An update on telecommuting: review and prospects for emerging issues.

Advances in technology have enabled millions of people to work for one or more employers without being physically present. Most telecommuters work from home, but some may have other "remote" office space. This tend has advantages and disadvantages--personal, organizational, and societal--for both the employer and employees that should be considered carefully before either party approves or undertakes telecommuting.

Introduction

For many employees, work can be conducted almost anywhere: at home, in the hotel, at the local coffee bar, and even from an automobile. The space-time dimension, which requires that work be performed at the office at a certain time, no longer applies to many jobs (Tietze, 2002). As a result, for many employees, work is not a place to go but an "activity" that can be done anywhere, anytime (Tietze and Musson, 2002).

Among the new flexible work arrangements, telecommuting (sometimes referred to as teleworking) has become an increasingly popular alternative to supplement or replace working in the office. This article focuses on the benefits, potential limitations, and emerging issues associated with this growing phenomenon.

Review

There are various definitions of telecommuting with some features in common. Baruch (2001) points out two: 1) the office is not the only place where work can be conducted, and 2) information technology (IT) is necessary for telecommuting. Gainey and associates describe telecommuting as working at home, or another location using computers and communication technology to communicate with the main office, supervisors, co-workers, and customers (Gainey, Kelly, and Hill 1999). Mariani (2000) points out that telecommuting occurs whenever an employee is paid for work conducted at an alternative worksite, so total commuting time is reduced. The alternative site can be the employee's home or satellite office. It should be noted that the time span for telecommuting could vary from a few hours a week to full-time away from the office.

Benefits

Telecommuting offers a number of benefits that fall into three categories: individual or worker, organizational, and society.

Individual benefits. One of the most consistent benefits cited in the literature is that of increased employee job satisfaction among those who telecommute (Manochehri and Pinkerton, 2003; Tremblay, 2002). Many telecommuters feel they have less pressure and are more productive when they work at home. They also see substantial benefits, such as the ability to balance work and family life, increased quality of social life, more flexible working hours, and improved time management. The satisfaction of the work benefits telecommuters as well as the organization. Telecommuting may allow individuals to work in their desired profession, and the possibility of working for a number of employers simultaneously may for some offer additional promotion opportunities (Harpaz, 2002).

One significant benefit is the reduction of travel time and expenses. Using data from the 2000 American Community Survey, Potter (2003), points out that an "average" teleworker can save 57.6 minutes a day by staying home and working. Using the concept of displacement theory, one can further assume that time not spent commuting could be translated into more time spent on work, which might help explain the productivity gains.

The telecommuter also benefits from less office distraction that can hinder the smooth completion of assignments. For conceptual thinking projects, or any assignment that requires long periods of concentration, the office environment can be distracting. Closely coupled with office distractions is office politics, which can also occupy on site employees. Telecommuters are less exposed to office politics (Manochehri and Pinkerton, 2003; Robertson, Maynard, McDevitt, 2003) and are thus more likely to remain distraction free.

One final benefit worth noting is telecommuting's ability to employ homebound individuals (Baruch, 2001). Parents with small children, the elderly, those with a physical disability, and even individuals living in remote locations can still be employed through telecommuting.

Organizational benefits. Many employers believe one of the main benefits for telecommuting is increased productivity. In an earlier study on the subject, salespersons at AT&T who telecommuted increased sales by 20% to 40%. AT&T managers who telecommuted realized increases of 8% to 29% in productivity (McCune, 1998). The Gartner Group, a global information consulting company, found that telecommuting increased productivity from 10% to 40% (Nie, 1999). Some suggest that productivity gains are linked to the elimination or reduction of traditional commuting and a telecommuter's willingness to work longer hours (Mariani, 2000). Several other factors contributing to the increase in productivity of telecommuters include the distraction-free environment, the possibility of choosing more convenient working hours, more time actually spent working, and a stronger focus on achieving the required results rather than simply being physically present at work (Gibson, Blackwell, Dominicis, and Demerath, 2002; Harpaz, 2002; Potter, 2003).

A key benefit of telecommuting is a reduction in operating costs. Most organizations will consider buying or renting a building as a workplace. The expense of real estate taxes and maintenance of the property can be high in cities and industrial parks. Reducing the amount of physical office space needed can help trim overhead expenses.

Telecommuting has been shown to reduce absenteeism and turnover (Gibson, et. al., 2002; Potter, 2003; Solomon, 2000). If an employee needs to care for a sick child or attend to some other urgent matter, telecommuting provides the flexibility to do so. In a traditional work arrangement, time would need to be taken away from the job. In addition, some employees might look for another position with better work arrangements or greater personal time and flexibility, potentially increasing turnover.

