Employee Telecommuting Study

Transcription

1 Employee Telecommuting Study June Prepared For: Valley Metro

2 Valley Metro Employee Telecommuting Study Page i Table of Contents Section: Page #: Executive Summary and Conclusions... iii I. Introduction... 1 A. Background and Methodology... 1 B. Personal Demographics... 1 C. Work Demographics... 3 D. City of Residence and Work... 4 E. Off-site Electronic Access to and Work Files... 5 F. At-Home Overtime Workers... 6 II. Profile of Existing and Potential Telecommuters... 8 A. Existing Telecommuter Profile... 8 B. Potential Telecommuter Profile III. Attitudes of Employees Towards Telecommuting A. General Awareness of Telecommuting B. Heard of Telework C. Employer Allows Telecommuting D. General Interest in Telecommuting E. Reasons for Not Telecommuting among those who have Never Telecommuted. 20 F. Reasons for Not Telecommuting among Past Telecommuters G. Effect of Gas Prices on Interest in Telecommuting H. Believe Job is Suitable for Telecommuting I. Belief Supervisor would Allow Telecommuting J. Importance of Telecommuting as a Job Benefit K. Important Reasons to Telecommute L. Important Issues Affecting Telecommuting M. Interest in Receiving Telecommuting Information IV. Perspectives of the Telecommuters A. Desire to Continue Telecommuting B. Type of Telecommuting Program C. Equipment Used While Telecommuting D. Telecommuting and Productivity E. Number of Telecommuters Compared to Last Year F. Likely to Seek New Position if Telecommuting No Longer Allowed G. Frequency of Driving Trips on Telecommute Days... 39

3 Valley Metro Employee Telecommuting Study Page ii Section: Page #: V. Attitudes of Employers Towards Telecommuting A. Management Support of Telecommuting B. Perceived Barriers to Telecommuting Questionnaire... Appendix A Cross Tabulations...Appendix B

4 Valley Metro Employee Telecommuting Study Page iii Executive Summary and Conclusions Valley Metro / RPTA commissioned WestGroup Research of Phoenix to conduct a telephone survey of Phoenix-area employees regarding awareness and attitudes local of telecommuting as a work option. A total of 502, 10-minute surveys were completed during June of. This was the fifth wave of tracking research, with previous studies completed in 1999, 2000,, and. The margin of error for the total sample is +4.4% at a 95% confidence level and +9.0% for current at the same confidence level. General Demographic Overview Executive Summary Slightly more men then women were interviewed this year (55% vs. 45%), with the average respondent being 42 years of age. The majority is employed full time (91%) and has at least some college education (86%). Average household income continues to rise in with an average of $70,500 reported compared to $68,100 for. The average number of miles traveled by employees to work (one way) is approximately 15 miles; unchanged from. However, it takes residents approximately 28 minutes to travel the distance to work, slightly longer than the 26.1 minutes reported in for the same distance. There continues to be an overall increase in off-site electronic access to the work site. Almost two out of three employees now have access to work (66% vs. 59% in ) and more than half have access to work files (54% vs. 51% in ). Half of employed residents surveyed in say they sometimes work overtime hours at home or work at home during non-scheduled work hours (51%); this is up slightly compared to previous years (45% and 46%). Profile of Existing Telecommuters For the first time since this tracking study began, the percentage of employed residents who telecommute did not increase, but rather stayed the same. Nearly one in four (24%) Phoenix area employed residents report they currently telecommute at least occasionally. Telecommuters also tend to be slightly older than non-telecommuters (43 years vs years) and have significantly higher annual household incomes ($92,300 vs. $63,500). Telecommuters also are more likely to have completed a higher level of education (94% with at least a college degree vs. 83% of non-telecommuters). Compared to previous years, more males are telecommuting than in the past (62% vs. 56% in ), the average age of the telecommuter has decreased (43 years down from 46 years old in ), and the average income among current and past telecommuters is higher than ever before ($86,700 vs. $73,900 in ). Commute distance and time spent commuting continues to be longer for current telecommuters than for non-telecommuters (16.9 miles vs miles; 30.1 minutes vs minutes). A higher proportion of telecommuters report working for smaller organizations

5 Valley Metro Employee Telecommuting Study Page iv (32% vs. 24% for non-telecommuters) and a higher proportion have management/administrative (37% vs. 19%) or sales/marketing positions (15% vs. 6). The majority of those who telecommute have been doings so for more than three years (60%), a percentage which has steadily increased since (41%). Currently, almost half of those surveyed indicate they have been telecommuting for more than five years (45%). However, the percentage of new telecommuters is not increasing and remains at the lower level reported in (11% report telecommuting for less than one year vs. 21% in ). Four out of five current telecommuters (76%) indicate they regularly telecommute (i.e., at least once per month); slightly lower than the 80% that reported regular telecommuting in. In contrast, those who report telecommuting on an occasional basis (i.e., project by project or less than once a month) has increased from 12% in to 21% currently). If these percentages are translated to the total population of employed residents in the Valley, it means that 18% currently telecommute regularly (compared to 21% in ) and 6% telecommute occasionally (compared to 3% in ). Profile of Potential Telecommuters The definition of true potential telecommuters used for discussion purposes in this report is as follows: employed residents who are currently telecommuting or those who would like to telecommute and have jobs suitable for telecommuting and also feel their employers would allow them to telecommute. Using this definition, approximately 31% of the workforce qualifies as a true potential telecommuter, nearly identical to the 30% found in the study. This percentage increases to two in five (41%) qualifying as good potential telecommuters (employees who currently telecommute or do not have any obstacles as well as those who would like to telecommute and have suitable jobs, but their employer will not allow) and 60% for ideal potential telecommuters (includes all of the good potentials as well as those who would like to telecommute but do not have suitable jobs or employers who will allow them to) both of which closely mirroring the results from. The true potential for telecommuting is highest among men (64% vs. 36% for women). On average, these employees have higher annual household incomes than employed residents overall ($88,200 vs. $70,500), are more likely to have graduated from college (74% vs. 57%), and are most likely to be in professional/technical (41%), management/administrative (33%), or sales/marketing (15%) positions within their organizations. Attitudes of Employees toward Telecommuting Awareness of the concept of telecommuting continues to increase. In, almost nine out of ten Valley employees (88%) report that they have heard of telecommuting prior to taking the survey; this is up seven points from (81%). One in ten respondents has heard the word telework used instead of the term telecommuting; a finding that has remained consistent for the last five years. Roughly one in four employees who do not currently telecommute indicated that their employers did allow telecommuting at the time of the interview (26%).

