URBAN PARTNERSHIP AGREEMENT TELECOMMUTING Adeel Lari State Local and Policy Program, HHH University of Minnesota July 10, 2008

WHY TELECOMMUTE? Telecommuting is the most cost effective and fastest method to reduce congestion fastest method to reduce congestion Only 2.9% of the Minneapolis workforce telecommutes

UPA TELECOMMUTING PROGRAM OBJECTIVES

Federal Telecommuting What Can be done ? Securing agreements from major area employers to establish or expand telecommuting and flex scheduling program Securing agreements from major area employers to establish or expand telecommuting and flex scheduling program

UPA Requirement Increase the use of Result Only Work Environments (R.O.W.E.) within the region Increase the use of Result Only Work Environments (R.O.W.E.) within the region

Reduce congestion Reduce congestion Increase telecommuting Increase telecommuting UPA Telecommute Program Objectives

TELECOMMUTINGOPTIONS

Traditional Telecommuting Allows employees to work from home via the internet Allows employees to work from home via the internet Flexible work arrangements build trust Flexible work arrangements build trust Focus on performance and hours—employer policies apply Focus on performance and hours—employer policies apply

ROWE—Results Only Work Environment Deep impact on the business culture, operation and mindset of the management and personnel Deep impact on the business culture, operation and mindset of the management and personnel No schedules. People make choices about where and when work is done. No schedules. People make choices about where and when work is done. Free to work where ever you want, when ever you want, as long as the work gets done.

ROWE Attributes The focus is on results and results only. The focus is on results and results only. Establishes the ultimate state in work flexibility Establishes the ultimate state in work flexibility Allows every employee the freedom to do their best work the way they work best Allows every employee the freedom to do their best work the way they work best

ROWE Provides Equal opportunity for all to participate regardless of job duty or job level Equal opportunity for all to participate regardless of job duty or job level Incentive to work where/when it’s best for business and personal pursuits Incentive to work where/when it’s best for business and personal pursuits Opportunity for SUSTAINABLE change Opportunity for SUSTAINABLE change

ROWE work environment ROWE work environment No permission needed No permission needed Employee managed Employee managed Based on the work Based on the work Requires accountability Requires accountability Focus on “the work” Focus on “the work” Flexible work arrangements Flexible work arrangements Permission required Permission required Management controlled Management controlled Based on hours and work Based on hours and work Requires policies/guidelines Requires policies/guidelines Focus on hours and work Focus on hours and work

TELECOMMUTINGBENEFITS

Universal Telecommuting Benefits Reduce Congestion Reduce Congestion Energy Conservation Energy Conservation Environment Preservation Environment Preservation Enhanced Safety Enhanced Safety Improved Health Improved Health

Corporate Telecommuting Benefits Cost Savings Cost Savings Premise costs Premise costs Office overhead costs Office overhead costs Labor Labor Increased Productivity & Motivation Increased Productivity & Motivation A flexible and independent work environment leads to increased productivity as well as elevated motivation and morale A flexible and independent work environment leads to increased productivity as well as elevated motivation and morale Less absenteeism Less absenteeism Employers send a positive signal of trust and confidence via a telecommute program Employers send a positive signal of trust and confidence via a telecommute program

Corporate Telecommuting Benefits Employee and Skill Retention Employee and Skill Retention Retain the “sandwich” segment—Boomers tasked with caring for both children and aging parents Retain the “sandwich” segment—Boomers tasked with caring for both children and aging parents “Career Break” Retain employees part-time “Career Break” Retain employees part-time Employees are less motivated to leave Employees are less motivated to leave Training costs reduced with higher retention rates Training costs reduced with higher retention rates Flexible Staffing Flexible Staffing Hiring talent not limited to geographic area Hiring talent not limited to geographic area

ROWE Results Culture RX reports an average of 35% productivity increase at Best Buy Culture RX reports an average of 35% productivity increase at Best Buy Significant retention increase Significant retention increase Voluntary Turnover Rate Involuntary Turnover Rate