In a more recent development, telecommuting offers the advantage of geographically dispersing employees in such a way as to be less vulnerable to a terrorist attack. September 11th etched in the minds of many managers the need to consider placing employees in less vulnerable physical locations. Potter (2003) identifies the terrorist threat and its aftermath.

   "The September 11 terrorist attacks on the
   World Trade Center and the Pentagon, and
   the anthrax threats that followed, have
   renewed interest in telecommuting by both
   employers and employees alike. More than
   ever before, employees increasingly are
   requesting the option of working at home to
   avoid potential workplace threats, to reduce
   anxiety, and to get the job done." (Potter,
   2003; 73).

Another benefit of telecommuting is the increased recruitment options and availability of human resources (Manochehri and Pinkerton, 2003). Traditional work arrangements can pose problems for applicants who live far from the office, those with small children or other dependents, disabled or older people, and those with other issues of family care giving. Telecommuting can open the organization's access to pools of professional candidates who were physically inaccessible in the past (Gibson, et. al. 2002). Some employees, who are unwilling to relocate and like a flexible work arrangement, will be interested in these types of job offerings.

The final benefit is the ability of organizations to adapt to the postindustrial virtual organization, which consists of remote yet linked locations (Potter, 2003). Many organizations use telecommuting to assist in decentralizing their operations. They may also increase their flexibility by hiring workers under various contractual arrangements, including overseas employees who need not live in the United States. A key aspect of many virtual organizations is the need to operate 24/7. Telecommuting enables an organization to provide flexible working hours for employees and continuous service to customers.

Society benefits. Telecommuting can have positive efforts on society. One is helping alleviate the number of vehicles on the road (Harpaz, 2002) and, consequently, the amount of pollution and oil consumption (Mills, Wong-Ellison, Werner, and Clay (2001). Other societal benefits include less noise pollution, less potential for accidents, less strain on the public transportation system, and an increased ability by organizations to hire employees with special needs (Harpaz, 2002).

Limitations of Telecommuting

Individual limitations. A problem that many telecommuters report is isolation from the work culture (Baruch, 2001; Bussing, 1998; Harpaz, 2002; Manochehri and Pinketon, 2003). They are separated from both the work environment and, to some extent, their social environment. Telecommuters may feel lonely and frustrated. In some cases, this can lead to burnout. As Manochehri and Pinkerton (2003) report, the negative effects can overshadow the benefits of working at home.

Employees may also have anxiety about whether their absence in the workplace will cause them to be passed up for promotions (Khalifa and Davidson, 2000). This phenomenon has been labeled by some as the out of sight--out of mind syndrome (Baruch, 2001; Gibson, et. al., 2002). Losing out on good projects (Solomon, 2000). Some employees have no desire to telecommute for fear it will have an adverse impact on their career prospects (Connelly, 1995).

Concerns about the quality of peer relationships have been reported (Igbaria and Guimares, 1999), stemming mainly from feelings of isolation. For example, some telecommuters report that they feel like an outsider when they visit the organization to fulfill work duties (Bussing, 1998). Coupled with problematic peer relationships is the potential for less influence over the people and events at work (Baruch, 2001).

A major concern of many telecommuters is the potential for work and family to conflict when work is conducted in the home. While telecommuting offers a distraction-free environment for some, for others it proves just the opposite if family members are home during the day. Tietze (2002) offers a discourse approach to this conflict, labeling the house (or family) as a source of love and work as the source of money. When the two collide, the norms of both are thrown out of balance. While conflicts are likely, coping mechanisms seem promising (Tietze, 2002). A related conflict concerns the telecommuter's inability to take an established sick day off from work. Apparently, some telecommuters feel pressure to continue working when sick.

Organizational limitations. Although benefits are significant and employees seem to favor the practice, most managers are concerned about managing telecommuters, measuring their performance, creating a sense of teamwork, and keeping the telecommuters safe and healthy.

Supervising the telecommuting workforce transforms some traditional management practices. A manager may fear losing direct control over the telecommuter (Harpaz, 2002; Potter, 2003; Robertson, Maynard, McDevitt, 2003) and may not be able to readily discern if an employee is struggling or needs constructive feedback (Manochehri and Pinkerton, 2003).

Furthermore, performance appraisal and other assessments become more difficult as the employee's presence in the workplace decreases. Because employees will need to be linked to their offices and have sufficient resources to carry out their work independently, problems with technology and communication can obviously hinder the success of the arrangement. In addition, the lack of infrastructure support such as secretaries, maintenance personnel, and technical support can be an organizational liability (Harpaz, 2002).

