Transportation Implications of Telecommuting
Table of Contents
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . i
List of Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . iv
List of Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . iv
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . v
Chapter 1 - Background
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 1
Purpose and Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 2
Historical Evolution of Telecommuting . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . 4
Telecommuting and Transportation . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 5
Telecommuting and the Public Sector . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .6
DRIVING FORCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 8
TELEWORK - A TELETAXONOMY . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .11
Telecommuting Frequency, Locations and Forms . . . . . . . . . . . . . . . .
. . . . . . . . . . 12
Full-time / Part-time . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 12
Home-Based . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . .. . . . . . . . . . . . . . . 13
Regional Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .. .. . . . . . 13
Satellite Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .. 14
Local Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 15
Neighborhood Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . .. . . . . . . 15
Jobs with Telecommuting Potential . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 15
Industry/Company Demographics . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . .17
SCOPE AND NATURE OF CURRENT TELECOMMUTING . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 20
Telecommuter Demographics . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 21
Telecommuting Arrangements . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .. . . 21
Physically Challenged . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . .. . . .. . . 22
OTHER RELATED TELESUBSTITUTION . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 22
TELECOMMUTING DEMONSTRATIONS . . . . . . . . . . . . . . . . . . . . . . . .
. . . ..26
Examples of Existing Programs . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 26
Implementation / Practical Telecommuting . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .. . 27
Chapter 2 - Factors Affecting the Future Degree and Impacts of
Telecommuting
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 29
PERSPECTIVES ON TELECOMMUTING . . . . . . . . . . . . . . . . . . . . . . .
. . . . . .. 30
EMPLOYER BENEFITS AND CONCERNS . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 32
Potential Employer Benefits . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . ... . . . . . 32
Employer Concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . .. . . . . . . . 36
Organization-level Institutional Barriers . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 36
Management Attitudinal Issues . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .. 37
Remote Supervision and Management . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . .. . .. 37
Potential Employer Disadvantages . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 38
EMPLOYEE BENEFITS AND CONCERNS . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 40
Potential Employee Benefits . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 40
Employee Concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 41
Isolation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 41
Career Advancement . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 42
Performance Appraisals . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 42
Support Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 42
Job Satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 42
Overworking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 43
Work Style . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 43
Work/Life Boundaries . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 44
POLICIES OF GOVERNMENT AGENCIES . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 44
TECHNOLOGY AVAILABILITY . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 44
REGULATORY, LEGAL, TAX, AND OTHER INSTITUTIONAL ENVIRONMENT . . . . . . . .
. . . . . . . . . . . . . . . . 47
Legal and Regulatory Issues . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 47
Zoning Restrictions and Planning Regulations . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 47
Tax Implications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 48
Liability/Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 48
Health and Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 49
Protection of Workers' Rights / Union Opposition . . . . . . . . . . . . . .
. . . . . . . . . . . . 49
Regulation / Banning of Homework . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 49
Contractual Relationships / Compensation and Benefits Issues . . . . . . . .
. . . . . . . . . . . . 50
SUMMARY OF RELEVANT FACTORS . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 52
BASELINE ESTIMATES OF POTENTIAL TELECOMMUTERS . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 53
Current and Potential Numbers of Telecommuters . . . . . . . . . . . . . . .
. . . . . . . . . . . . 53
Population/Labor Force . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 53
Information Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 53
Rate of Adoption of Telecommuting . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 55
Potential Number of Telecommuters . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 56
Allocation of Telecommuters Over Various Forms of Telecommuting . . . . . .
. . . . . . . . . . . . . 60
Telecommuting Frequency . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 61
Chapter 3 - Potential Transportation-related Impacts of Telecommuting
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 63
Changes in Travel Behavior . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 63
Impacts on Location . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 65
Changes in Modal Choice . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 66
Congestion Mitigation and Latent Travel Demand . . . . . . . . . . . . . . .
. . . . . . . . . . . . 67
Specific Assumptions and Limitations in the Analysis . . . . . . . . . . . .
. . . . . . . . . . . . 69
NET TRANSPORTATION IMPACTS OF TELECOMMUTING . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 70
Summary of VMT and Trip Reductions . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 70
Interactions With Other Demand Management Strategies . . . . . . . . . . . .
. . . . . . . . . . . . 72
ENERGY USE IMPACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 73
AIR QUALITY IMPACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 75
SAFETY IMPLICATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 81
TIME SAVINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 83
OTHER EFFECTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 84
Health Care Effects . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 84
Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 85
Rural Area Development . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 85
Telecommuting/Urban Sprawl . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 86
Job Creation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 87
Chapter 4 - Conclusions . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 89
Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 97
Appendix A - Telecommuting Technologies and Services . . . . . . . . . . . .
. . . . . . . . . . . . . . . . A-1
Appendix B - Details of Analysis . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . B-1
Appendix C - Profiles of Major Demonstration Projects . . . . . . . . . . .
. . . . . . . . . . . . . . . . .C-1
Appendix D - Bibliography . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . .D-1
Appendix E - DOT Telecommuting Workshop Participants . . . . . . . . . . . .
. . . . . . . . . . . . . . . . E-1
Acknowledgements
List of Figures
Figure 1. Work-At-Home Trend . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 1
Figure 2. Telecommuting Frequency . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 12
Figure 3. Telecommuters By Occupation . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 16
Figure 4. Telecommuting Industries . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 17
Figure 5. Size of Employer . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 18
Figure 6. Businesses Using Telecommuting . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 18
Figure 7. Technologies Used . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 20
Figure 8. Telecommuter By Gender . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 21
Figure 9. Telecommuter Income . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 21
Figure 10. Telecommuting Universe . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 53
Figure 11. Information Sector . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 54
Figure 12. Nilles 1991 Telecommuting Forecast . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 59
Figure 13. Telecommuting Forecast . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 60
Figure 14. VMT by Trip Purpose . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 71
Figure 15. Annual Vehicle Miles Saved . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 72
Figure 16. Highway Vehicle Percent of U.S. Energy Use . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 73
Figure 17. U.S. Sources of Air Pollution . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 77
Figure 18. Distribution of Hydrocarbon Emissions by Trip Phase . . . . . .
. . . . . . . . . . . . . . . . . 80
Figure 19. Relationship of Emission Rate to Speed . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 81
Figure 20. Traffic Deaths / Death Rates . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 82
List of Tables
Table 1. Information Worker Jobs . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 16
Table 2. Formal / Informal Telecommuting . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 19
Table 3. Perspectives of Telecommuting . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 31
Table 4. Possible Factors Contributing to Increased Productivity . . . . .
. . . . . . . . . . . . . . . . . 34
Table 5. Population/Information Worker Projections . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 55
Table 6. Telecommuter Projections . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 59
Table 7. Home/Regional Center Telecommuter Mix . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 61
Table 8. Values of Factors Used to Compute Transportation Impacts . . . .
. . . . . . . . . . . . . . . . . 69
Table 9. VMT/Trip Savings . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 71
Table 10. Petroleum Consumption by Highway Vehicles . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 73
Table 11. Fuel Savings . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 74
Table 12. Gas Tax Revenue Losses . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 75
Table 13. Emissions Savings . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 78
Table 14. Safety Implications . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 82
Table 15. Motor Vehicle Deaths / Death Rates . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 83
Table 16. Time Savings . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 83
Table 17. Projected Future Telecommuting . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 89
Table 18. Transportation Impacts . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 90
Table B-1. Transportation Impacts of Telecommuting - Projected (Lower Bound)
. . . . . . . . . . . . . . . . B-2
Table B-2. Transportation Impacts of Telecommuting - Projected (Upper Bound)
. . . . . . . . . . . . . . . . B-4
Table B-3. Vehicle Miles Traveled . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . B-8
Table B-4. EPA Mobile 4.1 Emissions . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . B-10
Executive Summary
Objective
This report, addressing the potential cost and benefits of telecommuting,
has been prepared by the Department of Transportation, in consultation with the
Department of Energy and the Environmental Protection Agency, as required by
section 352 of the Department of Transportation and Related Agencies
Appropriations Act for fiscal year 1992. The report focuses on future impacts
of telecommuting on transportation, environment, and energy use. Despite the
existence of many telecommuters and numerous pilot projects and studies,
telecommuting is still in a very early stage. The projections of future
telecommuting and transportation impacts provided here could change
substantially as technology continues to develop, and experience is gained in
understanding employer and employee response to this new form of working.
Principal Conclusions
· Telecommuting is now practiced by approximately 2 million workers
and could reach 7.5 to 15 million within a decade.
· Estimates of the future level and impacts of telecommuting are
highly uncertain.
· Telecommuting has the potential to provide significant
transportation-related public benefits in this decade.
· The actual amount and impact of telecommuting in any particular
region will depend strongly on the local transportation environment and travel
demand measures.
· The congestion and air quality improvements potentially
attainable through telecommuting could be substantially diminished if
telecommuters removed from the highways are replaced by the emergence of latent
travel demand.
· Direct energy, air quality, safety, and time benefits of
telecommuting will be increased as the degree of congestion is reduced.
· Telecommuting could stimulate urban sprawl and have other adverse
impacts on land use and public transportation.
· Factors which will impact the rate of growth of telecommuting
include uncertainty of benefits for employers and the considerable time and
effort inherently required to bring about major changes in workstyles and ways
of doing business.
· Telecommunication services and equipment are adequate for most
current telecommuting, but high-bandwidth capabilities will be needed in the
future and would be beneficial now.
· Government agencies can play a significant role in facilitating
and encouraging telecommuting.
· Telecommuting can be an effective tool for travel demand
management, but cannot be mandated.
· Continuing research is needed to clarify telecommuting costs,
benefits, and future impacts.
Background
Computer and telecommunications advances in recent years, including computer
networks and data systems, FAX machines, and electronic mail, have dramatically
widened the choice of workplace for information workers and others so they can
work wherever these tools are available, including at home. This development
has paralleled trends toward a service economy, greater worker flexibility,
empowerment of employees, and rising frustration from the irritation and time
loss associated with commuting. One result is that a substantial portion of the
U.S. labor force, perhaps as much as 30 percent, now works at home at least part
of the time. In addition to self-employed individuals, contract workers, "moonlighters,"
and people simply bringing work home from the office, an estimated two million
of these people are full-time employees who otherwise would commute daily to an
office or other workplace. Most can be characterized very generally as "information
workers," in that their work focuses substantially on the creation,
distribution, or use of information. In effect, telecommunications services are
substituted, partially or completely, for transportation to a more traditional
workplace. This practice is called "telecommuting."
Telecommuting does not necessarily imply working at home. Satellite "telework"
centers near or in residential areas, fully equipped with appropriate
telecommunications equipment and services, can serve employees of single or
multiple firms, co-located on the basis of geography rather than business
function. In many cases a shared facility provides a more practical and
satisfactory location for telecommuting than the home, and a setting less
threatening to traditional business management styles. Telecommuting is often
practiced as little as one or two days each week, although it can be full-time.
While today's most visible telecommuters are predominantly managers or
professionals, telecommuting is potentially relevant to most information
workers, as well as to some other types of employees.
As corporate information technology and public telecommunications services
have advanced, interest in telecommuting has increased markedly in recent years.
A major reason is its reported potential to improve significantly both the
productivity and quality of life of employees. Employers are attracted not only
by the potential productivity gains, but also by greater success in recruiting
and retaining employees.
From a national perspective, telecommuting is of current interest because of
its potential transportation implications, especially with respect to air
quality and congestion relief. The public cost of urban traffic congestion is
not limited to personal stress and costs of delays and corporate productivity
losses; commuting in general, and peak-hour congestion in particular, are major
sources of air pollutants. The Clean Air Act, as amended in 1990, requires that
stringent measures be taken in many regions to reduce air pollution through
constraints on vehicular traffic. Telecommuting is seen by many as an important
tool in managing demand for transportation. In addition to lower congestion and
less air pollution, potential benefits could include reduced national petroleum
use, fewer highway accidents, and eased transportation infrastructure
requirements. Telecommuting can also expand opportunities for people with
impaired mobility or tied to the home for any other reason.
Telecommuting is not without possible negative effects. Concerns expressed
in the literature include conversion of employees into contract workers lacking
job protection and benefits, and perception of pressure to work excessive hours.
Maintenance of a clear distinction between work and home life can be difficult
for some, leading to serious stress and burnout. So far, these problems have
proven minimal for most telecommuters, who continue to go to the office several
days per week. Another concern is whether those who telecommute, particularly
from a remote satellite center, will move still further into rural areas, thus
negating the energy and emissions benefits and accelerating urban sprawl. Other
negative impacts on land use, public and urban transportation are possible.
From the employer's perspective, concerns include the cost and effort necessary
to implement a program and the challenge of remote supervision.
Although telecommuting is conceptually simple, it touches on many areas of
life and raises important questions and issues for which answers are not yet
available. The degree to which telecommuting is adopted, the specific forms it
takes, and the magnitude of the public benefits actually obtained depend largely
on attitudes of people toward their work and workplace, the adaptability of
corporate culture, the nature of the work performed, and the specifics of
changes in their travel behavior. Not surprisingly, there is wide variation
among predictions of the future of telecommuting and its impacts on
transportation.
Current and Projected Levels of Telecommuting
Telecommuting activities are often carried out on an informal basis and are
not captured in any comprehensive statistical data base. The principal source
of statistical information as to current practices is an annual commercial
random telephone survey that explores aspects of working at home. In addition
to that survey, several studies based on state telecommuting pilot programs
provide insight into the suitability and acceptability of telecommuting for
individuals, jobs, and organizations. This technical literature, which
generally indicates a substantial increase in telecommuting through and beyond
the next decade, provides a foundation for projections of telecommuting behavior
over the next 10 years. The margin of uncertainty is quite large; upper and
lower bound projections, differing by a factor of two in number of
telecommuters, have been developed. These projections are shown in the table
below.
PROJECTED FUTURE TELECOMMUTING
|
1992
|
1997
|
2002
|
Number of Telecommuters (millions)
|
2.0
|
3.1 - 6.2
|
7.5 - 15.0
|
Percent of Labor Force
|
1.6%
|
2.3% - 4.6%
|
5.2% - 10.4%
|
Percent of Telecommuters Working at Home
|
99.0%
|
74.3%
|
49.7%
|
Percent of Telecommuters Working at Telework Centers
|
1.0%
|
25.7%
|
50.3%
|
Average Days per Week
|
1-2
|
2-3
|
3-4
|
Transportation Impacts of Telecommuting
Potential beneficial transportation impacts of telecommuting include
reduction in highway congestion and associated lost time, reduced emission of
pollutants, savings in energy and petroleum consumption, and fewer highway
accidents. Telecommuting is already widely seen as a potentially valuable
travel demand management measure to reduce congestion and meet existing
ambitious national air quality goals.
The projections of numbers of telecommuters were combined with current
travel-related statistics to develop estimates of transportation impacts over
the next 10 years for the upper and lower bound scenarios. The results,
presented in the table below, suggest that substantial benefits could be
attainable by the end of this decade. These projections make clear that
telecommuting could eventually play a significant role in addressing problems of
urban congestion, safety, air quality, and energy use, but also indicate that it
is neither a near-term nor complete solution to these concerns. However, the
actual amount and impact of telecommuting in any particular region will depend
strongly on travel demand management measures in place and other aspects of the
local transportation environment. In some cases the transportation implications
could be substantially greater than suggested by the table below.
TRANSPORTATION IMPACTS
|
1992
|
1997
|
2002
|
Saving in Vehicle Miles Travelled (VMT) (billions)
|
3.7
|
10.0 - 12.9
|
17.6 - 35.1
|
Percentage Saving in Total Passenger VMT
|
0.23%
|
0.49% - 0.63%
|
0.7% - 1.4%
|
Percentage Saving in Commuting VMT
|
0.70%
|
1.6% - 2.0%
|
2.3% - 4.5%
|
Saving in Gallons of Gasoline (millions)
|
178
|
475.9 - 619
|
840 - 1,679
|
Percentage Saving in Gasoline
|
0.25%
|
0.6% - 0.8%
|
1.1% - 2.1%
|
Value of Gasoline Saved (millions)
|
$203
|
$543 - $706
|
$958 - $1,914
|
Percentage Saving in Emissions
NOx
HC
CO
|
0.23%
0.31%
0.36%
|
0.6% - 0.8%
0.8% - 1.1%
1.0% - 1.3%
|
1.1% - 2.2%
1.4% - 2.7%
1.7% - 3.4%
|
Annual Hours Saved for Average Telecommuter
|
77
|
93
|
110.3
|
Total Annual Hours Saved (millions)
|
156
|
444 - 577
|
826 - 1,652
|
Telecommuting is at such an early stage that prediction of its rate of
growth and transportation impacts is difficult. Many factors contribute to a
high level of uncertainty in the estimates presented above. The actual degree
to which jobs, individuals, and employers will be suited to telecommuting is not
clear. Most demonstration or pilot programs have been limited in scale and have
involved carefully selected workers and managers. Directly relevant data
concerning travel behavior, emissions, and fuel use are not available and would
vary from region to region.
The figures shown in the preceding tables do not tell the whole story.
Where congestion is severe or strong disincentives to vehicle use are in place,
telecommuting might be much more attractive to firms and individuals than in an
"average" location. In addition, even a modest decrease of traffic
due to telecommuting could reduce congestion significantly, thereby magnifying
savings in time and fuel use, and reduction in emission of pollutants.
Conversely, telecommuters who at one time commuted by carpools or public
transportation, may now choose to drive single-occupant automobiles due to the
reduced congestion. In the latter case, congestion reduction would be
diminished, and transportation benefits associated with the telecommuter would
be partially nullified. The magnitude of these factors, and the balance struck
between them, will vary considerably from place to place. Generalization as to
the net result is not possible. The benefit estimates shown above do not
include either of these important but unquantifiable effects.
Factors Affecting the Future Course of Telecommuting
Telecommuting is not suitable to every job, person, or situation. Whether
an individual telecommutes, and how often, are results of the decisions of
employer and employee, made within the constraints of the existing physical and
institutional environment. Conditions that must be met before a person can
become an active home-based telecommuter include the following:
- The job must be suited, at least in part, to performance at a remote
location.
- The capabilities and personal characteristics of the employee must be
appropriate to working with little or no direct supervision.
- The employing firm must accept telecommuting as a legitimate and desirable
activity, provide necessary support, and have appropriate information technology
in place.
- The supervisor or manager of the employee must accept the concept and
practice of telecommuting.
- The employee must feel comfortable with telecommuting in terms of its
suitability to his or her personal work habits and style, its effect on social
interactions and on advancement and career.
- The employee must have a suitable workplace and working time free of
distractions (such as child care responsibilities).
- Available technology, particularly telecommunications services, must be
adequate and cost-effective for the work to be performed at home.
While all of these conditions clearly can be met in many cases, each will
filter out a portion of the potential telecommuting population. Some of these
elements are eliminated or modified for the case of satellite telework centers,
but implementation of centers is more complicated, costs could be higher, and
depending on specific circumstances, vehicle-miles and emissions reductions
could be zero or even negative.
Even when these conditions are satisfied, telecommuting will only occur if
businesses and workers are sufficiently motivated toward it. The local
transportation environment will be important in establishing the level of
motivation. Severe congestion, stringent travel demand management measures, and
lack of widespread convenient public transit are all factors that can increase
the incentive for establishment of telecommuting programs and participation in
them. Similarly, factors affecting the cost of commuting -- vehicle and fuel
cost, or dispersion of workers over a large area, also encourage telecommuting.
The rate at which telecommuting is adopted will also be constrained by the
still-uncertain cost-benefit implications for businesses and the pace at which
employers and workers become familiar and comfortable with this new way of
working. Employers naturally await more definitive evidence for claims of
dramatic productivity increases. Employees often have initial misgivings about
social isolation, being "out of the office loop", being at a
disadvantage for career advancement, and mixing their home and work lives.
Other concerns revolve around the process of selecting who can telecommute,
remote supervision, and fears of some telecommuters that they must work extra
hours to justify and protect their status. Overall, a high level of trust is
required between worker and employer.
In pilot programs, these potential problems generally have not proven to be
serious, and impressive productivity improvements have been reported. However,
in many of these cases telecommuting is practiced only a few days per week, and
participants have been carefully selected. These programs, thus provide
valuable insight and mitigate some key uncertainties, but do not permit firm
conclusions to be drawn.
Major uncertainties with important implications for transportation include
the form and importance that local telework centers ultimately achieve and the
degree to which telecommuting is center-based as compared to home-based.
Establishment of remote telework centers is a complex undertaking that may
require several years to come to fruition.
Barriers to Telecommuting
For the most part, available telecommunications services appear adequate for
a large range of telecommuting situations. Of course, a more advanced
telecommunications infrastructure would enable more widescale and sophisticated
telecommuting to occur. Today, wide-bandwidth services required for video
functions or transfer of very large quantities of data are often lacking. While
this can be an obstacle to "high-end" telecommuting and other telework
situations, availability of telecommunications services do not appear to
constitute a serious limitation at present, although this could change in the
near future. The need for major advances in the nation's telecommunications
infrastructure to support general business, commercial and home uses, an
explicit objective of the Clinton Administration, will create markets and drive
development of infrastructure to a much greater degree than telecommuting
applications. However, many complex and contentious regulatory and legislative
issues arise in creating the sophisticated, efficient, high-capacity,
broad-bandwidth U.S. telecommunications infrastructure; resolution of these
issues could accelerate future telecommuting and other business and societal
uses.
A variety of obstacles to telecommuting are identified in the literature,
including liability considerations, zoning and tax laws, labor union concerns,
and occupational health and safety issues. Pilot program experiences to date
suggest that none is a serious constraint to widespread adoption of
telecommuting. Nonetheless, as telecommuting becomes more common, issues such
as tax codes, liability, and labor laws could become more intrusive. Those
topics and related issues will have to be addressed in a responsive and fully
informed manner by the responsible Federal, state, and local agencies if
telecommuting is to achieve its full potential.
Other Telesubstitutions
Many activities, other than commuting to work, are already affected by the
availability of sophisticated telecommunications services and computer networks.
In general, those services provide convenience and access, and may not
significantly affect transportation. These effects are largely unquantifiable
at present. These "telesubstitutions" include the ubiquitous
automated teller machine (ATM); shopping by catalog and toll-free telephone
calls, or home shopping services using cable TV; and electronic submission of
tax returns.
Particularly in rural areas, there is increasing interest in providing
educational services and medical consultation via telecommunications, as well as
establishing telework centers that might provide more and higher-paid employment
than could otherwise exist locally. Full-time telecommuting from these regions
could also favorably affect the character and economic structure of these areas.
However, most observers find that the degree to which rural development in
general can be stimulated in this way is likely to be quite limited, at least in
the near term.
Governmental Roles
Telecommuting can lead to a reduction in the number of commuting vehicles
and thus contribute to the attainment of cleaner air and congestion mitigation.
Therefore, many communities view telecommuting as a transportation demand
management measure and provide government assistance for establishing a
telecommuting strategy. Federal assistance is also available. The Intermodal
Surface Transportation Efficiency Act of 1991 (ISTEA), Public Law 102-240,
provides Federal assistance for "operational improvements" which
include" ...transportation demand management facilities, strategies, and
programs..." (Section 1005(f)). Therefore, ISTEA funds may be used to
support the planning, development, and marketing of telecommuting programs
designed to improve air quality and reduce congestion.
Several states have established telecommuting programs for state employees
and actively promote telecommuting in the private sector. At the Federal level,
the Flexible Workplace Project, sponsored by The President's Council on
Management Improvement, is testing the feasibility and utility of flexible
workplace arrangements for Federal employees. This project, managed by the
Office of Personnel Management and the General Accounting Office, is designed to
facilitate the implementation of pilot programs in Federal agencies.