6 Valley Metro Employee Telecommuting Study Page v The interest in telecommuting among those not currently telecommuting increased slightly in (46% compared to 41% for previous two survey years). Non-telecommuting employees who currently work for a company that allows telecommuting primarily indicate that the characteristics of their current position make their job unsuitable for telecommuting (mentioned by 45%). Similarly, almost two out of three former telecommuters report that the main reason they are not currently telecommuting is because their job is not suitable (mentioned by 65%). More than half of employees surveyed believe that increased gas prices have generated an increased interest in telecommuting among the employees at their company (53%). This is a significant increase from where 44% made the same inference. Approximately one in three non-telecommuters (36%) believe the nature of their job would allow them to occasionally telecommute; one in five (21%) believe they could telecommute part-time; and one in ten (10%) believe they should be able to telecommute full time. Just over one in four non-telecommuting employees indicated that they believe it is likely their supervisor would actually allow them to telecommute on an occasional basis (29%), this is down from 34% in. This percentage decreases to 17% for those who believe their supervisor is likely to allow them to telecommute part time, and 8% who believe their supervisor would allow them to telecommute full-time. If these percentages are translated to reflect the overall employee population, we find that in addition to the 24% of employees currently telecommuting another 8% of all employees feel their jobs are suitable and their supervisor would allow them to occasionally telecommute (compared to 9% in ); 4% believe they should be able to telecommute on a regular, part-time basis (compared to 5% in ); 4% believe they should be able to telecommute on a regular, part-time basis (compared to 5% in ), and 2% believe they should be able to telecommute full-time (compared to 4% in ). The percentage of employed residents giving a 5 or 4 importance rating for having the opportunity to telecommute as a job benefit decreased seven points compared to (33% vs. 40%). As expected, the ability to telecommute is significantly more important to current telecommuters than it is to employees who do not telecommute (46% give a 4 or 5 rating vs. 28%). Overall, the three perceived advantages to telecommuting that receive the highest ratings from telecommuters are avoiding the commute (73%), increased schedule flexibility (73%), and helping the environment and reduce pollution (62%); non-telecommuters are more likely to assign high importance to helping the environment (73%), avoiding the commute (72%), saving money (71%), and increased flexibility (63%). Employees are most likely to report that having the right equipment at home would positively impact their ability to telecommute (63%), followed by having a suitable home environment or access to work files and at home (59% for both). Approximately one in four (25%)non-telecommuters expressed at least some interest in receiving information that would help them discuss the advantages of telecommuting with their employer (7% very interested; 17% somewhat interested).

7 Valley Metro Employee Telecommuting Study Page vi Perspectives of the Telecommuter Nearly all current telecommuters would like to continue telecommuting (96%), up from 88% in. More than one in four (27%) current telecommuters report that their company has a formal telecommuting program. As in the past, a vast majority (99%; see Table 17) of telecommuters report that they use a personal computer while telecommuting and 93% use a printer. High-speed Internet connections continue to gain ground among telecommuters with 90% reporting usage compared to 79% in. Additionally, 73% of telecommuters report using a wi-fi router, again a significant increase from where only 55% reported using the technology. The percentage of telecommuters reporting that their employer provides or subsidizes the equipment has increased slightly in compared to. Employers are most likely to provide a personal computer for employee use (reported by 52% compared to 43% in and 52% in 2000) followed by a phone line (29% compared to 26% in and 51% in 2000), or high speed Internet connection (29% compared to 22% in, and 49% in 2000). More than three in five current telecommuters (64%) report that working away from the office has a positive influence on their ability to get their work done. More than half of current telecommuters report that their company has more telecommuters than it did one year ago (53%; up from 32% in ). The primary reason for the reported increase in telecommuters is company growth (mentioned by 16 of 65 current telecommuters, or 25%). However, an additional 11 telecommuters indicated that telecommuting has become more acceptable and eight indicated that the ability to easily access files from home has made the difference. In, 40% of current telecommuters indicated they would be very (20%) or somewhat (20%) likely to seek a new position if they were unable to telecommute any more, this compares to 43% in and 48% in. While most telecommuters do not make any driving trips during peak drive times on the days they work from home (33% rarely; 31% never), the percentage of telecommuters indicating they always make trips during peak hours when they telecommute increased from 13% to 18%. Attitudes of Employers toward Telecommuting In, current telecommuters were slightly more likely than in to indicate a high level of support for telecommuting from the senior management at their company (61% gave a 4 or 5 rating compared to 54% in ). Telecommuters continue to report slightly higher support ratings from their supervisors than from senior management (69%; up from 63% in and 58% in ). Only 16% of non-telecommuters reported support for telecommuting from senior management and 15% reported support from their supervisor. Non-telecommuters who feel management at their company is not supportive of telecommuting were most likely to rate the perceived absence of telecommutable tasks as a

