Making Telecommuting Work

'Teleworking' can lower overhead, raise productivity, and make employees happy. Here's how to put the home office in business

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By Amy Barrett

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Kathy Durfee, founder and CEO of nine-person TechHouse, a Bradenton (Fla.) consulting company, admits that her management style was shaped by stints at big companies such as PepsiCo (PEP) and Accenture (ACN). "I had it in my mind that an office should be very structured," she says. That meant no jeans in the office, fixed work schedules, and no telecommuting. Four years ago, when several of her employees asked if they could work from home occasionally, Durfee said no. "I didn't think we could function," she says. "I was worried things would be dropped."

But in 2005, a star employee went out on short-term disability. The only way he could stay with TechHouse was to work from home part-time. The arrangement was a bust, and he left. "The fact it didn't work with him set off alarm bells," Durfee says. "I don't want to be in a position where I can't keep a good employee." Durfee realized she needed to make telecommuting work. She has since hired two consultants who work from Orlando and Clear- water. Three of the Bradenton staff telecommute, including the chief technology officer. Durfee now thinks her early misfire with telecommuting was due in part to poor communication, so she holds mandatory office meetings and enforces protocols about when employees should use telephone, e-mail, or instant messaging to contact one another.

Telecommuting, or "teleworking" in consultantspeak, is growing among small businesses. "We are seeing more small companies than ever before embrace this," says Mike Williams, director of programs and employer services at the Atlanta-based nonprofit Clean Air Campaign, which helps companies set up telecommuting programs. The number of people working away from the office at least once a month has been growing at about 10% annually for several years, hitting 35 million this year, according to WorldatWork, an association for human resource professionals. About 12% of employees at companies with 21 to 100 people sometimes work remotely, according to a 2008 survey by technology company CDW.

It's easy to see why telecommuting is gaining traction. A 2008 study from staffing firm Robert Half International, though it queried only accountants, found that telecommuting and flexible schedules were the third most important incentives when attracting new hires, behind salary and benefits but ahead of signing bonuses and extra vacation days. Telecommuting can also cut overhead and provide some relief to workers struggling with commuting costs. And David Harrison, a professor of management at Pennsylvania State University's Smeal College of Business, examined 46 studies on telecommuting and found a small increase in productivity among telecommuters.

Whether you've got one employee who wants to work from home or you'd like to get several out of the office to save on real estate, first draw up a telecommuting policy. Otherwise, those who are office-bound may suspect favoritism or discrimination. You'll need to figure out what technology the staff will need, and maybe think about new ways to measure productivity. As Durfee found, it's important to build safeguards so that communication doesn't suffer.

ESTABLISH GUIDELINES

Your policy should state which jobs can be done remotely and how often. Jobs that don't require face time, or that involve longer periods of concentration, are good candidates. Even managers may have duties, such as writing reports, that ideally are completed in splendid isolation.

It's not just the job that determines who can telecommute. Someone who needs lots of direction or prodding may not be a good candidate. And employees should spend enough time in the office to learn the ropes before they're on their own. To head off resentment among those who need to stay on site, you might offer a benefit such as a subsidy for public transportation.

You should also spell out what sort of home office employees need and who will pay for the requisite technology.