The telecommunications environment for telecommuting will be significantly
affected by the Clinton Administration's stated goal of encouraging investment
in the national information infrastructure. The President's recently-announced
technology policy specifically notes the importance to the U.S. economy of
stimulating development of a broadband, interactive telecommunications network
-- an "information superhighway" -- linking the nation's businesses,
schools, libraries, hospitals, governments, and other users.
The Department of Transportation will work with states, local governments
and the private sector to monitor telecommuting activities, collect and analyze
data and disseminate relevant information concerning the growth of telecommuting
and its implications for transportation and land use.
Future Research
Telecommuting is a diffuse activity, not well captured in current
statistics, and transportation impacts are unlikely to be directly measurable.
Needed information, particularly involving transportation-related behavior, can
be acquired only with a special effort. The Department of Transportation,
working with other Federal agencies, states, local governments, and the private
sector, will consider undertaking research, as appropriate, to assure that
telecommuting policies and programs are based on an in-depth understanding of
this new phenomenon, its growth and future course, and its
transportation-related implications.
Chapter 1 - Background
INTRODUCTION
Approximately 30 percent of the U.S. labor force, roughly 38 millon people,
currently work at home at least part of the time as shown in Figure 1. While
most are self-employed or are simply working after regular hours, a growing
number of them are full-time employees who otherwise would commute daily to an
office or other workplace. Most can be generally characterized as "information
workers" in that their work focuses substantially on the creation,
distribution, or use of information. The ability to work at home has in large
part been made possible by corporate use of computer and telecommunications
advances during the last several years. Sophisticated telephone services,
personal computers linked by phone lines to central networks and data systems,
facsimile machines, and electronic and voice mail systems have dramatically
widened the choice of workplace for information and other workers so they can
work wherever these tools are available, including at home. In effect,
telecommunications services are substituted, partially or completely, for
transportation to a conventional office or other workplace. This practice is
called "telecommuting."
As commonly used, the term telecommuting does not always imply working at
home. Satellite or local work centers, fully equipped with telecommunications
equipment and services, can serve the employees of one or several firms,
collocated on the basis of geography rather than business function. In many
cases, a shared facility provides a more practical and satisfactory environment
for telecommuting than the home. Telecommuting is often practiced only one or
two days each week, although it can be fulltime. While today's telecommuters
are predominantly managers or professionals, many observers see this practice as
potentially relevant to most information workers, as well as to other types of
employees.
Interest in telecommuting, now that the enabling technologies have reached
satisfactory levels of cost and performance, has increased markedly in recent
years. In part, this is because in many cases it can significantly improve the
productivity and quality of life of employees. From the public perspective, the
principal attraction lies in its implications for transportation and air
quality. The public cost of urban traffic congestion is not limited to personal
stress experienced by commuters and the associated delay costs and corporate
productivity losses; commuting in general, and peak-hour congestion in
particular, are major sources of air pollutants, energy uses, and accidents.
Because of this, the Clean Air Act, as amended in 1990, requires stringent
measures be taken in many regions to reduce air pollution through constraints on
vehicular traffic. In addition to more familiar approaches such as flexible
working hours, carpooling, and use of public transit, telecommuting is seen by
many as a potentially important means of managing traffic demand. Other
significant possible benefits include reduced national energy and petroleum use,
fewer highway accidents, and eased transportation infrastructure requirements.
Telecommuting can also be of great value in expanding opportunities for people
of impaired mobility or tied to the home for any other reason.
While the basic concept of telecommuting is simple, it touches on many areas
of life and raises questions and issues difficult to answer on the basis of
current limited experience. The degree to which it is adopted in the future,
the specific forms it takes, and the magnitude of the benefits actually obtained
depend not only on the technologies involved and the capabilities of the U.S.
telecommunications infrastructure, but much more importantly on factors such as
attitudes of people toward their work and workplace, the suitability of
telecommuting to corporate culture, and the nature of the work performed. There
is wide variation in predictions of the future of telecommuting and its impacts
on transportation.
Purpose and Scope
This report has been prepared by the Department of Transportation (DOT), in
consultation with the Department of Energy and the Environmental Protection
Agency, in response to a statutory requirement to conduct a study of the
potential costs and benefits of telecommuting, focusing on the impact of
transportation on energy use and air quality. The report provides a description
of the nature of telecommuting and estimates of its near-term future prospects
and implications for transportation and related areas. Although there are many
telecommuters and a substantial number of pilot projects and studies have been
conducted or are in progress, telecommuting is still in its infancy. The
congressionally requested estimates of the potential reduction in commuting and
associated pollution, energy use, and lives lost, as well as other social
impacts, should be viewed in the context of a full discussion of the many issues
and uncertainties that surround the subject.
Accordingly, this report addresses the following topics:
- The nature of telecommuting in its various forms, its current extent, and
how new uses of telecommunications will substitute for transportation.
- The forces, both positive and negative, shaping the future course of
telecommuting, including barriers to its growth that are within the purview of
the Federal and state and local governments.
- Estimates and projections of the growth of telecommuting in the next 10
years.
- Estimates of the effects of telecommuting on transportation, including
estimates of:
-The amount and type of reduction of commuting;
- Associated safety, environmental, and energy benefits;
- Impacts on other modes of transportation; and
- Other social impacts of telecommuting.
Many of the studies surveyed project the numbers of telecommuters 15 to 30
years into the future on the basis of a high level of substitution for
transportation. However, these long-term projections have necessarily been
developed with a very limited foundation of data. Since this report is to
provide information to facilitate formulation of government policies regarding
telecommuting, its focus is relatively near-term - the next five to ten years.
The principal topic of the report is the potential reduction in highway traffic
associated with use of information technologies that permit working at home or
at local facilities rather than commuting to a conventional workplace. Although
the substitution of telecommunications for transportation has intriguing
potential in many areas of life, in most other cases (telemedicine,
teleeducation, teleshopping) near-term transportation implications are modest;
the real benefits are in providing convenient and efficient access to various
services. Those topics will be discussed briefly but will not be examined in
depth. Although the emphasis is near-term, many of the issues raised have clear
long-term significance.
This report is based primarily on a careful examination of the large and
diverse body of literature on the subject, most of it produced in the last few
years. The literature covers a broad range of applications (remote work,
teleconferencing, teleservices) and issues (transportation, urban and regional
geography, economics, management, social and psychological, technical). Types
of publications examined include books, policy overviews, various academic
research reports, demonstration projects/studies, expert testimonies, personal
interviews, in-depth articles from specialist computing and management press,
general office automation literature, futurist publications, popular press
articles, surveys of teleworkers, and how-to manuals. The effort was initiated
by a 2-day workshop at the Department of Transportation which focused and
elicited the views of a wide range of individuals knowledgeable in various
aspects of telecommuting (see Appendix E).
Historical Evolution of Telecommuting
One of the first people to foresee the coming of "telework" (as it
was termed in Europe) was Norbert Wiener in his landmark book The Human Use
of Human Beings: Cybernetics and Society published in 1950. Wiener
discussed a hypothetical example of an architect living in Europe but
supervising the construction of a building in the United States. Using the
recently introduced facsimile transmission service "Ultrafax," he
said, "...even without transmitting or receiving any material commodities,
the architect may take an active part in the construction of the building....
In short, the bodily transmission of the architect and his document may be
replaced very effectively by the message-transmission of communications which do
not entail the moving of a particle of matter from one end of the line to the
other."
Interest in telework did not spread widely until the early 1970s, as
terminal-based use of corporate and time-share mainframe computers became
widespread. Portable terminals, using voice-quality telephone lines, permitted
system access from any location that had telephone service. Gradually it was
understood that telecommunications and data processing could be meshed into
integrated systems. In the late 1970s, the French neologism term "telematique"
(English: telematics) was coined by Simon Nora and Alain Minc in order to
describe this growing interconnection of telecommunication and computers into
one, integrated national and international system. Also, the early 1970s saw an
international oil crisis, which focused critical attention on the waste of
energy in private and public transport systems. The combination of technical
potential and social need served as a strong stimulus for innovation. The
dominant view of telework in this initial phase was the potential to save energy
by substituting electronic communication for physical transportation. In 1973,
Jack Nilles introduced the term "telecommuting" as the U.S. equivalent
of "telework."
In 1980, Alvin Toffler incorporated the idea of telework or telecommuting
into his three-phase world history, making it one of the basic elements of the
emerging "Third Wave." In his book, The Third Wave, he
predicted that the new information-based production system would move millions
of workplaces from factories and offices back to where the workers had come
from: the home.
At the organizational level, many studies have forecast radical changes to
existing hierarchical institutions. In his 1979 paper, Daniel Bell refers to
the change in libraries - where the world's recorded knowledge housed in
buildings may become only a monument of the printed past (Bell, 1979). Wilfrid
Lancaster of the University of Illinois suggested the imminent disappearance of
the book, to be replaced by the year 2000 with a computer network (Lancaster,
1982).
A number of writers have speculated about the impact of telecommuting on the
working community. In the early 1980s, Starr Roxanne Hiltz, put forward the
concept of the "online community" which would gradually replace the
physical office. According to Hiltz, these office networks can best be thought
of as a new kind of social system: one in which the familiar social processes
of the workplace and the organization are replaced by electronic online
communities (Hiltz, 1981; Hiltz, 1984).
In the 1970s and 1980s some writers predicted that major portions of the
workforce would be working from home within this century. Although many of
their predictions have been scaled back from year to year, home-based
telecommuting has shown rapid growth in the last few years and still is widely
expected to become a significant substitute for commuting as a result of
advances in technology, lower costs, recognition of productivity benefits,
increasing governmental encouragement, and resolution of numerous
organizational, social, and legal issues.
Telecommuting and Transportation
Telecommuting is currently of particular interest to public agencies
struggling to relieve local highway congestion and meet legislative mandates
for improved air quality. For them, it is an important Transportation Travel
Demand Management (TDM) tool -- a strategy that reduces congestion by
eliminating a trip or shifting it out of the peak period. Other such strategies
include car, van and bus pools, public transit, compressed work weeks, and
flextime.
Although telecommuting alone is not a solution to congestion and pollution
problems, it could be important as one of several measures for addressing these
problems. There is growing interest among planners, researchers, and
policymakers in telecommuting as a strategy for reducing travel demand. This
can be traced to several different factors:
- For public policymakers, "telecommuting is an attractive TDM strategy
because it supports several agendas. It contributes to policies supporting:
transportation, energy independence and conservation, improvement of air
quality, employment for people with limited mobility (disabled, retired, low
income, single parent), rural economic development, global competitiveness of
American business, effective health care management, the American family and
increased community involvement."(1)
- Telecommuting can be implemented now, as it does not require any
additional planning, design, and construction lead times and it can be
relatively inexpensive to implement.
- Telecommuting expands rather than restricts personal choices by offering
more flexibility in workstyle and lifestyle.
- It addresses a variety of private sector concerns. For businesses, it
offers the potential for improved productivity, recruitment and retention,
savings in space costs, and other benefits.(2)
Telecommuting and the Public Sector
Telecommuting has found its way into a number of governmental statements and
actions, especially as a transportation strategy, but also addressing other
policy concerns. For example:
- At the Federal level, the Flexible Workplace Project, sponsored by the
President's Council on Management Improvement, is testing the feasibility and
utility of flexible workplace arrangements for Federal employees. This project,
managed by the Office of Personnel Management and the General Accounting Office,
is designed to facilitate the implementation of pilot programs in Federal
agencies. Currently with 800 participants, this undertaking has yielded good
initial results in terms of productivity and reduced sick leave.
- The Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA)
provides funding to States and local governments to support compliance with
Clean Air Act and to increase the efficiency of existing transportation
facilities. Since telecommuting can lead to a reduction in the number of
commuting vehicles, it is considered to be a travel demand management measure
eligible for funding under the National Highway System program, the Surface
Transportation Program, and the Congestion Mitigation and Air Quality
Improvement program. Eligible activities include the planning, development, and
marketing of an areawide telecommuting strategy designed to improve air quality
and reduce traffic congestion.
- The 1989 Air Quality Management Plan for the South Coast (California) Air
Basin sets the ambitious goal of reducing work trips by 30 percent in the year
2010 through the combined impacts of telecommuting and alternative work
schedules.
- Regulation XV of the South Coast Air Quality Management District (SCAQMD)
includes telecommuting on a menu of strategies large employers must use to
decrease peak-period vehicle trips. Regulation XV is being widely studied and,
to a certain extent, copied by other areas of the country that are out of
compliance with Federal Clean Air Act standards.
- Upon the successful conclusion of the 2-year pilot project for State of
California employees, legislation was passed authorizing the establishment of
telecommuting programs for any state agency. Following the October 17, 1989
Loma Prieta earthquake, California Governor George Deukmejian issued an
Executive Order which directed state agencies to include telecommuting in their
emergency response to the earthquake.
- In introducing the Statement of National Transportation Policy on March 8,
1990, President Bush said, "Sometimes the best transportation policy means
not moving people, but moving their work...a trend known as telecommuting.
Millions have already found their productivity actually increases when they work
nearer the people they're really working for - their families at home...Think of
it as commuting to work at the speed of light."
- The State of Washington has passed legislation requiring trip reduction
plans to be prepared at the local level. The statute sets targets for reducing
commute trip vehicle miles 15 percent by January 1, 1995; 25 percent by January
1, 1997; and 35 percent by January 1, 1999 (from a 1992 baseline). A bonus for
work-at-home and alternative work schedules is built into the legislation: each
commute trip reduced by these means "shall count ... as one and two-tenths
vehicle trips eliminated for the purpose of meeting trip reduction goals."
- Chapter 90-291 of the Laws of Florida authorizes the implementation of
telecommuting programs for state agencies, citing "many documented
benefits...including less traffic congestion and the associated reduction in air
pollution and energy consumption, improved employee morale and productivity,
improved ability to hire additional individuals into the workforce, improved
ability to recruit and retain valuable employees, and reduced costs for office
and parking space."
- Commonwealth of Virginia House Joint Resolution (HJR) 77 requested the
Virginia Employment Commission to prepare a report to the legislature on the
feasibility of telecommuting. The resulting document recommended establishing
telecommuting programs in state agencies, followed by promoting and assisting
its implementation in the private sector. The report cited the potential role
of telecommuting in supporting Federal-level policies such as the Clean Air Act
of 1990 and the Americans with Disabilities Act of 1989, and state-level efforts
toward rural economic development. The Virginia General Assembly responded to
the report by passing HJR 339, "encouraging efforts to foster and promote
telecommuting in the workplace."
- A number of other legislative initiatives are underway at Federal and
state levels. Telecommuting is a recommended strategy in a variety of local and
regional transportation plans, corridor studies, and trip reduction/mitigation
ordinances, especially in California.(3) For example, "proposed
California legislation (State Assembly Bill 374) would provide tax credit to
employers implementing telecommuting programs, provided participants telecommute
three or more days per week."(4)
DRIVING FORCES
Telecommuting is merely one expression of a variety of fundamental changes
occurring in U.S. society. The adoption of telecommuting is shaped by
technical, economic, environmental, legal, social, and demographic factors and
trends. These indicators of telecommuting potential suggest both the limits and
the possibilities of telecommuting activity. While influenced by many factors,
it has risen in prominence primarily through the convergence of trends and
developments in the following areas:
- Telecommunications and Information Technology
- The Nature of Work
- The Workers
- The Workplace
- Urban Highway Congestion and Its Consequences
- Environmental Legislation
Telecommunications and Information Technology
The rapid development of telecommunications and information technology
during the latter part of this century has transformed many aspects of life.
Live television images of events occurring anywhere on earth have affected our
perceptions of ourselves, our society, and our world. In the 19th century, the
telegraph, soon followed by telephone and then radio, introduced the concept of
substituting telecommunications for transportation of mail and other messages.
As computer technology has more and more packaged information in digital
electronic form, telecommunications advances permit the convenient transmission
of that information anywhere in the world almost instantaneously. One minor
result of that revolution is that people whose work deals primarily with
information may be able to work wherever they can "keep in touch" via
telecommunications. While the revolution is far from complete, these
technologies have already come to play a significant role in most business
activities and in many homes.
The telecommunications environment for telecommuting will be significantly
affected by the Clinton Administration's stated goal of encouraging investment
in the national information infrastructure. The President's recently-announced
technology policy specifically notes the importance to the U.S. economy of
developing a broadband, interactive telecommunications network -- an "information
superhighway" -- linking the nation's businesses, schools, libraries,
hospitals, governments, and other users. Funding is planned for the Department
of Commerce to make grants to States, local governments, universities, school
systems and other non-profit organizations to "jumpstart, the development
of information networks.
The Nature of Work
A national economy that was once based on agriculture and then manufacturing
is now dominated by service industries. Almost all business activity, including
agriculture and manufacturing, is permeated by the creation, use, and
distribution of information. As a result, more than half of the national
workforce can be described as information workers, and many others spend
significant portions of their time with "paperwork" and its modern
electronic equivalents. Indeed, more and more of the documents and data that
underlie business activities exist first and foremost as computer files, easily
transmitted wherever they might be needed. The technology advances described
above have made possible a high degree of geographic decentralization of work,
characterized by an almost continual flow of telephone conversations, faxes, and
overnight express packages on a national and international scale. Customers,
colleagues, and suppliers are increasingly likely to be physically distant,
linked by modern telecommunications and other services. One result of these
changes is that more and more of the work to be done is of a type that can be
performed in places where even modest telecommunications capabilities exist.
The Workers
As business has become more information-based, workers have found themselves
spending more of their time interacting with computers and other information
technologies. A substantial portion of the workforce is now relatively
comfortable with these technologies, even in the home. It is estimated that in
the United States about 57.6 million workers (45 percent of the labor force) are
potential telecommuters. No longer is the computer programmer the only employee
spending long hours at a keyboard in front of a screen. But other, more
important changes have also been occurring. Quality of life, at home and at
work, has become more and more of a national concern, in part a result of the
complexities of modern living. The size, shape, and nature of American families
are changing; the number of two-parent families continues to decrease. For
single-parent homes and families with both parents employed (there is a growing
number of women in the workplace), child-care issues can greatly complicate
daily schedules. Finding a satisfactory home at an affordable price may force a
long and sometimes stressful daily commute, leaving little time for family or
other leisure activities. In fact, many people are either unwilling or unable
to relocate to where jobs are available.
Further, the image of the normal worklife as 40 years in the same job
followed by a gold watch, however inaccurate originally, is gone. A change in
values has occurred regarding work and leisure time. This, together with
mobility, changing occupations, and family characteristics is changing the
workplace. Most workers consider themselves mobile and expect periodic change
in employers -- as likely through mergers, corporate relocations or bankruptcies
as through their own volition. The best employees can be retained only by
providing a good working environment.
One of the important results of these disparate trends is the importance
that workers place on flexibility in their worklife, and the impact this
consideration has in their accepting and staying in a particular job. The
gradual introduction of various forms of flexible working hours has been a
universally popular employee benefit. Another recent theme has been the
importance of employee empowerment, recognized by the business community as a
key element of high productivity and morale, and by the worker as central to job
satisfaction and stress reduction.
The Workplace
The global nature of the modern economy has brought with it an intense wave
of competition for all businesses, making increased productivity a prime
objective. The business world has come to realize the importance of maximizing
not just the output of workers, but also their creativity and the level of
quality and customer service in their work. Retention of experienced staff is
also a necessity in gaining high overall productivity. One of the most
effective ways of achieving these results is to respond to the workers' desire
for flexibility and empowerment in the workplace. Many full-time employees
currently work flexible schedules or compressed work weeks; flex-staffing or
lean-staffing is considered a responsible business approach when an organization
needs to expand or limit its operations. Rethinking management styles,
redesigning the work elements, and even adopting new corporate cultures is a
difficult and lengthy process and not always successful. However, it is
increasingly recognized as a part of doing business in the 1990s and beyond.
Urban Highway Congestion and Its Consequences
America has always led the world in its use of the private automobile for
transportation, and has developed an unmatched infrastructure of streets and
highways. It is a mode of travel that maximizes convenience and privacy, but it
has its limits. Many urban regions of the country are experiencing rising
peak-hour congestion. The daily commute is, for many workers, the most
disagreeable part of their day. In addition to the delays and stress this
imposes on commuters and others on the highways, emissions from these vehicles
result in poor air quality for the entire region, highway accidents are a
recurring event which worsens the congestion, and a substantial amount of
petroleum-based energy is consumed.
Environmental Legislation
The Clean Air Act Amendments of 1990 (CAAA) reflect a commitment by the
American people to achieve higher levels of air quality, particularly in the
more heavily polluted urban regions. Deadlines are set for reduction of
pollution in over 100 major cities, which in some cases may require actually
reducing auto travel. In some localities, employer trip reduction programs will
place part of the burden of improving air quality on businesses in the area.
The severe challenge of achieving clean air goals forces close consideration of
every possible means, since it is clear that no single measure, such as tighter
emission controls, reformulated gasoline, improved transit or
high-occupancy-vehicle lanes, can do the job by itself. The CAAA is a major
motivation for public sector interest in telecommuting in many areas.
The Convergence of Driving Forces
In summary, many of the jobs now being performed are such that with little
or no restructuring they could be performed at home at least 1 or 2 days per
week. Employees are ready for, and even demanding, more responsibility for
themselves and more flexibility in their lives. Technology already available
makes it possible for at least some portion of many jobs to be performed
anytime, anyplace. Businesses are seeking means to increase productivity and
improve staff retention. Congestion worsens and the deadlines for air quality
improvement grow near. Greater national attention is being given to energy
conservation with particular emphasis on petroleum-based sources.
It is not surprising, therefore, that there is a steady rise in
telecommuting with an even more rapid growth of interest in the topic by
individuals, businesses, and governments. Telecommuting is not the answer for
every worker. Many factors bear on its practicality, benefits, and overall
attractiveness in any given situation. However, it is clearly a phenomenon
which will be of growing importance to the way America works and to urban
transportation. The degree to which telecommuting is likely to be adopted and
the benefits which might be obtained thereby are examined in the remainder of
this report.
TELEWORK - A TELETAXONOMY
What is Telecommuting?
The term telecommuting is attributed to Jack M. Nilles who first used it in
1973. He defines telecommuting as a subset of teleworking (i.e., all
work-related substitutions of telecommunications and related information
technologies for travel). Telecommuting is not a technology or collection of
technologies. Rather, it is a work option that reduces dependence on
transportation by exploiting information and telecommunications technologies.
In many cases, telecommuting can be accomplished with equipment no more exotic
than a telephone. However, it is likely that most telecommuters in the near
future will be using microcomputers and modems as major work tools; and for some
workers relatively elaborate and sophisticated equipment and services may be the
norm. In most cases, workers telecommute only a portion of the time, often as
little as 1 or 2 days per week. Telecommuting does not require the active use
of telecommunications technology in order to be practical, since workers can
carry their information with them when they travel to their employer's office.
Nevertheless, telecommunications and computer technologies both greatly broaden
the scope and variety of tasks amenable to telecommuting.
In this report the term "telecommuting" will generally be used to
refer to company employees in any occupational group working part- or full-time
during normal business hours, for whom the commute is eliminated, shifted out of
the rush-hour period, or shortened through the performance of the work role at
home or at an alternative remote location, and who communicate with the usual
place of work using electronic or other means instead of traveling there.
This definition excludes several categories of telework-based substitutions
for transportation, some of which could also have significant impacts on
transportation:
- Self-employed, home-based workers, private consultants, contract workers;
- Overtime work performed at home;
- Field workers who travel in the course of work;
- Other forms of telework such as teleconferencing, etc.; and
- Geographical or functional decentralization of businesses.