8 Valley Metro Employee Telecommuting Study Page vii significant barrier for telecommuting (60% gave a 4 or 5 rating). However, more than two in five non-telecommuters also believe that management is not supportive of telecommuting because of the perception that it is difficult to monitor the work done by the telecommuter (42% gave a 4 or 5 rating). Current telecommuters who do not view management as supportive are most likely to rate difficulty in monitoring performance and not trusting employees as barriers to management support of a telecommuting program (29% for both attributes receiving 4 or 5 rating). Conclusions 1. Awareness of telecommuting as a work option continues to increase and it is getting more attention in the media as an alternative that will help companies/employees combat higher gas prices and requirements to lower air pollution. Also, telecommuters are reporting higher levels of support for telecommuting from senior management and supervisors. This may be an opportunity for Valley Metro to increase the promotion of telecommuting as well as services it offers to assist employers and employees in setting up/expanding a telework program. 2. Technology barriers continue to fall with continuing increases in high-speed Internet access as well as access to work and files among the employed population. More than two in five non-telecommuting employees report having access to work and files from home, and the proportion of employees who report working from home at night and on weekends is increasing. 3. It appears that having the right equipment and/or suitable home environment for teleworking may be the new barriers replacing technology. Employees may feel they have the technology to be able to work at home in the evenings and on weekends, but they may not feel they are able to effectively work at home during the day on a regular basis because of the conditions at home. Supervisor support, however, also plays a role. Most non-telecommuters indicate their supervisors would not support telecommuting (although these same supervisors apparently support working from home on weekends and evenings because employees are being given access to work files and s from home). Encouraging employees to ask supervisors to allow them to try telecommuting may be a way to test and see if these barriers are real or perceived. 4. It is disconcerting that the percentage of employees reporting to telecommuting at least occasionally did not increase over the past two years, particularly in light of the perception of employees that there are more of their co-workers telecommuting now than a year ago. There also was a decrease in the number of new telecommuters (i.e., have been telecommuting for less than one year). It appears that there is a lot of talk about telecommuting but perhaps not much action. Once again, conditions appear to be ripe for Valley Metro to make a push for telecommuting citing the key benefits of reducing air pollution, saving money, avoiding traffic congestion, and increased flexibility.

9 Valley Metro Employee Telecommuting Study Page viii 5. Being able telework is more and more becoming an issue directly related to the scope of a persons job responsibilities and personal preferences rather than about equipment or permission. Demographic differences between telecommuters and nontelecommuters at they related to size of company and age appear to be shrinking, while education and income level have come to the forefront in determining likelihood to telecommute.

10 Valley Metro Employee Telecommuting Study Page 1 I. Introduction A. Background and Methodology Valley Metro commissioned WestGroup Research of Phoenix to conduct a telephone survey of Phoenix-area employees. The purpose of the survey was to measure awareness and attitudes local employed residents have regarding telecommuting as a work option, as well as to examine the level of current participation and potential for telework in the future. This was the fifth wave of tracking, with previous studies completed in 1999, 2000,, and. A total of 502, 10-minute surveys were completed during June. Calls were made by trained and experienced interviewers from the WestGroup Interviewing Center. The margin of error for the total sample is +4.4% at a 95% confidence level and +9.0% for current at the same confidence level. Due to a skew toward older employed residents in the random sample, the data were weighted to proportions more reflective of the employed population in the Metro- Phoenix area based on data from the US Census American Community Survey. This also brings the database more in line with the distribution reported in the previous employee telework studies. The table below shows the distribution by age in the original database compared to the weighted sample. Age category Original Weighted Under age 25 2% 10% 25 to 44 years old 35% 50% 45 to 54 years old 34% 25% 55 years or old 25% 15% The following report summarizes the cross-tabulated results of the survey. Differences according to telecommuting habits, work experience, as well as data from previous studies are discussed where appropriate. The cross-tabulated results for this study are available under separate cover. B. Personal Demographics A wide variety of demographic measures were taken of the survey respondents (see Table 1 on following page). Overall, slightly more men then women were interviewed this year (55% vs. 45%). According to the U.S. Census Bureau in 2006 women made up 46% of the U.S. labor force. with the average respondent being 42 years of age. The majority is employed full time (91%) and has at least some college education (86%). Average household income continues to rise in with an average of $70,500 reported compared to $68,100 for.

11 Valley Metro Employee Telecommuting Study Page 2 Characteristic Table 1: Respondent Demographics (n=502) (n=504) (n=500) 2000 (n=674) 1999 (n=400) Gender Male 55% 50% 50% 50% 55% Female 45% 50% 50% 50% 45% Age Under 25 10% 4% 7% 9% 8% 25 to 34 18% 21% 22% 22% 32% 35 to 44 30% 25% 28% 31% 32% 45 to 54 24% 25% 26% 24% 19% 55 to 64 12% 18% 10% 9% 7% 65+ 2% 2% 3% 2% 1% Average 42.0 yrs yrs 41.3 yrs 40.3 yrs 37.9 yrs Employment Status Full-time 91% 88% 92% 88% 89% Part-time 9% 12% 8% 12% 11% Education Less than HS 2% 1% 2% 2% 1% HS graduate 11% 13% 16% 17% 21% Some college 29% 33% 36% 38% 37% College graduate 31% 29% 23% 23% 26% Some grad. school 5% 6% 4% 5% 3% Graduate degree 21% 17% 16% 14% 12% Income Under $15,000 4% 2% 3% 4% 5% $15K to $34,999 11% 11% 15% 21% 27% $35K to $54,999 17% 18% 22% 23% 22% $55K to $74,999 17% 16% 17% 16% 16% $75K to $94,999 13% 12% 11% 12% 7% $95,000 or more 26% 22% 15% 10% 8% Average $70,500 $68,100 $60,500 $54,900 $49,700

