Executive Summary

The Office of State Personnel, with the support of funding provided by The Division of Air Quality in the Department of Environment and Natural Resources, and The Division of Energy in the Department of Commerce, conducted a telework pilot program from March 1999 through February 2000.  The State of North Carolina Pilot Teleworking Program was a one-year study that explored policies and implementation procedures necessary for a successful telework program.

The goals of the pilot were to:

· Develop, test and verify policies and procedures that could support a successful statewide teleworking program.
· Validate benefits from telework as suggested by the State Auditor’s report.
· Identify problems and issues that could inhibit a successful telework program.

Recommendation:

· The State should proceed with implementing a statewide teleworking program.

The State can realize energy savings and reduction in building costs if it considers teleworking in its construction planning and office rental processes.  Existing Information Technology Systems should be reviewed to determine if they could be redesigned to enable teleworking.  When designing new computer applications and security systems, the state should consider teleworking to enable as much of the work to be done off site.

· 4.5 years of employment with the State.
· 44% males and 56% Females.
· 42 years average age of a teleworker in the pilot.
· 85% - White, 7% - African American, 3% - Asian, 2% - Hispanics, 3% - Other
· 87% - Bachelors Degree or above, 8% - Associates Degree, and  5% - High School Diploma.
· 26% had children under 6 years old in the home.
· 93%  reported being more productive when working away from the office.
· 90% reported that their family is supportive of teleworking.
· 25 miles one way is the average commute.
· 94% reported that the commute to work is stressful.

·  5 Agencies
· 64 Participants
· 14 Job types

1. Secure senior level buy-in.
2. Self-orientation package is needed.
3. Web development requires time, expertise and infrastructure.
4. Brochures required for marketing and communication.
5. State Policy should be revisited to eliminate overlap with department policies.
6. Human Resources function should review teleworking agreement.
7. Coordinators should be trained and a standing coordinators’ committee formed.
8. Project selection should be at the department level.
9. Management selection should be at the department level.
10. Proper screening of employees identifies good telework candidates.
11. Performance management training needs emphasis on managing by results.
12. Training should be minimized and reinforced with focus groups.
13. Effective electronic communication training required.
14. Time management skills training required.
15. Information Technology support, coordination and funding needed to address issues of remote access, compatibility and end-user support.
16. State needs to be proactive in addressing safety and security issues.

· Environmental, Energy and Transportation

The following statistics are based on 1,000 teleworkers.

1. 5,000,000 miles per year vehicle trip reduction.
2. 70 tons of pollutant reduction to improve air quality.
3. 50 work-years of commuting reduces traffic congestion.
4. 200,000 gallons of fuel reduction promotes energy savings.

Much of our traffic and pollution problems go beyond the daily commute to work.  Therefore, the State needs an aggressive teleworking program to impact transportation.

· Fiscal

1. Productivity – 15% average increase reported by teleworker.

- 60% reported gains due to less distraction.
- 25% reported gains due to control of time.
- 15% reported gains due to reduced stress.

2. Retention - $20,000 per employee replacement cost avoidance.
3. Recruitment – 12 positions filled that would have otherwise remained vacant.

Employee productivity increased.  Teleworkers tend to be more productive because of less distraction and increased job satisfaction.  They were able to do more work in less time.

· Work and Family

1. Quality of Family Life

- 74% reported improvements due to time flexibility and free time.
- 14% reported improvements due to less stress from commuting.
- 11% reported improvements due to financial savings.

2. Job Satisfaction

100% of the teleworkers indicated that they were more satisfied with their jobs.

- 19% reported an increase due to being more productive.
- 19% reported an increase due to less stress from commuting.
- 29% reported an increase due to time flexibility.
- 29% reported an increase due to self-management.
- 4% other

In most cases, job satisfaction was the biggest benefit of teleworking.  The worst part of the workday for many employees is just getting to work. Commuting is costly and very stressful.  When stress is reduced, work is more enjoyable.  People tend to be more productive.  The pilot results confirmed a national poll that indicated the ability to balance work and family outranks any other factor including job security, quality of work environment, and relationships with co-workers and supervisors.

· Public perception of employees not working has to be addressed.
· Management resistance to change and managing by results and not sight.
· Infrastructure/technological support required.
· Statewide implementation requires additional staffing.
· Centralized teleworking resource/office needed.
· Performance goals and metrics required to measure progress.
· Funding and proper resources required for growth.
· Continuous training, development and support a necessity.

1. Policies – The state draft policy is adequate for implementation.
2. Staffing - State Teleworking Office staffed with Director, Human Resources professional, Information Technology consultant and trainer.
3. Managing for Results – A critical skill for successful telework.
4. Communications Skills – Training required in communications for successful teleworking.
5. Technology and Support – Common solutions to remote access requirements and support needed.
6. Change in Perception – Work is something we do, not someplace we go.
7. Funding – Teleworking will require initial outlays that can be recouped through space reductions.
8. Training – To support teleworking, a comprehensive set of training programs for coordinators, managers and teleworkers is required along with tools to measure readiness and performance.
9. Security – Legal and confidentiality guidelines must be established.

The pilot program was successful.  It established polices, assessed productivity, validated benefits and highlighted and/or made recommendations for resolving potential issues for a larger scale program.

Criteria 1: Can we create effective policies at the state level to support a successful telework program?

Yes.  Policies were developed at three operational levels, the State, the department, and the employee/teleworker.  During the course of the pilot we did not find any problems associated with the policies that would prevent the State from implementing a successful telework program.  It is advised that a concerted effort be made to have the department policies and telework agreements standardized.  In a limited pilot study we did not face any OSHA related concerns.  However, it is recommended that human resources and legal departments should look into potential issues such as candidate selection and denial, workers compensation and the American Disabilities Act with a view towards modifying the policies as needed.  In general, the telework community is also struggling with these issues.

Criteria 2: Can we measure productivity?

Yes.  Due to a limited pilot program, we could not conclusively nor totally objectively measure productivity improvements.  However, all participants, managers and teleworkers unanimously agreed that productivity on teleworking days was improved.  This reflects the results from other teleworking programs that indicated productivity increases of up to 25% for teleworkers.

The pilot study found no reason that productivity should decline if employees are properly screened and provided the required technical and training support. The top three reasons cited by the pilot participants for productivity increases were:

· Decrease of distractions as compared with an on-site office.
· Flexibility of scheduling work reduced stress and improved job satisfaction.
· The teleworkers were highly self-motivated, excellent performers.

Criteria 3: Can we quantify benefits and/or costs to the State?

Yes.  During the pilot program we did not uncover any problems that could not be resolved.  Significant benefits can be achieved in the areas of fiscal, environmental, energy, transportation, work and family.  Some benefits are easier to quantify than others are.  While we did not conduct a thorough cost-benefit analysis, it is clear that initial costs for implementation can be recovered if the State undertakes a plan to significantly consolidate space requirements and recover office costs.

Criteria 4: Can we identify issues and recommend solutions?

Yes.  All of the issues identified in the pilot have solutions.  The North Carolina Telework Pilot Program did not uncover any unusual issues that were not addressed in the pilot or other state telework programs.

Teleworking must be viewed as a business tool.  It can be used to reduce costs, increase productivity, recruit and retain employees and enhance the image of State government as a preferred employer.  Adequate staff must be assigned to implement the program.  If the State invests in teleworking a centralized team approach recommended by this report ensures success.