Telecommuting Frequency, Locations and Forms
Full-time / Part-time
In the popular press, telecommuting is often described as full-time
home-based work where the worker is almost never in the office. However,
current experience, supported by the findings and views of leading experts,
suggests that most home-based telecommuting is only partial with time split
between home and company offices, including creative scheduling of clusters of
meetings for the office, and solo work for home as shown in Figure 2. Over half
of all telecommuters work at home 1-3 days per week; the average total time
worked at home is 18.6 hours per week. Of the 1991 total, 79 percent of all
telecommuters worked part-time (less than 35 hours per week) at home Monday
through Friday. About 26 percent worked at home less than 8 hours per week.
This profile could change eventually, but appears likely to characterize
telecommuting for the next 5 to 10 years.
Locations
There are a number of feasible alternative work arrangements that provide
some flexibility in the locational and temporal definition of work. They differ
in scope and structure: some require a major reorganization of a number of jobs
and people, while others, such as the home-based form, can be implemented on an
individual basis depending on the situation. Current telecommuting is
predominantly home-based, but many observers see telework centers as playing a
much larger role in the future.
Home-Based
In home-based telecommuting, the employee works at home, keeping in touch
with the main office by telephone or other telecommunications technologies. It
is anticipated that most home-based telecommuters will work at home part-time
(1-3 days per week) spending the rest of their work time in the main office or
at other facilities. However, some people could be at home virtually full-time.
The original sole site of telework was Alvin Toffler's electronic cottage or,
under the opposing paradigm, the `electronic sweatshop' (the home, pure and
simple, and full time or close to it). This option is heavily dependent on
remote supervision. It does not provide the social interaction that a work
center offers. On the other hand, work at home can give employees extreme
flexibility in schedule and life style. Child care may be accommodated more
easily; for many people with primary child care responsibility work-at-home may
be the only employment option. It also offers employment opportunities to the
elderly and handicapped. Work-at-home can easily be used as an option on an
individual basis to accommodate a particular situation or need either
temporarily or permanently.
Regional Centers
An important alternative form of telecommuting consists of working not at
home but rather at a special-purpose telework center located relatively close to
home. As usually conceived, the centers are equipped with sufficient office
automation and communications facilities that they can serve as true extensions
of the normal workplace. This approach is particularly attractive for workers
who have long commutes. While telework centers do not eliminate travel, they
can substantially reduce it. Centers are best located in uncongested areas or
near public transit. These centers can take a variety of forms such as the
satellite center, regional/local center, and neighborhood center. Their
financial feasibility in various circumstances remains to be determined. There
is also the possibility that regional center telecommuters may move even further
away from their place of work when they are no longer commuting to the central
business district, thereby negating many of the quantifiable benefits of
telecommuting. Further, if they are not convenient to public transit they could
increase total automobile trips.
There are three basic variants of the telework center concept: satellite,
local or regional centers, and neighborhood centers. For all of these, the
common criterion is that they are close to where the telecommuters live, and the
telecommuters work there instead of or in addition to working at home.
Satellite Centers
Satellite centers are facilities established by an organization to serve its
telecommuting staff. Note that some of the staff may still have to commute
several miles to get to the center as contrasted with travelling tens of miles
otherwise.
There has been some confusion as to what constitutes a satellite office.
Mokhtarian sees a critical need to include in the definition of telecommuting
part-time travel to closer-to-home satellite centers, given the political
reality that definitions drive whether large employers are "given credit"
under air quality trip reduction ordinances. Guidelines submitted by the Los
Angeles based Telecommuting Advisory Council (TAC) to the South Coast Air
Quality Management District for determining whether a situation is a
telecommuting center are as follows:
· It is part of a monitored Transportation Demand Management (TDM)
program.
?· The Center is closer to employee's home than central work site.
?· Activity must be linked to central office work, results transmitted
to central office.
· Employees must be from different companies or different units of same
company.
?· Employees may be at center full or part time, regularly, or
occasionally.
?· Supervisors' presence or absence not a criterion.
?· No separate employee count or average vehicle ridership is required
for the center (except for any nontelecommuting staff stationed there).
Mokhtarian suggests two additional guidelines: location independence (the
work can be done anywhere) and organizational structure (absence of a regular
self-contained pyramid).
Local Centers
Local center facilities house any number of telecommuters from different
organizations. Employees would share space and equipment in the work center
closest to their homes. Thus, densely populated areas could have centers
financially supported by all of the organizations whose employees use them.
Such an option is complicated to implement on a large scale because it requires
a great deal of cooperation among different organizations. The state of Hawaii
is currently experimenting with a local center, as did Sweden in the mid 1980s.
Neighborhood Centers
Another variation is the neighborhood center: "minicenters,"
existing in large numbers, each serving a relatively small number of workers and
located within walking distance of their residences.
Jobs with Telecommuting Potential
The most visible classes of work performed by full-time telecommuters are
knowledge functions, sales, and marketing. The "knowledge function"
or "information worker" category includes reading, writing, customer
service, research (in books, databases or by telephone, along with analytic
functions of many sorts, while sales functions would comprise calling, planning,
and record keeping. Large-scale telemarketing (as opposed to order taking) is
most often performed from "boiler rooms" and not homes, both in order
to make the most intensive use of the voice-over data lines and to maximize
motivation.(5) Parts of many jobs, the totality of which cannot be removed from
their normal setting, can be isolated successfully in space and time and
performed elsewhere.
LINK Resources conducts a yearly national survey from a random sample of
2,500 households, addressing work-at-home topics. This survey provided the data
for all charts in this section characterizing telecommuting and telecommuters.
The LINK statistics on Leading Telecommuting Occupations show a very high
proportion of telecommuters to be in professions, with only 1 percent listed as
clerical workers. Sales and professional specialty occupations constitute the
leading telecommuter occupations. The list in Table 1 is not exhaustive but
suggests the broad range of jobs that could be suited to telecommuting:
Table 1. Information Worker Jobs
accountant
actuary
administrative assistant
advertising executive
agent
analyst
architect
appraiser
artist (commercial)
auditor
bankers
bookkeeper
|
broker
CEO
clerk/clerk typist
consultant
contract monitor
computer scientist
data entry clerk
data search specialist
economist
employment
engineer interviewer
financial analyst
|
graphic artist
journalist
industrial engineer
lawyer
manager
market analyst
professor/teacher
programmer
purchaser
receptionist (sending / receiving electronic mail)
realtor
researcher
|
school administrator
software engineer
statistician
stock analyst
stockbroker
surveyor
systems analyst
telemarketer
telephone operator
training designer
word processor
writer
|
Figure 3 categorizes these jobs and presents approximations of the
percentages of teleworkers in each category. Certain job characteristics across
all job types are suitable to telecommuting:
Minimum physical requirements;
Individual control over work pace;
Defined deliverables;
Need for concentration;
Defined milestones; and
Relatively low need for face-to-face communications.
Telecommuter characteristics suitable to telecommuting include:
Self-motivation, Self-discipline, Specialized skills, and Ability to work
independently.
Note that characteristics of the successful teleworker and job
characteristics are relatively independent of the technology involved.(6)
Industry/Company Demographics
Telecommuting Industries
Business Services, Retailing/Wholesaling, and Banking/Finance stand out as
the leading industries. Manufacturing, Telecommunications, and Healthcare also
rank high in this regard for telecommuting as shown in Figure 4.
Company Size
Since approximately half of the U.S. workforce work for companies with less
than 500 employees, it is no surprise that the majority of telecommuters are
associated with smaller companies. As shown in Figure 5, only 4 percent of
telecommuters (45 percent of the labor force) work for companies with more than
1,000 employees, while 77 percent are employed by organizations with under 100
employees. Telecommuting in the United States has grown primarily from the
bottom up, through individual innovation rather than from the top down, through
large-scale organizational innovation.(7) Large, full-time, formal
telecommuting programs operated by large well known companies are in the
minority. Most telecommuting is strongly associated with smaller companies and
organizations for the following reasons:
- Organizational culture is less formal in smaller organizations than in
larger ones.
- Innovation is easier and more common in smaller organizations.
- Standard operating procedures are less rigid in smaller organizations.
- Staff flexibility is likely to be equally useful for the company as for
the employee in small companies.
Formal/Informal Telecommuting
Formal versus informal Telecommuting is illustrated in Figure 6. The LINK
Resources survey indicates that:
- 21 percent of all medium / large businesses (100+ employees) support some
level of informal telecommuting. This covers 470,000 telecommuters.
- 14 percent of all medium / large businesses (100+ employees) support some
level of formal telecommuting. This covers 240,000 telecommuters.
- 65 percent do not support any telecommuting.
Table 2. Formal / Informal Telecommuting
|
Formal
|
|
|
Informal
|
|
|
#
Telecommuters
|
% of Companies
Using
|
#
Companies
|
#
Telecommuters
|
% of Companies
Using
|
Small
|
2.9 million
(92%)
|
13%
|
819,000
(98%)
|
1.9 million
|
|
Medium / Large
|
240,000
(8%)
|
14%
|
17,200
(2%)
|
470,000
|
21%
|
Total
|
3.1 million
|
|
836,200
|
2.4 million
|
|
LINK's data listed in Table 2, shows that telecommuting is growing rapidly
among large organizations with over 1,000 employees and small organizations with
under 10 employees. Informal telecommuting programs are easy to start and stop,
especially if the proponent for telecommuting within the organization leaves.
Technology Used by Telecommuters
Figure 7 shows the technologies used by telecommuters. Personal Computers
(PCs) are owned by 36 percent of telecommuter households, over twice the average
for U.S. households. Other tools include:
- Telephone Answering Machine - 70.4 percent (3.59 million)
- Modems - 16.2 percent (.83 million)
- Fax Machine - 7.4 percent (.38 million)
The one thing that almost all (95 percent or more) telecommuters rely on is
basic residential telephone service; 26 percent use more than one phone line;
46 percent of telecommuters are reimbursed by their employer for long distance
phone calls. The use of multiple phone lines and other telephone services and
devices has accelerated much faster among telecommuters than in the overall
labor force.
SCOPE AND NATURE OF CURRENT TELECOMMUTING
The 1992 LINK resources survey estimates the number of conventional
employees currently telecommuting at 4.2 million, up 27 percent from 3.3 million
in 1991. Sampling error for the survey is reported to be plus or minus 9
percent.(8) This figure represents 3.3 percent of the total U.S. workforce.
However, LINK further estimates that 1.8 million of those employees are working
at home on contract or on self-employment activities rather than as part of
their basic job. This leaves 2.4 million people telecommuting as part of their
regular work. Based on prior LINK surveys, this has grown from .4 million in
1990 and 1.4 million in 1991.
A second estimate of potential telecommuters, provided by Jack Nilles, is
based on a 1985-1986 survey, using the Blackman version of the technological
substitution curve (Linstone and Sahal (eds.), 1976). This estimate predicts
between 2.0 million (nominal case) and 4.4 million (high acceptance case)
telecommuters in 1992 increasing to between 15.0 and 30.4 million in 2002.
Telecommuter Demographics
Figures 8 and 9 illustrate the 1991 data compiled by LINK Research's
National Work-at-home Survey which show a fairly even distribution of men (53
percent) and women (47 percent). The typical telecommuter is between the ages
of 35-37, and 76 percent are part of a dual career household, with a median
income of 40K. About half have children under 18 at home, and just under
one-fourth have children under 6 years old.
Telecommuting Arrangements
Telecommuting is increasingly accepted by employers, often on an informal "off-the-books"
basis, to enable continued workforce contributions in a range of personal
circumstances necessitating temporary part- or full-time absence from work.
These temporary and transitional applications include maternity leave, temporary
care of children or elderly parents, injuries and illnesses, temporary
relocations, and phased retirements. While increasingly accepted, these are
basically seen as concessions to valued and privileged professional staff. More
permanent programs are centered around sales, telemarketing, customer service,
and data/forms entry staff.
For employers, telecommuting arrangements are also found helpful to make at
least partial use of personnel away at special training and education
activities, and to fill needs for peak part time and seasonal work. Also many
companies are encouraging telecommuting as one aspect of the adoption by senior
staff and executives of high tech/high performance workstyle.
Physically Challenged
Telecommuting would seem to be a natural approach to increasing employment
possibilities for disabled or functionally challenged individuals. However,
there is relatively little discussion of this topic in the literature. Only
small numbers of handicapped persons seem to be employed, despite government
programs designed to promote activity. LINK Resources' case studies mention
some instances of handicapped workers, but it appears that many of these
initiatives have been phased out. The literature mentions placement programs
for disabled workers, many of which showed good results.(9) On the other hand,
there are also reports of cases of disabled workers who found long hours at a
terminal very difficult physically and socially isolating.(10) Many of the
efforts for the disabled were discontinued in funding cuts that were due in part
to the current preference of vocational rehabilitation specialists for
mainstreaming. Huws et al. suggest that disabled workers need sociability as
much as income and indicate that satellite or neighborhood centers would be more
appropriate venues than homework.(11)
Control Data Corporation ran a very productive program for disabled workers
in which the only major problem stemmed from inexperienced or otherwise
inadequate managers. A state of California project involving approximately 150
mostly professional level workers, which included mentally disabled workers, did
find that telecommuting reduced commuting stress for these workers.
OTHER RELATED TELESUBSTITUTION
Incarcerated Workers
Prison populations are becoming a regular element of certain telework
schemes. Inmates at Arizona correctional facilities are employed as reservation
agents for Best Western. They receive the same wages and benefits as non-prison
workers and part of their pay goes to victim restitution as well as part to the
state to pay for room and board. This can also be a valuable job training tool,
as the company has hired 50 women after their release.(12) In an arrangement
with the California Youth Authority, TWA routes calls from around the country to
Camarillo, California, and provides training and geography classes to the
students. Their compensation is the same as agents in TWA's Los Angeles office.
Teletransactions
Teletransactions include the many instances where orders are placed within
and between businesses (or between individuals and companies, as in computerized
stock trading) by computers over private networks or public telephone lines or,
as in telebanking, by means of touchtone lines. As money and stocks are
basically "moved" electronically, consumer transactions are also
transformed. Teleinvesting combines access via personnel computer to stock
quotation services with computerized order placement. The faxed transaction,
whether used to settle insurance claims, provide documents, or buy lunch, is a
more and more common replacement for mail, phone calls, or personal delivery of
documents, depending on the time and space constraints of the particular
transaction. "Teletaxes," a subspecies of teletransactions, were
quickly democratized as microcomputers and modems entered the home and small
office, a situation mutually advantageous to the IRS and the taxpayer as data
entry is shifted out of the IRS and the taxpayer gets a speedier refund check.
Other Telesubstitutions
In addition to telecommuting, a growing number of situations are occurring
in which telecommunications are substituted for in-person acquisition or
performance of services. In the near term they are not likely to have a strong
impact on transportation, but the cumulative effect could eventually be
significant -- it could affect transportation directly, and also indirectly
through its impact on land use, which affects public transportation. Moreover,
increasing public acceptance of services that generate a broader market for
sophisticated telecommunications services will contribute to the availability of
these services for telecommuting. These other telesubstitutions include:
- Teleeducation
- Teleshopping
- Telebanking
- Telemedicine
- Telejustice
- Teletaxes
- Televoting
Teleeducation; Telelearning
Teleeducation, or distance learning, involves the use of satellite,
microwave or cable television systems to transmit classroom instructions to one
or more remote locations (classrooms, homes, etc.). This could involve receipt
of assignments and exams, submission of homework via screen or computer
keyboard, access to electronic libraries, face-to-face counselling, and even
participation in class discussions. Teleeducation minimizes commuting by
students and professors and can serve students in remote locations and those
physically unable to appear on campus. More modestly, efforts have been
reported in congested areas like New York to replace some class meetings and in
person conferences with telephone conferences and video presentations. Elements
of teleeducation have entered the university generally as students increasingly
collect and submit assignments and search library catalogues and databases from
their home computers.
Teleshopping
Teleshopping is the use of computer or television-based services to purchase
a full range of goods, including food, fashion goods, housewares, gift items,
etc. Consumers view goods, have products delivered, make payment by direct
debit or credit card, etc. While typically performed using television receiver
and telephone, it could be accomplished in a direct interactive mode.
Teleshopping is quite different from the premall variety of calling up the local
grocer to deliver an order. It is typically a long-distance, 24-hour activity.
Home shopping services using television and 800 numbers have penetrated certain
parts of the market. Extensive computer shopping networks that allow price
comparisons of electronics, appliances and other major goods have achieved
limited market penetration so far, but that penetration is among an affluent and
influential market segment. Local teleshopping services for supermarket staples
are becoming common in Europe but have not become usual here -- these are
variations of catalogue ordering services.
Telebanking
Telebanking involves the use of a computer and modem and/or touch-tone phone
to perform financial transactions such as making direct electronic deposits,
obtaining instant access to balance, electronic checkbook balancing, obtaining
automated financial services, etc. Telebanking is now seriously supplementing
the automated teller machine, and certain of these functions are now offered
automatically by many banks. Transfer of funds between accounts, bill payment,
and account information are now available as totally automated functions from
touch-tone phones to ATM card holders, and other information and loan
qualification services are partially teleautomated, with touch-tone routing to
the human-provided portions of these services.
Telemedicine and Telediagnosis
Examples of telecommunications substitution include: medical consultation
and monitoring; telemetric devices that monitor heart rate and other vital
signs, and transmit the patient's information to a doctor at another location;
direct transmission of data to the medical computer for automatic analysis;
sophisticated imaging (MRI, CAT, x-ray) transmittable over phone line or from
emergency vehicles via cellular radio; and face-to-face counselling from the
doctor at a remote location. Doctors and other health care professionals can
gain instant access to patients' medical histories and visual records,
simultaneously viewing information on screen and discussing it.
Telejustice
Depositions and arraignments can be handled through video conferencing links
between the courthouse and prison, thus avoiding the need to transfer prisoners.
Televoting
Tele-voting in the sense of casting a ballot for a candidate for office has
not yet become a political reality. For years, however, cable television and
talk radio stations have used push-button calling to do extensive electronic
polling on every conceivable subject to directly ascertain popular agreement or
disagreement with government policies.
Bulletin Board Services
Computer bulletin boards have been characterized as "the 1990s answer
to those mythical general stores of a century ago where you could find a
congenial group of people gabbing around a blazing wood stove."(13) Some
44,000 public bulletin boards serve functions as diverse as publishing fiction
and matchmaking. Many families are already using online computer services at
home like CompuServe, formed in 1969, which now has more than a million users.
Prodigy, a partnership of IBM and Sears, has 1.75 million subscribers who can
shop, bank, make travel reservations, get stock market quotes, get updates on
news, weather, sports and much more without leaving their homes.
Information/Entertainment
Examples of news/information services include the sale of news wire, stock
information, databases, etc., as well as general or specialty news content.
Entertainment services include pay-per-view movies, special sports programs,
cultural events, pay-per-listen radios, and video games. Many special
information services are available: opinion or market research surveys,
association proceedings and records, minutes from club meetings, etc.
TELECOMMUTING DEMONSTRATIONS
Examples of Existing Programs
Worldwide, telecommuting programs may be found in the public and private
sectors. At least hundreds of organizations have tried or currently possess
telecommuting programs. A selected number of examples have been presented to
give a flavor of the range and type of existing programs. Details regarding the
kinds of jobs and workers best suited to telecommuting, tradeoffs for employers
and employees, and other aspects of telecommuting which have been learned from
these and other demonstrations, are also discussed.
Appendix C contains basic descriptions of telecommuting projects. These
pilot projects or programs represent a sample and cross-section of U.S.
organizations with employees who telecommute one or more days per week. The
selected projects (one a pilot program which has since ceased) represent only a
small portion of telecommuting demonstrations and programs. The projects were
included based on their different aspects (as defined below) and the
availability of published information concerning the project or the provision of
information from project advocates. Great care must be used in interpreting the
results of these and similar projects, since they are typically limited in size,
duration, and nature, and involve carefully selected groups of employees.
The material presented in the appendix represents public- and private-sector
telecommuting projects. Government plays a dual role by creating telecommuting
options for Federal-, state- and county-level employees, as well as fostering
the concept in the private sector (see Puget Sound and California-based
projects). Telecommuting, while often conceived and implemented by individual
businesses, is also fostered by state governments seeking to reduce
transportation problems, create new business and economic opportunities, or
simply offer employees greater flexibility in managing daily schedules. For
example, the Washington State Energy Office (WSEO) is working with other state
government offices and private businesses to establish telecommuting
opportunities for state and commercial employees as a means of reducing energy
consumption and vehicular congestion on Seattle's highways. For information on
traffic congestion, management, and planning, see projects based in California
and Oregon.
The telecommuting pilots and programs described in Appendix C were formally
implemented. In most cases, participants consist of information workers, such
as managers, administrators, and customer service representatives, who perform
much of their work using telephone communications or computer systems personnel
involved in programming, systems management, or other forms of data processing.
Participants were volunteers, thoroughly screened and approved by management for
participation.
One of the richest sources of actual data on telecommuting is the California
Telecommuting Pilot Project, which ran from July 1977, to June 1990. Actual
telecommuting and travel behavior of over 150 state employees was monitored for
two years, beginning in January, 1989. Many of the preliminary conclusions in
this report concerning telecommuting and its travel impacts were derived from
analyses associated with this project.
Allowing employees to work at home or at neighborhood satellite operations,
such as telework centers, are two basic options for telecommuters. WSEO
established a telework center in Seattle where employees from various state
offices could conduct business one or more days each week (see Washington State
Telework Center). Other telework centers, providing an office environment,
technological tools, and support, are being implemented in California (see Los
Angeles County Telecommuting Project), Kentucky, and New York City.
The reasons organizations pursue telecommuting vary. Sears instituted
telecommuting to retain valued employees following a relocation of the work
place. Some programs were implemented to reduce employees' costs in terms of
fuel, time, and stress, while also decreasing the number of employees in crowded
facilities. Other projects were implemented and maintained because
telecommuting increased productivity and profitability.
All the telecommuting projects sampled indicate qualitative improvements in
employee work and home life. Productivity gains have also been studied and
documented (see Sears "Over the Rainbow" and the Los Angeles County
Telecommuting projects), as well as other benefits such as decreased sick leave
and absenteeism. In most cases, determination of the level of productivity
gains and other benefits to employers has been based on subjective surveys of
employee opinion.
Implementation / Practical Telecommuting
Effective implementation of a telecommuting program involves more than just
providing equipment and expecting benefits. Implementation can be a complex
process requiring careful management to succeed. There are many practical and
management considerations in implementing a telecommuting program, including
planning, selecting jobs, selecting and training employees and managers, linking
telecommuters to the office, liability concerns, and technical details. In the
past, many such programs have failed because of inadequate planning and/or poor
management.
Telecommuting pilot programs have enabled organizations to assess the
economic reality of telecommuting, to determine the benefits that can be
expected from participants, and to review manager-employee interaction. The
results of such projects have eased concerns by showing that potential problems
can be addressed satisfactorily with proper planning. Pilot projects have shown
that:
- Labor concerns can be allayed by ensuring participation early on.
- Effective management can be maintained.
- Security risks need not be any greater than those on-site.
- Insurance issues can be handled through telecommuting agreements.
- Telecommuting need not affect a worker's employment status.
Chapter 2 - Factors Affecting the Future Degree and Impacts of
Telecommuting
INTRODUCTION
The objective of this chapter is to identify and assess issues which will
determine the level of adoption of telecommuting. As with the introduction of
any broad societal innovation, there are a variety of potential barriers to
implementation. These barriers can be technological, institutional, legal, or
societal in nature. This chapter outlines the major factors affecting
implementation of telecommuting. Specific emphasis will be placed on topics
that appear to be the greatest impediments, involve a government role, and are
least understood.