12 Valley Metro Employee Telecommuting Study Page 3 C. Work Demographics Of the 502 Phoenix-area employed residents surveyed, 24% confirm that they telecommute on a routine or occasional basis; a figure that remains unchanged since. An additional 13% say they have telecommuted in the past, but are not currently using this option on a consistent basis, while 63% report that they have never telecommuted. The average number of miles traveled by employees to work (one way) is approximately 15 miles; again unchanged from. It takes residents approximately 28 minutes to travel the distance to work, slightly longer than the 26.1 minutes reported in for the same distance. The highest proportion of employed respondents work in professional/technical positions (37%) and the majority of employees work for organizations that employ more than 50 employees (73%). Responses Table 2: Work Demographics (n=502) (n=504) (n=500) 2000 (n=674) 1999 (n=400) Telecommute Status Current telecommuter 24% 24% 15% 12% 9% Past telecommuter 13% 13% 13% 8% 7% Never telecommuted 63% 63% 72% 80% 84% Average miles to work 15.0 miles 15.0 miles 20 miles 15.4 miles 12.1 miles Average time to work 28.0 min min min min min. Company size Under 50 26% 27% n/a n/a n/a % 70% n/a n/a n/a Don t know 1% 3% n/a n/a n/a Occupation Professional/technical 37% 37% 38% 42% 34% Management/administ. 23% 20% 22% 18% 18% Clerical/support 10% 9% 10% 12% 15% Sales/marketing 8% 9% 8% 8% 9% Services/repair 7% 7% 11% 8% 11% Production/construction 7% 6% 8% 11% 11% CSR/call center 6% 9% - - -

13 Valley Metro Employee Telecommuting Study Page 4 D. City of Residence and Work Employees are most likely to live in Phoenix or Mesa, and most likely to work in Phoenix, Scottsdale and Tempe. Responses Table 3: City of Residence and Work (n=502) (n=504) City of Residence Phoenix 31% 35% Mesa 14% 14% Tempe 8% 5% Glendale 7% 6% Chandler 7% 10% Scottsdale 5% 7% Gilbert 5% 5% Peoria 4% 5% Surprise 4% 2% Avondale 2% - Other* 13% 10% City of Work Phoenix 39% 46% Scottsdale 15% 9% Tempe 14% 11% Mesa 7% 9% Chandler 6% 6% Glendale 4% 4% Other* 14% 12% *Other indicates 1% or less consensus

14 Valley Metro Employee Telecommuting Study Page 5 E. Off-site Electronic Access to and Work Files There continues to be an overall increase in off-site electronic access to the work site. Almost two out of three employees now have access to work (66% vs. 59% in ) and more than half have access to work files (54% vs. 51% in ). Although employed residents who do not currently telecommute are less likely to have electronic access to the work site (38% have no access compared to only 6% of telecommuters), more than two in five (43%) report access to work files and almost three in five (58%) has access. Those most likely to have off-site electronic access to their work site include: Males (62% work files; 70% ) Current telecommuters (93% work files; 87% ) Those with at least a college degree (64% work files; 76% ) Those with household incomes of more than $55,000 (66% work files; 78% ) Off-site Electronic Access to Main Work Site 66% Work 51% 59% 54% Work files 42% 51% None/DK 32% 37% 46% 0% 20% 40% 60% 80% n=502; n=504; n=500

15 Valley Metro Employee Telecommuting Study Page 6 F. At-Home Overtime Workers 1. Percentage of At-Home Overtime Workers Half of employed residents surveyed in say they sometimes work overtime hours at home or work at home during non-scheduled work hours (51%); this is up slightly compared to previous years (45% and 46%). Current telecommuters are more likely than those who have never telecommuted to indicate they work at home after normal business hours (93% vs. 34%). Similarly, employees with a college degree and those with household incomes of more than $55,000 also are more likely than their comparative groups to report to work overtime hours at home (69% and 66%, respectively). Working Overtime at Home Do you ever do any kind of work at home AFTER normal work hours or on the weekends that is related to your job? Yes 46% 45% 51% No 49% 54% 55% 0% 10% 20% 30% 40% 50% 60% 70% n=502; n=504; n=500

16 Valley Metro Employee Telecommuting Study Page 7 2. Reasons for At-Home Overtime Work More than half of those who take things home to work on after hours or on the weekend say they do so because they do not have enough time to get all their work done at the office during normal business hours (54%). In addition, employees in were more likely than in previous years to indicated that timing issues such as meeting a special deadline (15%) or having around the clock responsibilities to clients (12%) affected their at-home overtime rather than their home environment (i.e., more productive time dropped from 15% to 8% and quieter at home dropped from a previous high of 10% in to 3% currently). However, there was an increase in mentions of working at home in order to take care of the family (7% up from 2%) and finding the home environment more comfortable (6% compared to no previous mentions). Interestingly, non-telecommuters are more likely to indicate they take work home because they do not have enough time to get their work done at the office (58% vs. 48% of telecommuters), whereas telecommuters are more likely to indicate they have 24/7 client responsibilities (17% vs. 8%). Table 4: Reasons for At-Home Overtime Work Total Mentions Responses (n=254) (n=232) (n=225) Not enough time to get work done at the 54% 60% 64% office/too much work Meet special deadline 15% 4% 12% Responsibilities are 24/7 with clients 12% - - More productive time 8% 15% 14% Take care of family/children/flexibility 7% 2% 2% Prefer home/more comfortable 6% - - Quieter at home 3% 7% 10% Do all work out of my home 2% 5% 3% Preparation/next day planning 3% - - Self employed/owner 2% - - Avoid commuting 2% - - Other/Don t know* 5% 9% 3% What is the main reason you take things home to work on after hours or on the weekend? What other reasons? * Other indicates 1% or less consensus

