Telecommuting in the tax department.

Introduction

In 1995, nearly 9 million American employees telecommuted at least one day a week, up from about 7.6 million in 1993.(1) Factors contributing to the increase include advances in technology, the pursuit of increased productivity, concern for the environment, and the desire to help employees balance work with family needs. Nonetheless, telecommuting can be a complicated and controversial issue. Many jobs are well suited to telecommuting, but even telecommuting advocacy groups and consulting firms concede that telecommuting is not appropriate for every job or, for that matter, every person.

The rise in telecommuting adds a new dimension to the management of the corporate tax function. In early 1997, a survey of corporate tax departments was conducted among members of Tax Executives Institute in the San Francisco and Santa Clara Valley Chapters.(2) The response rate was nearly 50 percent, and data were formulated to answer the following questions:

* How widespread is telecommuting in San Francisco and Santa Clara Valley tax departments and what is the profile of the telecommuting tax professional?

* What are the most significant concerns about telecommuting in corporate tax departments?

* What are the benefits of telecommuting for corporate tax departments?

* What positions and job duties are most suitable for telecommuting?

* How often can tax professionals telecommute without jeopardizing personal productivity or department objectives?

This article presents the survey results as well as the author's experiences and research from secondary sources. It also explores ways to overcome the major barriers and concerns that were highlighted in the survey. Although the survey was only distributed to members of two California chapters of TEI, the data are useful for corporate tax departments nationwide.

Definitions

Telecommuting is defined as working at least one day per week outside of the primary workplace. The alternative workplace can be an employee's home, a satellite office, or a neighborhood work center. A satellite office is a remote office location that is sponsored by the employer and houses only that company's employees. A neighborhood work center is an office location where employees of unrelated companies share space, equipment, and perhaps secretarial support.

Survey respondents reported no telecommuting from satellite offices or neighborhood work centers. The home has evolved as the telecommuting location of choice, so this article focuses solely on issues involved with telecommuting from home.

Profile of Telecommuting Tax Professionals

The survey revealed that slightly more than 5 percent of the respondents and their co-workers are telecommuters. This percentage is not significantly lower than that for workers nationwide. The current best estimate is that 6.1 percent of all American workers telecommute at least part time.(3)

Telecommuters from corporate tax departments have a few things in common, but do not easily fit into a single profile. For example, the survey data do not support any strong correlation between telecommuting and age or gender. Furthermore, a formal telecommuting policy makes little difference on whether a person telecommuted. Half of those who telecommute do so under their company's formal telecommuting policy, while the other half telecommutes by special arrangement. Long commutes play a role, but are not common to every telecommuter. Although some telecommuters reported round-trip commutes as long as four hours, the average is a more bearable 70 minutes. There is no clear trend among managers or staff. Almost half of the telecommuters supervise others, and some supervise other telecommuters.

One of the most surprising survey findings was that telecommuting rates in the San Francisco and Santa Clara Valley Chapters are roughly equal. Before the survey data were compiled, there was a general expectation that the high-tech environment of Silicon Valley spawned the kind of attitudes and computer literacy that would make telecommuting more common in the Santa Clara Valley Chapter. The survey did not bear this out. Those who work for high-tech companies are no more likely to telecommute than people who work for other companies.

Three clear trends emerged from the survey data. First, no matter what type of company they work for, telecommuters from corporate tax departments are generally computer literate, use computers at home, and are generally Internet users. Second, with only a few exceptions, telecommuters from corporate tax departments telecommute one day each week. Third, telecommuters from corporate tax departments all reported increased productivity.

Concerns About Telecommuting in Corporate Tax Departments

Eighty-three percent of survey respondents believe that telecommuting will increase in corporate tax departments as technology improves. Nevertheless, tax professionals have many concerns about the adoption of telecommuting as an alternative work arrangement. Using a scoring range of 1 to 5, the survey asked respondents to assign a score to each of several concerns. A "5" means the concern is extremely significant, while a score of "1" means the concern is relatively insignificant. The scores were averaged and the seven most important concerns are ranked below from most significant to least significant:

* Telecommuters have difficulty accessing supplies and information.

* Telecommuters have difficulty participating in work teams. Telecommuting inhibits teamwork and team building.

* Telecommuters have difficulty supervising people.

* There is a loss of management control when people telecommute.

* Telecommuters encounter too many personal distractions when working out of the office.

* Telecommuting programs cannot be administered equitably among all employees and telecommuting causes resentment among co-workers.

* Tax work requires too much face-to-face contact for telecommuting to be effective.

Accessing Supplies & Information. Of all the barriers cited by tax professionals, access to supplies and information is probably the easiest barrier to overcome through technology and careful planning. With the right equipment at home, a telecommuter can work with any information that is accessed through the office computer, the telephone, or fax machine. A telecommuter can use a personal computer and modem to access e-mail, tax-return preparation software, on-line or CD-ROM research services, daily tax reports, and anything else that is available through the office computer. With a scanner and printer, the home computer can act as a fax and copy machine.

There are a number of ways for the home computer to access office data. A simple, low-cost solution is the use of remote-control software such as Reachout or PC Anywhere. With a home computer and an ordinary modem connection, this type of software permits a person to operate another computer at a remote location. Keystrokes and mouse commands from the home computer operate the remote computer. Images ordinarily displayed by the remote computer's monitor are displayed on the home computer's monitor. The software also allows file transfer between the home and remote machines and can direct printed output to office printers. A small measure of computer speed is sacrificed, but this solution is quite workable with faster modems. Furthermore, a tax professional can often install and use remote-control software without assistance from company systems personnel.