Whether an individual telecommutes and how often are results of the
decisions of employer and employee, made within the constraints of the existing
technical and legal environment. Many separate and often complex considerations
can affect these decisions, making estimation of the future level of
telecommuting an uncertain task at best. Many projections in the technical as
well as popular literature are based on relatively arbitrary assumptions that
the workforce can be divided into "information workers" and all
others, and that some percentage of the information workers will telecommute.
Since telecommuting is still at an early stage, with no large-scale, long-term
experiences to draw on, it is difficult to go beyond this very approximate
approach. However, explicit consideration of the principal factors bearing on
employer and employee decisions is necessary if the assumptions are to be
reasonable and credible.
The definition of "information worker" -- someone who is primarily
concerned with the creation, distribution and use of information -- is very
broad, covering a great variety of activities. The implied notion that
telecommuting is not relevant to people who operate equipment (truck driver,
farmer, autoworker) or interact constantly with other people (salesperson,
receptionist, doctor) is a reasonable starting point, supported by the fact that
estimates exist for the number of information workers -- generally assumed to be
somewhat more than half of the working population.
However, the limitations of this assumption should be kept in mind. Many
jobs, whether or not they are classed as information-related, are a mix of
various attributes, which may be quite separable. Telecommuting is not an
all-or-nothing activity. It can easily be practiced only 1 day per week or
less, and therefore, may be well suited to dealing with accumulated paperwork,
writing reports, reading, planning, and thinking, regardless of the basic nature
of the job. On the other hand, some "information" jobs may be so
closely integrated with other activities and people that telecommuting is not a
viable option.
The more critical question, often overlooked in the popular literature, is
the frequency of telecommuting. It is not uncommon for writers on the subject
to assume full-time telecommuting, whereas current experience suggests an
average of between 1 and 2 days per week at home for most telecommuters. Hence,
estimates of the impact on transportation of telecommuting can vary widely.
The purpose of this chapter is to describe the factors that bear on the
telecommuting decisions of employers and employees and the degree to which
technical and legal barriers may impede telecommuting. With this foundation, a
baseline estimate is developed of the near-term degree of telecommuting. This
baseline also assesses the timeframe in which the projected level might be
achieved by taking into account typical rates of adoption of technical and
managerial innovations.
PERSPECTIVES ON TELECOMMUTING
The future will not simply be determined by information technology and its
potential for transforming the nature and location of information processing
work. The technology is a tool with many possible applications. And these
applications will, in turn, only be adopted and implemented by individuals and
organizations which can see how to facilitate the achievement of their own
current aims. Telework will be adopted only by those managers who see it as a
solution to their problems and workers who see it as a solution to their
needs.(14)
An understanding of the potential advantages and disadvantages for employers
and employees is critical to the credibility of estimates of the number of
telecommuters. The principal advantages, disadvantages, concerns, and issues
associated with telecommuting, from a variety of perspectives, are summarized in
Table 3.
Telecommuting provides compelling economic and family benefits to both
employers and employees. Experience with telecommuting projects confirms the
benefits that telecommuting brings to employer, employee, and society.
Table 3. Perspectives of Telecommuting
From the point of view of the:
|
|
|
Employer
|
Advantages
|
- Increased productivity
- Reduced facility space and expenses
- Labor economies, possibly via lower pay, benefits for workers
- Difficult shifts covered
- Retention of valued employees and access to wider (even multinational)
labor pool; reduced retraining
- Lower sick leave utilization; reduced health care costs
- Telework can be used as a casual pool to protect against downswings in
demand
- Savings in relocation expenses
- Off-hour utilization of mainframe computers
- Savings on shiftwork, overtime
- Improved motivation of employees
|
|
Disadvantages
|
- Change in basic organizational practices required
- Competition from offshore and out-of-market labor
- Possible increase the need for computer resources
|
|
Issues/Concerns
|
- Decreased productivity
- Loss of corporate culture, deterioration of office environment quality
- Trust and control of employees, including how to monitor
- Worker accessibility
- Lack of organizational experience in remote supervision and management by
objectives
- Union opposition / organized labor concerns
- Security, confidentiality of property and ideas
- Insurance issues
- Health and safety issues
|
Employee
|
Advantages
|
- Reduction or avoidance of commuting time, expense (gas, transit fees,
depreciation), travel stress
- Cost savings on wardrobe, parking costs, meals
- Proximity to family and community
- Autonomy and control over work conditions, schedules
- Relaxation of time-space constraints of formal workplace
- Improved quality of life
|
|
Disadvantages
|
- Speedups and/or electronic monitoring in some cases
- Forced subcontracting
- Lack of support
|
|
Issues/Concerns
|
- Exacerbation of existing family problems
- Isolation from colleagues
- Tendency to overwork
- Pressure to work harder to justify telecommuting
- Career sidetracking
- Possible lower wages, benefit losses
- Widening of money and autonomy gaps between sexes and classes of workers
|
Table 3, continued - Perspectives of Telecommuting
From the point of view of the:
|
|
|
Transportation Planner
|
Advantages
|
- Reduced total and peak hour vehicle miles travelled, energy consumption
- Leveling out of peak hour transit use
- Reduced infrastructure maintenance; need for expansion
- Possible mitigation of land use pressures
- Mitigation of congestion and air pollution
- Reduced traffic accidents and attendant economic and social costs
- Possibly decreased local infrastructure maintenance
- Possible positive mode change effects from - e.g., walking, biking for
errands
|
|
Disadvantages
|
* Not under the direct control of public agencies
|
|
Issues/Concerns
|
- Uncertainty as to the magnitude of transportation benefits
- Uncertainty as to whether congestion will actually be reduced
- Unknown impact on car and van pooling and transit use
- Possible residential relocation farther out
|
Telecommunications
Industry
|
Advantages
|
* Enhanced demand for telecommunications products and services
|
|
Disadvantages
|
|
|
Issues/Concerns
|
- Increased pressures on capacity and capability of existing networks
- Multinational opportunities and connectivity, political problems
- Extent of government interest, infrastructure assistance, regulation
unclear
- Degree of technology that is necessary
- Compatibility of technologies
|
Society in general
|
Advantages
|
- Increased energy conservation
- Control of infrastructure costs for construction and maintenance
- Cleaner air
- Less highway congestion
- Improved highway safety
- Contribution to healthy business climate
- Stronger connections of workers to families (Quality of life)
- Greater sense of community for employees and neighborhood residents
- Positive impact on local businesses
|
|
Disadvantages
|
|
|
Issues/Concerns
|
- Possible acceleration of downtown abandonments
- Land-use / sprawl
|
EMPLOYER BENEFITS AND CONCERNS
Potential Employer Benefits
The following potential employer benefits are often cited as reasons,
motivations, or justifications for implementation of telecommuting programs.
Improved Quality of Work Output
Work quality can improve through faster customer processing, fewer errors,
shorter response times for communications, and faster and more accurate
responses to production failures. In particular, performance of creative work
can benefit from the person's having greater flexibility in the work situation
and scheduling. Quality of a workgroup's performance can also be affected by
improved (often electronic) access to specific people on the team with special
expertise.
Reduced Overhead
The potential for reducing the need for expensive central business district
office space, greater use of computer resources, and fewer parking space
requirements is very attractive to businesses. Office space savings amounting
to between 30 and 40 percent of currently leased space is not uncommon. Another
author suggests that office space savings amounting to from $1500 to $6000 per
person per year is a possibility [Gordon 1987].(15)
Public Relations Value
Hiring the otherwise unemployed or underemployed worker with limited
mobility or access to reliable transportation has public relations value and
also contributes to general societal goals such as reduced pollution,
congestion, and gasoline consumption.
Increased Productivity
Productivity increases reported from various studies average around 10
percent to 20 percent [Miller 1986](16), although some reports are as high as 40
percent. The literature reports productivity gains ranging from 15-25 percent
found in a wide variety of telecommuting situations, even where researchers (or
workers or managers) had not expected them, and better quality work was also
reported throughout.(17) Indeed, it is hard to find a report or study that does
not report these. On the other hand, Hartman et al. found that the hypothesis
that greater amounts of time spent at home would mean greater productivity was
not supported. Care must be used in interpreting the results of these projects,
since they are typically limited in size, duration, and nature, and involve
carefully selected groups of employees. See Table 4 for possible factors
contributing to increased productivity.
Table 4. Possible Factors Contributing to Increased Productivity
Productivity Improvement
|
More Hours Worked per Day
- Some employees may work some of the time they would have been commuting
- Less nonproductive socializing
- No decompression time
?· Facilitates evening, weekend work
|
More Work Done per Hour
- No interruptions/distractions (assuming appropriate telecommuting setting)
- Work done at times which are suited to individuals internal clock
- Moving tasks off mainframes, or shifting to off peak hours, increases
productivity for those left on-line
- Group norms not followed
|
Less Time Missed from Work
- Less incidental absence
- Less sick leave
|
Handling of Work Overflow and Scheduling Fluctuations
Use of home-based workers can ease the difficulty of hiring, retaining, and
mobilizing on-call workers in some areas. JC Penney finds home-based
telecommuters the answer to fast on-call operations. The part-time workers,
recruited in-house from experienced telemarketers, receive the same pay and
benefits as on-site workers and are managed by phone or electronic mail and by
twice-monthly visits.(18)
Coverage of Difficult Shifts
Similarly, unpopular shifts may be more easily filled if no travel is
involved, i.e., work from home is possible and/or a wider labor pool is
available.
Meet Temporary Ad Hoc Needs
The potential for meeting temporary needs using existing workforce can be
maximized by allowing existing staff to do extra work at home.
Cost Savings
Cost savings could be achieved through reductions in office space and
energy, and parking spaces. Credits may be earned under air quality and
congestion reduction plans. However, workspace-related benefits may not be
achieved for part-time telecommuters unless some form of office-sharing is
established.
Improved Employee Recruiting
The option to divide time between in-house and remote work can be an
important recruiting option where lifestyle, family, or other similar issues are
vital to a valuable prospect. Telecommuting provides access to a larger and
possibly lower-cost labor pool, including handicapped, elderly, incarcerated,
and geographically remote persons.
Improved Employee Retention / Decreased Turnover
Many telecommuting programs have been initiated in an effort to attract and
retain specialized talent regardless of location. Telecommuting can be a
selling point for technical talent whose lifestyle or family needs are
incompatible with daily commuting.
It is claimed that organizations can expect to have less turnover with a
telecommuting program. This can save a great deal; some estimate the cost of
training a new employee at between $20,000 and $25,000. Pacific Bell has
determined that recruiting and training a skilled programmer can typically cost
$100,000 [Miller 1986](19).
Eased Facility Moves and Avoidance of Employee Relocation
When a business location is changed, the cost of relocating workers can be
quite large. This component has been valued at an average cost of about $32,000
for home owners and $9000 for renters [Miller 1986](20). Others put these
relocation costs at between $30,000 and $50,000. Telecommuting may make it
feasible to move a corporate facility with minimum of relocation or loss of
employees.
Reduced Absenteeism and Sick Leave
Pacific Bell reports that telecommuters exhibit 25 percent less absenteeism
than do employees who work in their Central Business District offices [Pacific
Bell 1988]. Telecommuters in the state of California Telecommuting Pilot
Project reported an average annual decrease in sick leave of 1.1 days. Several
telecommuters reported that they would otherwise have been on even more extended
leave because of illness, maternity or parental leave. Similarly, many
telecommuters report that doctor and dentist visits now do not require taking
sick leave since they can be fit into the regular telecommuting schedule without
reducing work time. There is a further possible gain in sick workers staying
home and telecommuting rather than infecting others at the office. Also,
telecommuting may allow employees with illnesses or injuries that limit their
mobility to do some work in a comfortable home setting and to more readily "work
around" personal appointments, deliveries, etc.
Extended Computing Capability
Telecommuting could allow a company to delay the lease or purchase of
computers by shifting more of the workload to off-hours if telecommuting results
in spreading of the workload over a longer day.
Labor Cost Savings
Cost savings can be achieved by removing work from metropolitan locations
(for example, by JC Penney, who set up home teleordering operations in the Far
West) in 24-hour operations. Also, savings in overtime labor may result when
additional at-home shifts can thus be arranged.
Continued Operations in Special or Emergency Situations
Telecommuting can be used as a tool in disaster management -- the workforce
can remain productive while lessening the impact on the transportation system --
or when access to the normal worksite is impossible or impractical.
Telecommuting could diminish work stoppages in emergency situations,
earthquakes, storms, etc. Examples include the 1984 Los Angeles Olympics and
San Francisco earthquake. Pacific Bell's policy, set after the Loma Prieta
earthquake, demonstrated the value of telecommuting in emergencies. It defines
ground rules for what is generally part-time voluntary telecommuting, guarantees
workers their basic salary and benefits, and the right to be evaluated on
results.(21)
Clean-Air Mandates
Telecommuting may help business to achieve trip-reduction mandates imposed
by local or regional agencies to bring air quality improvements.
Employer Concerns
Organization-level Institutional Barriers
Lack of organizational and institutional experience of remote work
constitutes a considerable barrier to be overcome. (22) Organizational
disadvantages frequently mentioned in the literature include concerns that
telecommuting employees will not be working; that employees will use proprietary
information or company equipment while working part-time for another company;
and that employees might farm out work to somebody else, further reducing
organizational control over sensitive corporate information and work procedures.
In addition, there are security risks inherent in allowing outside computer
terminal access to company databases and need for maintenance and control of
company equipment placed in employees' homes (not only the potential damage or
abuse to equipment but also the additional insurance problems that arise when
equipment is off-site). Other problems include determining who is responsible
for repairing and transporting such equipment and how the employee should be
compensated when the equipment is down.(23)
Management Attitudinal Issues
Many commentators believe that present organizational structures and
managerial attitudes form a major barrier to the rapid spread of telework.
Olsen states that resistance from managers and the strength of organizational
culture are the main reasons why telework is still a comparative rarity (Olsen,
1981, 1982, 1983, 1988). The prevailing philosophy in large corporations is one
of encouraging close identification with the company by its employees.(24)
Managers worry that company loyalty will wane among telecommuters.
Remote Supervision and Management
Management of remote workers may be beyond the capabilities of managers who
rely on frequent visual contact to reassure themselves that their staff are
really working. The successful management of teleworkers requires trust and the
development of new supervisory methods which are contrary to the management
style currently practiced in most organizations. A Phillips Business Systems
survey found fewer than 10 percent of managers in favor of telework, while 60
percent were opposed, saying that they needed the interaction of individuals in
offices to work effectively. In a University of Minnesota study, 53 percent of
the managers said they thought that telework was difficult to manage. This was
perceived as the greatest problem posed by telework to organizations.(25)
A major deterrent to telecommuting is resistance to change on the part of
managers. Of particular importance is the attitude that effective management
requires large amounts of direct visual observation and/or frequent face-to-face
contact. Because of the loss of ready visual cues managers must move from a
process to a product orientation when dealing with their subordinates; they must
be significantly more concerned with identifying and negotiating for specific
results than monitoring work activities. It appears that management
apprehensions about loss of control and unrewarded effort are currently the
pacing factors in the adoption of telecommuting.(26)
On the other hand, Niles states that none of these "resistance factors"
appear sufficient in itself to act as an absolute barrier, although the
combination of factors can be, and has been, a significant deterrent to
telecommuting. Many of the resistance factors appear to be steadily diminishing
in effect as more experience (hence confidence) both with personal computers and
with telecommuting is accumulated.(27)
Based on studies conducted in California, the potential negative effects of
managerial resistance have been demonstrated to be real and of concern.
Telecommuting can highlight both the strengths and weaknesses of existing
management practices, and more specifically managers. Good workers and managers
thrive, poor workers and ineffective managers resist change and stand in the way
of implementation.(28) Training for both employees and managers can help
overcome these issues.
Organizations wishing to institutionalize telework are required to find
innovative solutions to completely new organizational problems, such as the
supervision, coordination, and motivation of a dispersed workforce; challenges
to traditional hierarchical functions and to the principle of authority; finding
ways to bypass the role of middle management; and other problems of
communication, dialogue, feedback, and loyalty to the company. Improved
technology and an advanced network infrastructure can help this transition. For
example, affordable and readily accessible video conferencing capability would
enable employers and employees to interact in relatively traditional ways,
wherever the worker might be. Nevertheless, telework requires a management
system that supervises the output (results of work) rather than the input (ways
of working, working time, etc.), concentrating on decentralization and
involvement rather than centralization and control. Assuring motivation and
accountability will be more difficult.(29)
Potential Employer Disadvantages
There are also costs and potential disadvantages to the employer in
supporting a telecommuting program. Principal possible disadvantages discussed
in the literature are identified below.
Security Issues
Security and confidentiality issues present many challenges: lack of
institutional control over the workplace and the greater use of technology will
increase the risks of theft, forgery, and untimely disclosures.(30)
Data security has been cited as a major problem for some firms, while other
business people deny that it is a problem. As recent "computer virus
outbreaks" illustrate, a lapse in computer security is like an illness;
once it happens, it can be a serious problem. Otherwise, one doesn't think much
about it. Security systems, which include passwords and other techniques, are
improving rapidly and much can be done (at a price) to solve this problem.
Reduced control over sensitive corporate information, work procedures, and
security risks are frequently mentioned as barriers to telecommuting.(31) This
can be dealt with by taking steps to assess and upgrade the current security
program; identify incremental risks; and improve monitoring and control.
Security is based on four main principles: 1) adequate hardware and software
controls; 2) sound employee selection criteria; 3) management control and audit;
and 4) password control (including the use of a hierarchy of passwords to limit
access).(32) Implementing these controls will greatly reduce the risks. Legal
sanctions to make unauthorized access a crime are also important.
It is unknown to what extent security concerns may have prevented the
adoption of telecommuting in some quarters. In theory, stealing, corrupting, or
destroying confidential information in computerized form ought not to be much
easier from home than from the office. A double password implemented in
software, and a host-to-remote terminal callback procedure satisfied the
concerns of IBM executives about placing terminals in remote locations and was
adopted by most of their Information Services departments; the capability was
enhanced during the experiment: a handshaking system to identify the remote
terminal and requester, and encryption were added.(33) Although this was not a
telework study, most programmer and information system user comments addressed
not having to make extra trips to work to take care of problems occurring
off-shift.
Security techniques require a review and evaluation of each specific
situation -- who uses the computer, what software systems are in operation, and
so forth -- in order to select appropriate techniques. These may involve a
hierarchy of passwords, procedures for changing and assigning passwords,
formulating company policy, and increasing user awareness of the need for
precautions.
Currently, computer crime legislation is focused on information that is
accessed, stolen, or manipulated. The Data Processing Management Association
(DPMA) adopted a model computer crime act in 1987 to guide state legislators in
developing new laws.
Startup and Operations Costs
The cost of implementing telecommuting can include (1) equipment purchase or
lease, particularly telephone lines and terminals or personal computers, and
sometimes office furniture; (2) satellite or neighborhood work center setup; and
(3) manager and employee preparation and adjustment, such as training programs
and installation of enhanced communication facilities. Overall, costs per
telecommuter can range from a high of $6000 or more in initial one-time setup
costs and $200 per month for administrative overhead and services [Miller
1986](34) to as low as $100 to $200 in setup costs and $50 to $100 monthly for
other costs.
Less Employee Loyalty
Some managers are concerned that the telecommuter will have less company
loyalty and be more like a freelancer.
The Business Firm Might Look Less Credible
The company "uniform," the corporate headquarters, and other
symbols of the company's stature may be important for business. Telecommuters
working at home or at a satellite center may not enhance that aspect of the
company's image.
A Change in Managerial Style May Be Required
While some supervisors feel that managing telecommuters is no different from
managing in-office employees, others report that it is more difficult, for
example, in the areas of assessing job performance, communicating, and
maintaining a sense of teamwork.
Numerous writers on the subject of telecommuting have pointed out that the
resistance of managers (especially midlevel managers) to telecommuting is one of
the chief obstacles to its implementation.
EMPLOYEE BENEFITS AND CONCERNS
Potential Employee Benefits
The following potential employee benefits are often cited as reasons,
motivations, or justifications for employee participation in telecommuting
programs.
Decreased Commuting Time, Work Expenses and Stress
Some telecommuters may work fewer days, while others use telecommuting to
enable them to commute at times when the highways are less crowded. Gas,
transit taxes, and depreciation decrease, while cost savings are likely for
wardrobe, parking costs, and meals.
Increased Flexibility of Schedules
Telecommuters are better able to coordinate their work schedules to
accommodate family responsibilities, although telecommuting is not a
substitution for child care. People are able to work more often when at their
peak hours of mental alertness.
Improved Work Environment
Workers experience fewer distractions, less environmental noise, and less
job-related stress. They are able to avoid office politics and exert control
over their physical environment, e.g., adjusting the temperature to their
liking.
Greater Job Responsibility and Autonomy
Workers may be more in control, with a feeling of being "their own
boss."
Increased Employment Opportunities
Telecommuting may be the only means of acquiring a job for the
mobility-limited or handicapped. A number of programs have been aimed at these
groups.
Stronger Family Ties
Telecommuters may experience increased satisfaction with home life, enjoy
more time with their families, and feel in closer touch with the world outside
work. Many may prefer to work at home because they need to care for a child or
old person.
Employee Concerns
Isolation
The social aspects of work can be major inducements to go to the office.
Several writers have dismissed home-based telecommuting on the basis of this
consideration alone, making the unwarranted assumption that telecommuting is an
"either/or" proposition. Nonetheless, home-based work is solitary
work, and not every employee can cope with the reduction of personal
interaction.(35) Social and professional isolation of teleworkers has
frequently surfaced as a potential problem.
- A Diebold survey found that 56 percent of teleworkers surveyed mentioned
social isolation as a disadvantage, a proportion that rose to 70 percent among
women in the survey (Diebold Group, 1981).(36)
- A survey in the United Kingdom in 1983 reported that 60 percent of
teleworkers named isolation as the greatest disadvantage. 22 percent found it
such a problem that they would prefer to work in a satellite office or
neighborhood center.
- An extensive 1987 Hudson Bay survey found that the majority of
interviewees would miss the stimulation of exchanging ideas with colleagues.
Isolation is not a necessary by-product of home-based telecommuting.
Employers can minimize or overcome this problem by developing schemes that
enable teleworkers to maintain contact with the parent company, by means of
frequent meetings, briefings, social functions, etc. A certain amount of social
interaction is facilitated by a computer network. Neighborhood centers and
satellite offices can offer a high level of interaction.
It should be noted that most of the negative evaluations of this nature, and
others that report social isolation for single people, the handicapped, etc.,
typically are from studies of full-time, home-based telecommuters rather than
split week or satellite office telecommuters.
Career Advancement
"Out of sight, out of mind" is a serious concern of many workers.
Telecommuters often fear a loss of workplace visibility, and a threat to
personal and professional advancement through missed opportunities.(37)
Employees are also apt to feel that if they spend too much time out of the
office, it causes resentment among fellow employees.(38) Another possible
disadvantage for the individual employee is the reduced opportunity to become
involved with coworkers and the informal communication network at the
office.(39) Indeed, being "out of the loop" can be a real problem in
a work culture which draws strongly on informal contact.
A related concern is that the telecommuter may be handicapped in developing
knowledge and skills in the job that lead to wider responsibilities for work and
the management of others.