INDIVIDUAL BENEFITS

Individual Telecommute Benefits Savings! Today gas prices are top-of-mind Savings! Today gas prices are top-of-mind Weekly commute costs are sky rocketing Weekly commute costs are sky rocketing Time savings is a high priority for busy families Time savings is a high priority for busy families

Individual Telecommute Benefits Life Quality & Balance Life Quality & Balance A better balance between work and family A better balance between work and family Reduced stress related to rush hour commute Reduced stress related to rush hour commute More time for health and wellness activities More time for health and wellness activities Better Health + Less Stress = More Work Focus

TELECOMMUTING BARRIERS

Telecommuting Barriers Technology is no longer a telecommuting barrier—the challenge for corporations is a cultural barrier Technology is no longer a telecommuting barrier—the challenge for corporations is a cultural barrier

Telecommuting Barriers Management by Observation vs. Objectives Management by Observation vs. Objectives Corporations need to shift measures on results Corporations need to shift measures on results Commitment to better monitor & measure results Commitment to better monitor & measure results Telecommute programs force reliable result s measurement Telecommute programs force reliable result s measurement

Telecommuting Barriers Perception telecommuters are loafers Perception telecommuters are loafers Some employees perceive telecommuting a hindrance to career advancement Some employees perceive telecommuting a hindrance to career advancement Negative perception mainly created by employers Negative perception mainly created by employers An embraced telecommute program alleviates employee apprehension and resistance An embraced telecommute program alleviates employee apprehension and resistance

Telecommuting Barriers Telecommuting is not for everyone Telecommuting is not for everyone Those with poor personal motivation Those with poor personal motivation Young employees just entering the workforce Young employees just entering the workforce Going to work is an important aspect of life— social & skills value Going to work is an important aspect of life— social & skills value Not all work task are best Not all work task are best performed or appropriate for a performed or appropriate for a telecommute setting. telecommute setting. Some types of work value team Some types of work value team synergy and the rub off effect synergy and the rub off effect

TELECOMMUTINGFUTURE

Telecommuting Future Telecommute programs are expected to become a viable planning element to: Telecommute programs are expected to become a viable planning element to: Reduce congestion and pollution Reduce congestion and pollution Preserve and protect the environment Preserve and protect the environment Our weak economy may help drive support for increased telecommuting programs Our weak economy may help drive support for increased telecommuting programs

UPA STEERING COMMITTEE TELECOMMUTE STEERING COMMITTEE MARKETING EDUCATION MANAGEMENT Work plan for UPA IT CONSULTING R.O.W.E. CULTURE RX TRADITIONAL TELECOMMUTE MEASUREMENT & EVALUATION

U of M Research – NIH Funded 2 year study to understand how a ROWE affects health/well-being. Research findings support a ROWE as having the long-term potential to change work behavior - and in turn affect commuting behavior 2 year study to understand how a ROWE affects health/well-being. Research findings support a ROWE as having the long-term potential to change work behavior - and in turn affect commuting behavior Employees in a ROWE are ‘less apt’ to commute vs. the control group, instead choosing to work other places besides the ‘office’ Employees in a ROWE are ‘less apt’ to commute vs. the control group, instead choosing to work other places besides the ‘office’ Employees in a ROWE report having less of an increase in commute times vs. the control group– choosing other times to commute other than ‘rush periods’. Employees in a ROWE report having less of an increase in commute times vs. the control group– choosing other times to commute other than ‘rush periods’.

Tribune Editorial Putting aside the private benefits and drawbacks, telecommuting is a clear winner from a public policy standpoint. Every worker at home is one fewer worker burdening the roads and public transportation systems. Putting aside the private benefits and drawbacks, telecommuting is a clear winner from a public policy standpoint. Every worker at home is one fewer worker burdening the roads and public transportation systems. Designing public policies and infrastructure to increase the at-home workforce can have both public and private benefits. Designing public policies and infrastructure to increase the at-home workforce can have both public and private benefits.