17 Valley Metro Employee Telecommuting Study Page 8 II. Profile of Existing and Potential Telecommuters A. Existing Telecommuter Profile Definition of Telecommuting Telecommuting is defined as working from home instead of commuting to and from a work-site that you are scheduled to report to. You can telecommute occasionally, that is on a project-by-project basis, or on a regular basis, that is one or more days a month. This does not include working overtime during non-scheduled work hours or operating a home-based business. 1. Percentage of Current Telecommuters The percentage of employed residents who telecommute has remained steady with levels in mirroring those found in. Nearly one in four (24%) Phoenix area employed residents report they currently telecommute at least occasionally using the definition described in the box above. An additional 13% report they do not currently telecommute, but have telecommuted in the past. 100% 80% 60% Telecommute Status 84% 80% 72% 63% 63% 40% 20% 24% 24% 15% 12% 9% 13% 13% 13% 8% 7% 0% Current telecommuter Past telecommuter Never telecommuted ( n=502; n=504; n=500; 2000 n= 674, 1999 n=400)

18 Valley Metro Employee Telecommuting Study Page 9 2. Personal Demographic Characteristics Overall, telecommuters are more often males (62%). Telecommuters also tend to be slightly older than non-telecommuters (43 years vs years) and have significantly higher annual household incomes ($92,300 vs. $63,500). Telecommuters also are more likely to have completed a higher level of education (94% with at least a college degree vs. 83% of nontelecommuters). In general, compared to previous years, more males are telecommuting than in the past (62% vs. 56% in ), the average age of the telecommuter has decreased (43 years down from 46 years old in ), and the average income among current and past telecommuters is higher than ever before ($86,700 vs. $73,900 in ). Characteristic Table 5: Personal Demographics Current/ Past TC (n=187) Current/ Past TC (n=187) Current/ Past TC (n=138) Breakdown Current TC (n=123) Non- TC (n=379) Gender Male 62% 56% 58% 62% 53% Female 38% 44% 42% 38% 47% Age Under 25 2% 3% 4% 4% 12% 25 to 34 20% 14% 22% 17% 19% 35 to 44 33% 29% 29% 37% 27% 45 to 54 28% 26% 27% 26% 23% 55 to 64 10% 24% 11% 10% 13% 65+ 2% 2% 3% 2% 2% Average 43.2 yrs yrs 42.1 yrs 43.0 yrs yrs. Education Less than HS - 1% 1% - 2% HS graduate 6% 12% 9% 5% 13% Some college 18% 26% 26% 17% 33% College graduate 37% 26% 29% 35% 30% Some grad. school 6% 8% 6% 8% 3% Graduate degree 31% 25% 25% 34% 17% Income Under $15,000 1% 1% 1% 1% 5% $15K to $34,999 3% 9% 9% 1% 14% $35K to $54,999 11% 15% 18% 8% 19% $55K to $74,999 12% 16% 13% 11% 18% $75K to $94,999 14% 13% 14% 13% 14% $95,000 or more 44% 26% 26% 52% 18% Average $86,700 $73,900 $71,600 $92,300 $63,500

19 Valley Metro Employee Telecommuting Study Page Employment Characteristics As in the past, telecommuters are most likely to be employed full-time (92%). The average commute distance and time for commute for telecommuters is down slightly from previous years (16.4 miles from 17.7 reported in and 29.9 minutes down slightly from 30.2 minutes). But as seen previously, commute distance and time spent commuting continues to be longer for current telecommuters than for non-telecommuters (16.9 miles vs miles; 30.1 minutes vs minutes). A higher proportion of telecommuters report working for smaller organizations (32% vs. 24% for non-telecommuters) and a higher proportion have management/administrative (37% vs. 19%) or sales/marketing positions (15% vs. 6%). Table 6: Work Demographics Responses Current/ Past (n=187) Current/ Past TC (n=187) Current/ Past TC (n=138) Breakdown Current TC (n=123) Non- TC (n=379) Employment Status Full-time 93% 92% 97% 92% 90% Part-time 7% 8% 3% 8% 10% Telecommute Status Current telecommuter 66% 65% 54% 100% - Past telecommuter 34% 35% 46% - - Never TC % Avg. miles to work 16.4 miles 17.7 miles 24.9 miles 16.9 miles 14.4 miles Avg. time to work 29.9 min min min min min. Company size <50 employees 29% 27% 31% 32% 24% 50+ employees 71% 70% 60% 68% 74% Occupation Prof./technical 41% 38% 43% 40% 36% Mgmt./admin. 34% 25% 27% 37% 19% Sales/marketing 12% 14% 13% 15% 6% Clerical/support 4% 7% 8% 2% 13% Prod/construction 3% 5% 4% 2% 9% CSR/Call center 3% 3% - 2% 8% Services/repair 2% 4% 3% 1% 9%

