The Virtual Workforce: Adapting Human Resource Policies

Changing Where and How Work Is Done – The Challenge to Human Resource Policies

and ProceduresBy Donna L. Zeller

May 2013

Driving Forces, Business Decision, and Project Goal

• The driving forces for the increase in virtual offices are:

– Reducing costs, increasing economical outcomes, the needs and preferences of workers

– Ecological efficiencies to be considered, as well

• A decision to have a virtual office workforce can affect many areas:– “human resource operations, organizational efficiencies, external

stakeholders, as well as the personal lives of employees.” (Verbeke, et al 2008 pp 20-34)

• This project will emphasize:

– Human resource operations, with a goal of developing an understanding of the impact on key areas, such as management, job descriptions, performance appraisal, communication, and access to training / information.

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Why is the issue significant?

• The increase of telecommuting and virtual offices is influencing many factors in the workplace, including human resource policies

– The number of Americans whose employer allows them to work remotely at least one day per month increased 63 percent, from 7.6 million in 2004 to 12.4 million in 2006.1

• Accordingly, companies are experiencing a change in how and where work is done, how people communicate and management procedures

– Human resource policies and procedures may not have been revised to address the change

– The lapse has created financial, workforce and management issues

– Though not a primary objective of the research, the mismatch can also result in litigation

1 Source: The Telework Advisory Group for World at Work - www.workingfromanywhere.org

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Who is using virtual offices?

Based on information provided by CNN Money, “100 Best Companies to Work For”, of the 82 Best Companies that allow employees to telecommute or work at home at least 20% of the time; the following 5 companies have the highest percentage of telecommuters. (Retrieved from http://money.cnn.com/magazines/fortune/bestcompanies/2011/benefits/telecommuting.html)

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Workforce Demographics

The following chart from the June, 2011 report, titled The State of Telework in the U.S., displays the results of the research for the virtual office ‘work at

home’ workforce for years 2005-2009. Note that the 5 year growth is a substantial 61%. (Lister & Harnish 2011 p 8)

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Research Objectives

• Developing the Plan with an Action Research Approach

– As opposed to providing the typical theoretical solutions, an action research approach will be used to facilitate the development of realistic, practical applications.

– One of the benefits of the action research approach is that it relies on reflective conversation regarding everyday experiences that, in turn, encourages the development of new ideas.

• Methods for analysis: quantitative data, qualitative interviews with stakeholders, i.e. virtual office workers, business owners and managers; and literature reviews.

• Tangible results include revised policies and procedures that will align business and human resource strategies and operations; thereby, providing guidelines for the transition to virtual office work.

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Action Research: Plan Development

• Review management and virtual office workforce requirements.

• Research options for adapting human resource policies, created for traditional workplaces, to meet the requirements of the virtual office.

• After validating reasons for revisions, proceed to identify specific policies and procedures that do not meet the needs of the virtual office workforce and management thereof.

• Incorporate changes into existing policies or create new policies, as needed.

• Create timeline for implementation and training to encourage the actual practice of the new or revised policies and procedures.

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Alternative Solutions

• Alternative #1: Recommend traditional office experience, followed by a pilot program with a progressive transition to virtual office work. Build policies and procedures during the pilot program.

• Alternative #2: Combination of traditional office and virtual office work, with workers on a rotating schedule. Revise existing policies to accommodate the rotating schedule.

• Alternative #3: Telework centers and/or collaborative software. Revise existing policies. Establish requirements to include both the traditional and virtual office workers to attend collaborative meetings on a scheduled basis.

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Decision MatrixWeighting Alternative Solutions with Human Resource Requirements

The three alternative solutions that enhance and encourage communication – Collaborative Online Meeting Requirements, Part-time Virtual Office and Part-time Traditional Office Work, and Optional Use of Local Telework Centers – also have the highest

ranking.

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Proposed Recommended Solutions

• Proposed Recommended Solutions

– Revise human resource strategic and operational policies and procedures, i.e. job analysis and descriptions, communication procedures, training and performance appraisals.