Another solution is to establish the home computer as a node on the tax department or company network. This involves more set-up issues an(i the support of the network administrator. Connections that are faster than ordinary phone lines, such as ISDN or dedicated lines, yield greater speed and are definitely recommended.

In some cases, it may be possible to use the Internet to access company networks, but there are often problems with this solution. Companies typically implement security measures ("firewalls") to protect internal company networks from the outside world. With current technology, access speed can also be problematic.

Obviously, supplies and paper files cannot be accessed by the home computer. This is where careful planning comes in. The telecommuter has to think ahead about which supplies and files will be needed on days when work will be performed at home. Since any file removed from the office will not be available to other members of the department, coordination with other department members is essential.

Much of the information ordinarily exchanged through face-to-face communication with company personnel, outside advisors, or auditors can still be exchanged by phone, phone-mail, e-mail, and fax. Meetings can be attended by conference call. Nevertheless, total elimination of face-to-face communication is detrimental for several reasons. For example, a telecommuter attending a meeting by phone can be at a disadvantage when he or she cannot see flip charts, white boards, facial expressions, body language, and side conversations. PC-based video conferencing is continuing to increase in quality and decrease in price. Although it may replace some face-to-face communication, it is not in common use and is therefore not workable as an everyday solution.

In today's world, access to supplies and information is a significant barrier to full-time telecommuting. With the aid of technology and careful planning, however, it is not a bar to part-time telecommuting. Each individual situation is a little different, and there may be some people who can overcome this barrier on a full-time basis. As a general rule, however, tax professionals will find it necessary to work in the office for some portion of the work week.

Working In Teams/Team Building. The ability to work in teams has become more important in recent years as more corporate tax departments abandon traditional hierarchical structures in favor of flatter organizations. The work of most teams involves both joint and individual work. "The key to using telecommuting in a team environment is to organize the work so that most of the individual work is reserved for telecommuting days, while the collaboration takes place when everyone is in the office."(4) Some collaborative work can still be performed using individual phone calls, conference calls, e-mail, groupware, and fax. Nevertheless, it is unrealistic for a tax professional to participate on a work team and telecommute on a full-time basis.

In a team situation, there is always the risk that too many tasks will be done as a team, thereby causing inefficiencies and reducing productivity. Using telecommuters can actually reduce this risk. With telecommuters on a team, the team is forced to focus more on its activities and decide which tasks are best tackled as a group and which tasks should be delegated to individuals.

Even though telecommuters can be effective contributors in a team environment, increased working distances I can weaken bonds between telecommuting and non-telecommuting team members. To prevent this, telecommuters must make a determined effort to visit other team members, both professionally and socially, whenever they are in the office. When working from home, telecommuters must perpetuate communication through telephone, e-mail, etc., so that they remain in the loop and are not forgotten.

Supervisors Who Telecommute. Tax professionals responding to the survey are concerned that telecommuters have difficulty supervising other people, yet almost half the telecommuters who responded to the survey have other people reporting to them. The basic fear is that a supervisor cannot adequately control his or her direct reports from a distance. Those who are successful at managing from a distance, however, know that proximity does not assure high productivity or quality work. The only real test for measuring productivity is to assess the final quality, quantity, and timeliness of output. In fact, the same basic skills are required whether a manager is managing people on or off site. Rather than physically monitoring every detail of an employee's activity, a good manager sets clearly defined goals, assesses what progress is made, gives feedback as necessary, and measures results. The overall supervisory skills of those who manage at a distance often improve, because managing employees from a distance forces managers to become clearer about goals, to communicate more effectively, and to focus on the final work product.

How often a supervisor can telecommute and still remain effective will vary with each situation. Telecommuting will have to occur infrequently or on an ad hoc basis where a supervisor's schedule is unpredictable or requires a lot of face-to-face contact. For example, a department head may have more difficulty telecommuting on a regular basis than a middle manager. A supervisor who can effectively communicate goals, assess progress, provide feedback, and monitor results by phone, e-mail, and fax will be able to telecommute more often.

Loss of Management Control Over Telecommuters. The issues surrounding the management of telecommuters are very similar to the issues just discussed. Both situations involve managing from a distance. Like telecommuting supervisors, the managers of telecommuters must learn to manage by results instead of by physical observation of employees.

Managers of telecommuters must also learn to identify employees with skills and tasks who are well suited to telecommuting. Placing only appropriate individuals in telecommuting arrangements helps ensure a successful management experience.

Too Many Personal Distractions. The home is full of distractions that are not normally present at the office. Family members, pets, television, stereo, the temptation to do chores, and the enticement of the refrigerator are all potential sources of distraction. Telecommuters must be disciplined and self-motivated in order to resist personal distractions at home. While some people are more disciplined than others, there are techniques that can be utilized to increase effectiveness. For example, a telecommuter must establish an appropriate work space that is separate and distinct from the living areas of the house. A dedicated room, equipped with adequate office furniture and equipment, is the best situation. Physical barriers between the work and living spaces tend to provide psychological barriers between those spaces as well. Telecommuters should establish set work routines with regular hours and rules for family interruptions. Furthermore, they should set goals and deadlines. Managers can help telecommuters maintain discipline by setting clear expectations and providing feedback on the timeliness and quality of work.

Techniques for avoiding personal distractions at home may not work for everyone. Anyone whose productivity may suffer should not be a telecommuter.

