation at home 1. Equipment to be used e.g. fax, laptop, desktop computer etc. Suitable For Office Use Unsuitable 2. Type and size of worktop to be used, e.g. table, desk. Please sketch on map and specify height, depth and width. 3. Type of chair to be used, e.g. office, kitchen. Is it height adjustable? 4. Position of electrical/telephone sockets - please mark on sketch. Contacts with others whilst working at home 1. Estimated time you will work at home each day e.g How will you and your office keep in contact and how often? 3. What management supervision will be in place and how often will you meet? Homeworker s Signature... Date.../.../... Manager s Comments Assessed by: Name Position 13

15 Appendix B - Glossary Drop in - A desk space which employees may use for short periods - Sending and receiving work or messages via a computer network. Allows staff to pass comments/information quickly, and can reduce the need for meetings Extranet - The extension of an internal company intranet site to include stakeholders e.g. contractors GroupWare - Software applications that support group working Hot desk - A pre-equipped workstation Hotelling - Pre booking of desks/offices at an outside location Internet - Global information system, which enables data to be accessed from any computer Intranet - Internal corporate computer network which uses internet protocols for accessing company information and documents Remote worker - Working from another site Satellite office - Offices set up away from the main one Telecentre/telecottage - Office space with PC facilities for short or medium term hire Telework - Remote working, usually from home Virtual enterprise - Using information and communication technologies to work together in flexible, multilocational networks. Can include company partnerships Virtual office - The workplace is not associated with a specific place or time Workflow - An system that helps organise to whom work should go Appendix C - Who to contact for further information Hertfordshire TravelWise and Business TravelWise work to change people s attitudes towards the use of their cars, by making other methods of transport and reducing journeys, a real alternative. Business TravelWise is a partnership between Hertfordshire County Council and Hertfordshire Chamber of Commerce and Industry to help Hertfordshire s businesses reduce their traffic impacts and develop travel plans. Contact TravelWise on or lilian.goldberg@hertscc.gov.uk Telework Organisations European Telework Online, Tile Barn House, Woolton Hill, Nr Newbury, RG20 9UZ. Tel: Fax: eto-info@eto.org.uk web: The Telework Association c/o WREN Telecottage, Freepost CV2312, Kenilworth, Warwickshire CV8 2RR. Tel: info@tca.org.uk web: National Group on Homeworking Office 26, Dock Street, Leeds LS10 1JF. Telephone helpline: Trades Union Unison, 1 Mabledon Place, London WC1H 9AJ Tel: Books and publications A Manager s Guide to Teleworking Huws, Ursula (1995) Employment Department Group (Herts Library catalogue no. T ) Teleworking at a Distance - UK Teleworking and its implications, Parliamentary Office of Science and Technology (June 1995) ISBN Teleworking Explained Gray, Hodson, Gordon (1993 reprinted 1994) John Wiley and Sons ISBN Teleworking: Guidelines for Good Practice, Huws, Ursula Institute of Employment Studies Report 329 (1997) ISBN Only available from Browns Bookshop in Hull. Tel Teleworking In Brief, Johnson, (1997) Butterworth/Heinemann ISBN Training opportunities are available from: - Learning Direct Helpline: (a signposting service) Other useful contacts - The Health and Safety Executive (HSE) Public Inquiry Line. Tel: Fax: Hertfordshire Business Link. Tel: The Future Work Forum, Henley Management College, Greenlands, Henley on Thames, Oxfordshire RG9 3AU Tel: ext Regus Limited, 3000 Hillswod Drive, Chertsey, Surrey KT16 0RS Tel: Short term office space. 14

16 Published by Hertfordshire County Council Copyright Hertfordshire Couny Council ISBN: Printed on environmentally friendly paper October 2001

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