The recession may provide an extra stimulus for more companies to allow their employees to work from home. Many U.S. companies are realizing significant cost savings from teleworking.

Teleworking will spread quickly in 2009 because of demand from workers and because "when times are tough, there's more willingness to take on change in an organization," predicts Kathy Durfee, the CEO of TechHouse, an information technology firm where most of the employees telecommute.

As the principal of her consulting firm called ePlanning, Elham Shirazi helps businesses develop teleworking programs. "Teleworking has been growing every year. I don't think 2009 is going to be any different. We have continuously seen 20% growth" in the total number of teleworkers in the country, she says.

About 21% of employers currently allow teleworking on a full-time basis, and 35% allow it on a part-time basis, according to the Society for Human Resource Management.

Permitting workers to telecommute can save companies a lot of money through:

• Lower rent on office space.
• Reduced real estate costs.
• Lower utility bills.
• Higher productivity.
• Less employee turnover.
• Less absenteeism.
• Reduced cost of providing employee parking.

At the same time, it can save workers money by reducing their expenses for gas, parking, mass transit and dry cleaning.

Maria Henderson, founder of the consulting business HDM-Solutions, confirms, "All of our consultants work in home offices, and it's an amazing cost-savings. You don't have office space and additional insurance and additional utilities. Everybody gets the 10-second commute. Instead of spending an hour in the car getting to work and an hour back, those two hours can be spent working."

Durfee agrees: "Many employers are in some sort of cost-management or cost-cutting mode. Teleworking supports that in many ways," including a potential reduction in telecommunication expenses. Teleworking reduced her company's real estate expenses by two-thirds, she adds.

Shirazi estimates that teleworking, on average, increases productivity by 10% and decreases absenteeism by two to four days per employee per year. "If it's done well, it results in a culture of accountability," leading to an overall increase in productivity, Durfee explains.

Nortel, a Toronto-based technology company, saw a 15% increase in productivity from teleworkers, as well as an 11% increase in job satisfaction among teleworkers, compared to the overall workforce. It also achieved an annual real estate savings of $9,000 per full-time teleworker.

Likewise, the telecommunications firm AT&T estimates that it gets $150 million worth of increased productivity due to teleworking each year, according to a case study from the General Services Administration. It also estimates that it saves $30 million annually on facilities costs because teleworking eliminated the need for 5,000 cubicles.

To see how telework might benefit your company, use the cost-per-person model developed by the GSA, available online at www.gsa.gov, key term "cost per person model."

Telework done right

Of course, there are some potential costs to consider when starting a teleworking benefit. The actual cost varies for each company, depending on the number of employees, number of worksites, information technology needs and type of work.

Some companies may need to hire additional information technology staff to assist teleworkers, or they may need to pay for additional training for their current IT staff.

In addition, they may need to develop extra connectivity and secure networks to support teleworking. In some cases, companies need to purchase equipment for teleworkers, such as laptops, phones, BlackBerries or printers.

However, many companies are making these technological investments anyway, regardless of what's happening with teleworking, Shirazi notes. "If they're saving [office] space, then there's something to write it off against," she adds.

Before beginning a teleworking option, formalize the program and set rules. For example, Durfee says her staff is required to meet in person at least once per month.

Clearly communicate expectations about how and when employees will keep in touch via phone calls, e-mails and instant messaging, Durfee advises. That will prevent improper interruptions, misunderstandings and problems that result from lack of communication.

The rise of teleworking

Occasional teleworking is on the rise. The number of Americans who worked from home or remotely at least one day per month increased from 12.4 million in 2006 to 17.2 million in 2008, according to a new survey from WorldatWork, an HR trade organization. The rise in the number of telecommuters represents a two-year increase of 39%, and an increase of 74% since 2005. The main reasons for this increase include the proliferation of high-speed and wireless Internet access, rising fuel and commuting costs, and the trend by employers to embrace work-life balance concepts, WorldatWork reports.

The federal government, several states and county governments have created policies to mandate or encourage telecommuting. For example, Hennepin County in Minnesota used its telework policy to ease traffic and logistical difficulties for a large-scale event. Instead of shutting down the county government while the Republican National Convention took place in September 2008, the county relied on its telework policy to maintain a normal workload, according to a report from the Telework Exchange, a public-private partnership that promotes telework. Many employers view telecommuting benefits a tool to improve retention, especially among older workers and parents with young children.