Telecommuting: Pilot to Permanent Program - Minnesota

Telecommuting: Pilot to Permanent Program


IRM GUIDELINE 18, VERSION 1a:

Purpose
Many state agencies have conducted telecommuting pilot programs in order to gain experience that would help determine the applicability of telecommuting within those agencies. Pilot programs were also conducted as a response to the legislative requirement that agencies prepare a telecommuting plan when requesting capital funding for office space. Although these pilots were considered successful, many agencies have not taken the next step: formalizing and establishing a permanent telecommuting program. The purpose of this guideline is to encourage agencies to establish permanent programs, define the components of a permanent program and suggest one path for migrating from a pilot to a permanent telecommuting program.

Scope
The scope of this guideline includes evaluating a pilot program and defining and implementing a permanent telecommuting program.

References and documents
The Minnesota statewide telecommuting policy is contained in the following:

State of Minnesota - Telecommuting Program manual

The Department of Administration published the following evaluation of its pilot program:

Department of Administration - Telecommuting Pilot Program Assessment

The Office of Enterprise Technology has prepared a companion telecommuting guideline:

IRM Guideline 4, Version 4a - General Introduction and Implementation of a Pilot Program

Visit the OET website for telecommuting reference documents with examples:



Definition of telecommuting
The following definition is from the Minnesota Statewide Policy, dated July 1996.

Telecommuting is a work location alternative that allows employees to meet customer needs by performing job responsibilities away from an assigned office. Homes or telework centers are equipped with information technology that is appropriate for the tasks being performed. Note that this definition involves employees who: 1) work partially at an assigned office, AND 2) work partially at home or at a telework center.



Benefits of telecommuting
Telecommuting provides short-term and long-term benefits to the state as a whole, to individual state agencies, to the customers of state government and to employees. In the short-term, these benefits include increased productivity, improved employee recruiting and retention, reduced absenteeism, reduced traffic congestion and environmental pollution, improved job satisfaction and reduced stress levels for employees. In the long-term, these benefits include an improved level of customer service and reduced need for office space which may translate to reduced capital bonding and operating costs including rent, utilities, insurance, furnishings, security, cleaning, maintenance and parking facilities.

Telecommuting and office space
Telecommuting can generate savings in office space and real estate in the long-term; however, many prerequisites need to be in place before those savings can be realized. Senior management commitment to the program is required before space reduction activities can proceed. Other prerequisites are highly recommended such as:

Telecommuting schedules of at least 2 and 3 days per week per telecommuter
Information technology and telephone communications that meet or exceed job requirements (a technical support plan is critical)
Flexibility and willingness of managers and employees to adapt to change
Telecommuters who volunteer to share cubicles or offices
A specific space savings plan including goals


Definition of a permanent telecommuting program
Practitioners, academics and consultants do not agree on one, single, definition of a permanent telecommuting program. Telecommuting is not "one-size-fits-all". Organizations have different missions, business needs, resources and types of jobs. However, there is general consensus that establishing a permanent program means:

Making telecommuting available throughout the organization
Formalizing the components of a telecommuting program
A telecommuting program should be formalized in order to manage the process of making telecommuting available throughout the organization.

This guideline identifies a framework of components for a telecommuting program that could meet the needs of Minnesota State government agencies. After researching industry practices, both public and private, examining pilots in state agencies, and discussing this topic with practitioners, professional associations, consultants and Minnesota State agencies, certain components appeared repeatedly. These components are:

Strong executive management support to understand and accept the business case, provide resources and show leadership in adapting to change.
Selection of specific business goals and objectives , to meet existing business challenges. For example, productivity and staff retention may be common business needs for all agencies and telecommuting may increase productivity and improve staff retention. A cost/benefit analysis is highly recommended.
Organizational structure to define and administer the permanent telecommuting program. For example, responsibility for administering the program could be divided among existing functional managers, a steering committee, and existing human resources and information technology managers or staff.
Telecommuting champion or coordinator to infuse energy and enthusiasm into the program.
Finalized policies that are approved by executive management and that clearly state responsibilities and rules for the program. The policy from the pilot program should be modified as necessary and should follow the Statewide Telecommuting Policy. In addition, since a permanent program opens telecommuting to all employees who have suitable jobs for telecommuting, three policy areas must be clarified in detail. Those areas are:
suitability of each job in the organization for telecommuting
eligibility criteria for telecommuting
legal positions on workers' compensation injuries and liabilities
It is important to note that agencies should communicate policy discussions and decisions to representatives of collective bargaining units.

Telecommuter understanding form to document telecommuting arrangements for individuals. The telecommuter understanding form from the pilot program can be modified and implemented.
Information technology and support to enable and support telecommuters.
Measurement and evaluation of the telecommuting program to measure success and to make adaptations as needed.
Requirement for mandatory training sessions to ensure compliance with policies, conduct technology training and provide detail information on home safety and ergonomics issues.
On-going communication and feedback channels to obtain input, resolve issues and measure progress.