Another growing concern is that sensitive work information may be compromised in a telecommuter environment (Leonard, 2001). Because of the need to link company files with the telecommuter's home office, breaches by hackers and theft of the telecommuter's equipment are concerns. Thus, security issues raise questions as to how much and what type of work should transpire in the home environment.

Concerns about telecommuting in relation to teamwork have been noted (Baruch 2001; Gibson, et. al. 2002). Specifically, the remote working location chips away at the philosophy of close communication and teamwork that so many companies are striving for. Synergistic advantages are also lost when team members become more remote (Mills, et. al, 2001). Another potential limitation from the organization's standpoint is the concern for the health and safety of the employee. This issue falls in a grey area, such as how much of the home environment can be regulated from a safety point of view (Robertson, Maynard, and McDevitt, 2003).

Society limitations. A main concern of telecommuting from a societal standpoint is the "individualism" mentality that may emerge. Since the workplace is the main source of social interaction and friendship for many, it is feared that telecommuting may break down these types of social contacts. The result is an individualism that can lead to social isolation and the potential breakdown of social norms (Potter, 2003). Baruch (2001) labels this phenomenon as an autistic society where people become socially detached from each other. Sias and Cahill (1998) express concern that on-line relationships will substitute for face-to-face contact, thus disrupting normal hierarchical and interpersonal relationships. Table 1 summarizes the discussion to this point.

Implications for Management

Managers can take steps to help telecommuting succeed. Baruch (2001) offers a model for analyzing the "virtuous cycle" of telecommuting that includes four antecedents: traits and characteristics, job profile/technology, policy/support mechanisms, and culture and infrastructure.

1. Not all employees are cut out for telecommuting. Management should seek desirable traits and characteristics when they select employees for telecommuting.

Successful telecommuters have certain personality traits. These include the ability to work independently with little supervision, a desire to want to telecommute, the ability to work without much social contact, and the traits of dependability and honesty (Baruch, 2001; Harpaz, 2002). Some employees are suited for telecommuting because they can be more productive at home where there is no office distraction.

A satisfactory past work assessment is also an important trait. For example, the Utah State Office of Education's telecommuting policy states that employees must be full-time with no history of performance problems (Manochehri and Pinkerton, 2003). Some companies have strict policies in the area of telecommuting. Many companies require a potential telecommuter to start out working in the office and prove themselves worthy before working at home (Mills, et. al., 2001). Such a policy usually comes about when employers recognize that thrusting new hires immediately into telecommuting often produces substandard work.

Gender can also be a consideration. Because women tend to be family caregivers, the flexibility of telecommuting has been more important to them. In some cases, women report an ability to have greater influence in a telecommuting environment (Lind, 1999). Tremblay (2002) reports that women also favor telecommuting because it cuts down on their traveling requirements, thus simplifying their lives. To summarize, successful telecommuting interventions typically involve employees with the right traits who volunteer for such assignments.

2. Certain jobs are better suited to telecommuting. Those highest on the list include ones that incorporate technology.

Many jobs can be performed effectively through telecommuting. Tremblay (2002) found that the most common involved writing and word processing, accounting functions, management/administration duties, software and Web design, and CAD/computer graphics functions. Manochehri and Pinkerton (2003) suggest sales, telemarketing, and consulting are good choices for telecommuters. Specific applications in the hospitality industry have also been recognized, such as reservations and sales and marketing functions (Mills, et. al., 2001).

All of these functions involve some technology, usually a PC or laptop with on-line capabilities. The main components needed are high-speed computers, reliable communication lines, access to Internet and Intranets from remote locations, and the ability to move files around (Mills, et. al., 2001).

The frequency of telecommuting in terms of days per week is of prime interest. The range varies from full-time telecommuters who work exclusively at home to those who do not telecommute at all. Leonard (2001) found that slightly over nine million employees telecommute once a week or more. In a 2001 report, Rodgers and Teicholz (2001) found that approximately 30 million employees (22% of the workforce) telecommute at least three days per month, but most average one to two days per week. Full-time telecommuters are rare in the United States (Potter, 2003). The norm appears to allow employees to telecommute part-time, and, even then, the majority of time is spent in the traditional office. This type of arrangement seems to do well at most organizations as it allows sufficient "face time" with peers and management.

3. Management must support telecommuting wholeheartedly. This includes the willingness to supervise employees who are not present at work.

