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Corporations large and small are redefining what it means to be a company. Embracing the motto that "work is something you do, not something you travel to," these companies are reducing costs in these challenging times -- as well as their physical footprint -- by becoming increasingly virtual.
At one extreme are companies such asMidwest Family Mutual Insurance Company, a small property-casualty carrier in Plymouth, Minnesota, that spent two years converting to a largely paperless environment and now employs a mostly home-based staff. It sold its 24,000-square-foot building to lease a much smaller space with a few common rooms and 24 "hoteling" cubicles for use as needed.
While this example is extreme, many companies are embracing the concept of remote workers. The cable television provider Cox Communications, for instance, has nearly 2,000 of its customer service staff work from home. And Aetna has a virtual service center staffed with about 500 at-home employees.
The terms to describe these tethered personnel include virtual workers, virtual employees, teleworkers, e-workers, telecommuters, e-commuters, and remote workers. Based on the nature of their job, these virtual personnel may work from their homes, on the road, from personal offices, or at jellies (collaborative work spaces, typically for programmers and writers).
Why Go Virtual?
We have found that companies are turning to virtual worker business models for several key reasons:
- Talent acquisition, morale, and retention: Work-at-home options can be attractive to talented, in-demand workers, which can reduce the turnover in jobs with higher burnout rates, such as contact center representatives.
- Access to labor: By eliminating or minimizing geographic requirements, companies can tap into a broader labor pool.
- Diversity: Telework can provide greater opportunities to employ the disabled.
- Real estate costs: With fewer employees to physically house, companies reduce their real estate needs and have regular telecommuters share common workstations when they come into the office for meetings and projects.
- Productivity: Employers who permit telework may experience lower absenteeism and higher productivity due to fewer interruptions.
- Disaster recovery: A dispersed workforce can help companies better recover from business interruptions caused by storms, fires, transit strikes, illness outbreaks (including employees who must stay home to care for sick family members), and similar challenges.
- Competitive advantage: Companies with telework plans in place can rebound quickly during business interruptions and benefit from the increased agility that a flexible workforce confers.
- Possible tax and financial incentives: Some local, state/regional, and federal governments offer tax breaks, grants, or other programs that encourage virtual workforces.
Why Workers Want To Go Virtual
Employees and prospective hires may find it beneficial to work virtually for your company for several reasons, including
- Cost savings: Workers typically save money on clothing, food, and transportation-related expenses.
- Focus: They can benefit from a quieter work area with fewer distractions.
- Productivity: Depending on the schedule requirements of their employer, they may be able to work during the times when they are most personally productive.
- Location: Workers can remain with your company when their spouses are transferred, or if they simply want to live beyond commuting range.
The benefits of virtual employment are making this business model increasingly popular. The companies who have successfully implemented virtual work have realized the pluses by minimizing the minuses. They have worked hard to identify the right people for virtual work, and adjusted their training and management approaches to optimize results.
About LIMRA and LOMA:
LIMRA and LOMA have been helping companies hire the best service and sales representatives for over 70 years. Our assessment and development professionals can help your center achieve its business objectives.
Published: Wednesday, August 5, 2009
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