Equitable Administration of Telecommuting Arrangements/Co-worker Resentment. Not everyone in a tax department can telecommute. Some people are not suitable candidates for telecommuting, and there would be severe logistical and communication problems if all department members were to telecommute simultaneously. Disharmony may result if on-site workers believe telecommuters are getting a special perquisite. Resentment among on-site workers will result if those workers end up fielding inquiries and receiving work that would have otherwise been handled by the telecommuter.

There is nothing new about employees' belief that a coworker is receiving special treatment. Jealousy, bitterness, or resentment can arise among one or more employees when someone else has been singled out for a promotion, pay raise, award, etc. Managers cannot always avert such emotions, but they can help minimize them by having clear and objective standards that employees must meet before promotions or awards are granted. A similar management philosophy can be applied to reduce disharmony among onsite employees when someone is placed in a telecommuting arrangement. If a company has a formal telecommuting policy, there are probably objective standards already in place for selecting telecommuters. If not, a manager may clearly specify that telecommuters must have responsibilities that are well suited to telecommuting. In addition, telecommuters may be required to achieve a specified rating on employee evaluations (high-performance employees tend to make the best telecommuters). Also, a telecommuter may be required to prove that his or her residential work environment is conducive to productive telecommuting. A manager can communicate improvement areas to unsuitable candidates and reevaluate them at a later time.

The manager must communicate to all department members that not everyone can realistically telecommute at once and that no work environment is perfectly equitable all the time. To promote equity, however, the manager should consider instituting a rotating system whereby some employees roll off a telecommuting arrangement while others roll on. Another suggestion is to offer on-site employees a range of substitute options like job-sharing or flexible work hours. Clear qualification standards for telecommuters -- and different work options for on-site employees -- can make on-site employees less likely to feel that telecommuters are receiving favored treatment.

Even when telecommuters are selected in an equitable fashion, co-worker resentment may arise if on-site workers end up bearing some of the telecommuter's workload. This can occur if a telecommuter's accessibility is seriously impaired. Before beginning a telecommuting arrangement, an employee must determine what kinds of contacts and workflows exist and determine how to service those from home. The telecommuter must clearly communicate to all relevant people when and how he or she can be contacted. Moreover, it is imperative that the telecommuter remain fully accountable for assigned areas of responsibility.

Need for Face-to-face Contact. Through the survey results, tax professionals indicated that the need for face-to-face contact is one of the lesser problems associated with telecommuting. The amount of contact that is necessary depends upon the individual and his or her responsibilities. Those with higher positions and more unpredictable schedules may have a more frequent need for face-to-face contact and, accordingly, will not be able to telecommute as regularly as other people. The trick is to determine how much face-to-face contact can be replaced by communication through such tools as phone, fax, e-mail, and groupware. If a telecommuter's business contacts will use these tools, the need for face-to-face contact can be successfully reduced.

Benefits of Telecommuting

When asked about the most important benefits derived from telecommuting, tax professionals placed more emphasis on benefits to the environment and family life than on benefits directly related to work, such as increased productivity. Benefits of telecommuting were rated on a scale of 1 to 5, with "5" being an important benefit. The average scores for various benefits are set forth in Table 1.

    Benefit                             Average Score

Reducing Traffic Congestion                      3.92
Balancing Family & Career                        3.79
Reducing Smog & Pollution                        3.62
Increasing Productivity                          3.35
Helping Employers Attract & Retain Good People   3.31
Reducing Commute Time (And-Increasing
Time On The Job)                                 3.26
Decreasing Real Estate & Equipment Costs         2.47

The rankings are quite surprising, given that the literature on telecommuting generally cites increased productivity and employee retention as the benefits most important to business people. Businesses in urban areas are encouraged by government and public groups to use telecommuting as a means of reducing traffic and pollution, but by and large the reduction of traffic and pollution are viewed by business people as secondary benefits of telecommuting.

For a business to fully embrace telecommuting, the arrangement must produce tangible dividends. A telecommuting arrangement is not likely to last if it sacrifices productivity. When coupled with the right tasks, the right people, and the right schedule, telecommuting arrangements can be a boon for business. For example, increased productivity can come from fewer interruptions, from working during hours that would ordinarily be spent commuting, and from higher morale. The Gartner group, a Stamford, Connecticut consulting firm, reports that there is an average increase in productivity of 10 to 16 percent per telecommuter. The study concludes that the average telecommuter works two hours more per day than an in-office counterpart.

The Association of Bay Area Governments collected productivity data from several large employers in the San Francisco Bay Area and found productivity increases among telecommuters ranging from 10 to 30 percent. In the corporate tax department survey, all those currently telecommuting reported an increase in productivity. When asked how their productivity would change when telecommuting one day per week, 79 percent of tax professionals responded that their productivity would either increase or stay the same. Only 54 percent felt their productivity would increase or stay the same when telecommuting two days per week.

Telecommuting can indeed give employees more flexibility to balance family and career, especially for two-career couples. Furthermore, the added flexibility tends to boost employee morale, increase loyalty, and facilitate employee retention. When discussing balancing family and career, however, there are two important points that should be stressed. First, telecommuting is not a substitute for daycare. A telecommuter cannot effectively work while caring for small children and, by the same token, cannot effectively care for small children while concentrating on work. Nevertheless, with in-home daycare, telecommuters can schedule play breaks and meals with their children. Even with outside daycare, a telecommuter can have more quality family time, because the telecommuter can drop children off later and pick them up earlier. Second, telecommuting can actually upset the balance between family and career if the telecommuter works too much. With the office just down the hallway, a telecommuter can work any time, day or night. A workaholic can actually end up spending less time with the family.