Reasons to formalize a telecommuting program
Many compelling reasons exist to formalize telecommuting programs. Generally, a lack of formal policies increases 1) risk of lawsuits involving workers' compensation and discrimination, and 2) organizational exposure to loss of assets such as equipment and data. Also, informal telecommuting can drain funding and staff resources in the information technology group without an analysis of benefits gained versus costs incurred. Following are several reasons to formalize a telecommuting program:

A formal program creates an opportunity to obtain specific benefits.
Formal, approved policies and mandatory training can help mitigate risk exposures such as employee injuries by defining a safe home work environment, requiring safety and ergonomic training and assigning responsibilities for maintaining safe home work places.
Formal, approved policies can reduce risk of discrimination issues by formalizing eligibility criteria and documenting the approval/rejection process for telecommuting.
A formal program ensures that all jobs in the organization have been evaluated and categorized for suitability for telecommuting. This pre-selection process protects critical business processes and relieves individual managers and supervisors from making case-by-case decisions regarding which job types are suitable for telecommuting.
Formal, approved policies can help prevent loss or damage to state-owned equipment by defining the conditions for home-use of equipment, the conditions of return of equipment and assigning responsibilities for care and protection of equipment.
A formal program includes analyzing and managing costs and benefits in order to prevent cost escalation and to evaluate the benefit of telecommuting to the organization.
A formal program ensures that all managers and supervisors have executive support, clear direction and policies that are consistent across the organization. Consistent policies help prevent conflicting decisions by individual managers and supervisors.
A formal program requires that a telecommuting organization structure exist which assumes ownership and assigns roles and responsibilities for the program. Also, the telecommuting organization structure would establish open, on-going communication methods to obtain feedback and ensure speedy resolution of issues.
A formal program requires mandatory training for telecommuters and their managers to ensure that they are familiar with policies, technology (including network and data security practices), and home safety and ergonomics issues.


Framework of components for a permanent telecommuting program
A framework of components for a permanent telecommuting program is provided for the convenience of agencies. However, telecommuting programs are not "one-size-fits-all". The framework is meant to help stimulate creative thinking and support informed and meaningful decision making, while providing a list of components that may be essential for a successful telecommuting program. Following is a list of those components:

Executive support
Telecommuting organization structure
Evaluation of the pilot program
Business goals and objectives
Telecommuting policy and understanding form
Telecommuting champion
Definition of the permanent program
Supporting information technology
On-going implementation plan
Repeatable training course
Program maintenance


1. Executive support
Executive support is critical in successfully deploying a permanent telecommuting program. Executive leadership, authority and responsibility are needed to understand and accept the business case, provide resources and approve the final policies.



2. Telecommuting organization structure
A permanent telecommuting program needs a "home" within the agency to drive, manage and administer the program. This "home" could be composed of many functional groups that would share the roles and responsibilities for telecommuting. Entities that would participate in this "home" organization structure would be business functional units, a steering committee, human resources, information technology and legal counsel. Each entity would share in common activities, such as policy review, while other entities would have sole responsibility for certain activities, such as conducting the training program. This structure would help ensure maximum participation and "buy in" from all business units.



3. Evaluation of the pilot program
The results of the pilot program should be evaluated (if not previously done) by reviewing final reports, surveys and notes from focus group sessions. These results could be used as a starting point for planning the permanent program. It may be helpful to interview key management and staff who were involved in the pilot. Appropriate questions might include:

What lessons were learned? What worked well, what needed improvement?
What were the positive and negative opinions and issues?
What were the measurable benefits and costs?
Was the pilot changed during its course? If so, why and how?
Was information technology adequate?
What legal issues arose, if any?


4. Business goals and objectives
Identification of the business goals (often referred to as the "business needs") and objectives are critical for a successful program. Telecommuting should support the organization's mission and satisfy the needs of customers, managers and employees. Goals and objectives are used to determine the success of the program; therefore they should be specific, measurable, documented, monitored and reported. These goals and objectives could be quantified on a continuum from modest to aggressive and could span several years. Progress on goals and objectives should be monitored and reported to obtain feedback for corrective action and to measure the success of the program.

Examples of short-term business goals
Examples of long-term business goals

Increased productivity
Improved recruiting and retention
Reduced absenteeism
Reduced commute miles, traffic congestion and air pollution
Reduced office and parking space
Reduced building occupancy costs
Improved customer service






Examples of measurable objectives:

Employee productivity (quantity and/or quality of work as stated in surveys, meeting project deadlines and managing multiple priorities)
Employee satisfaction/morale (more family time, lower stress from less commuting)
Employee turnover rate
Employee recruitment cycle time
Employee absenteeism rate
Commute time
Commute miles, fuel consumption, air pollution
Improved use of office space at the central location (number of shared office spaces)


5. Telecommuting policy and understanding form
The most important characteristic that differentiates a permanent telecommuting program from a pilot program is that a permanent program makes telecommuting available throughout the organization for all suitable jobs and for employees within those jobs. It is absolutely necessary to clarify policies dealing with job suitability, employee eligibility for telecommuting, employee/telecommuter job performance, workers' compensation and injuries, home safety and ergonomics and liability for property and equipment.