Performance Appraisals
Just as managers must come to terms with new and more complicated
performance appraisal situations, employees may fear that their supervisor will
not meet that challenge fully so that their evaluations will suffer. It is a
reasonable fear that if the supervisor is more distant from performance of the
work, he or she may be less able to appreciate the obstacles or complications
which impede progress or limit quality.
Support Services
Many information workers make frequent use of various technical support
services -- documentation, graphics, clerical, library, etc. In principle,
careful scheduling of telecommuting days, good planning, and exploitation of
facsimile transmission, voice mail, and electronic mail, and linkage to computer
networks should prevent significant diminution of support. However, for workers
accustomed to having these services constantly at hand, the adjustment can be
difficult and even threatening. Lack of clerical support or equipment
maintenance may cause uneasiness about equipment or software failure.
Job Satisfaction
Whether the consequences of telecommuting are positive or negative depends
upon the worker, what type of telework is involved, where it is performed, and
under what contractual agreement. Autonomous professionals have their autonomy
reinforced by working at home, while clerical employees regulated by control
measures can find their autonomy reduced still further vis full-time permanent
employees.
Evidence for increased or decreased job satisfaction, quality of life,
promotion potential, and supervisory support is ambiguous, and the various
worker satisfaction measures do not correlate significantly with
productivity.(40) Studies of homework and family relationships have found that
these linkages are important but not easy to analyze and in need of further
study. The literature suggests that telecommuters from government agencies
report greater satisfaction and productivity gains than those of private
employers. No significant correlation was found between gender, age, or
educational level and telecommuting satisfaction or productivity, and their
studies showed that the evaluation system and level of supervisory support
(emotional and technical, including equipment, software, etc.) were important to
satisfaction.
Kathleen Christensen, director of the National Project on Home-Based Work at
the Graduate Center of CUNY, notes that the home work environment can turn
employees into lonely contract workers, without fringe benefits and job
protection, and speeded up past endurance.(41) She feels that disabled workers,
elderly and rural residents, and other classes of people without options can be
caught in traps that belie the favorable popular images of telework.
Lotte Bailynn cites earlier work by Pratt, Olson and Ramsower in support of
the "segmented nature of the work-at-home option" insofar as it
involved the vulnerability of women doing clerical work as an alternative to no
work, in contrast to part-time male telecommuters who were usually men with
scarce skills(42). Bailynn also studied (1987) 55 workers in a largely female
formalized home-based workforce in the United Kingdom, and compared them with 55
office-based systems developers from a different unit of the same company. The
design of this analysis allowed for differences in gender, in roles, technical
or managerial, and in family status. Less difference between managerial and
technical roles was found in the home-based group, and less compartmentalization
of tasks; but even in this relatively privileged population, with full benefits
and high skill levels, the women assessed their situations as much better than
not working at all, but as a conscious sacrifice of money and power for family
values. Male telecommuters have reported improvements in their family and
leisure lives, while women clerical workers have often experienced greater
stress and less leisure.
Overworking
Telecommuters have complained of working too many hours and of "not
knowing when to quit." Anecdotal accounts also describe many telecommuters
as "workaholics." Workers say this is a factor that they could
control if they chose to. However, it is possible that pressure from their
organization, perhaps in the form of competition with peers for promotion, is
the cause of "working too much." Related to the problem of working
too much are telecommuters' reports of "less time to myself" and "less
time with my family." Many telecommuters found it "hard to separate
personal and work life."
Work Style
The notion of telework has absorbed a great deal of societal anxiety about
changing work and family roles, so that it is not surprising to find polarized
views of effects on workers.(43) Both information and relationships change with
distributed work settings, e.g., E-mail conveys information with a different
tone and disseminates it more quickly than face-to-face or phone contact.
Workers may find it difficult to abandon a "familiar" working
environment to face the challenge of new social and personnel arrangements.(44)
Some individuals are much more comfortable dealing with others on a face-to-face
basis, perhaps emphasizing casual or informal contacts, than in the more
structured style imposed by telephones and messages. While concerns based on
matters of personality can often be alleviated with time and experience, there
will be workers for whom these characteristics determine whether telecommuting
is appropriate, and if it is, what form and frequency it should have.
Work/Life Boundaries
Blurring of the boundaries between work and personal life is a concern for
many telecommuters. According to U.S. TeleCenters (a Boston-based distributor
of telecommunication equipment), telecommuters often work 7 not just 5 days a
week from "9 to 5". Some telecommuters work too much; they become
unable to walk away from the home office in the evenings and on weekends, which
eventually can lead to burnout.(45) This effect can be intensified by a desire
to justify telecommuter status be achieving higher productivity. An A&T
Bell Laboratories test also identified the lack of clear separation between work
and home life, and the loss of casual office interactions as problems.(46)
POLICIES OF GOVERNMENT AGENCIES
Governmental entities are initiating policies to reduce transportation
social costs and inducing organizations to adopt programs to decrease the number
of trips made by their employees. In some areas, these policies include an
extra bonus for trip reductions obtained by telecommuting. By using these types
of regulatory devices, government can exert some influence on the level of
adoption of telecommuting by individuals. However, the language of legislation
can operate as a barrier to the development of useful telecommuting schemes that
do not fit its definitions since companies are constrained from attempting
innovations that do not meet the law.(47)
TECHNOLOGY AVAILABILITY
Potential Technology Barriers to Telecommuting Growth
Until recently, the technology required for effective telecommuting was
limited in capacity.(48) However, it appears that few telecommuting
applications today are hampered by the lack of suitable technology, although in
some cases it may not be cost-effective to use.(49) For example,
videoconferencing systems are available but high cost, bulkiness and technical
limitations hamper use in remote work. An on-site meeting with employees would
be more cost-effective.
The reduction in the costs of electronic equipment has not been matched by a
reduction in the cost of telecommunication charges, which are still often based
on volume, thus discouraging the diffusion of telework.(50) The most
significant lags at present are in telecommunications software and network
interconnectivity.(51) Different networks are not always compatible and their
integration is difficult to achieve.(52) The National Telecommunications and
Information Administration (NTIA) of the Department of Commerce has determined
that a key pacing factor in the deployment of broadband communications and other
technologies that will expand opportunities for telecommuting in the years ahead
is the adoption of standards that all manufacturers and service providers can
follow.(53) The Clinton Administration's strong support for advancing the
nation's information infrastructure will inevitably strengthen the technical
foundation for telecommuting and focus attention on a wide variety of
tele-substitutions.
Views differ as to whether the current telecommunications infrastructure can
support broad-base telecommuting. In his testimony before the Subcommittee on
Telecommunications & Finance in July 1992, Dr. Charles E. Grantham,
University of San Francisco, stated technology is not the barrier. The
technological base necessary to support the emergence of the electronically
distributed work place is largely in place. Appearing before the same
Subcommittee, Mr. Charles Oliver, Senior Policy Advisor, NTIA, U.S. Department
Of Commerce, presented an opposing view. Mr Oliver testified that the
telecommunications infrastructure is not always available to support
telecommuting. In his testimony, he stated that the practicality of
telecommuting is heavily dependent on the kind of telecommunication
infrastructure that is locally available. Clerical work and routine
conversations can be accommodated over existing networks, provided that adequate
switching capabilities are provided. But even so fundamental a service as
switching does not meet every employer's needs. For example, Blue Cross/Blue
Shield was unable to locate a 150-person claims processing office in Willows,
CA, because the local telephone company's switch was incapable of handling
high-speed data communication from desk-top computers. For Blue Cross/Blue
Shield and many other employers, remote work sites are practical only if linked
with efficient communications. Although this example does not involve
telecommuting, the situation is basically analogous to that of a telework
center.
Mr. Oliver also stated that some companies preferred face-to-face
conversations. Videophones could provide a medium for many such interactions;
however, the existing telephone network is not able to support ubiquitous,
high-quality videophone service at an affordable price.
Also appearing before the Subcommittee on Telecommunications & Finance
was Mr. E.M. Risse, Coprincipal, Synergy/Planning, Inc. Mr Risse testified that
the telecommunications infrastructure, while of critical importance, is the
easiest and the cheapest type of infrastructure to place in the urban region.
He commented that the growth of telework and telecommuting is primarily an
organization, culture, and perception issue, not a technology or
telecommunications issue. In over 20 years of working with these concepts, Mr.
Risse has not encountered a significant technological limitation of
telework/telecommuting.
The cost of telecommunications services has not declined to the extent that
equipment cost has, and network incompatibilities and the difficulty of setting
up wide-area networks are still barriers.(54) As yet, no truly global and
transparent data network exists, while at the low (small company) end, cost,
pricing, and features incompatibility are still factors.(55) The 1990 LINK case
studies report suggests that the cost of technology is rarely a factor. LINK
found that dirty or overloaded lines have been a problem in some geographic
areas.
The slow pace of technology standards agreement and adoption could be a
deterrent to the growth of telecommuting. Electronic mail is one example of a
technology that comes in many "flavors," mostly proprietary by vendor.
The only international standard is the CCITT X.400 messaging system that is
very slowly gaining acceptance and being integrated, in many cases by fiat, in
large companies and governmental organizations. Many other not-yet-standardized
technologies, such as forms, database query, and distributed transaction
processing, constrain telecommuting because of the lack of standardized,
low-bandwidth, reasonably priced services.
As suggested by the above discussion, the question of whether limited
telecommunications services currently are a serious impediment to telecommuting
is approached from widely divergent viewpoints. Some individuals in the
telecommunications community, acutely aware of the high level of functionality
potentially available in a home office using today's sophisticated technology,
see inadequate telecommunication services as a serious impediment to
telecommuting now and in the near future.
On the other hand, those in the telecommuting world looking at the tools
needed to implement realistic programs often have a different view. They tend
to see the technology as largely satisfactory, with the real barriers residing
primarily in the guarded response of employers and workers to a major change in
the way work is done, and to legitimate concerns over potential disadvantages
and uncertain benefits. While desktop computers now pervade much of the
business community, the great majority of office applications are relatively "low-tech,"
primarily word processing. Even effective electronic mail and networks for
document sharing are far from ubiquitous in American business. Thus, it is not
clear that large numbers of people are prevented from telecommuting merely by
telecommunications limitations other than in localized situations. Indeed, the
LINK Resources study indicates that many telecommuters do not even have
computers at home. For many workers one of the advantages of telecommuting
occasionally is to work undisturbed. As advanced telecommunications and
computer applications become more fully integrated into corporate America,
similar capabilities will be needed to support a growing portion of home
workers. The near-term (5- to 10-year) importance of video is not clear. From
a longer time perspective, it is likely that high-bandwidth video service will
be of great importance to the entire economy, and telecommuting and telework
generally will be a modest but important element of a much larger and very
demanding telecommunications market.
Regardless of whether one believes that the current telecommunications
infrastructure is sufficient at present, two points are clear. First, current
technology allows many people to telecommute successfully today. Second, the
deployment of a nationwide broadband network would make it easier to telecommute
in the future.
REGULATORY, LEGAL, TAX, AND OTHER INSTITUTIONAL ENVIRONMENT
Legal and Regulatory Issues
Telecommuting touches on many different areas of the law, some of which are
extremely complex and will require test cases to be brought before they can be
unambiguously clarified.(56) It is possible that a general lack of clarity
about the legal status of teleworkers may have acted as a deterrent to setting
up telework schemes in some cases.(57) However, it seems unlikely that legal
prohibitions will be brought into effect which will restrict the growth of
home-based telework.(58)
Zoning Restrictions and Planning Regulations
There are several potential regulatory barriers to home-based telecommuting,
the most important of which are local zoning codes that prohibit home-based
work. The city of Los Angeles is modifying zoning laws to promote
telecommuting. Los Angeles also specifically includes telecommuting as a
congestion reduction option for prospective developers of large office
buildings. Other regulatory options being proposed to encourage telecommuting
are mandatory parking fees for workers and preferential business telephone rates
for telecommuters and/or their employers.(59)
Zoning laws and regional development regulations can influence the nature of
telework development. Some cities have laws prohibiting home-based work of any
type.(60) Zoning restrictions in most counties limit the use of the home as a
work place, but telework might easily go undetected.(61)
The deterrent effect of zoning regulations on telework is difficult to
quantify. Planning regulations tend to be extremely complex, varying
considerably from one locality to another both in their content and in the
degree to which they are enforced (Holden, 1984; Bureau of National Affairs,
1986; Gordon & Kelly, 1986).(62)
Only one example was found of a situation where zoning rules have posed
problems for teleworkers. A particularly strict Chicago zoning ordinance was
invoked to stop a teacher and his wife from writing a textbook or developing
software programs on the home computer (Rubins, 1984).(63) Should telework
become widespread, changes in zoning laws will undoubtedly be required. In the
meanwhile, these cannot be regarded as a major constraint on its
development.(64)
Tax Implications
Current tax laws and regulations are not conducive to telecommuting and may
need to be changed to encourage the widespread adoption of telecommuting. By
narrowly defining a "home business," income tax regulations discourage
using the home as a workplace. Individuals may deduct expenses for a home
office only under very restrictive circumstances. According to IRS guidelines,
"regular" work is allowed but "occasional" work is not.
Existing state tax laws are also a barrier to cross-state telecommuting. A
telecommuters' work may subject an employer to state corporate franchise taxes.
Ohio's corporate franchise tax was applied to an Indiana-based employer on the
basis of one telecommuting employee who lived in Ohio.(65) Although the
telecommuter was the only employee working in Ohio, the corporate franchise tax
was assessed on the percent of total corporate sales made to Ohio addresses.
State income tax laws also create potential problems. For example, New
Jersey and New York state income taxes are based on where the work is actually
performed, requiring employers to modify payrolls systems to record where the
telecommuter worked each day and withhold New York and New Jersey income taxes
accordingly.
New Jersey also requires New York firms employing New Jersey residents as
telecommuters to register with New Jersey to perform business in the state when
the work being performed would not normally require registration.
Liability/Insurance
The question of insurance is closely connected with that of contractual
status. Employees can expect their health insurance contributions to be paid by
their employers, who are also responsible for employee liability, personal
injury, and other types of insurance. In cases of self-employment, these become
the responsibility of the individual teleworker.(66) The responsibility is less
clear-cut in other cases, and much depends on individual contracts and the small
print of particular insurance policies. Some questions which need to be asked
are: who should be responsible for the loss or damage of data or equipment used
in telework? Who should be responsible for injury to third parties caused on
the teleworker's premises? Who is insured for delivery and pickup of work?
(Gordon & Kelly, 1986) There is no case-law in these areas so the answers
must be speculative. In only one case, involving telework for the US Army, have
insurance problems appeared sufficiently adverse to affect the outcome of the
scheme. Here, government liability, protection of government property, and
workmen's compensation were all perceived as problems. Along with security
difficulties, these led to the discontinuation of the project, despite the
development of a "hold harmless" agreement absolving the government of
responsibility, which all teleworkers were required to sign (McDavid, 1985).(67)
Health and Safety
As with insurance, legal responsibility for health and safety of teleworkers
will vary according to their employment status. Telecommuters, if true
employees of the company, are covered by the Occupational Safety and Health Act
(OSHA), but in practice, effective implementation is virtually impossible
(Bureau of National Affairs, 1986). Telework contracts/collective agreements
sometimes have provisions requiring inspections and covering all aspects of
homework, including safe and comfortable working conditions in the home, and
realistic work standards. However, adequate levels of safety and health
protection for teleworkers may be jeopardized by the difficulties in carrying
out inspection.(68) There is no evidence that the fear of becoming liable for
industrial injuries or diseases is currently a deterrent to the employment of
teleworkers. However, in the United States, there is a fear that the enactment
of legislation to regulate the use of Video Display Terminals to minimize health
hazards would restrict the development of telework. It would become very
difficult for employers to ensure compliance at remote sites (Gordon and Kelly,
1986).(69)
Protection of Workers' Rights / Union Opposition
Telework at home has generally been regarded negatively by trade unions.
Telework was initially perceived as a modern form of industrial homework, which
is traditionally associated with low wages and substandard working conditions.
Trade unions fear the fragmentation of the workforce with the consequent
isolation of teleworkers, making them particularly vulnerable to exploitation
and at the same time difficult to organize. This apprehension resulted in the
adoption of positions opposing telework, with some unions calling for its
prohibition. However, given the attractiveness of telecommuting for many
workers, it appears that this issue can generally be resolved by good-faith
efforts to address the real concerns.
Regulation / Banning of Homework
There are no current Federal restrictions on work at home except for a few
garment occupations under the Fair Labor Standards Act (FLSA). However, in some
states there exists partial or total bans on employment of home-based workers to
carry out certain types of work (frequently garment making or other forms of
manufacture associated with the traditional sweat shop trades). Even where
these are not prohibited, they may be governed by regulations concerning minimum
wages, leave provisions, and health and safety practices.(70)
Protective legislation concerning the length of working time is very
difficult to enforce for teleworkers, who may have difficulties trying to
combine family and work duties. There may be pressure to work at night or on
the weekend or for prolonged periods in order to met deadlines. Overtime,
perhaps without compensation, may be habitual and may take the form of
individual, quite substantial work just to complete the "extra bit"
which is required. At the same time, teleworkers may be asked to be on standby
or work overtime during peak periods, while being paid only for the hours
actually worked.(71)
In recent years, a highly polarized debate has grown concerning the question
of deregulation. On the one hand, the AFL-CIO has called for a total ban on
electronic homework for clerical-level workers (National Research Council, 1985;
Peles, 1985). In 1983, the AFL-CIO and the Service Employees International
Union called for "an early ban on computer home work by the Department of
Labor as a measure of protection for those workers entering the fastest-growing
occupation in the United States." It argued that "homework has
historically led to worker exploitation," and that "the piecework
nature of computer work increases the risk of employee exploitation." It
claimed that "leaving the home computer industry unregulated will have a
devastating impact on the well-being, wages, hours, and working conditions of
homeworkers. Moreover, the enforcement of wage, hour, and safety standards in
the home is absolutely impossible."(72) On the other hand, there have been
various attempts to repeal what legal restriction currently exists. Particular
controversy surrounded the celebrated "Vermont Knitters" case, when a
group of would-be home-knitters who had successfully applied to the Labor
Department to have the proscription on home work lifted found themselves opposed
by the International Ladies' Garment Workers Union, supported by unions and some
state officials (Beck, 1984). In 1986, the Department of Labor proposed lifting
the ban on homework, a proposal which was opposed by the garment industry
unions. In the same year, New York moved in the opposite direction by
instituting a new law designed to crack down on sweat shops and illegal
industrial homework. White collar homework, however, would be unaffected.
(Bureau of National Affairs, 1986).(73)
Contractual Relationships / Compensation and Benefits Issues
The fear of loss of employee status occupied a central place in trade union
arguments against telework. Some companies have identified their teleworkers as
independent contractors to reduce expenses and avoid the costs of employee
benefits. These contractual relationships between a company and its employees
stating whether the teleworker is an employee or independent contractor can
create legal problems. U.S. case law suggests that the critical factor in
deciding whether or not a worker is an employee is the degree of dependence on
the supplier of the work. The criteria used for assessing this can be
summarized as:
- The degree of control over the work;
- Opportunities for profit and loss;
- Whether risk capital is supplied;
- The degree of permanence of the relationship; and
- The amount of skill and initiative contributed by the worker (Elisburg,
1985).
To date, there have been only two reported cases of teleworkers taking legal
action in an attempt to establish employee status. In one case, eight
home-based claims examiners sued California Western States Life Insurance
Company, charging that the company's claim that they were independent
contractors was incorrect. The case has not been resolved. In the second case,
the Department of Labor brought suit against Dial America Marketing. The U.S.
Court of Appeals for the Third Circuit found that the home-based telephone
number researchers were not independent contractors but employees subject to the
minimum wage and record-keeping requirements of the Fair Labor Standards Act
(Bureau of National Affairs, 1986).(74)
On the whole, this is an important factor affecting the income of
teleworkers since companies tend to provide the necessary equipment for
teleworkers. However, some teleworkers, often freelance workers, have to
purchase or hire their equipment.(75) Overtime compensation, an important
consideration in the computer industry, is also an issue.
The greatest problem for management is that they do not want to acknowledge
that the relationships fostered are more like customer to contractor than boss
to employee. The reverse side of this coin is that companies switch workers to
independent contractor status, or contract out otherwise to keep costs down by
denying benefits.(76) On the other hand, companies like Pacific Bell and JC
Penney have adopted policies by which workers and companies both win.
More recently, however, the moderate rate of telework and the involvement of
various categories of workers (from highly qualified and highly paid to
semiskilled and poorly paid) have led trade unions, while still critical, to
take a more moderate and watchful approach. In the past few years, the actions
of a number of trade unions has consisted largely of producing discussion papers
or documents examining the nature and extent of telework and listing its
advantages and disadvantages.
There is evidence that unions are softening their stand towards
telecommuting. One union (the Communications Workers of America) has, at least
on the local level, taken a different position. The union has developed
guidelines to be followed by pilot project participants. These are as follows:
- Equal pay and benefits for telecommuters and other employees performing
the same work.
- Requirements that telecommuters work from the office a minimum of 2 days
each week.
- Limiting visits by managers to a telecommuter's home to no more than twice
a month with a minimum of 24 hours' notice.
- Company-furnished equipment and supplies (including telephone equipment)
and reimbursement for additional utilities and insurance costs paid by the
employee. The union also should have the right to inspect equipment at home to
ensure that it is safe and ergonomically sound.
- Routine advertisement to telecommuters of job openings and advancement
opportunities. The union also calls for a message from the union to appear on
the home computer screen when telecommuters log on, and for assurance that
telecommuters will be given time to consult regularly with union stewards.
- Prohibitions against excessive monitoring of remote workplaces and notice
of monitoring to employees.
- No preferential scheduling for telecommuters.
- Training to be provided to telecommuters to keep them up to date with new
technologies.
- Assurance that employees will not be hired directly into telecommuting
jobs, and that any employee participating in a home-based work program should
have the option to terminate the agreement.(77)
SUMMARY OF RELEVANT FACTORS
This study has not identified any insurmountable barriers to telecommuting.
While legal issues may pose problems for companies and would-be
telecommuters, very few actual test cases exist to conclude that legal issues
present a significant barrier to telecommuting. In more than a year of
investigation by members of the Virginia Governor's Task Force on Telework and
Telecommuting, the only example of a potential legal, governmental or
technological barrier to telecommuting has to do with a possible tax liability
under some state statutes of an employer not doing business in the state where
the employee lives.(78)
Although employer liability is frequently cited as a major concern for
telecommuting,(79) Pacific Bell, which has one of the largest telecommuting
programs in the country and has been involved in telecommuting for over 8 years,
has yet to show a Workman's Compensation or other employer liability case
arising from telecommuting. In general, organizations that have been successful
in adopting telecommuting also adopt a set of guidelines that clearly state the
responsibilities of both the organization and the home-based telecommuters in
these areas. These guidelines should also cover contingency plans for down time
resulting from equipment malfunction, family crises, etc.(80)
Overall, technological limitations have not proven to be a significant
barrier to telecommuting; however, development of an advanced communications
network could only serve to facilitate and encourage telecommuting in the
future.
BASELINE ESTIMATES OF POTENTIAL TELECOMMUTERS
Current and Potential Numbers of Telecommuters
The determination of the number of potential telecommuters requires
definition of the telecommuting universe (as shown in Figure 10) - actual
telecommuters as a subset of potential telecommuters, potential telecommuters as
a subset of information workers, information workers as a subset of the total
labor force. At each level there occurs a filtering out of workers as
telecommuters for various reasons - inappropriate jobs, individuals, and/or
circumstances.