Decreases in real estate and equipment costs are not especially important to tax professionals in assessing the benefits of telecommuting. Real savings come when space at the corporate headquarters can be reduced by either relocating people to outlying areas, where real estate is at less of a premium, or by office or cubicle sharing. Real estate costs may not be included in many tax department budgets and are therefore more important to companies as a whole. It is also likely that the frequency with which tax professionals can or do telecommute is not high enough to justify the elimination of office space.

Job Duties Most Suitable For Telecommuting

In general, the job duties most suitable for telecommuting are those that require peace and quiet, heavy concentration, and few interruptions. In addition, the duties can be performed through telephone and e-mail contact as opposed to in-person contact. They can be performed by one person, or the output of one person can be combined with the output of others on a work team at a later date. Of course, any job duty where most of the work is performed on computers is usually well suited for telecommuting.

When tax professionals were asked to rate the telecommuting suitability of several job duties, there were really no surprises. On a scale of 1 to 5, job duties that require concentration and solitude were rated as best suited to telecommuting. Job duties that have traditionally required face-to-face contact are not well suited to telecommuting. The average scores for various tax department job duties are set forth in Table 2.

Description of Task or Job Duty                   Average Score

Technical Reading/Continuing Education                     4.45
Writing Letters/Memos/E-mail                               4.34
Preparation For Meetings & Presentations                   3.61
Administrative Tasks (Budget or Personnel Work,
Resource Planning, etc.)                                   3.60
Tax Research & Planning                                    3.57
Tax Advice                                                 2.89
Tax Compliance                                             2.07
Networking/Gaining Exposure                                1.59
Participating in Work Teams                                1.54
Participating in Meetings                                  1.49
Managing People                                            1.48
Understanding and Learning About
the Company's Operations                                   1.48

The survey did not specifically list two other important duties: tax audits and tax provision. Several respondents added comments that these duties are not very well suited to telecommuting.

For some of the job duties viewed as poorly suited to telecommuting, sub-tasks can still be carved out and performed successfully in a home office. For example, in the tax compliance area, tax-return review can be done at home. As more and more tax returns are prepared on networks, tax-return preparation also becomes easier to do at home. Where work teams are concerned, not all work can be performed by the entire team. Inevitably some work is delegated to individuals who will later integrate their work into the team's larger product. The work team's individual assignments could be well suited to telecommuting. In the tax-audit area, telecommuters can write information document request (IDR) responses and review Revenue Agent Reports (RARs) at home.

Positions Most Suitable For Telecommuting

Tax professionals were asked to rate the telecommuting suitability of several tax department positions on a scale of 1 to 5 with "5" meaning the position was well suited to telecommuting. Average scores are set forth in Table 3.

Tax Department Position                      Average Score

Middle Manager Not Supervising Others                 3.70
Staff Person                                          3.16
Project Team Participant                              2.74
Middle Manager Supervising Others                     2.42
Project Leader                                        2.33
Department Head                                       2.20
Secretary/Administrative Assistant                    1.30

Setting aside the position of secretary/administrative assistant for a moment, the pattern in Table 3 is clear. Positions without supervisory responsibilities are viewed as best suited for telecommuting, whereas non-supervisory positions on a project team are considered somewhat less suitable. Supervisory positions are viewed as least suited to telecommuting.

As previously discussed, those who supervise others are not precluded from telecommuting. Many telecommuters in the survey successfully supervise other people. What is required is a paradigm shift. Managers in any profession must realize that close supervision is not necessarily good supervision. Rather than constantly looking over their employees' shoulders, a good manager sets clear objectives and evaluates the quality and timeliness of output. This is the case whether an individual is managing in the office or from a distance.

The findings presented in Table 3 do not necessarily show which positions can telecommute and which cannot. Instead, the findings show which positions are capable of telecommuting with greater frequency or regularity. To illustrate, a tax research manager without direct reports may perform many job duties that are most conducive to telecommuting: those that require peace and quiet, heavy concentration, and few interruptions. The research manager may conceivably telecommute more frequently, or on a more rigid schedule, than a department head whose job might be more unpredictable and require more face-to-face contact. The department head may only be able to telecommute on an ad hoc basis.

Like anyone else, secretaries or administrative assistants can do computer-based tasks -- such as word processing, data entry, or graphics -- at home. Other things -- such as high-volume copying, tax-return assembly, or mail sorting -- may not lend themselves to telecommuting. Furthermore, secretaries or administrative assistants often support several tax professionals who may have unpredictable requests. Each departmental situation is different, but like department heads, secretaries or administrative assistants may be able to telecommute only on an ad hoc basis.

Optimal Telecommuting Frequency

The Smart Valley Telecommuting Guide claims that the most successful telecommuting programs --

have telecommuters working remotely one or two

days a week. Very few individuals can successfully

stay at home five days a week. Complete isolation

from the office has inherent drawbacks which

should be avoided.(5)

Telecommuting consultant Gil Gordon elaborates:

[T]here is no right number of days. Typically, [telecommuting]

seems to work best when the range is

from one to three days per week on average. In

some cases it might be higher, but there are potential

problems when you get to four or five days per

week - it's harder to continue feeling that you're

really part of the work group, it's more difficult to

schedule meetings that you must attend, and the

logistics of getting work to and from the office can

get complicated.(6)

When asked how many days per week an individual could telecommute without hindering department objectives, most tax professionals agreed that one or two days per week was appropriate. The actual survey results are set forth in Table 4.