20 Valley Metro Employee Telecommuting Study Page 11 While differences between telecommuters and non-telecommuters in terms of city of residence or work location are slight, there were a few notable differences. The highest proportion of telecommuting employees lives in Phoenix (24%), Mesa (14%), Scottsdale (11%), or Tempe (8%). The highest proportion of telecommuting employees works in Phoenix (42%), Tempe (14%), Scottsdale (13%), or Chandler (11%). Responses Table 7: City of Residence and Work Total Sample (n=502) Total Sample (n=504) Breakdown Current Non- TC TC (n=123) (n=379) City of Residence Phoenix 31% 35% 24% 33% Mesa 15% 14% 14% 14% Tempe 8% 5% 8% 8% Chandler 7% 10% 7% 7% Glendale 7% 6% 6% 8% Scottsdale 5% 7% 11% 3% Gilbert 5% 5% 5% 6% Peoria 4% 5% 5% 4% Surprise 4% 2% 2% 4% Avondale 2% - - 2% Coolidge 1% - 4% - Queen Creek 1% - 4% - Cave Creek 1% - 2% 1% Buckeye 1% - 2% 1% Other* 9% 10% 7% 10% City of Work Phoenix 39% 46% 42% 39% Scottsdale 15% 9% 13% 16% Tempe 14% 11% 14% 14% Mesa 7% 9% 5% 8% Chandler 6% 6% 11% 4% Glendale 4% 4% 3% 4% Buckeye 1% - 2% 1% Other* 14% 12% 11% 14% *Other indicates 1% or less consensus

21 Valley Metro Employee Telecommuting Study Page Length of Time Telecommuting The majority of those who telecommute have been doings so for more than three years (60%), a percentage which has steadily increased since (41%). Currently, almost half of those surveyed indicate they have been telecommuting for more than five years (45%). The average length of time employees have been telecommuting decreased slightly from 6.1 years in to 5.8 years in. This may be due to the fact that this question was asked only of current telecommuters instead of both past and current telecommuters who were asked the question in previous studies. As seen in, it appears there has been less turnover among telecommuters in recent years resulting in a significant increases in the number of employees who have telecommuted between one and three years, and those who have telecommuted for more than 10 years. However, the percentage of new telecommuters is not increasing and remains at the lower level reported in (11% report telecommuting for less than one year vs. 21% in ). Table 8a: Length of Time Telecommuting Responses * Current TC (n=123) Current & Past TC (n=151) Current & Past TC (n=138) 2000 Current & Past TC (n=135) NET <3 years 39% 29% 49% 51% < 1 year 11% 10% 20% 21% 1 to 2 years 12% 8% 11% 15% 2 to 3 years 16% 11% 18% 15% NET 3 years + 60% 57% 41% 43% 3 to 5 years 15% 16% 18% 17% 5 to 10 years 22% 25% 11% 12% 10 years + 23% 16% 12% 14% Avg. # of years How long have you telecommuted? *Question was changed in so that it was only asked of current telecommuters rather than current and past. Table 8b shows that, as might be expected, older telecommuters have been taking advantage of this alternative work option longer than younger telecommuters (6.1 years vs. 5 years), while employees of smaller organizations are more likely to report more longevity as telecommuters than those employed by organizations with more than 50 employees (6.3 years vs. 5.5 years).

22 Valley Metro Employee Telecommuting Study Page 13 Table 8b: Length of Time Telecommuting Responses * Current TC (n=123) Current/ Past TC (n=151) Breakdown Age Company Size < < (n=49) (n=69) (n=39) (n=84) Net <3 years 39% 29% 39% 39% 39% 39% <1 year 11% 10% 11% 8% 10% 11% 1 to 2 years 12% 8% 17% 10% 9% 14% 2 to 3 years 16% 11% 11% 21% 20% 14% NET 3 years + 60% 57% 58% 61% 61% 59% 3 to 5 years 15% 16% 18% 12% 10% 17% 5 to 10 years 22% 25% 24% 23% 24% 21% 10 years + 23% 16% 16% 26% 27% 21% Avg. # of years How long have you telecommuted? *Question was changed in so that it was only asked of current telecommuters rather than current and past.

23 Valley Metro Employee Telecommuting Study Page Frequency of Telecommuting While the proportion of the employed population reporting to telecommute has remained consistent since, it is clear that telecommuting habits are changing. Four out of five current telecommuters (76%) indicate they regularly telecommute (i.e., at least once per month); slightly lower than the 80% that reported regular telecommuting in. In contrast, those who report telecommuting on an occasional basis (i.e., project by project or less than once a month) has increased from 12% in to 21% currently. As shown in Table 9 below, if these percentages are translated to the total population of employed residents in the Valley, it means that 18% currently telecommute regularly and 6% telecommute occasionally. Table 9: Frequency of Telecommuting % of Total (n=502) % of Total (n=504) % of Total (n=500) 2000 % of Total (n=674) Occasional TC 6% 3% 2% 3% Project by project 3% 1% 1% 2% <1x per month 3% 2% 1% 1% Regularly TC 18% 21% 13% 9% 1-3 x per month 8% 5% 4% 3% 1-3 x per week 6% 9% 5% 3% 4+ per week 4% 7% 4% 3% Don t know/other - 2% - - Net Total TC 24% 25% 15% 12% How frequently do you telecommute? *This percentage excludes past telecommuters.

24 Valley Metro Employee Telecommuting Study Page 15 B. Potential Telecommuter Profile 1. Definition and Current Percentage in Population Two groups of telecommuters have been identified: True potential telecommuters: Realistically these are the employees who either are telecommuting currently or should be telecommuting now because there does not appear to be any obstacles. Good potential telecommuters: This definition includes all of the true potentials plus employees who would like to telecommute and have suitable jobs, but their employer may or may not allow. The definition of true potential telecommuters used for discussion purposes in this report is as follows: employed residents who are currently telecommuting or those who would like to telecommute and have jobs suitable for telecommuting and also feel their employers would allow them to telecommute. Using this definition, approximately 31% of the workforce qualifies as a true potential telecommuter, nearly identical to the 30% found in the study. This percentage increases to two in five (41%) qualifying as good potential telecommuters; closely mirroring the results from. Potential to Telecommute Current TC 12% 15% 24% 24% % True Potential 30% 26% 24% Good Potential 33% 33% 39% 41% 0% 10% 20% 30% 40% 50% 60% 70% 80% Definitions: True = Current telecommuters and those who want to, have suitable jobs and employers would allow it. Good = Current telecommuters and those who want to and have suitable jobs.