– Preferably, launch the policies as part of a pilot program, whereby mismatches in the planning, policy revisions and actual virtual work environment might be discovered before company-wide implementation.

– In situations where virtual work is not to be offered, then explicitly state that rule in policies. Make sure that all managers are aware of the restrictions.

– Ultimately, regardless of the decision, the policy needs to be applied in a uniform and consistent manner.

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Examples of Workforce Benefits and Costs

• Workforce Benefits– Work / Life Balance:

• The savings in transportation and work-related costs range from “$1,800 to $6,800”.

• Reduced commuting time translates to a gain of the equivalent of “2-3 weeks of vacation time per year.” (Montero citing Lister 2009 p 5)

• The flexible hours gives the employee an opportunity to attend to personal needs – without taking vacation time or sick days; therefore, virtual office “employee absenteeism is decreased by 60%.” (p 4)

• Workforce Costs– Not being able to ‘disconnect’ from their jobs

– Relative costs to careers due to missed communication and being overlooked for special assignments or promotions

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Examples of Business Benefits and Costs

• Business Benefits– Decrease in the real estate portfolio can ease some of the company’s financial

burdens

– Increased workforce retention

– Recruitment is not affected by the applicant’s willingness to relocate

• Business Costs– Litigation where the virtual office policy is either not equitably enforced,

poorly planned, or not planned at all. Moreover, without official recognition of the virtual office policy, the tax assessment might be incorrect.

– Technology related costs in setting up the virtual offices can be an issue; particularly when a needs analysis is not completed.

– Current headlines from Yahoo! indicate that they are revoking the option to work virtually. This could result in an increased turnover rate as some virtual office employees may not be able to relocate to the home office location.

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Environmental Benefits

• Socially Responsible Corporate Practices

– “The largest ecological footprint, especially the carbon footprint, for many organizations derives from workers commuting to work.”

– The Environmental Protection Agency (EPA) officially lists worker commutes “as a scope 3 greenhouse gas emission.” (See e.g. Greenhouse Gas Protocol )

– Planning should include a partnership with the finance department to discover tax benefits for the company

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Implementation Plan

• There are many job-related issues, corporate goals and laws to consider; thus, the development of the revisions and the implementation schedules should be unique per company and location.

• After completing review of requirements and options, make decision whether to offer virtual work as an option. If yes, then revise policies.

• Begin pilot launch phase. Revise as necessary, then implement full launch.

• Provide for continual alignment of the virtual office requirements and with strategic business objectives. Recognize that as the initiative evolves, corporate strategies and objectives may change, as well.

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Conclusions

• Taking into consideration the adverse results of informal practices, human resource managers, as strategic and operational partners of the business, need to assess the situation and develop an action plan to decide whether or not to implement virtual office work.

• In cases where virtual office work is already in place without the benefit of policies and procedures, human resources should intervene with valid issues sustaining the need for explicit guidelines.

• Significantly, the action research approach allowed for the exchange of dialog among multiple stakeholders; thereby, encouraging the development of a feasible, sustainable approach to the issue.

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Recommended Resources

• Books– Growing the Virtual Workplace, Verbeke, A., Schultz, R., Greidanus, N., & Hambley, L.

(2008) Northampton, MA: Edward Elgar Publishing Inc., reviews the impact, tracking, implementation and adoption of virtual work from the perspectives of employees, organizations and society.

– Implementing and Managing Telework Fenson, B. & Hill, S. (2003) Westport, CT: Praeger Publishers, explores virtual work from many viewpoints; including human resources, organizational requirements, and security issues.

• Web Sites– YouCanWorkFromAnywhere.com, founder Phil Montero. Several of their reports and e-mail

updates were used as guidelines for this research, including Work Unchained: Workshifting and the Competitive Edge of The Anywhere Office.

• Online News Articles– Jenkins, M. (2013) Simplify Your Life: Telecommuting Isn’t Just For Parents Retrieved

From http://www.cnn.com/2013/03/13/living/simplify-your-life-telecommuting/index.html?hpt=hp_c3

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