Number of Days Per Week An Employee May Telecommute Without Hindering Department Objectives

Response                   Percentages

None                                8%
One                                43%
Two                                44%
Three                               2%
Four                                2%
Five                                1%

The appropriate telecommuting frequency for corporate tax professionals will vary with each individual situation. For some, telecommuting may only be appropriate on an ad hoc or infrequent basis. A few may be able to telecommute regularly several days a week. As a general rule, however, the right telecommuting frequency for most corporate tax professionals will be somewhere between one and two days per week.

Concluding Remarks

As technological advances continue to improve the ability to work outside the traditional office, the management of telecommuters will become increasingly important for corporate tax departments. The challenge for managers will be learning how to adapt to the inevitable changes in the way work is done. When telecommuting arrangements are properly administered, corporate tax departments can reap significant benefits. Increases in employee productivity, morale, loyalty, and retention can all be realized. Ignoring the potential of telecommuting as an alternative work arrangement, or improperly administering the program can result in many lost opportunities.

The best way to approach telecommuting in a corporate tax department depends on the specific situation at hand. Tax professionals with the right work habits, equipment, and job assignments can unquestionably telecommute one day per week with beneficial results. More frequent telecommuting presents greater challenges, but is definitely possible.

Appendix A: Telecommuting in the Tax Department -- Survey Results

Surveys Sent Out and Surveys Returned
                                             San Francisco Chapter

                                              Number    % of Total
Number of Surveys Sent Out                      116         45%
Number of Respondents                            54         44%
Percentage of People Responding By Chapter       47%        n/a

                                              Santa Clara Chapter

                                              Number    % of Total
Number of Surveys Sent Out                     143          55%
Number of Respondents                          68           56%
Percentage of People Responding By Chapter     48%          n/a

                                              Total

                                              Number    Total %
Number of Surveys Sent Out                     259       100%
Number of Respondents                          122       100%
Percentage of People Responding By Chapter      47%      n/a

Age Range Data
                               San Francisco Chapter

Age Range of Respondents        Number     Chapter %
Under 40                          11         20%
40 to 50                          24         44%
51 to 60                          16         30%
Over 60                            3          6%
Totals                            54        100%

                                Santa Clara Chapter

Age Range of Respondents        Number     Chapter %
Under 40                          26         38%
40 to 50                          37         54%
51 to 60                           5          7%
Over 60                            0          0%
Totals                            68        100%

                                Total

Age Range of Respondents        Number      Total %
Under 40                          37         30%
40 to 50                          61         50%
51 to 60                          21         17%
Over 60                            3          2%
Totals                           122        100%

Gender Data

                              San Francisco Chapter

Gender                          Number    Chapter %
Male                              45         83%
Female                             9         17%
Totals                            54        100%

                               Santa Clara Chapter

Gender                          Number     Number
Male                              40         59%
Female                            28         41%
Totals                            68        100%

                                Total

Gender                          Number     Total %
Male                              85         70%
Female                            37         30%
Totals                           122        100%

Data Regarding Home Computer Usage
                                        San Francisco Chapter

Respondent Uses A Computer At Home      Number      Chapter %
Yes                                       43            80%
No                                        11            20%
Totals                                    54           100%

                                         Santa Clara Chapter

Respondent Uses A Computer At Home      Number       Chapter %
Yes                                       54            79%
No                                        14            21%
Totals                                    68           100%

                                        Total

Respondent Uses A Computer At Home      Number        Total %
Yes                                       97            80%
No                                        25            20%
Totals                                   122           100%

Respondent Uses A Computer At Home For Work   Number    Chapter %
Yes                                             25         46%
No                                              29         54%
Totals                                          54        100%

Respondent Uses A Computer At Home For Work   Number    Chapter %
Yes                                             28         41%
No                                              40         59%
Totals                                          68        100%

Respondent Uses A Computer At Home For Work   Number     Total %
Yes                                             53         43%
No                                              69         57%
Totals                                          22         100%

Respondent Uses E-mail At Home     Number       Chapter %
Yes                                  23             43%
No                                   31             57%
Totals                               54            100%

Respondent Uses E-mail At Home     Number       Chapter %
Yes                                  28             41%
No                                   40             59%
Totals                               68            100%

Respondent Uses E-mail At Home     Number        Total %
Yes                                  51             42%
No                                   71             58%
Totals                              122            100%

Respondent Uses The Internet At Home   Number   Chapter %
Yes                                      25        46%
No                                       29        54%
Totals                                   54       100%

Respondent Uses The Internet At Home   Number   Chapter%
Yes                                      40        59%
No                                       28        41%
Totals                                   68       100%

Respondent Uses The Internet At Home   Number   Total %
Yes                                      65        53%
No                                       57        47%
Totals                                  122       100%

High Tech Company Data

                                              San Francisco Chapter

Respondent's Company is a High Tech Company     Number   Chapter %
Yes                                                3        6%
No                                                51       94%
Totals                                            54      100%

                                               Santa Clara Chapter

Respondent's Company is a High Tech Company     Number   Chapter %
Yes                                               62       91%
No                                                 6        9%
Totals                                            68      100%

                                                Total

Respondent's Company is a High Tech Company     Number   Total %
Yes                                               65       53%
No                                                57       47%
Totals                                           122      100%

