Over the past several years the telework or telecommute options have increased in popularity. As technology continues to be enhanced and baby boomers start to leave the work place the new age of workers are trying to have a more balanced life. The balance or flexibility to get you job completed and take care of the family is an increasing dilemma for employers trying to attract the best qualified employees. According to study conducted by Robert Half, 46% of 1,400 CFO’s indicated that telecommuting was second to salary when attracting new talent (CITE WORK, TELEWORK FACTS).
This report discusses the option of telework/telecommutes as a viable option for Newco. More specifically how many departments, if any, could be transitioned to a telework environment? Will this option fit into the business model works from? These and many others are important to be asked and I believe that Newco does have department(s) that can be transitioned and this option fits into Newco’s business model.
My recommendation is to transition the Home Retention Consulting department to a telework environment. This recommendation will include supporting details for lower costs, open recruitment to a larger geographical area and increase employee flexibility and retention.
In today’s competitive economy, it is important to reduce cost and streamline processes to be the most efficient and proficient company possible. A study performed by Cisco in 2009 states telecommuting saves an estimated $277 million in annual savings due to increased productivity (CITE WORK). While Newco is not at the same business size of Cisco Newco has the ability to lower costs which will have an immediate impact on profitability. My recommendation to move the Home Retention Consultants (HRC) department into a teleworking structure will lower costs by reducing the amount of fixed asset investments required for the current operations and Newco’s growth rate forecast. These assets include physical building costs including utilities, insurance and maintenance. Newco’s current building size is approximately 50,000 square feet and the HRC department occupies 40%. By moving HRC to this plan, Newco can merge another facility into the main facility and reduce rental costs $150,000 annually. An additional parking lot will not be needed; saving on the costs of lease, insurance and security.
There will be a reduction of office furniture, fixtures, break room fixtures and many other “in office” employee costs. There is no consideration of reduced cost in the IT department because support will still need to be delivered to each individual remotely. Also, computer terminals and software costs remains the same since Newco will be providing the hardware to the teleworking associates. Newco will be allocating a budget for DSL and phone lines through a nationwide plan that will keep the cost of services at a minimum.
Manager’s time will be used more wisely and...