25 Valley Metro Employee Telecommuting Study Page Demographic Characteristics The true potential for telecommuting is highest among men (64% vs. 36% for women). On average, these employees have higher annual household incomes than employed residents overall ($88,200 vs. $70,500), are more likely to have graduated from college (74% vs. 57%), and are most likely to be in professional/technical (41%), management/administrative (33%), or sales/marketing (15%) positions within their organizations. Characteristic Table10: Potential Telecommuter Characteristics Total Sample (n=502) True Potential TC (n=157) Characteristic Total Sample (n=502) True Potential TC (n=157) Gender Income Male 55% 64% Under $15,000 4% 1% Female 45% 36% $15K to $34,999 11% 2% $35K to $54,999 17% 9% Age $55K to $74,999 17% 16% Under 25 10% 6% $75K to $94,999 13% 13% 25 to 34 18% 18% $95,000 or more 26% 45% 35 to 44 30% 32% Average $70,500 $88, to 54 24% 26% 55 to 64 12% 10% Work size 65+ 2% 3% <50 employees 26% 26% Average 42.0 yrs yrs. >50 employees 73% 74% Education Occupation <High school 2% - Prof/technical 37% 41% HS grad 11% 5% Mgmt/admin. 23% 33% Some college 29% 20% Clerical/support 10% 4% College grad 31% 35% Sales/marketing 8% 15% Some post grad. 5% 7% Prod/construction 7% 2% Graduate degree 21% 32% Services/repair 7% 1% CSR/call center 6% 2% Employment Status Full-time 91% 94% Part-time 9% 6%

26 Valley Metro Employee Telecommuting Study Page 17 III. Attitudes of Employees toward Telecommuting A. General Awareness of Telecommuting Awareness of the concept of telecommuting continues to increase. In, almost nine out of ten Valley employees (88%) report that they have heard of telecommuting prior to taking the survey; this is up seven points from (81%). Not surprisingly, awareness of the term telecommuting is highest among the population subgroups most likely to telecommute: older employees (91%), those with a college degree (94%), and those with a household income of $55,000 or more (93%). Aware of Telecommuting Have you ever heard of telecommuting? 88% Yes, heard of it 77% 81% 12% Not heard of 19% 23% 0% 20% 40% 60% 80% 100% n=502; n=504; n=500 Unchanged from, the majority of those aware of the term telecommuting correctly defined the term as working at home instead of commuting to and from work (78%). Several employees indicated it meant simply conducting work over the phone or Internet (6%). A few others believe the term is a more generic term referring to the use of alternate modes in general (carpooling, 4%; taking the bus 1%; using different modes 1%).

27 Valley Metro Employee Telecommuting Study Page 18 B. Heard of Telework One in ten respondents has heard the word telework used instead of the term telecommuting; a finding that has remained consistent for the last five years. Current telecommuters are most likely to be familiar with the term telework (14% vs. 8% of nontelecommuters), as are those who have at least some college education (10% vs. 2% for those with a high school degree or less). Heard of Telework instead of Telecommuting Have you ever heard the work "telework" used instead of the term telecommuting? 100% 89% 87% 88% 80% 60% 40% 20% 10% 12% 11% 1% 1% 1% 0% Yes No Don't know n=451 (among those aware of telecommuting) ; n=410; n=500

28 Valley Metro Employee Telecommuting Study Page 19 C. Employer Allows Telecommuting Roughly one in four (26%) employees who do not currently telecommute indicated that their employers did allow telecommuting at the time of the interview. Male employees were more likely than females to report that their current employer allows workers to telecommute (34% vs. 18% for females), as do employees who have an annual household income of more than $55,000 per year (34% vs. 17%). D. General Interest in Telecommuting The interest in telecommuting among those not currently telecommuting increased slightly in (46% compared to 41% for previous two survey years). Interest in telecommuting is highest among former telecommuters (55% vs. 46% of those who have never telecommuted). Interest is also comparatively higher among employees who have at least some college education (51% vs. 20% of those with less education) and employees who have an annual household income of at least $55,000 per year (53% vs. 40% for those with lower incomes). Interest in Telecommuting Would you like to telecommute now? (Among non-telecommuters) Yes 46% 41% 41% 45% 60% No 40% 50% 56% 55% 55% Don't know 4% 3% 4% 0% 10% 20% 30% 40% 50% 60% 70% n=379; n=382; n=

29 Valley Metro Employee Telecommuting Study Page 20 E. Reasons for Not Telecommuting among those who have Never Telecommuted Non-telecommuting employees who currently work for a company that allows telecommuting primarily indicate that the characteristics of their current position make their job unsuitable for telecommuting (mentioned by 45%). In addition, some indicated that their home environments were not ideal do not have necessary equipment (13%), do not have resources to be at another location (9%), not enough space at home (4%), costs too much (2%). Responses Table 11: Reasons for Not Telecommuting Total Mentions (Among those who have never telecommuted, but would like to and current employer allows) (n=34) (n=30) (n=142) 2000 (n=221) 1999 (n=122) Job not suitable 45% 65% 55% 53% 42% Do not have necessary equipment at 13% 9% 6% 9% 1% home Employer/supervisor won t allow 12% 16% 33% 32% 30% Do not have resources to work at 9% - 6% 4% 2% another location Not enough space at home 4% I live close to work 4% Concerned about lack of interaction 2% - 3% - - with co-workers/supervisors It costs me too much 2% Fear lack of presence on site will 2% jeopardize chance for promotion Other 8% 4% 4% 2% 7% Don t know 4% 14% 4% 3% 8% Would you like to telecommute now? If yes, why aren t you telecommuting now? F. Reasons for Not Telecommuting Among Past Telecommuters The 27 former telecommuters whose current employer does allow telecommuting (or 5% of total employed residents) were asked specifically why they are not currently telecommuting. Almost two out of three (mentioned by 65%) former telecommuters report that the main reason they are not currently telecommuting is because their job is not suitable. While the finding is consistent with past years, it is significantly higher this year (65% compared to 28% in ). The second obstacle to telecommuting among former telecommuters is personal in nature. Many former telecommuters reported that they do not feel they are structured enough to work efficiently work at home (12%), they like working in the office (5%), and there are too many distractions at home (5%).

