News & Events

Making the case for a telecommuting option

June 11, 2010

More companies than ever are allowing employees to telecommute — both to save on office costs and to tap into a wider hiring pool. This practice is no longer new and many lessons have been learned. Yet, for a variety of reasons, some employers are still hesitant to allow employees to telecommute.

If you’re considering offering a telecommuting option to some or all of your employees, you may need to sell the idea to your business partners or managers. Or perhaps you’re hesitant yourself and need some convincing. In either case, here are some points for making the case to join this increasingly popular employment arrangement.

Cost savings

First things first: the money. Where do the cost savings lie in telecommuting arrangements? For starters, when timed correctly, offering a significant segment of your workforce the option to telecommute can cut overhead expenses — in some cases, dramatically.

For example, if your office lease will soon be up, by allowing part of your staff to telecommute you may be able to move to a considerably smaller space. After all, you won’t need private offices or cubicles for these employees. You might save on parking, office equipment and supplies as well.

You could also boost productivity and lower operating costs. How? A telecommuting arrangement challenges a supervisor to focus on objectives and results and often bypasses or curtails “how to” disagreements and personality conflicts. Thus, you may be able to get better results from workers who prefer to work independently.

Another source of savings could lie in lower hiring and retention costs. For good reason, environmentally friendly business policies are all the rage. Getting the word out that telecommuting is an option could bring you top-tier job candidates who are looking to diminish their carbon footprints. In addition, you may avoid hiring costs altogether by retaining key employees with similar values.

Prime positions

You may need to build a case for why certain positions are better suited to telecommuting than others. Salespeople, nonsupport IT staff (such as Web designers), and editors and proofreaders are all typically good candidates for telecommuting arrangements. Your rationale for a telecommuting option should include the projected budgetary savings you’re shooting for.

You also may have to invest in some technology upgrades and spend a little more time ensuring that your company’s sensitive data won’t be threatened by outside workers logging in to your network. Fortunately, with personal computers and home Internet access so pervasive, it’s likely never been easier for workers to telecommute than it is right now.

*The risks

Naturally, there are cost risks to telecommuting as well. Even though a boost in productivity is a possible eventual benefit, you may have to suffer through a temporary productivity setback while your workforce adjusts to the new wrinkles that telecommuting would present.

Also beware of an “us” against “them” mentality developing between in-office workers and telecommuters. To prevent this, include telecommuting staffers in companywide e-mail announcements and invite them to meetings or events held at (or outside) the office — even if you think they won’t be able to attend. Just because they work from home doesn’t mean these workers shouldn’t be a part of the office environment.

The tax implications of an employee working out of state represent another, often little-discussed risk. Many states need money and may impose state income tax on the earnings of out-of-state telecommuters because those workers are earning compensation in state. Also be aware that states may assess employment taxes, as well as business income taxes, on employers.

Ongoing debate

There probably will always be an ongoing debate about telecommuting. And neither side will likely ever be completely wrong or right. Some companies — manufacturers, for instance — may have few if any employees who can work from home. But as the technology involved becomes more pervasive and less expensive, the telecommuting option is one every company should at least consider for certain positions.

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