The supervising of telecommuters represents a special challenge for managers. For supervisors who like employees in sight, such an arrangement may prove uncomfortable, at least initially. Some managers may wonder if their employees are really working, or if they are working too much (Manochehri and Pinkerton, 2003). Overall, management must trust their telecommuters if the program is to succeed. Some companies, such as Pfizer provide and even require training on how to supervise telecommuters (Scott, 2000).

The employee appraisal process may also need to be adjusted for telecommuters. Since work is not directly observed by the supervisor, proxies for work effectiveness, usually in the form of results criteria, must be determined (Baruch, 2001; Mills, et. al., 2001). Typically, this would involve setting goals and objectives and then determining if the employee has reached them. Hybrid approaches to employee evaluation, using both face-to-face meetings and technology-based controls, also appear promising (Cooper, Kurland, Bailey, 2000).

4. Management should be aware of the impact telecommuting may have on organizational culture.

An organization's culture will play a significant role in the acceptance or rejection of telecommuting. Baruch (2001) notes a range of cultures from supportive, submissive, indifferent, objecting, to rejecting. Clearly, supportive cultures are necessary for telecommuting. Baruch notes that a "management of diversity" mindset is needed within the organization. Furthermore, human resource managers must adapt to the needs for flexibility among their employees. The culture that embraces diversity is not just catering to the needs of women, minorities, and the disabled. Instead, as Baruch notes, "diversity is the management of different needs and different modes of work, and telecommuting forms a significant role in enabling effective management of diversity in both aspects--groups with special needs, as well as people who can get the best output utilizing a variety of operational modes," (Baruch, 2001: 117).

Another aspect of culture should be mentioned. Some fear that the organization's culture may weaken as a result of telecommuting, because instilling the culture in at-home employees will be more difficult (Manochehri and Pinkerton, 2003). Lost are the face-to-face meetings at the water cooler that help keep a culture alive (Mills, et. al., 2001). This loss of culture will depend on the organization. As Gainey and associates (1999) notes, some cultures can be kept alive and well if constant communication is not needed among employees.

5. Decentralized organizations may lend themselves well to telecommuting initiatives.

An organization's propensity to be centralized or decentralized should also be noted. Centralized organizations may have more difficulty in accepting telecommuting initiatives. Organizations that are heavily centralized and fearful of change may be especially indifferent to telecommuting (Harpaz, 2002). However, the trend in organizational structure does appear to be moving toward remote, yet linked, locations (Potter, 2003). Such a decentralized setup encourages more use of telecommuting, particularly as organizations evolve toward boundary-less status and virtual applications.

Unresolved and Emerging Issues

Despite the benefits and limitations of telecommuting, unresolved and emerging issues remain. In closing, we offer three issues that will need managerial, societal, and research attention in the years to come. The first two we have labeled unresolved, meaning, there has been some discussion and concern on these items but no immediate solutions. The third issue we have labeled emerging, meaning that it is a relatively new issue in need of further research and application.

1. What is the role of the organization and the government in establishing the safety of the employee who works at home?

In November 1999, the U.S. Occupational Safety and Health Administration (OSHA), created quite a stir when it issued a letter of interpretation to a Texas credit company. The letter stated that "employers must take steps to reduce or eliminate any work-related safety or health problems they become aware of through on-site visits or other means" (Robertson, et. al., 2003:31). The statements by OSHA were so controversial that it rescinded its position two months later. OSHA's current position is that it will not inspect homes or hold the employer responsible for keeping the home safe (Mills, et. al., 2001; Robertson, et. al., 2003). However, all records mandated by OSHA are still required for all work-related injuries, even if they occur in the home.

Nonetheless, as Potter (2003) points out, the employer still has an obligation to maintain a safe working environment under OSHA's "general duty" clause. This creates some potentially disturbing scenarios. For example, is the employer liable if an employee trips and falls while at home working on company business? Or what if a visitor or family member is hurt in the "work area"? Furthermore, how will the injuries be compensated for? At present, these questions remain largely unresolved.

2. Is telecommuting just another form of exploitation of workers by the organization?

An interesting debate has emerged on the rationale of telecommuting, that it is a form of exploitation against employees (Tremblay, 2002). At least two targets of employees have been identified as potential exploitive subjects, women and less skilled workers. Tremblay (2002) fears that women may be put in less attractive positions in terms of work content and conditions, and that would include being relegated to the home. In fact, several authors have noted these "back to the home" and "back to the farm" phenomena (Mills, et. al., 2001; Potter, 2003). Even as far back as 1980, futurist Alvin Toffler predicted that the information age would return worker to the home (Toffler, 1980). This circular dispersion of workers occurred in two movements. The first took place during the industrial revolution where workers (male, female, and children) moved from the farms to the factory. The second dispersion occurred during World War II when women went to work in the factories as American males left to fight in the war. Telecommuting completes this circle by returning workers, especially women, to the home (Mills, et. al., 2001).