30 Valley Metro Employee Telecommuting Study Page 21 It should be noted that not having the necessary equipment at home to telecommute has ceased to be an influential reason for not telecommuting in (no mentions compared to 17% in ). Unlike findings prior to, mentions of the reason of employer won t allow were eliminated because only former telecommuters who work for an employer that currently allows telecommuting were asked this question. Table 12: Reasons for not Telecommuting Total Mentions (Among Former Telecommuters Whose Employers Allow Telecommuting) Reasons * (n=27) * (n=29) (n=63) 2000 (n=52) 1999 (n=26) Job not suitable 65% 28% 38% 36% 46% I am not structured enough 12% Do not have all of the resources to 5% 3% 6% 8% 4% work at another location I live close to work 5% Like working in office 5% 6% 2% 3% 4% Too many distractions at home 5% Concerned about communication/ 5% interaction with co-workers Concerned about communication/ 3% interaction with supervisor Costs me too much 3% - 3% - - Do not have necessary equipment - 17% 10% 2% 4% Employer won t allow - 3% 21% 40% 31% Other 7% 14% 6% 5% 4% Don t know 5% 33% 16% 8% 4% Why aren t you telecommuting now? (Total mentions among those who have telecommuted in the past but do not currently telecommute)? *Screening change. This question was only asked of former telecommuters whose current employer allows telecommuting.

31 Valley Metro Employee Telecommuting Study Page 22 G. Effect of Gas Prices on Interest in Telecommuting More than half of employees surveyed believe that increased gas prices have generated an increased interest in telecommuting among the employees at their company (53%). This is a significant increase from where 44% made the same inference. Employees who currently telecommute were most likely to feel this way (67% vs. 49% for non-telecommuters), as were employees who have some college education (57% vs. 38%) and those who are employed at larger organizations (57% vs. 45%). Effect of Gas Prices on Interest in Telecommuting With the increase in gas prices over the past year, do you feel employees at your company are more interested telecommuting, less interested, or have the same amount of interest in telecommuting as they did a year ago? 53% More 44% 39% Same 40% 5% Less 6% Don't know 3% 10% n=502; n=504 0% 10% 20% 30% 40% 50% 60%

32 Valley Metro Employee Telecommuting Study Page 23 H. Believe Job is Suitable for Telecommuting Non-telecommuters were asked if they believe the nature of their current job would allow them to telecommute on at least an occasional basis. The results show that approximately one in three non-telecommuters (36%) believe the nature of their job would allow them to occasionally telecommute; one in five (21%) believe they could telecommute part-time; and one in ten (10%) believe they should be able to telecommute full time. Believe Nature of Job Allows Telecommuting (Among non-telecommuters) Occasional basis 36% 32% 31% 34% Part time 21% 24% 20% 26% Full time 10% 10% 10% 8% % 10% 20% 30% 40% 50% n=379 ; n=382; n=425 Those more likely to think their job is suitable for telecommuting on an occasional basis include: Males (43% vs. 28% females) Former telecommuters (60% vs. 31% of those who have never telecommuted) College graduates (44% vs. 23% of those who have only some college education) Those with an annual household income of $55,000 or more (44% vs. 26% for those who make less. Those more likely to think their job is suitable for telecommuting on a regular, part-time basis include: Males (24% vs. 16% females) Former telecommuters (42% vs. 16% of those who have never telecommuted) College graduates (26% compared to 15% for those with less education) Those with household incomes of $55,000 or higher (24% vs. 15% of those with lower incomes)

33 Valley Metro Employee Telecommuting Study Page 24 Those more likely to think their job is suitable for telecommuting on a regular, full-time basis include: Males (13% vs. 7% females) Former telecommuters (24% vs. 8% of those who have never telecommuted) College graduates (14% vs. 4% for those who have only a high school diploma or less) I. Believe Supervisor would Allow Telecommuting (Among non-telecommuters who believe their job is suitable) Those who felt the nature of their job would allow them to telecommute were asked if the believe their supervisor would allow them to telecommute. This is a change in wording from previous years when employees were asked about management versus your supervisor. Consequently data from and cannot be reliably compared to the historical data. Overall in, fewer non-telecommuting employees who believe their job is suitable for telecommuting reported that they believe their supervisors are likely to consider telecommuting options. Just over one in four non-telecommuting employees indicated that they believe it is likely their supervisor would actually allow them to telecommute on an occasional basis (29%), this is down from 34% in. This percentage decreases to 17% for those who believe their supervisor is likely to allow them to telecommute part time, and 8% who believe their supervisor would allow them to telecommute full-time. Males in particular are most likely to believe their supervisor would allow them to occasionally telecommute (20% gave a 5 rating vs. 7% of females). Believe Supervisor Would Allow Telecommuting Among non-telecommuters who feel their jobs are suitable on at least an occasional basis (Percent giving a "4" or 5" rating with 5 = "very likely") Occasional basis 29% 34% Part time 17% 20% Full time 8% 14% 0% 5% 10% 15% 20% 25% 30% 35% 40% ( n= 141; n=134)