Estimates of the amount of existing and projected telecommuting vary widely,
often because they are based on different definitions of the term. Researchers
use a variety of definitions depending on the purpose of their survey. Another
problem in enumerating telecommuters is that most contemporary telecommuters are
employees of organizations that have no formal telecommuting policies/programs,
so it is difficult to identify them.
The variety of definitions of telecommuting have resulted in wide variations
of estimated impacts, present and future, of telecommuting and its
transportation impacts.
Population/Labor Force
According to projections by the Bureau of Labor Statistics, the growth of
the U.S. labor force is expected to slow perceptibly between 1988 and 2000. The
overall labor force, which was 83 million in 1970, is projected to be 70 percent
larger in 2000 -- the effect of increased population and increased labor force
participation. But growth has been decelerating: between 1970 and 1980, the
labor force grew by 2.6 percent annually and between 1980 and 1988 by 1.6
percent. The rate of increase is projected to slow to 1.2 percent over the
1988-2000 period. Labor force figures for this analysis were obtained by
increasing the 1988 base year by 1.2 percent annually.
Information Workers
Information occupations play a large role in today's economy, accounting for
over 50 percent of the labor force. As fewer workers are involved in physical
production, more information related jobs are evolving. Porat's The
Information Economy divided the work force into 4 sectors, Agriculture,
Industry (manufacturing), Service, and Information. The relative size of each
sector is shown in Figure 11.
The information sector is the one of primary interest. "Information
work" should not be seen as involving only information technology, advanced
computer systems, etc. Information workers are simply individuals whose primary
economic activity involves the creation, processing, manipulation or
distribution of information. It is generally agreed that most information
workers, because of the nature of their job functions, could potentially
telecommute at least on a part-time basis. However, the counting of information
workers, and thus of potential telecommuters, is not straightforward. This is
due to the gross nature of census occupational data and the fact that there are
many job functions, not typically categorized in the information sector, which
deal with information to such an extent that telecommuting is possible at least
part time. The ultimate fraction of the total labor force that will be involved
with information work is not clear.
The analysis in this report is based on the assumption that information
workers currently constitute about 56 percent of the U.S. workforce, and will
gradually increase to around 59 percent in 2002, as shown in Table 5.
Table 5. Population/Information Worker Projections
|
U.S. Population*
(millions)
|
Labor Force**
(millions)
|
Information Workers
|
|
Year
|
|
|
Number(millions)
|
Pct. of Labor Force
|
1992
|
253.3
|
127.6
|
72.1
|
56.5%
|
1993
|
255.2
|
129.1
|
73.3
|
56.8%
|
1994
|
256.9
|
130.7
|
75.6
|
57.1%
|
1995
|
258.7
|
132.3
|
75.7
|
57.2%
|
1996
|
260.5
|
133.9
|
76.8
|
57.4%
|
1997
|
262.3
|
135.5
|
78.2
|
57.7%
|
1998
|
264.1
|
137.1
|
79.6
|
58.1%
|
1999
|
266.0
|
138.7
|
81.0
|
58.4%
|
2000
|
267.8
|
140.4
|
82.5
|
58.8%
|
2001
|
269.7
|
142.1
|
84.0
|
59.1%
|
2002
|
271.6
|
143.8
|
85.5
|
59.5%
|
* 0.7% increase annually ** 1.2% increase annually
Rate of Adoption of Telecommuting
Telecommuting represents a fundamental change in the way companies and
employees view work. This kind of innovation would inherently require a
substantial number of years for widespread adoption even for jobs and
individuals perfectly suited to remote work, with supportive managers and
sophisticated technologies. The uncertainties about costs and benefits and the
need for individuals and firms to work out appropriate telecommuting programs
are matters which will take time to resolve. In some areas particularly
afflicted with congestion and air quality problems, these impediments will be
confronted by public sector requirements to reduce travel, and those situations
can be expected to be among the first to experience relatively widespread
telecommuting; the Los Angeles area is the leading example.
The high initial rate at which innovation can occur is suggested by the
example of introduction of the personal computer in the workplace. While not
directly comparable to the broader changes associated with telecommuting,
desktop computing also involves significant changes in the way work is performed
and organized, and has been affected by growing technological capabilities. The
number of personnel computers in the workplace increased 16-fold -- from
slightly over 1 million to 20 million -- between 1981 and 1988, with the annual
growth rate at the end of that period still almost 30 percent. Similarly, in
only 2 years (from 1985 to 1987) telecommunications revenues for both cellular
mobile radio and local area network connections tripled. Internet, a network
linking many university, corporate, and government computers, experienced a
five-fold traffic increase between 1990 and 1992.
Thus, it is clearly possible for an innovation such as telecommuting to
spread rapidly once a cost-effective technological foundation is in place, given
that the innovation is truly useful to a large portion of the population. To a
significant and rapidly increasing degree, communications services and
electronic technologies are making it possible for many people to work almost
anywhere. For telecommuting, a favorable environment -- the transition to a
service economy consisting to a large degree of information workers, coupled
with steadily growing reliance on information technology -- has been established
and itself is still increasing at a high rate. The near-term rate of expansion
of telecommuting thus, will depend largely on the benefits it offers firms and
individuals, moderated by the rate at which all people and organizations can
incorporate changed work styles. Only when a large portion of potential
telecommuters have become practitioners would the growth rate be ?expected to
taper off.
The very high rate of growth possible in the very early stages of innovation
is consistent with the findings of the LINK Resources work-at-home survey. In
just 2 years, that survey indicated a doubling of telecommuting by employees
from 2 million to 4.2 million. If restricted only to that subset of workers
whose telecommuting is associated with their regular job, and not with
after-hours work for other firms or personal customers, the growth is more than
five-fold: from 0.44 million in 1990 to 2.36 million in 1992.
Exogenous factors which could influence growth rates include:
- Increased government and market pressures for telecommuting
implementation.
- The level of telecommunications technology and network enhancements.
- Faster-than-projected implementation of enhanced technologies (such as
ISDN and continuing expansion of personal computer technology).
- The widespread enactment of regulatory incentives such as increased gas
taxes, mandatory parking fees, elimination of parking subsidies, and Central
Business District parking surcharges.
- Enactment of direct incentives such as tax rebates and/or deductions for
employers of telecommuters or for telecommuting employees.
Potential Number of Telecommuters
Given a projection of the number of information workers and a sense of the
rate at which telecommuting could be adopted, it remains necessary to assess the
degree to which information workers can and will become telecommuters. Many
conditions must be met for a person to become an active home-based telecommuter.
Dominant considerations are as follows:
- The job must be suited, at least in part, to performance at a remote
location.
- The capabilities and personal characteristics of the employee must be
appropriate to working with little or no direct supervision.
- The employing firm must accept telecommuting as a legitimate and desirable
activity, provide necessary support, and must have appropriate information
technology applications.
- The supervisor or manager of the employee must accept the concept and
practice of telecommuting.
- The employee must feel comfortable with telecommuting in terms of its
suitability to his or her personal work habits and style, its reduction of
social interaction, and its relationship to advancement and career.
- The employee must have a suitable workplace and working time free of
distractions (such as child care responsibilities).
- Available technology, particularly telecommunications services, must be
adequate and cost-effective for the work to be performed at home.
Even if all of these conditions are met, it is still necessary that the
business and the worker be motivated toward telecommuting. The local
transportation environment will be critical in this. Severe congestion,
stringent transportation demand management practices, and lack of public transit
will typically be a powerful incentive for telecommuting.
While all of these conditions can clearly be met in many cases, it is also
apparent that each will filter out a portion of the potential telecommuting
population. Their cumulative effect is likely to be substantial. As
telecommuting becomes more established and experience accumulates on this new
way of working, it may turn out that the factors listed previously shrink to a
low level of importance. However, without evidence to the contrary, all must be
considered as significant constraints on the speed and ultimate level of
implementation of telecommuting.
Some of the factors listed above lose much of their importance in the case
of telecommuting centers close to the home. Although the work is performed
remotely, it will still be in a relatively conventional workplace environment
and is likely to provide significantly better telecommunications services and
other supporting functions. On the other hand, it will typically represent a
significantly greater investment for the employer. Most importantly from the
perspective of this report, remote work centers will typically only shorten,
rather than replace, the daily commute. Their impact will thus depend on the
whether they proliferate to the degree that they are very close to the workers
they serve. A compensating factor is the likelihood that people working at a
center are likely to telecommute more often, perhaps nearly full time. When
this occurs, the expense of providing the facility may be balanced to some
degree by not having to provide an office at the regular workplace.
Several studies have attempted to arrive at quantitative estimates of the
upper bound of substitutable transportation behavior. Most center around the
idea that certain work roles with certain job functions may be susceptible to
performance from remote locations. Figures between 10 and 20 percent are most
often quoted. These are based on assumptions about the location and mix of work
roles in the future economy and conjectures about the susceptibility of those
work roles to substitution.
In this way Nilles has developed forecasts based on a relatively detailed
examination of the subject, and his values are used as a starting point for the
analysis presented in this report. He foresees an exponential growth during the
early 1990s, followed by an approximately linear increase from 1995 to about
2010 at a rate of approximately 10% per year, nearing saturation in 2030 at 60
percent to 70 percent of the information worker population. These projections
are explicitly speculative; Nilles notes "Since we are still at the
relative beginning of the major growth curve of telecommuting it is not possible
to make definitive forecasts. In fact, there is a growing literature supporting
the allegation that definitive forecasts of complex, chaotic phenomena
are impossible for other than very short periods into the future. That does not
diminish the importance of understanding the major forces at work so that the
scope of alternative outcomes can be suitably restrained."
During the period 1992-2002, the timeframe chosen for this report, these
projections yield an increase from 2 million telecommuters (1.6 percent of the
labor force) to 15 million (10.4 percent), an average annual growth rate of 22
percent. Graphs showing both the short-term and long-term projections are
presented in Figure 12. While not unprecedented, the assumption of sustained
growth at these rates could be unrealistic, particularly given the behavioral,
societal, and institutional changes involved. Thus, in order to reflect the
uncertainty of the analysis, this report also calculates potential
transportation impacts based on a lower bound scenario for which only half as
much telecommuting occurs. Figure 13 shows the upper and lower bound scenarios
used for subsequent analysis, and, for reference, a curve representing 20
percent of the population of information workers. The data for both cases is
shown in Table 6, along with the percentages of information workers and total
labor force telecommuting.
Table 6. Telecommuter Projections
|
|
|
Projected Telecommuters
|
|
|
|
|
Upper Bound
|
|
|
Lower Bound
|
|
|
Year
|
Number
(millions)
|
Pct. of Labor Force
|
Pct. of Information Workers
|
Number
(millions)
|
Pct. of Labor Force
|
Pct. of Information Workers
|
1992
|
2.0
|
1.6%
|
2.8%
|
2.0
|
1.6%
|
2.8%
|
1993
|
2.5
|
2.0%
|
3.5%
|
2.5
|
2.0%
|
3.5%
|
1994
|
3.2
|
2.5%
|
4.3%
|
3.1
|
2.4%
|
4.2%
|
1995
|
4.0
|
3.0%
|
5.3%
|
3.7
|
2.8%
|
4.8%
|
1996
|
5.0
|
3.7%
|
6.5%
|
4.2
|
3.1%
|
5.5%
|
1997
|
6.2
|
4.6%
|
7.9%
|
4.8
|
3.5%
|
6.1%
|
1998
|
7.6
|
5.5%
|
9.5%
|
5.3
|
3.9%
|
6.7%
|
1999
|
9.2
|
6.7%
|
11.4%
|
5.8
|
4.2%
|
7.2%
|
2000
|
10.9
|
7.8%
|
13.3%
|
6.4
|
4.6%
|
7.8%
|
2001
|
12.9
|
9.1%
|
15.4%
|
6.9
|
4.9%
|
8.3%
|
2002
|
15.0
|
10.4%
|
17.5%
|
7.5
|
5.2%
|
8.8%
|
Figure 13. Telecommuting Forecast
Allocation of Telecommuters Over Various Forms of Telecommuting
Each of the forms of telecommuting has the first-order effect of reducing
work-related travel to some extent. The trip, energy, accident, and pollution
reduction implications are different for non-home-based (satellite, regional,
local) telecommuting than for home-based telecommuting. Therefore, it is
necessary to subdivide telecommuters into these five categories. Varying growth
rate and saturation parameters for the following 5 main telecommuting options as
defined by Nilles, are used. Table 7 shows the estimated percent of
telecommuters in each of the categories from 1992 through 2002. 1992 numbers
were generated from actual current telecommuter numbers from LINK Resources.
2002 numbers are Nilles' estimate of telecommuters for the year 2002. 1993-2001
numbers are a straight line estimation between these 2 points.
Telecommuting Frequency
For determining the transportation impacts of telecommuting, how often
people telecommute is as important as how far they avoid driving.
Telecommuting frequencies for the 10-year period range from:
2 - 3.1 days/week for home/CBD
2 - 4.1 days/week for regional/CBD
1 - 1.5 days/week (home) for home/regional
4 - 3.8 days/week (regional) for home/regional
5 days/week for full-time home and full-time regional
Table 7. Home / Regional Center Telecommuter Mix - As %
of Total Telecommuters
|
1992
|
1993
|
1994
|
1995
|
1996
|
1997
|
1998
|
1999
|
2000
|
2001
|
2002
|
Part Time
Home/CBD
|
84.00
|
80.31
|
76.61
|
72.92
|
69.22
|
65.53
|
61.84
|
58.14
|
54.45
|
50.75
|
47.06
|
Part Time
Regional/CBD
|
0.06
|
0.17
|
0.28
|
0.40
|
0.51
|
0.62
|
0.73
|
0.84
|
0.96
|
1.07
|
1.18
|
Part Time
Home/Regional
|
0.37
|
1.86
|
3.36
|
4.85
|
6.34
|
7.84
|
9.33
|
10.82
|
12.31
|
13.81
|
15.30
|
Full Time Home
|
15.00
|
13.76
|
12.53
|
11.29
|
10.05
|
8.82
|
7.58
|
6.34
|
5.10
|
3.87
|
2.63
|
Full Time Regional
|
0.57
|
3.90
|
7.22
|
10.55
|
13.87
|
17.20
|
20.53
|
23.85
|
27.18
|
30.50
|
33.83
|
Total
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
Chapter 3 - Potential Transportation-related Impacts of Telecommuting
INTRODUCTION
Telecommuting and other forms of remote work are becoming more and more
widespread in the United States. Advantages often experienced by employers and
workers alike assure that this trend will continue, ultimately affecting a
substantial percentage of the national labor force. This chapter assesses the
nature and magnitude of the impact this innovation can have on transportation
and on transportation-related lost time, energy use, air pollution, and safety.
It also explores other social impacts associated with working at home or other
remote locations.
The starting point for this assessment is the estimate of total
telecommuting population presented in Chapter 2. Based on available data
concerning average trip distance for commuters, the total reduction in vehicle
miles traveled is readily calculated. Average values for fuel use, vehicle
emissions, and accidents are then used to establish direct estimates of time,
energy, environmental, and accident savings associated with telecommuting. The
results of this process are presented below. It must be emphasized that in
addition to the uncertainty of the estimates of telecommuting behavior, the use
of average values for other factors may be quite inaccurate in some specific
situations. Thus, estimates are considered highly approximate at best, and may
have only limited relevance to particular regions where parameter values differ
substantially from the national averages.
Further, there are many secondary factors to be considered that can modify
the results obtained in this direct manner. These and other
transportation-related impacts of telecommuting are discussed in the following
pages.
Changes in Travel Behavior
The approach described above implicitly assumes that the only effect of
telecommuting is to eliminate work trips and associated vehicle miles travelled.
This assumption clearly is not strictly true, since total travel behavior of
the telecommuters is likely to change in response to their new situation and
flexibility. In some cases these effects could potentially be comparable in
magnitude to the direct results of telecommuting.
As Sissine puts it: "Telecommuting entails a certain amount of change
in the lifestyle of a person. The telecommuter now works at home and can
allocate time to various tasks with increased flexibility. Telecommuting
releases some of the work-related constraints such as the commute to and from
work and the lunch hour which usually take place according to a fixed schedule.
This added flexibility in a telecommuter's life, as a result of the relaxation
of time-space constraints, may lead to changes in the travel behavior of not
only telecommuters but also their household members."(81)
The key question is whether the reduction in work trips might be balanced by
new trips made possible or necessary by telecommuting. Examples of possible new
or longer trips include:
- Shopping trips normally made while en route to or from work.
- Dropoff and pickup at a child care facility that otherwise would have been
part of the work trip.
- Trips by other household members made possible by availability of the
vehicle.
- Trips made possible by the time saving or more flexible work schedule
associated with telecommuting.
- Trips necessitated by working at home -- such as to the post office or to
obtain supplies.
- Relocation of residence, yielding a longer commute on office days, and
possibly more driving for shopping and services.
Full understanding of the impact of these effects will come only as
telecommuting becomes more widespread and further research is conducted.
However, initial findings from pilot telecommuting programs suggest that their
impact may be small. Hartman and colleagues report: "It has only been
within the past five years that a variety of telecommuting programs, mainly in
the public sector, have offered the opportunity to test some of these hypotheses
empirically. Transportation evaluations have been completed or are in progress
for programs involving the Southern California Association of Governments, the
state of California, the Hawaii Telework Center, the Netherlands Ministry of
Transport, Puget Sound multi-employer program, Los Angeles County, and several
other employers in Southern California. From these programs, several findings
are beginning to emerge:
- Commute travel is reduced;
- Non-commute trips do not increase;
- Telecommuters make proportionally fewer linked trips;
- Telecommuters tend to shift activities to destinations closer to home;
- Proportionally fewer peak period trips are made when telecommuting; and
- Evidence regarding the impact of telecommuting on residential relocation
is mixed."(82)
The results of an analysis of the State of California Telecommuting Pilot
Project, which was performed to determine the impacts on telecommuting on
household travel behavior, confirm that the pilot project home-based
telecommuters substantially reduced travel and were not offset noticeably by the
generation of new trips. On telecommuting days, the telecommuters made
virtually no commute trips, reduced peak-period trips by 60 percent, reduced
total distance traveled by 75 percent, and reduced freeway miles by 90 percent.
Telecommuters chose nonwork destinations that are closer to home; they exhibited
contracted action spaces after the introduction of telecommuting (on both
telecommuting and nontelecommuting days). The telecommuters distributed their
trips over the day and avoided peak-period travel on telecommuting days.
Nonwork trips, however, show similar patterns of temporal distribution on
telecommuting days and commuting days. Nonwork trips continued to be made
during the lunch period, late afternoon and evening hours. (83)
Collins asserts: "Telecommuters tend to shift activities to
destinations closer to home. Interestingly, telecommuters as well as members of
telecommuter households show a contracted activity space (on both telecommuting
and nontelecommuting days), indicating that they are not making the
longer-distance trips formerly engaged in by the telecommuter."(84) This
suggests a learning process by which new destinations, closer to home, are
discovered and (more or less) permanently adopted.
Based on these and other findings from pilot and demonstration programs, no
adjustment for changes in travel behavior is used in this assessment. However,
extensive research will be needed to determine their true impact in specific
circumstances, particularly as telecommuting becomes integrated into people's
lives.
In addition to Vehicle Miles Traveled (VMT) effects, impacts could occur on
air quality, congestion, and fuel usage as a result of other changes:
- Extended retention of vehicles, less fuel-efficient and with poorer
emission characteristics;
- Shift of driving to nonpeak periods; and
- Shift of driving to noncongested (less-urban) roads.
Impacts on Location
Historically, transportation improvements leading to reductions in commute
times have facilitated decentralization to lower-density or less expensive
housing on the urban fringe (Muller 1986). Jobs tend to remain concentrated at
centers or develop in other suburbs, while associated commuting distances and
commuting time tend to increase. Although telecommuting appears to bring great
improvements in transportation, it seems reasonable to expect similar effects,
at least in some cases. A primary question is whether long-distance moves
properly attributable to telecommuting have the net impact of creating more VMT
than are saved through not commuting to work every day.
Data derived from the California Telecommuting Pilot Project suggests the
following:
- In the first 2 years there was no significant difference in household move
patterns.
- Availability of telecommuting will influence household move decisions.
- Telecommuting does not as yet exacerbate urban sprawl and does produce net
reductions in household travel in proportion to the intensity of telecommuting.
- The proportion of state employees who could telecommute is high; one-half
of these employees had job characteristics that suggested telecommuting only to
centers. Therefore, the development of regional telework centers is an
important factor in future growth.
As Pratt reports: "Evidence regarding the impact of telecommuting on
residential relocation is mixed. In the 2-year data collection period of the
California Pilot Project, 6 percent of the telecommuters indicated that they had
moved, or were considering moving, 45 or more miles farther from work since they
began to telecommute. Of all those who moved or were considering moving, 28
percent reported that the ability to telecommute played a significant or
decisive role in the choice. It is important to note, however, that no
significant difference existed between actual moves of the telecommuters and
those of a control group, suggesting that on the whole, the moves that did occur
would have taken place anyway. In this particular study, any net increases in
VMT traveled because of long-distance moves were more than compensated for by
travel savings on the part of others. However, these are only short-term
results (for a relatively small sample); long-term residential relocation trends
are likely to be more pronounced."(85)
These factors are not incorporated in the estimates that follow. However,
they represent an important area of future research.
Changes in Modal Choice
Some mode choice changes resulting from telecommuting are probable:
- Telecommuting schedules may make it easy or even necessary for some
telecommuters to drop out of carpools and vanpools (which may or may not
dissolve themselves); they could also switch to driving alone on
nontelecommuting days.
- Telecommuters will not be using mass transit on telecommuting days,
causing transit revenue losses.(86)
- Household members may change modes if a vehicle is made available on
telecommuting days.
- Trips closer to home may shift to nonmotorized modes such as bicycle or
walking.
Mokhtarian and her colleagues summarize the situation as follows: "The
impact of telecommuting on mode choice has not been a major focus of the studies
conducted to date. While preliminary, small-sample findings seem positive
(Mokhtarian 1991a), there is also anecdotal evidence of negative impacts on
ridesharing. Thus it is desirable to analyze this aspect of travel behavior
more rigorously. In conducting such an analysis it is important to realize that
lower vehicle occupancies alone do increase congestion. As long as
telecommuting simply removes a passenger from an existing carpool or vanpool,
VMT will not increase - and will actually decrease (as a result of reduced
pick-up and drop-off portions of the trip) unless the members of the
carpool/vanpool have the same origin and same destination. It is only when
telecommuting contributes to the disintegration of the entire ridesharing
arrangement, so that multiple vehicle trips are made instead of one, that
negative consequences result. Many ridesharing situations already have some
built-in flexibility (e.g., a vanpool where it is possible to pay by the ride or
carpooling only a few days a week to allow individual activities to be conducted
on the way to or from work on remaining days). The impact of telecommuting in
these situations could be minimal."(87) For this analysis, it is assumed
that telecommuters will be pulled from the commuting ranks in the same
percentages that previously existed. This is considered to be reasonable in
view of the similarity of the demographics of telecommuters and solo drivers.
Congestion Mitigation and Latent Travel Demand
Traffic congestion can have direct and indirect cost impacts on business
activities. The direct costs of congestion that affect production costs include
additional labor costs associated with longer trips made by employees during
business hours, higher vehicle operating costs, and suboptimal vehicle use. The
trucking industry is both a contributor to and victim of traffic congestion.