Of course, the original question is whether telecommuting is, in fact, a form of exploitation directed at women. On this issue, we can only speculate and point out the concerns of others. Tremblay fears a "gradual polarization of workers, and this polarization could be along gender lines ... this polarization may be particularly harmful for women by creating less attractive work content and working conditions," (Tremblay, 2002: 168). The issue remains unresolved.

3. What is the next step in telecommuting technology? More enhanced desktop or virtual reality?

An emerging issue lies in the actual technology used to make telecommuting possible. Venkatesh and Johnson (2002) identify two distinct technology delivery methods for telecommuting. The first is the desktop metaphor, which relies on a standard set of technology including a PC, linking capabilities to the main office, telephone, FAX, and email. In contrast, the virtual reality metaphor seeks to increase the social richness of the work environment. Social richness refers to how personable the technology medium appears to be to the user (Lombard and Titton, 1997). Increasing the social richness of a technology medium may give the user a better feeling for actually "being there," that would mean a more realistic feeling of being at work. Applications of virtual reality in the workplace would mean richer images in terms of projecting facial cues, office environments, and more synchronous communications. In short, workers will feel more like they are in the real office instead of being at home in front of their desktop PC.

The application of virtual technologies for telecommuters is sparse. Likewise, empirical research on the impact of this issue is scant. However, the prospects for the future look promising, at least from the workers' point of view. Venkatesh and Johnson (2002) offer one of the few pieces of empirical research on the impact of virtual reality technology for the telecommuter. Their conclusions support the use of these newer technologies by showing higher telecommuter motivation among users of these systems. At present, this issue is emerging.

Conclusion

Anecdotal evidence and early research suggests that telecommuting can increase an organization's productivity. However, limitations suggest more empirical research is required. There are emerging societal and ethical issues that also remain unanswered. Nonetheless, telecommuting will remain a popular form of a flexible work arrangement. It will also continue to evolve as technologies change and organizations work more toward the virtual world model. The benefits of this work arrangement are impressive. The limitations, although present, are not particularly debilitating.

REFERENCES

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Dr. Crandall's research interests include crisis management and the effects of technology on the personal lives of workers, especially issues relating to telecommuting and ethics. Prior to his academic career, he worked for ARAMARK (formerly ARA Services), a Philadelphia-based service management firm. Longge Gao, a graduate student at the School of Business at UNC-Pembroke, worked for the Industry and Commercial Bank of China after graduating from China's Harbin Institute of Technology.

Table 1. Benefits and Limitations of Telecommuting

                 Benefits (probable)         Limitations (potential)

Individual       * Higher job satisfaction   * Feelings of isolation
                 * Higher organizational       from the work culture
                   commitment                * Lack of promotional
                 * Less pressure               opportunities
                 * Better time management    * Lose out on the
                 * Reduced travel time         assignment of good
                 * Balance work and home       projects
                   life                      * Dissatisfaction with
                 * Distraction free            peer relationships
                   environment               * Less influence over the
                 * Less involvement in         people and  events at
                   office politics             work
                 * Suitable for homebound    * Work/family conflict
                   employees                 * Harder to take a sick
                                               day

Organizational   * Increase productivity     * More difficult to
                 * Lower costs                 supervise
                 * Less office space         * Assessment concerns
                   needed                    * Special logistics
                 * Reduced absenteeism         requirements
                 * Lower turnover            * Sensitive information
                 * Do not have to have all     could be compromised
                   employees in one          * Goes against the concept
                   location (a terrorist       of teamwork
                   consideration)            * Control over health and
                 * Increased recruitment       safety
                   options                   * Lack of infrastructure
                 * Able to adapt to the        support (secretary,
                   virtual organization        etc.).

Society          * Less traffic              * Individualistic
                 * Less pollution              mentality
                 * Conserve oil              * Fewer face-to-face
                 * Supports the local and      relationships
                   rural communities

Adapted from:

Baruch, Y. (2001). The status of research on teleworking and an agenda
for future research. International Journal of Management Reviews, 3(2),
113-129.

Daniels, K., Lamond, D., and Standen, P. (2001). Teleworking:
Frameworks for organizational research. Journal of Management Studies,
38(8), 1151-1185.