1. The Trend Towards Teleworking in Canada November 7, 2012 Presented by: Terry Mocherniak Partner – Treehouse Business Centres

2. What is Teleworking? As a result of advances in mobile technology including the proliferation of tablet devices, cloud computing, web based meeting software etc. employees are no longer tethered to a fixed workspace “Teleworking” (sometimes called “Telecommuting”) is any remote work arrangement that utilizes technology in place of travel or commuting Can involve fixed or flexible work hours where employees work full time or part-time from a remote location Can include working from home, working from a coffee shop/hotel or working from a remote office

3. The Global Trend Towards Teleworking A recent Citrix survey of 1,900 IT professionals in 19 countries concluded that by 2020 there will be 7 desks for every 10 office workers, reflecting the growing number of remote workers (this figure goes down to 6 out of 10 in more progressive countries such as the U.S.) By 2020 approximately 29% of the workforce will work remotely -- the majority from home or other remote sites. 24% of companies have adopted mobile work policies. That number will balloon to 83% by mid 2014. 96% of organizations implementing mobile work styles are redesigning their workplaces to be more collaborative and flexible with a move away from traditional “assigned” workspaces

4. Teleworking in Canada According to the Canadian Telework Association approximately 1.5 million Canadians work from home at least occasionally Research conducted by the Telework Research Network indicates that 44% of Canadian jobs are “telework compatible” Only 3% of the population considers home their primary place of work with another 9% working from home occasionally The end result is that there is an enormous opportunity in Canada to make much deeper inroads into teleworking which in turn will have a dramatic impact on the environment, the economy, worker productivity and employer economic benefits A Telework Research Network study concludes that if the number of part-time teleworkers was increased to 4 million Canadians, this would have a bottom line economic impact of > $50 billion!

5. Environmental Impact of Teleworking According to the Clean Air Index, if 1 million additional teleworkers were to work at home just 1 day each week in a year Canada would save: – 250 million kg of CO2 emissions – 100 million litres of fuel – 800 million kilometers of wear and tear on our highways and streets. – $40 million in fuel costs – 50 million hours of time to spend with families, or on non-work lives.

6. Employee Productivity Gains Scores of studies have demonstrated that people that work remotely from their primary office are more productive as a result of: – Reduced distractions normally associated with a traditional office such as water cooler chatter, extended lunches, coffee breaks, social events etc. – More effective time management with no commute – Employees feeling more empowered as they are perceived to be a trusted employee – Flexible work hours allow people to work when they are most productive – Longer effective work hours as many teleworkers replace much of their otherwise spent commuting time working

7. Quantifying Productivity Gains A 2008 global survey conducted by Cisco concluded that their telecommuter employees: – Gave back 60% of their foregone commuting time doing work – 75% said their ability to meet deadlines improved The US GSA reported an increase in productivity of 1 hour per day per teleworker Sun Microsystems also found that teleworkers spent 60% of their commuting time working for the company Best Buy measured an average productivity increase of 35% through its flexible work program Based on a synthesis of numerous studies a Telework Research Network report concluded that the average productivity savings of teleworkers was $5,958 annually!

8. Reduced Real Estate Costs Employer real estate savings as a result of telework programs include savings of leasing/owning real estate, furniture/leasehold improvements, security costs, IT infrastructure, energy and myriad other office related expenses The average office space per employee has been reduced dramatically over the last 10 years shrinking from 300 sq. ft. per employee in 1995 to less than 200 sq. ft. today Studies show that the average employee workspace is empty 35% to 40% of the time Sun Microsystems saves > $68 million a year in real estate costs by offering flexible work arrangements for its 17,000 employees

9. Real Estate Case Study Toronto Board of Trade estimates average cost of urban office space across Canada of $44.47/sq. ft. – This figure is close to $60/sq. ft. in the GTA Research indicates that an average reduction of real estate footprint of 20% can be achieved with a 2 day per week telework program A 500 employee company (@ 200 sq. ft. per person) would occupy approximately 100,000 sq. ft. at an annual real estate cost of $4.5 million (excluding other office related expenses) – Net savings would be $900,000 or approximately $9,000 per telework employee ($1,800 across all employees)

10. Reduced Absenteeism According to the Conference Board of Canada, Canada’s rate of absenteeism is now among the highest in the world at a rate of 10 days per year (as compared to the U.S. rate of 5.3 days per year) – Much of this is attributed to work related stress and work-life balance conflicts Teleworkers are proven to have lower absenteeism due to lower stress related health issues, lower commuter burnout, lower exposure to sick co-workers, and often continue to work when they are sick Based on a U.S. federal telework cost/benefit model, it is estimated that a teleworker will have a 63% lower absenteeism rate – This translates into a Canadian reduction of 6.3 days per year or approximately $2,000 per teleworker

11. Employee Retention/Attraction The ability to telework is among the top non-financial benefits desired by employees and contributes to both attraction and retention of the best talent Research commissioned by Workopolis found that a good work-life balance was the top attraction for workers seeking employment – 82% of respondents said they would change jobs for the ability to work from home A Telus poll of over 1,000 Canadians found that 89% felt that companies offering flexible work arrangements made it more attractive There is also a looming skilled labour shortage in Canada that is making employee attraction even more important – A 2009 AON survey of 278 employers found that 84% said that the shortage of skilled employees will be their biggest HR issue over the next 3 years

12. Traffic/Infrastructure Benefits Telecommuting offers a very inexpensive method of simultaneously reducing traffic congestion, accident rates, commute times and transportation infrastructure costs Lowering traffic volumes also has a multiplier effect on congestion – A recent British study indicated that a mere 5% cut in daily traffic volume could cut time lost in traffic by up to 50% – Calgary’s transportation department estimates that a 3% reduction in people commuting to its downtown core would completely eliminate traffic gridlock

13. Conclusions The trend toward teleworking is gaining momentum and will be a major factor in the transformation of the traditional office space An effective teleworking program can yield > $15,000 per year per employee in savings while at the same time improving employee satisfaction, employee retention, and attraction of the best talent Teleworking is a very cost effective way of reducing an employer’s carbon footprint (whereas many methods of reducing carbon footprint have a net incremental cost) Teleworking will become a key strategy in combating traffic congestion, stress on transportation infrastructures, and shrinking capital budgets