Company Telecommute Policy Data

                                               San Francisco Chapter

Respondents Co. has a Formal Telecommute Policy   Number   Chapter %
Yes                                                 4         7%
No                                                 50        93%
Totals                                             54       100%

                                                 Santa Clara Chapter

Respondents Co. has a Formal Telecommute Policy   Number   Chapter %
Yes                                                16        24%
No                                                 52        76%
Totals                                             68       100%

                                                  Total

Respondents Co. has a Formal Telecommute Policy   Number    Total %
Yes                                                20        16%
No                                                102        84%
Totals                                            122       100%

Commute Data

Average Round Trip Commute Time In Minutes
San Francisco                                      62
Santa Clara                                        81
Both Chapters Combined                             70

                                               San Francisco Chapter

Respondent's Mode of Commute                     Number    Chapter %
Auto                                               29         54%
Rail                                               14         26%
Bus                                                 8         15%
Other                                               3          6%
Totals                                             54        100%

                                                Santa Clara Chapter

Respondent's Mode of Commute                     Number   Chapter %
Auto                                               66         97%
Rail                                                1          1%
Bus                                                 1          1%
Other                                               0          0%
Totals                                             68        100%

                                                 Total

Respondent's Mode of Commute                     Number     Total %
Auto                                               95         78%
Rail                                               15         12%
Bus                                                 9          7%
Other                                              3           2%
Totals                                           122         100%

Telecommuter Data

                                               San Francisco Chapter

Number of Respondent's Who Telecommute           Number   Chapter %
Respondents Who Telecommute                        4        7.41%
Respondents Who Do Not Telecommute                50       92.59%
Totals                                            54      100.00%

                                                Santa Clara Chapter

Number of Respondent's Who Telecommute           Number   Chapter %
Respondents Who Telecommute                        1        1.89%
Respondents Who Do Not Telecommute                52       98.11%
Totals                                            53      100.00%

                                                 Total

Number of Respondent's Who Telecommute           Number    Total %
Respondents Who Telecommute                        5        4.67%
Respondents Who Do Not Telecommute               102       95.33%
Totals                                           107      100.00%

Number of Respondents' Coworkers
Who Telecommute                                  Number   Chapter %
Respondents' Coworkers Who Telecommute             21       5.61%
Respondents Coworkers Who Do Not Telecommute      353      94.39%
Totals                                            374     100.00%

Number of Respondents' Coworkers
Who Telecommute                                  Number   Chapter %
Respondents' Coworkers Who Telecommute             22       5.29%
Respondents Coworkers Who Do Not Telecommute      394      94.71%
Totals                                            416     100.00%

Number of Respondents' Coworkers
Who Telecommute                                  Number    Total %
Respondents' Coworkers Who Telecommute             43       5.44%
Respondents Coworkers Who Do Not Telecommute      747      94.56%
Totals                                            790     100.00%

Number of Respondents AND
Coworkers Who Telecommute                        Number   Chapter %
Respondents AND Coworkers Who Telecommute          25       5.84%
Respondents AND Coworkers Who
Do Not Telecommute                                403      94.16%
Totals                                            428     100.00%

Number of Respondents AND
Coworkers Who Telecommute                        Number   Chapter %
Respondents AND Coworkers Who Telecommute          23       4.90%
Respondents AND Coworkers Who
Do Not Telecommute                                446      95.10%
Totals                                            469     100.00%

Number of Respondents AND
Coworkers Who Telecommute                        Number    Total %
Respondents AND Coworkers Who Telecommute          48       5.35%
Respondents AND Coworkers Who
Do Not Telecommute                                849      94.65%
Totals                                            897     100.00%

General Observations About Those Who Telecommute

Age Range           With only 5 respondents who are telecommuters,
                    there are not enough telecommuters to make a
                    meaningful correlation between age range and
                    those who telecommute.

Gender              With only 5 respondents who are telecommuters,
                    there are not enough telecommuters to make a
                    meaningful correlation between gender and those
                    who telecommute.

Computer Usage      All telecommuters use a computer at home and use
                    the internet.

Commute Time        Seems to have no bearing on the incidence of
                    telecommuting.

Telecommuters Who
Supervise Others    23 of 48 or 48%.

Company Type        There is no strong correlation between high tech
                    employers and telecommuting.

Formal              50% of telecommuters telecommuted by special
Telecommuter        arrangement while the other 50% telecommuted
Policy              under their company's formal telecommuter
                    policy.

Telecommute
Location            All telecommuters telecommuted from home.

Typical Number of
Days Per Week
People
Tele-commuted       One day per week except for rare exceptions.

Productivity        100% of telecommuters reported that their
                    productivity increased when telecommuting.