Policy topic
Issue to be clarified

1. Job suitability
What types of jobs are and are not suitable for telecommuting?

2. Employee Eligibility
Who may or may not telecommute?

3. Performance Evaluation
How will telecommuters' job performance be evaluated?

4. Employee injuries and workers' compensation; home safety and ergonomics
How can injuries be prevented?

How can home work areas be made safer? How can safe conditions be maintained on an on-going basis?

How will injuries be reported?

5. Liability for property, equipment and data
How can property and equipment be protected from loss or damage?

What data is private and how can it be protected from loss or corruption?




See IRM Guideline 4, Version 4a, General Introduction and Implementation of a Pilot Program for more information about telecommuting policies.

The telecommuter understanding form should be reviewed and synchronized with the final policy. The final agency policy should not conflict with the statewide policy. Also, agencies might request a policy review by the Attorney General's office. Lastly, it is important to maintain communication with representatives of collective bargaining units concerning telecommuting policies.



6. Telecommuting champion or coordinator
A telecommuting champion or coordinator would provide visibility and leadership for telecommuting within the organization. This individual could infuse energy and enthusiasm into the program and encourage managers and employees to support and participate in the program. Specific duties might include preparing newsletter articles, giving presentations, publishing testimonials supporting telecommuting, espousing benefits and personally encouraging employees and managers to participate in the program.



7. Definition of the permanent telecommuting program
The unique scope and parameters of the telecommuting permanent program should be defined by the organization. The program description might include the following items:

A list of the jobs that have been analyzed and selected as suitable for telecommuting
Statement of business goals and objectives
Description of the process for requesting approval to telecommute
Methods of communicating with telecommuters and their managers
Methods of measuring progress on objectives, i.e. surveys or focus group meetings
Range of telecommuting days allowed, i.e. minimum and maximum days per week


8. Supporting information technology
Supporting information technology is critical to the success of a permanent telecommuting program. Detailed technology profiles and cost estimates should be prepared for each job in the organization that was determined to be suitable for telecommuting. The profile should include equipment and support required at the central site location and at remote locations to support telecommuting. Generally, telecommuters need access to the same types of information technology in the home as in the central office. See IRM Guideline 4, Version 4a, General Introduction and Implementation of a Pilot Program for more information about selecting information technology.



9. On-going implementation plan
Implementation planning is extremely important in deploying and maintaining a successful permanent telecommuting program. This plan should contain repeatable sections for policy revision, recruiting campaigns, training courses and other periodic activities. The plan should contain tasks, deliverables, and names of responsible individuals and completion dates for activities. The implementation plan could identify phases such as 1) planning, 2) implementation, 3) on-going operations, and 4) repeating activities. The overall implementation plan should include information technology.

10. Repeatable training course
A formal, mandatory training course is critical to the success of a permanent telecommuting program. Agency executives, telecommuters, supervisors of telecommuters and selected central site co-workers should attend the training course. This course should be repeatable in order to reduce the long-term cost of training for future telecommuters. Following are suggested topics:

Statewide and agency telecommuting policies
Telecommuter understanding form, optional arrangements and instructions
Telephone and e-mail response frequencies for customers, supervisors and co-workers
Data security and privacy policies and practices
Technology training and security procedures
Fair Labor Standards Act, collective bargaining agreement language
Home safety practices, ergonomic factors and areas of potential liability
Workers' Compensation and injury reporting procedures
On-going communication process for reporting issues and receiving feedback
Contacts and process for questions and problems


11. Program Maintenance
The telecommuting organization structure should assume responsibility for maintaining the permanent program. Feedback and status information as well as progress on goals and objectives should be monitored and periodically evaluated. Surveys and/or focus group meetings are recommended to obtain this information. The feedback loop should be on-going and should provide information to the executive sponsor, the entire telecommuting organization structure, telecommuter supervisors and telecommuters. This feedback loop should be used to modify the permanent program over time so that it closely fits the needs of the organization. Costs and benefits should also be monitored and reported. The program should continue to evolve over time as the organization becomes more experienced with telecommuting, and as business needs and information technology change. Following are examples of survey questions:

Are goals and objectives being met? (be very specific)
Is productivity increasing?
Is absenteeism decreasing?
Are employee turnover rates and recruiting cycles decreasing?
Are commute miles, traffic congestion and air pollution decreasing?
Is technology adequate and available?
Are communications being maintained at an acceptable level?
Are supervisors of telecommuters satisfied with telecommuter performance?
Are telecommuters and supervisors satisfied with telecommuting schedules?
What do responders like MOST about the telecommuting program?
What do responders like LEAST about the telecommuting program?
Do telecommuters and supervisors believe that telecommuting should continue?