According to FHWA officials, the annual cost of truck delays on freeways is
between $4.2 and $7.6 billion, based on vehicle operating costs and driver time
charges. Time losses on urban streets, docking areas, etc. could range between
$19.4 and $22.9 billion (excluding costs to industry such as lost sales
opportunities in not having products available on time).(88) Indirect costs of
traffic congestion include increases in accidents and insurance premiums; the
degradation or loss of employee productivity; and increases in delivery costs,
employee turnover, and recruitment problems. For example, a recent survey of
business leaders in 13 metropolitan areas found that about one-half indicated
that traffic conditions affected their businesses in terms of reduced
productivity and poor employee punctuality and morale, as well as increased
employee stress. In addition about one-third of those responding to this survey
indicated that traffic conditions had an influence on plans to develop or expand
their operations.
It is often assumed that from the worker's perspective, the most important
reason for telecommuting is to avoid the stress, unpleasantness, and lost time
associated with a lengthy trip to work on highly congested highways. Mitigation
of congestion and associated air quality benefits are at the heart of public
sector interest in many areas suffering from clogged roads. However, while the
congestion problem is clearly solved for the telecommuter, the broader impacts
are unclear.
One view is that removal of telecommuters' vehicles from the highway will,
in the aggregate, reduce overall congestion. Benefits are then substantially
larger than the energy, pollution, and safety gains associated directly with the
telecommuters' absence, since all vehicles on those now less-congested roads
will operate more efficiently, cleanly and safely, and the occupants will suffer
less delay. This effect can be large; control measures in Los Angeles during
the 1984 Olympic Games reduced congestion by 60 percent, although the drop in
traffic was only 7 percent. An ADL study suggests that congestion mitigation
benefits are comparable in magnitude to direct benefits associated with the
reduced travel of the telecommuters alone.(89)
On the other hand, it is often perceived that attempts to increase capacity
through construction of additional roads seems to stimulate traffic growth --
latent demand -- that quickly vitiates any gains. A similar argument could be
applied to the telecommuting case: the telecommuters might simply be replaced
on the highways by other people, formerly users of transit or members of
carpools, who observe that congestion has moderated to a point just below their
threshold of pain and return to their automobile. In this case, the
telecommuter still saves time, but the net societal benefits (in terms of VMT
congestion, energy, pollution, etc.) vanish.
The concept of latent demand absorbing the potential congestion gains is
contentious, and the degree to which it occurs, if any, will depend on the
particular circumstances. Latent demand might be very limited or absent in the
context of stringent transportation demand management measures or where
congestion is minimal. Estimation of the quantitative reduction of congestion
for each removed telecommuter is uncertain in any case, depending on very local
and specific factors. It would be very difficult to generate a convincing
overall average for the magnitude of this effect, and that estimate would shed
little light on the situation in any particular urban region.
In view of these complexities, any attempt to relate telecommuting to
congestion relief in a quantitative manner would be more likely to mislead than
to inform. Rather, the approach taken in this report is to develop estimates
only for the time, energy, pollution, safety, and cost savings directly
associated with trips replaced by telecommuting, for a specified baseline case.
No adjustment is made either for compensation due to latent or induced travel
demand, or for reduced overall congestion. However, all assumptions are
presented explicitly so that the reader may readily assess the values that would
be obtained for different assumptions or for any desired congestion adjustment.
These factors are among the largest uncertainties in estimation of the
transportation impacts of telecommuting, given a projection of the amount of
telecommuting which will occur.
Specific Assumptions and Limitations in the Analysis
The projection of the total number of telecommuters, as presented at the
conclusion of Chapter 2, includes the assumption of gradual growth in the total
United States workforce and a rise of the percentage of information workers.
The parameters used in converting those projections into vehicle miles travelled
(VMT) and related impacts (energy use, emissions, safety, etc.) are all subject
to change during the next decade, although experience in recent years suggests
that such changes will be very modest. However, the magnitude of the more
readily predicted changes is small compared to the uncertainty in the prevalence
and frequency of telecommuting, and in comparison to their variability from
urban area to urban area.
Factor
|
Value
|
Commute Distance (one-way, Home-based)
|
10.7 mi.
|
Commute Distance (one-way, Center-based)
|
9 mi.
|
Commute Time (one-way, Home-based)
|
22.4 mi.
|
Commute Time (one-way, Center-based)
|
11.2 mi.
|
Commute Speed (urban)
|
19.6 mph
|
Commute Speed (rural)
|
45 mph
|
Fuel efficiency
|
20.9 mpg
|
Fuel cost
|
$1.14/gallon
|
State Gasoline Excise Tax
|
$0.158
|
Annual Highway Fatality Rate
|
0.0232 per million miles
|
Urban/Rural Mileage Split
|
75.2%/24.8%
|
The use of current national averages limits accuracy even for parameters
which are not currently changing, since telecommuters will not necessarily be "average"
in their travel behavior. For example, the trip distance for telecommuters
might well be greater than the national average used in this analysis, since
those with longer commutes could be expected to show a greater preference for
telecommuting.
As a result, current values are generally used for factors such as vehicle
fuel mileage and emission characteristics, average trip distance, average
commute time, etc. However, the estimates presented in the following pages can
easily be adjusted for other values wherever available. Given the total number
of telecommuters, subdivided into home-based and center-based, and their
frequency of telecommuting, results are typically proportional to each factor.
The values used are shown in Table 8; sources or rationale are presented in
Appendix B.
In order to put the results that follow into perspective, projected impacts
are shown not only as absolute values, but also as a percentage of national
totals. However, it is important to note that the relative impact could be much
higher in specific regions where motivation to telecommute is strengthened by
public perception of serious air quality and congestion problems, and by
associated stringent transportation demand management measures.
NET TRANSPORTATION IMPACTS OF TELECOMMUTING
This section presents the net transportation impacts of telecommuting, based
on the telecommuting projections asserted in Chapter 2 and the approach and
assumptions described previously. Impacts include VMT/trips, energy, air
quality, safety, and time. Impacts are estimated for both scenarios (upper and
lower bound), as defined in Chapter 2.
Appendix B presents details of the estimates, assumptions, and calculations
for the analysis.
Summary of VMT and Trip Reductions
1,515,370 million miles were travelled by passenger cars in 1990 (MVMA).
Figure 14 shows that 32.1 percent (NTS Table 72) of the total VMT were
commuting miles. 26.3 percent (NPTS Table 74) of total trips were commute
trips. The increase in VMT averaged 3.7 percent annually between 1988 and 1990;
this growth rate was used in this analysis to calculate projected VMT for
1992-2002.
Table 9 and Figure 15 shows telecommuting VMT savings as a percentage of
total passenger car VMT and commuting VMT for both the upper and lower bound
cases. Total annual commuter round trips were calculated by multiplying
potential telecommuters by the number of working days per year. The estimated
1992 vehicle miles saved due to 1.6 percent of work force telecommuting is 3,735
million. This represents 0.23 percent of the total passenger car VMT and 0.70
percent of the commuting VMT, rising to more than 4 percent by 2002.
In the presence of severe congestion and a concerted effort by public
agencies to reduce automobile travel, these levels of telecommuting and
associated VMT reduction could be substantially greater.
Table 9. VMT/Trip Savings
|
1992
|
|
|
1997 - 5 year
|
|
|
2002 - 10 year
|
|
|
|
VMT Saved
(Billions of Miles)
|
% of
Total
Passenger
Car VMT
|
% of Total
Passenger Car
Commuting VMT
|
VMT Saved
(Billions of Miles)
|
% of Total
Passenger Car VMT
|
% of Total
Passenger Car
Commuting VMT
|
VMT Saved
(Billions of Miles)
|
% of
Total
Passenger Car VMT
|
% of Total
Passenger Car
Commuting VMT
|
Upper Bound
|
3.7
|
0.23%
|
0.70%
|
12.9
|
0.63%
|
2.0%
|
35.1
|
1.4%
|
4.5%
|
Lower Bound
|
3.7
|
0.23%
|
0.70%
|
10.0
|
0.49%
|
1.6%
|
17.6
|
0.7%
|
2.3%
|
|
Trips Avoided
(millions)
|
|
% of Total
Potential Round Trips by Commuting Passenger Cars
|
Trips Avoided
(millions)
|
|
% of Total
Potential Round Trips by Commuting Passenger Cars
|
Trips
Avoided
(millions)
|
|
% of Total
Potential Round Trips by Commuting Passenger Cars
|
Upper Bound
|
238
|
|
0.17%
|
882
|
|
0.59%
|
2500
|
|
1.54%
|
Lower Bound
|
238
|
|
0.17%
|
679
|
|
0.45%
|
1300
|
|
0.77%
|
Interactions With Other Demand Management Strategies
"In transportation contexts, telecommuting most often appears on a list
of TDM strategies for reducing the demand for peak-period vehicle travel. The
interactions among these various strategies are not well understood.
Telecommuting could change the effectiveness of other TDM measures (positively
or negatively) and vice versa. In particular, strategies intended to shift
commuters to higher occupancy vehicles may affect the adoption of telecommuting
or the transportation impacts of telecommuting or both. For example, the
provision of child-care at the work site is expected to lower a common barrier
to ridesharing. However, this strategy could at best discourage some from
telecommuting and at worst lead to increased travel. In the Puget Sound project
a worker whose child was in the day child center next to the work site had to
make two round commute trips on telecommuting days (one in the morning to
deliver the child, one in the evening to pick up the child), compared with one
round trip on a normal commuting day. On the other hand, such strategies as
parking and congestion pricing will stimulate shifts to telecommuting as well as
to transit and ridesharing."(90)
ENERGY USE IMPACTS
Table 10 and 11, and Figure 16 illustrate the impact of energy use. In 1991
transportation accounted for 27.3 percent of the total U.S. energy consumption
(NTS 1992, Tables 38 & 39) with 3,936.2 million barrels of petroleum used,
of which the transportation sector accounted for 10.78 million barrels of
petroleum products per day. Transportation thus accounts for about two-thirds
of all national oil use. Use for transportation is led by highway vehicle fuel
use which, in turn, is dominated by passenger car fuel use.(91) Since commuting
constitutes a major portion of automobile travel (32.1 percent), widespread and
intensive telecommuting could produce significant savings in national oil use.
Table 10. Petroleum Consumption by Highway Vehicles
Transportation usage of motor gasoline for 1991 was 7 million barrels per
day. Domestic demand for gasoline in 1990 for highway was 110 billion gallons,
96 percent of the U.S. total (NTS Table 69).
Table 11. Fuel Savings
|
|
1992
|
|
1997 - 5 year
|
|
2002 - 10 year
|
|
|
|
Saved
|
% of Total
|
Saved
|
% of Total
|
Saved
|
% of Total
|
Upper Bound
|
Gallons of
Gasoline (millions)
|
178
|
0.25%
|
619
|
0.8%
|
1,679
|
2.1%
|
|
Barrels of
Gasoline (millions)
|
4.2
|
|
14.7
|
|
40
|
|
Lower Bound
|
Gallons of
Gasoline (millions)
|
178
|
0.25%
|
475.9
|
0.6%
|
840
|
1.1%
|
|
Barrels of
Gasoline (millions)
|
4.2
|
|
11.3
|
|
20
|
|
Using the projected VMT reduction presented in section 2.9, it is estimated
that a national total potential savings of 4.2 million barrels per year could be
obtained in 1992 and 40 million barrels by 2002 through telecommuting. The
total amount of fuel consumed by passenger cars in 1990 was 72.4 billion gallons
(U.S. DOT, FHWA, Highway Statistics). The estimated 1992 savings of 178 million
gallons represents 0.25 percent of this total, rising to 2.1 percent by 2002. A
typical telecommuter who works at home an average of 2 days per week would
realize a net fuel savings of about 96.6 gallons, or 2.3 barrels, per year.
This is 19 percent of the average yearly per-vehicle fuel consumption.
Reductions in Fuel Tax Revenues
Telecommuting occurring at the projected levels would result in combined
Federal and state gas tax revenue losses as shown in Table 12.
Table 12. Gas Tax Revenue Losses
|
1992
|
1997
5 year
|
2002
10 year
|
|
Foregone Taxes (millions)
|
Foregone Taxes (millions)
|
Foregone Taxes (millions)
|
Upper Bound
|
$57.5
|
$199.2
|
$540.8
|
Lower Bound
|
$57.5
|
$153.2
|
$270.3
|
Other Energy Use
Nontransportation energy impacts of telecommuting are also relevant since
the net impact will depend on whether energy use increases in home heating and
cooling caused by home-based telecommuting are offset by energy consumption
decreases in the conventional offices. Lights, heating, ventilation, and air
conditioning systems may remain on in the office, as well as in the home. Less
energy-efficient incandescent lights may be used in the home, rather than the
fluorescent lighting more commonly found in offices. Also, the dominance of
part-time telecommuting may lead to heating and lighting empty offices. At
present, there is insufficient data available to make a meaningful estimate of
this effect.
AIR QUALITY IMPACTS
Emissions Reductions
Transportation is a major contributor to the air pollution problem
throughout most urban areas. Despite major strides in mitigating the emissions
from industry and transportation, most areas of the country have experienced
either a slow rate of improvement or deterioration in air quality. Air quality
is now at the forefront of national policy, and the Clean Air Act (CAA) as
amended in 1990, places particular emphasis on transportation and all quality
planning. The 1990 amendments expand on the requirement that federally assisted
highway and transit projects conform with State Implementation Plans (SIP) for
achieving or maintaining Federal clean air standards.
The U.S. DOT is required to work with EPA and state and local governments to
ensure that CAAA provisions are being met while ensuring sufficient mobility to
the Nation's population and business. Mobility is a key element in economic
growth and competitiveness and must be maintained at acceptable levels. The
challenges posed by the CAAA will force all levels of government to rethink
traditional policies and actions as well as to develop new thrusts that identify
alternative transportation technologies, options, and practices that meet the
multiple goals of safety, mobility, and clean air.
The transportation system is responsible for direct and indirect
environmental impacts -- directly by producing emissions from the cars
themselves, and indirectly through emissions associated with fuel extraction,
refining and distribution, infrastructure construction, and vehicle
manufacturing. Figure 17 shows that the direct combustion of fuel (primarily
gasoline) in the transportation sector accounts for 27.3 percent of total U.S.
air pollutant emissions of hydrocarbons, 28.6 percent nitrogen oxides (the
principle ingredients of smog) and 50.4 percent of carbon monoxide emissions (a
noxious pollutant as well as one implicated in the formulation of smog). In
urban areas, autos account for an estimated 70 percent of smog-precursor
emissions and 90 percent of carbon monoxide emissions.
"In addition to being the leading source of air pollution in the U.S.,
cars and trucks (as the source of several greenhouse-gas emissions including
carbon dioxide, chlorofluorocarbons, and ozone) are major contributors to global
climate change. Specifically, each gallon of gasoline burned releases 20 grams
of carbon dioxide (the principle greenhouse gas) into the atmosphere. Overall
emissions of pollutants are projected to increase by almost 40 percent by 2010
because we are driving more and under more congested conditions (Walsh, 1990)."(92)
The pollution created by highway vehicles in 1990 was 5.085 million tons of
nitrogen oxides, 4.63 million tons of hydrocarbons, and 27.48 million tons of
carbon monoxide (U.S. EPA, National Air Pollution Emission Estimates 1940-1990,
Nov. 1991). The estimated amount of reduction of these pollutants due to
telecommuting is shown in Table 13 below.
Table 13. Emissions Savings
|
|
1992
|
|
1997 - 5 year
|
|
2002 - 10 year
|
|
|
Emissions
|
Tons
Saved
|
% of Total*
|
Tons Saved
|
% of Total*
|
Tons Saved
|
% of Total*
|
Upper Bound
|
NOx
|
11,852
|
0.23%
|
41,061
|
0.81%
|
111,479
|
2.19%
|
|
HC
|
14,571
|
0.31%
|
50,468
|
1.09%
|
137,047
|
2.70%
|
|
CO
|
98,753
|
0.36%
|
342,118
|
1.25%
|
928,836
|
3.38%
|
Lower Bound
|
NOx
|
11,852
|
0.23%
|
31,593
|
0.62%
|
55,739
|
1.10%
|
|
HC
|
14,571
|
0.31%
|
38,839
|
0.84%
|
68,524
|
1.35%
|
|
CO
|
98,753
|
0.36%
|
263,229
|
0.95%
|
464,418
|
1.69%
|
* percentages based on 1990 levels
Table 13 shows a relatively limited impact of telecommuting on air quality.
However, these results could be very misleading when applied to a specific
locality. The degree to which telecommuting is adopted depends in part on the
overall transportation environment. In areas suffering serious congestion and
air quality problems, in which stringent transportation demand and control
measures are in force, firms and employees will have much greater incentive to
explore and implement telecommuting. The result could be a substantially higher
rate of adoption than used in this analysis, particularly for individuals who
face the more lengthy or congested commuting trips. Under those circumstances,
it is also less likely that latent demand will appear as telecommuters disappear
from the highways. The resulting reduction in congestion will result in
emission reductions for all traffic -- an effect that could be as great in
magnitude as that from removal of the telecommuters. With a higher number of
telecommuters and reduced congestion for all vehicles, the total reduction in
emissions could conceivably be several times that suggested by Table 13.
These estimates are based on emission levels from the EPA's Mobile 4.1
model. Transportation-related emissions occur as a result of vehicle trip,
VMT, and the vehicle itself. In general, the lower the VMT, the lower the fuel
consumption and emissions. However, even if the number of VMT is reduced, fuel
consumption and emissions impacts of telecommuting are affected by a number of
factors. These include:
- Distance traveled by auto. The distance traveled by auto is
important since, other things being equal, the shorter the distance traveled,
the shorter the emissions. Thus, if a telecommute results in an overall
reduction of distance travelled through the elimination of commute trips,
positive impacts on emissions will result. Conversely, if increased work trips
or a move to a more distant location leads to a net increase in auto distance
travelled, the impact on emissions will be undesirable.
- Number of cold starts (related to the number of trips). A high
proportion of the emissions for the entire trip are created when a cold engine
is started. If telecommuting was to generate new trips, or a higher proportion
of unlinked trips, then the number of cold starts could increase, resulting in
higher emissions even if total miles travelled decline.
- Number of hot starts. The number of stops or links on a given
round trip matters, because starting even an already-warm engine generates more
emissions than a running engine. Thus, a 10-kilometer trip with four stops
emits more pollutants and consumes more fuel than the same 10 kilometer trip
with only two stops.
- Speed. In general, low speeds and accelerations/decelerations
result in higher emissions. A 10 kilometer trip at 20 kph emits more than a 10
kilometer trip at 50 kph, and a trip in stop-and-go traffic that averages 20 kph
will emit more than the same length trip with a nearly constant speed of 20 kph
throughout. Thus if, through telecommuting, more travel takes place in the
off-peak at higher average speeds, a benefit to air quality will result.
- Time of day. Cold start emissions are sensitive to the surrounding
(ambient) air temperature. In general, the lower the ambient temperature, the
higher the emissions.
- Vehicle used. The possibility must be considered that an
individual might use a fuel-efficient compact for a lengthy commute, but switch
to a larger "gas-guzzler" for short trips on telecommuting days. The
presence or absence of a catalytic converter affects the emissions from a
vehicle. Emissions from diesel engines differ from those of gasoline-powered
engines. Thus, since telecommuting might prompt a reassignment of vehicles
within households, a complete study of transportation-related energy and air
quality impacts of telecommuting should account for the use of all vehicles in
the household. (93)
If telecommuting reduces trips in the early morning and late evening hours,
and induces trips to be made later in the daytime, it may have a significant
positive effect on air quality. Note that the situation is highly uncertain for
satellite centers. If they are not located near public transit, they could
conceivably increase VMT and cold starts.
Another currently-unquantifiable factor is the possibility of increased
release of hydrocarbons as a result of the buildup of gasoline vapors in the
fuel system of vehicles not driven on a daily basis.
Figure 18 reflects the distribution of hydrocarbon emissions by trip phase.
In general there is a U-shaped relationship between speed and emissions. That
is, emissions per mile decline as speed increases, up to about 80-96 kilometers
per hour (50-60 miles per hour), then increase with higher speeds. If
telecommuting reduces congestion, leading to fewer accelerations and
decelerations and higher (but not too high) average speeds, it can be beneficial
for air quality. The importance of speed on automobile emissions is illustrated
in Figure 19.
SAFETY IMPLICATIONS
Highway accidents cost 43,500 lives in 1991. The telecommuters reduce their
risk of injury and death by reducing the amount of time they spend in rush-hour
traffic. Table 14 below contains estimates of annual fatalities and accidents
avoided due to a decrease in VMT from telecommuting.
Figure 20 and Table 15 show a downward trend of both the annual motor
vehicle deaths and accident rates for 1980-1990 over 10 years. The savings due
to telecommuting were calculated against total motor vehicle deaths and
accidents, and would be substantially higher if calculated against only
passenger vehicle deaths and accidents for commuters. Future accident rate and
death totals were based on future VMT totals; this rate was then applied to VMT
savings accrued as a result of telecommuting to arrive at projected death and
accident totals. There is a very high degree of uncertainty in these estimates;
safety impacts can be expected to be highly sensitive to specific circumstances.
Table 14. Safety Implications
|
|
1992
|
|
1997 - 5 year
|
|
2002 - 10 year
|
|
|
|
Number
|
% of Total
|
Number
|
% of Total
|
Number
|
% of Total
|
Upper Bound
|
Lives Saved
|
87
|
0.19%
|
300
|
0.69%
|
815
|
1.97%
|
|
Accidents Avoided
|
28,520
|
0.23%
|
65,770
|
0.63%
|
117,700
|
1.43%
|
Lower Bound
|
Lives Saved
|
87
|
0.19%
|
231
|
0.54%
|
408
|
0.99%
|
|
Accidents Avoided
|
28,520
|
0.23%
|
50,355
|
0.49%
|
58,850
|
0.72%
|
Table 15. Motor Vehicle Deaths / Death Rates
TIME SAVINGS
The annual commute time savings were calculated assuming a 44.8-minute
round-trip by the urban commuter (75.2 percent) and a 22.4 minute round trip
commute by the rural commuter (24.8 percent). This averages 77.3
hours/year/telecommuter for 1992 up to 110.3 hours/year for 2002 as shown in
Table 16.
Table 16. Time Savings
|
1992
|
|
1997 - 5 year
|
|
2002 - 10 year
|
|
|
Hours Saved
(millions)
|
% of
Telecommuter's Regular Commute Time
|
Hours
Saved (millions)
|
% of Total
|
Hours
Saved (millions)
|
% of Total
|
Upper Bound
|
156
|
49.2%
|
577
|
59.5%
|
1,652
|
70.2%
|
Lower Bound
|
156
|
49.2%
|
444
|
59.5%
|
826
|
70.2%
|
Economic Benefits of Reduced Commuting Time
A substantial literature exists concerning the value travellers place on
their time. Typically, studies suggest that commuters behave on average as
though the time spent on their trip has a value of about $7 per hour. Thus,
time savings are often multiplied by some such value and the results presented
as a specific economic benefit arising from telecommuting. That calculation is
not made here, since in this context such a number adds little to understanding
and can be misleading. The meaning of a worker's saving an hour of commuting
time is readily comprehended, but the meaning of a dollar-equivalent of that
time is much less clear. The "saving" does not directly generate
wealth that shows up as national income or gross domestic product, or in any
other indicator. In fact, the net effect is exactly the same as if the
employee simply moved to a new home adjacent to the location of his or her
employment. If the worker should choose to labor at home for an additional hour,
the result would be reflected in productivity figures. Were the employer able,
perhaps over time, to negotiate comparably lower pay scales in exchange for the
opportunity to telecommute, there would again be a direct productivity gain, but
this is not generally expected to happen.