Rankings of Tax Department Tasks Suitable For Telecommuting

(Average Score for Both Chapters Combined From Most Suitable
to Least Suitable)

                                         San Francisco   Santa Clara
Description of Task                          Chapter       Chapter
Technical Reading/Continuing Education        4.33          4.54
Writing Letters/Memos/Emails                  4.28          4.38
Preparation For Meetings and
 Presentations                                3.56          3.65
Administrative Tasks Such As Budget
 Work, Personnel Work, Resource
 Planning, etc.                               3.59          3.60
Tax Research                                  3.93          3.28
Tax Advice                                    2.78          2.97
Tax Compliance                                2.19          1.97
Networking and Gaining Exposure               1.44          1.71
Participating in Work Teams                   1.52          1.56
Participating in Meetings                     1.57          1.43
Managing People                               1.46          1.50
Understanding and Learning About the
 Company's Operations                         1.43          1.51

                                         Total of Both
Description of Task                         Chapters
Technical Reading/Continuing Education        4.45
Writing Letters/Memos/Emails                  4.34
Preparation For Meetings and
 Presentations                                3.61
Administrative Tasks Such As Budget
 Work, Personnel Work, Resource
 Planning, etc.                               3.60
Tax Research                                  3.57
Tax Advice                                    2.89
Tax Compliance                                2.07
Networking and Gaining Exposure               1.59
Participating in Work Teams                   1.54
Participating in Meetings                     1.49
Managing People                               1.48
Understanding and Learning About the
 Company's Operations                         1.48

NOTE: A number of respondents commented that handling
audits is a task that is not well suited to telecommuting.
Also, tax accounting was mentioned as a task not well
suited to telecommuting.

Rankings of Benefits Derived From Telecommuting

(Average Score For Both Chapters Ranked From Most Important
Respondents to Least Respondents)

                                        San Francisco   Santa Clara
Benefits Derived From Telecommuting        Chapter         Chapter
Telecommuting Reduces Traffic
 Congestion                                  3.74            4.06
Telecommuting Helps Employees
 Balance Family and Career                   3.91            3.69
Telecommuting Reduces Smog and
 Pollution                                   3.46            3.75
Telecommuting Increases Productivity         3.02            3.62
Telecommuting Helps Employers Attract &
 Retain Good People                          3.33            3.29
Telecommuting Reduces Commute Time
 Thereby Increasing Time Spent
 on the Job                                  3.22            3.29
Telecommuting Decreases Real Estate and
 Equipment Costs                             2.63            2.34

                                          Total of Both
Benefits Derived From Telecommuting          Chapters
Telecommuting Reduces Traffic
 Congestion                                  3.92
Telecommuting Helps Employees
 Balance Family and Career                   3.79
Telecommuting Reduces Smog and
 Pollution                                   3.62
Telecommuting Increases Productivity         3.35
Telecommuting Helps Employers Attract &
 Retain Good People                          3.31
Telecommuting Reduces Commute Time
 Thereby Increasing Time Spent
 on the Job                                  3.26
Telecommuting Decreases Real Estate and
Equipment Costs                              2.47

Rankings of Barriers to Telecommuting

(Average Score For Both Chapters Ranked From Most Important
Respondents to Least Respondents)

                                     San Francisco   Santa Clara
Barriers to Telecommuting               Chapter        Chapter
Telecommuters Have Difficulties
 Accessing Supplies and Information      3.63            3.73
Telecommuters Have Difficulties
 Participating in Work Teams             3.50            3.72
Telecommuting Inhibits Teamwork
 and Team Building                       3.65            3.57
Telecommuters Have Difficulties
 Supervising People                      3.43            3.60
There Is a Loss of Management
 Control When People Telecommute         3.48            3.12
Telecommuters Encounter Too Many
 Personal Distractions When Working
 Out of the Office                       3.20            3.24
Telecommuting Programs Cannot Be
 Administered Equitably Among All
 Employees                               3.22            3.01
Telecommuting Causes Resentment
 Among Coworkers Who Do Not
 Telecommute                             3.17            2.88
Tax Work Requires Too Much Face to
 Face Contact For Telecommuting to
 be Effective                            2.76            2.99
Telecommuting Causes More Work to
 Fall to Coworkers Who Do Not
 Telecommute                             3.11            2.59
Data Security is Compromised When
 Data is Electronically Transferred
 or Files Leave Office                   2.70            2.53
Costs of Equipping Offsite Offices
 Is Too High                             2.39            2.24
Telecommuting Causes Additional
 Workers Compensation Concerns           2.13            2.03

                                     Total of Both
Barriers to Telecommuting               Chapters
Telecommuters Have Difficulties
 Accessing Supplies and Information      3.69
Telecommuters Have Difficulties
 Participating in Work Teams             3.62
Telecommuting Inhibits Teamwork
 and Team Building                       3.61
Telecommuters Have Difficulties
 Supervising People                      3.52
There Is a Loss of Management
 Control When People Telecommute         3.28
Telecommuters Encounter Too Many
 Personal Distractions When Working
 Out of the Office                       3.22
Telecommuting Programs Cannot Be
 Administered Equitably Among All
 Employees                               3.11
Telecommuting Causes Resentment
 Among Coworkers Who Do Not
 Telecommute                             3.01
Tax Work Requires Too Much Face to
 Face Contact For Telecommuting to
 be Effective                            2.89
Telecommuting Causes More Work to
 Fall to Coworkers Who Do Not
 Telecommute                             2.82
Data Security is Compromised When
 Data is Electronically Transferred
 or Files Leave Office                   2.61
Costs of Equipping Offsite Offices
 Is Too High                             2.30
Telecommuting Causes Additional
 Workers Compensation Concerns           2.07

Suitability of Tax Department Positions for Telecommuting

(Average Scores For Both Chapters Ranked From Most
Suitable to Least Suitable)

                         San Francisco   Santa Clara   Total of Both
Positions                   Chapter        Chapter        Chapters
Middle Manager Not
 Supervising Others           3.67           3.74           3.70
Staff Person                  3.15           3.18           3.16
Project Team
 Participant                  2.74           2.74           2.74
Middle Manager
 Who Supervises Others        2.39           2.44           2.42
Project Leader                2.31           2.34           2.33
Department Head               2.13           2.26           2.20
Secretary                     1.33           1.28           1.30

Data on Number of Days Per Week That One May Telecommute
Without Hindering Department Objectives

                     San Francisco Chapter

Number of Days       Number      Chapter %
None                   3            5%
One                   23           43%
Two                   25           46%
Three                  1            2%
Four                   2            4%
Five                   0            0%
Totals                54          100%
Average Days           1.56         1.44

                     Santa Clara Chapter

Number of Days       Number      Chapter %
None                   7           10%
One                   29           43%
Two                   29           43%
Three                  2            3%
Four                   0            0%
Five                   1            1%
Totals                68          100%
Average Days           1.49         1.56

                    Total

Number of Days      Number        Total %
None                  10            8%
One                   52           43%
Two                   54           44%
Three                  3            2%
Four                   2            2%
Five                   1            0%
Totals               122          100%
Average Days           1.44         1.49

Expected Effect on Productivity When Telecommuting

                                    San Francisco Chapter

Effect on Productivity When
Telecommuting 1 Day Per Week          Number    Chapter %
Productivity Would Increase             22         41%
Productivity Would Stay the Same        20         37%
Productivity Would Decrease             12         22%
Check Totals                            54        100%

                                     Santa Clara Chapter

Effect on Productivity When
Telecommuting 1 Day Per Week          Number    Chapter %
Productivity Would Increase             25         37%
Productivity Would Stay the Same        29         43%
Productivity Would Decrease             14         20%
Check Totals                            68        100%

                                      Total

Effect on Productivity When
Telecommuting 1 Day Per Week          Number      Total
Productivity Would Increase             47         39%
Productivity Would Stay the Same        49         40%
Productivity Would Decrease             26         21%
Check Totals                           122        100%

                                    San Francisco Chapter

Effect on Productivity When
Telecommuting 2 Days Per Week         Number    Chapter %
Productivity Would Increase             13         24%
Productivity Would Stay the Same        16         30%
Productivity Would Decrease             25         46%
Check Totals                            54        100%

Santa Clara Chapter

Effect on Productivity When
Telecommuting 2 Days Per Week         Number    Chapter %
Productivity Would Increase             12         17%
Productivity Would Stay the Same        25         37%
Productivity Would Decrease             31         46%
Check Totals                            68        100%

                                      Total

Effect on Productivity When
Telecommuting 2 Days Per Week         Number    Total %
Productivity Would Increase             25        20%
Productivity Would Stay the Same        41        34%
Productivity Would Decrease             56        46%
Check Totals                           122       100%

Opinions on Future Increases in Telecommuting Reported
For Various Demographical Groups

(Respondents Who Believe Telecommuting Will Become More
Commonplace Tax Department

By Chapter
Yes
No
Check Totals

By Gender
Yes
No
Check Totals

By Age Group   40 And Under   41-50
Yes                 92%         74%
No                   8%         26%
Check Totals       100%        100%

By Those Who
 Use Computers
 At Home
Yes
No
Check Totals

                  San Francisco    Santa Clara     Total of Both
By Chapter           Chapter         Chapter          Chapters
Yes                    87%             79%              83%
No                     13%             21%              17%
Check Totals          100%            100%             100%

By Gender             Female          Male          Both Genders
Yes                    84%             82%              83%
No                     16%             18%              17%
Check Totals          100%            100%             100%

By Age Group          51-60         Over 60           All Ages
Yes                    90%            100%              83%
No                     10%              0%              17%
Check Totals          100%            100%             100%

                  Uses Computer     Doesn't Use         All
By Those Who         At Home      Computer At Home   Respondents
 Use Computers
 At Home
Yes                    84%             80%              83%
No                     16%             20%              17%
Check Totals          100%            100%             100%

(1) This information, which is widely cited in telecommuting literature, is reported by LINK, a New York-based research company. LINK is noted for its "National Work at Home Survey."

(2) The survey results are reprinted in Appendix A.

(3) Lisa Shaw, Telecommute! Go to Work without Leaving Home 15 (John Wiley & Sons, Inc., 1996).

(4) Gil Gordon, Frequently Asked Questions (FAQs) On Telecommuting/Telework and Alternative Officing 3 (http://www.gilgordon.com) (hereinafter cited as "Frequently Asked Questions").

(5) Smart Valley, Inc., Smart Valley Telecommuting Guide (http:// www.svi.org/projects/tcommute).

(6) Frequently Asked Questions 6.

Other Sources

Bay Area Telecommuting Assistance Project (Association of Bay Area Governments), Telecommuting Increases Productivity.

Bernie Kelly, & Bruce McGraw, Successful Management in the Virtual Office (May 10, 1995) (http://allison.clark.net/pub/kmcgraw/guide/ telgd.htm.)

Gail Morrissey, Telecommuting: When Home Is The Office, The Rotarian (Jan. 1997).

Telecommute America, Employees Feel Far More Productive In Home Office & Execs Believe Telecommuting Benefits Employers (Oct. 23, 1995).

David Tong, Gridlock-Weary Workers Turn To Telecommuting, The Daily Review (Jan. 30, 1997).

DAVID L. GREEN is Director, Tax Planning and Reporting for APL Limited. He is a member of TEI's San Francisco Chapter and serves as chair of the chapter's Corporate Tax Management Committee. For approximately one year, Mr. Green telecommuted once a week.