Thus, while a dollar value can be imputed to the telecommuter's time
savings, the degree to which the Nation has benefitted is more meaningfully
stated simply in terms of reduction in personal commuting hours, rather than as
a somewhat artificial dollar amount of uncertain real meaning. It is important
to note that this issue, which relates purely to the dollar value of saved
commuting time, is not related to the unquestioned real economic benefits to an
employer arising from the possible higher productivity of telecommuters -- a
gain often reported for pilot programs.
OTHER EFFECTS
Health Care Effects
Telecommuting may improve the overall health of the worker and result in
reduced medical costs. Studies of automobile drivers have shown significant
relationships between exposure to traffic congestion and a variety of adverse
physiological reactions. For example, researchers have reported a significant
and positive correlation between high traffic volumes and increased heart rates,
blood pressure, and electrocardiogram irregularities. Studies also show that
chronic exposure to traffic congestion, especially over long distances, long
waits, and frequent trips, increases negative mood states, lowers tolerance for
frustration, and can even lead to more impatient driving habits.(94) The State
of California Telecommuting Pilot Project survey data and interviews revealed
telecommuters experienced reduced levels of stress.
Other related factors that would improve worker health and also therefore
reduce medical costs are reduced exposure to individuals with contagious
conditions and benefits associated with walking instead of travelling by car.
Economic Development
The development of an extensive telecommunications infrastructure may
provide economic growth opportunities in both urban and rural areas. Many
authors have argued that advanced telecommunications systems will make all
locations attractive and, therefore, tend to reduce existing interregional
economic and social inequalities. However, reduced telecommunications costs do
not seem to have had a major impact on changing the relative weights of location
factors and many of the current disadvantages of distance will persist into the
future. Outlying locations are chosen by employers based on a long list of
factors that together represent the costs and benefits of the alternatives
available to them. Only when the benefits of outlying locations significantly
outweigh their costs in relation to central locations will they be selected.
Overall, studies in this area do not yield any concrete conclusions as to
the effect of advances in telecommuting and telecommunications technologies on
the decision making process of firms and individuals with regard to location or
relocation. However, many authors think that the main effect will be to
accelerate the movement of jobs out of central areas to suburban fringe or rural
locations. Growth and redevelopment of cities and towns in rural areas is
considered a viable alternative to urban sprawl. If telecommunications
reinforce the trend to move from major cities to rural cities, then urban sprawl
may be reduced in favor of rural city/town growth. However, this could have
serious consequences since small cities may be unprepared for the new growth and
large cities may be hurt by the erosion in quality of the tax base.
Rural Area Development
Twenty years ago, "access" in economic development terms meant
roads, highways, concrete, and air and rail transportation. Today, access
refers to information and data and fiber optics. Telecommunications may
mitigate the factor of geography from the economic development equation and make
rural areas very accessible and attractive to expanding businesses. Unique
applications of telecommunications may ensure that jobs are available in all
areas, especially rural areas, and stop serious tendencies towards emigration.
Telecommuting is being viewed as a means to provide a new way of
establishing an economic base in rural areas by providing a mechanism to funnel
work into areas of high unemployment. To the extent that telecommuting makes
more jobs more accessible to economically depressed regions, it may help reduce
the social tensions of poverty and unemployment.
A prospectus for the Kentucky Science and Technology Council (Kentucky Rural
Telecommuting Centers, June 1991) lays out an optimistic case for bringing jobs
and prosperity into rural areas via investment in a superior communications
network and education. The Kentucky program uses telecommuting as a means to
encourage economic development in rural areas.
A study by Arthur D. Little, Inc., Can Telecommunications Help Solve
America's Transportation Problems? Cambridge, MA, 1991, estimates the potential
societal benefits to rural areas at about 6.5 percent of the national benefits,
or about $1.5 billion in 1988 dollars; 61 percent of this is in the form of
productivity savings and the rest is attributed to energy savings. (This model
focuses on the time savings from trip elimination as the largest factor and
assumes rural commuters are less likely to substitute telecommunications for
auto trips than urban commuters; reduction of congestion and pollution is a very
minor benefit in rural areas and rural residents do not save plane miles or
truck miles for business trips or information transport).
The U.S. Congress Office of Technology Assessment reports Rural America:
Networking for the Future (1991) goes into great detail about the opportunities,
challenges, and pitfalls implicit in the telecommunications revolution as they
may affect rural areas, including extensive and detailed information about the
possible implications of the pricing of telecommunications goods and services.
While most authors are optimistic, constraints are likely to result from the
lack of suitable skills in remote areas and the lack of appropriate support
services, many of which require a critical mass of customers to be viable. It
is unlikely that telework will lead to regional development without active
intervention by national or local government to make up for such deficiencies
and provide fiscal resources.(95)
Telecommuting/Urban Sprawl
Telecommuting is sometimes portrayed as a means of increasing the
jobs-housing balance in urban and suburban areas by enhancing the ability to
move work to, or closer to, the workers' residences rather than requiring
workers to commute to work daily. This has the immediate side effect of
decreasing automobile congestion and associated energy consumption and air
pollution. However, there is a possible long-term adverse impact of
telecommuting resulting from its ability to decrease constraints on household
location, thereby enhancing the rate of spread of suburbia. Nilles reviews
evidence concerning the possible effects of telecommuting on urban sprawl, the
continuing urbanization of formerly rural areas. One consequence of urban
sprawl is jobs-housing imbalance, the locations of employee residences change
while work-site locations either do not change or follow the housing trends
slowly.
One of the reasons for studying the potential for telecommuting is to
determine whether, as some feel, it would produce even more "urban sprawl"
than is currently expected. Already there is an explosion in farm and village
home prices in upstate New York, rural Maine, the Sierra Nevada, and other
attractive locales that were once too distant from urban areas to be practical
locations for home-based work [Portable..." 1988, 162]. For these reasons,
even more careful land-use planning will be needed to protect areas of scenic
beauty as well as promote optimal land use patterns in rural and small town
areas if telecommuting is widely adopted."(96)
Nilles suggests that this will depend strongly on the form that
telecommuting takes. If it is primarily on a part-time basis, people who move
further out into rural areas will still press for improvements in transportation
infrastructure, thereby encouraging sprawl. If, on the other hand,
telecommuting is full-time, which is more likely for telework centers,
transportation infrastructure is less likely to be expanded. Thus, the
more-rural locations will still be relatively unattractive for commuters, and
sprawl will be discouraged. In addition, the telecommuters' constant presence
will encourage development of neighborhood stores and services, diminishing the
motivation to travel to larger urban locations.
Job Creation
The establishment of telecommuting centers in economically disadvantaged
areas may revitalize commercial districts, and potentially, new employment
opportunities. Increased employment will come from new jobs created at the
center, as well as other jobs which the development and support services will
create. Aside from these aspects, the existence of such centers will lure other
employers, both public and private, to the region.
Chapter 4 - Conclusions
· Telecommuting is now practiced on a substantial and rapidly
growing scale
Telecommuting, now practiced by about two million people (2 percent of the
U.S. labor force), is already a fact of life for many businesses and
individuals. Employee gains in flexibility and quality of life can often be
matched by corporate benefits of higher productivity and a more loyal and
motivated work force. As a result, this phenomenon is currently growing at
about 20 percent annually and the rate could increase as it becomes a more
conventional element in providing workplace flexibility in coming years. It
seems likely, that by early in the next decade 10 percent of office-based
workers will have become telecommuters, averaging more than three days per week
working at home or at a local telecommuting center. Table 17 lists Projected
Future Telecommuting.
Table 17. Projected Future Telecommuting
PROJECTED FUTURE TELECOMMUTING
|
1992
|
1997
|
2002
|
Number of Telecommuters (millions)
|
2.0
|
3.1 - 6.2
|
7.5 - 15.0
|
Percent of Labor Force
|
1.6%
|
2.3% - 4.6%
|
5.2% - 10.4%
|
Percent of Telecommuters Working at Home
|
99.0%
|
74.3%
|
49.7%
|
Percent of Telecommuters Working at Telework Centers
|
1.0%
|
25.7%
|
50.3%
|
Average Days per Week
|
1-2
|
2-3
|
3-4
|
· Estimates of the future level and impacts of telecommuting are
highly uncertain
Telecommuting is still in an early stage and an accurate prediction of its
rate of growth and of transportation impacts is difficult. Many factors
contribute to the uncertainty in the estimates in the table shown above. The
actual degree to which jobs, individuals and employers ultimately will be
suitable to telecommuting is not clear. Most large-scale experiments are of
recent origin and involve carefully selected workers and managers. Data
specifically for the telecommuting subset of the driving population is lacking
with regard to key parameters such as travel behavior (e.g., trip length and
duration), and information concerning emissions and fuel use is not generally
available. Direct and indirect costs to employers and the magnitude of business
benefits also are not well established.
Achievement of the full potential of telecommuting, as well as that of many
other uses of telecommunications services to provide access or replace
transportation, depends on having a regulatory and investment environment that
yields a sophisticated, efficient, high-capacity, broad-bandwidth
telecommunications infrastructure. Many complex and contentious regulatory and
legislative issues arise in addressing that need.
· Telecommuting has the potential to provide significant
transportation-related public benefits
Although the uncertainties are very large, experience to date indicates
that, under favorable circumstances, telecommuting can provide significant
reduction in highway congestion and associated lost time, fewer accidents,
reduced emission of pollutants, and savings in energy and petroleum consumption.
Telecommuting is already widely seen as an important travel demand management
measure to reduce congestion and meet existing ambitious national air quality
goals. Among the parties most interested in telecommuting are public agencies
concerned with congestion and pollution.
Estimates based on the technical literature and current travel statistics
suggest that significant transportation benefits could be attainable, as
indicated in the table below. These projections make clear that telecommuting
could eventually play a significant role in addressing problems of urban
congestion, air quality, and energy use, but it is by no means a near-term or
complete solution. Its impact in any particular region will depend importantly
on travel demand management measures and other aspects of the local
transportation environment and could, in some cases, be substantially larger
than shown in Table 18 that follows.
Table 18. Transportation Impacts
TRANSPORTATION IMPACTS
|
1992
|
1997
|
2002
|
Saving in Vehicle Miles Travelled (VMT) (billions)
|
3.7
|
10.0 - 12.9
|
17.6 - 35.1
|
Percentage Saving in Total Passenger VMT
|
0.23%
|
0.49% - 0.63%
|
0.7% - 1.4%
|
Percentage Saving in Commuting VMT
|
0.7%
|
1.6% - 2.0%
|
2.3% - 4.5%
|
Saving in Gallons of Gasoline (millions)
|
178
|
475.9 - 619
|
840 - 1,679
|
Percentage Saving in Gasoline
|
0.25%
|
0.6% - 0.8%
|
1.1% - 2.1%
|
Value of Gasoline Saved (millions)
|
$203
|
$543 - $706
|
$958 - $1,914
|
Percentage Saving in Emissions
NOx
CHC
CO
|
0.23%
0.31%
0.36%
|
0.6% - 0.8%
0.8% - 1.1%
1.0% - 1.3%
|
1.1% - 2.2%
1.4% - 2.7%
1.7% - 3.4%
|
Annual Hours Saved for Average Telecommuter
|
77
|
93
|
110.3
|
Total Annual Hours Saved (millions)
|
156
|
444 - 577
|
826 - 1,652
|
· Emergence of latent travel demand could substantially diminish
the congestion and air quality improvements attainable through telecommuting
The figures shown above reflect only the direct impact associated with
individual telecommuters. The place of telecommuters might be taken by people
who previously commuted in carpools or by public transportation but, because of
the reduced congestion, now choose to drive single-occupant automobiles. To the
degree that this latent demand appears, the net change in congestion would be
reduced, and transportation benefits associated with the telecommuter would be
partially nullified. The importance of this effect will vary from place to
place; its magnitude is likely to be strongly affected by the stringency of
regional travel demand management measures and the local public perception of
congestion and air quality problems. No generalization as to the net result is
possible. The benefit estimates shown above do not include adjustment for this
effect.
· Direct energy, air quality, safety, and time benefits of
telecommuting will be multiplied to the degree that congestion is reduced
To the degree that telecommuters removed from traffic are not replaced by
other motorists drawn by the reduced traffic, the resulting reduction in
congestion will improve traffic flow and yield additional benefits in time
saved, energy, and emissions for all remaining commuters. The magnitude of
these benefits can be comparable to the direct benefits for the telecommuters;
multiplier effects are not reflected in the table shown above.
· Telecommuting could stimulate urban sprawl and other adverse
impacts on land use and public transportation
A potential negative impact of telecommuting and telework generally
(including self-employed people working at home) is the possibility that people
freed from a daily commute will tend to migrate further from urban areas,
exacerbating decline of central cities, suburban sprawl, and development
pressure on rural areas prized for their natural beauty and resources.
Similarly, the overall pattern and density of land use in urban areas could be
affected, with direct impact on the design of public transportation systems.
However, at this very early stage, no conclusions can be reached as to the
degree to which telecommuting might change residential choices, contribute to
decline of the city center, or raise other land-use issues.
· Critical limits on the near-term rate of growth of telecommuting
include uncertainty of benefits for employers and the considerable time and
effort inherently required to bring about major changes in workstyles and ways
of doing business
The rate at which telecommuting is adopted will be constrained primarily by
the still uncertain cost-benefit implications for businesses and the pace at
which employers and workers become familiar and comfortable with this new way of
working. In most cases, it represents a substantial change for employees and
their supervisors, and it is not suitable to every job, person, or situation.
The penetration of telecommuting will also be affected by the rate at which
firms and agencies become more nearly "paperless," with most documents
and working materials existing primarily on electronic media and employees fully
linked by networks. A rapid expansion of advanced telecommunications services
supplied to homes could also serve to stimulate telecommuting. Establishment of
remote telecommuting centers is a complex undertaking that may require several
years to come to fruition. Although there appear to be no major or
insurmountable institutional impediments to telecommuting, a variety of legal,
tax, zoning, and labor-management issues can require resolution in specific
cases.
· Telecommunications services and equipment are adequate for most
current telecommuting, but high-bandwidth capabilities will be needed in the
future, and would be beneficial now
Telecommunication services and the often necessary electronic and computer
equipment are generally adequate for most current telecommuting, although
advances, particularly in high-bandwidth communications capability in homes,
would be beneficial even now for telecommuters and many other individuals who
work at home. Improvements will increasingly be necessary for some
telecommuting situations in the future, just as they will be needed for many
business and other applications in which telecommunications capabilities are
substituted for physical transportation. Market forces, stimulated by the
Clinton Administration's "information superhighway" goals, may be
expected to yield the necessary infrastructure. However, this result could be
impeded to the degree to which evolution of the regulatory and legal framework
for telecommunications services lags the growth of technical capabilities. The
steady decline in the cost of computers and peripheral equipment, facsimile
machines, and other devices has already reduced cost to a minor consideration
for home-based telecommuting, particularly as more and more homes are already so
equipped. Cost does appear to be a significant factor in establishment of
telework centers.
· Government agencies can play a significant role in facilitating
and encouraging telecommuting
Government agencies can encourage and facilitate the application of
telecommuting as a travel demand management measure. The 1991 Intermodal
Surface Transportation Act (ISTEA) authorizes Federal funding to be used to
support planning, development, and marketing of telecommuting programs designed
to improve air quality and reduce congestion. Research and other studies to
clarify employer benefits and transportation and air quality impacts will be
important in assuring that businesses and planning agencies have a sound basis
for telecommuting decisions.
As telecommuting becomes more widespread, issues such as tax codes,
liability, and labor laws could become more intrusive. Those issues will have
to be addressed in a responsive and fully-informed manner by the responsible
Federal, state and local agencies if telecommuting is to achieve its full
potential.
· Telecommuting can be an effective tool for travel demand
management, but cannot be forced
The potential transportation impacts of telecommuting are sufficient to make
it appropriate for serious consideration as a travel demand management measure.
However, the suitability of telecommuting to a specific situation depends on the
particulars of job, person, supervisor, and corporate culture. It can be
promoted, encouraged and facilitated by public authorities, but cannot be
mandated externally. In general, to require that individual businesses or
public agencies achieve a specific level of telecommuting would be inappropriate
and ineffective.
· Continuing research will be needed to clarify the costs,
benefits, and impacts of telecommuting
As noted above, the projections of telecommuting and its transportation
impacts presented in this report and elsewhere are inherently highly uncertain.
Very little firm data is available to resolve these uncertainties.
Telecommuting is a diffuse activity, not well captured in current statistics,
and transportation impacts are unlikely to be directly measurable. Even as
telecommuting becomes more widespread, needed information, particularly that
involving travel behavior and land-use impacts, will not be acquired without
special efforts in collection, analysis, and dissemination of data. Research
will be needed concerning virtually all facets of this subject.
As state and local authorities struggle with formulation of programs to
combat congestion and air pollution, they will need reliable information as to
the likely characteristics and effectiveness of each travel demand management
measure under consideration, including telecommuting. Similarly, businesses and
other organizations considering establishment of a telecommuting program can
generate reasonable estimates of the costs, but have relatively little firm
information as to the overall benefits that can be expected from large-scale
implementation. The price and value of establishing telework centers is
particularly uncertain. Businesses and other organizations need credible data
concerning implementation and administration costs for telecommuting programs,
as well as good estimates of productivity improvements and employee hiring and
retention.
Although it is likely to be at least several years before telecommuting
reaches the level at which land-use impacts become of real concern, the long
lead time needed to deal with such issues necessitates that the nature and
magnitude of these effects be characterized as early as possible.
Some of the more important questions which need to be answered include:
Amount and Nature of Telecommuting. How many workers will telecommute in
the near term? At what rate will telecommuting increase? What percentage of
the U.S. work force will telecommuters make when this activity has reached
saturation within the workforce? For what jobs, individuals and businesses will
widespread telecommuting be truly feasible and advantageous? How well will
telecommuting work for businesses and government agencies? Will telecommuters
be preferentially those who have the longest commuting trips? What will prove
to be the relative attractiveness of home-based telecommuting as compared to
telework centers?
Direct Costs and Benefits. What are the productivity impacts of large-scale
telecommuting? How significant are the capital, management and administrative
costs of conducting a major program? To what degree does telecommuting affect
employee recruiting and retention?
Transportation Impacts. How does total travel behavior change for
telecommuters and members of their households? How are these changes affected
by various travel demand management measures? How does telecommuting affect
such measures, such as car-and-van pooling and compressed (4-day) work weeks?
What are the average driving scenarios for telecommuters? What are the emission
and energy implications of their telecommuting?
Land Use. In the long term, to what degree will telecommuters tend to
relocate to less urban localities? Will telecommuting lead to land-use patterns
that aggravate urban sprawl? Can telecommuting play a significant role in
reinvigorating rural areas?
Barriers to Telecommuting. Are there significant regulatory, legal, tax, or
institutional barriers to implementation of telecommuting programs? What is
their nature and what governmental and private actions can eliminate or reduce
them? To what degree is telecommuting impeded, currently or in the future, by
the inadequacies of telecommunications infrastructure? How much is the adoption
of telecommuting linked to continuing advances in the cost and performance of
telecommunications services and information and communications technology?
Transportation Planning. How is telecommuting best incorporated in travel
demand forecasting and transportation planning? Can it be considered a "mode"?
How does it affect existing modes? To what degree is its "mode share"
affected by other modes?
Telework Centers. What are the costs of various types of telework centers?
What is their transportation impact? What role will they play in telecommuting?
How will they affect land-use issues? How can they be accommodated in
transportation and land-use planning?
The Department of Transportation will work with other Federal agencies,
states, local governments, and the private sector to monitor and assess
telecommuting activities, conduct research and disseminate relevant information
concerning its spread and consequences for transportation and land use. Insofar
as is practical, organizations implementing telecommuting will be encouraged to
develop as much information as possible concerning changes in the travel
behavior of their telecommuters, and to disseminate that information for
integration with other data and subsequent analysis and dissemination.
Endnotes
(1)Mokhtarian, Patricia L. "Telecommuting in the United States: Letting
Our Fingers Do the Commuting." TR News, Vol. 158, January-February
1992, pp. 2-9.
(2)Sampath, Srikanth; Saxena, Somitra; and Mokhtarian, Patricia L. The
Effectiveness of Telecommuting as a Transportation Control Measure.
Institute of Transportation Studies, University of California, Davis. August
1991.
(3)Mokhtarian, Patricia L. "Telecommuting in the United States: Letting
Our Fingers Do the Commuting." TR News, Vol. 158, January-February
1992, pp. 2-9.
(4)Mokhtarian, Patricia L. "Defining Telecommuting." Transportation
Research Record, Vol. 1305, 1991, pp. 273-281.
(5)LINK Resources Corporation. Telecommuting Case Studies: Research
Report. 1991.
(6)Olson, Margrethe H., "Remote Office Work: Changing Work Patterns in
Space and Time," Communications of the ACM, Vol. 26, No. 3, March
1983, pp. 182-202.
(7)Link Resources, Telecommuting Case Study [171]
(8)According to Tom Miller of Link resources.
(9)Wendell, Joyce H. "Home Based Employment - A Consideration for
Public Personnel Management," Public Personnel Management, Vol.
20, No. 1, Spring 1991, pp. 49-60.
(10)J. Pratt, "Home Teleworking: A Study of its Pioneers," Technological
Forecasting and Social Change, 25, pp. 1-14
(11)Huws, Ursula; Korte, Werner B.; and Robinson, Simon. Telework:
Towards the Elusive Office. New York: John Wiley and Sons, 1990. (IS Wiley
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(12)Vollmer, Joyce. "Telecommuting Successes At Home and in Jail,"
Telemarketing, June 1991.
(13)"Online Bulletin Boards: Friendly places to hang out and gab,"
New York Sunday Times, November 8, 1992, prepared by Wolff, Forves &
Associates, p. 12.
(14)Telework: Toward the Elusive Office
(15)Council of Planning Librarians, An Assessment of the Potential of
Telecommuting as a Work Trip Reduction Strategy: An Annotated
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Towards the Elusive Office. New York: John Wiley and Sons, 1990. (IS Wiley
Series in Information Systems)
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Series in Information Systems)
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(86)Mokhtarian, Patricia L. "Telecommuting and Travel: State of the
Practice, State of the Art." Transportation, Vol. 18, No. 4, 1991,
pp. 319-342.
(87)Mokhtarian, Patricia L. "Telecommuting and Travel: State of the
Practice, State of the Art." Transportation, Vol. 18, No. 4, 1991,
pp. 319-342.
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(89)Sissine, Fred. Telecommuting: A National Option for Conserving Oil,
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Appendix A - Telecommuting Technologies and Services
1.0 Primary Telecommuting Technologies and Services
1.1 Technologies and Services Classification
It is difficult to differentiate between "technologies" and "services"
used by telecommuters. For example, fax service requires a set of technologies
(e.g., computer, software, scanner, telecommunications, etc.) to make it work
between two sites. It is perhaps better to categorize telecommuting services
then discuss technological trends, potentials, and risks associated with the
realization of telecommuting services.
Studies of telecommuters, conducted since 1983, have consistently yielded
two findings concerning the technology of telecommuting:
"Telecommuters vary widely in their preferences and use of high-tech
equipment such as computers, fax machines and advanced phone applications. The
one thing they most all generally rely on is basic residential telephone
service."(1)
Products and services used by telecommuters:
PC Products: personal computer, modem, fax board for PC.
Telephone Lines/Products: telephone answering device, two or more phone
lines, cordless phone, fax, two-line phone.
Central Office Services: call waiting, call forwarding, three-way calling,
speed calling, caller ID.
Telecommuting services may be classified as follows:
Messaging: electronic mail, computer bulletin boards, paging, voice mail,
mobile radio, cellular mobile telephone, personal communication networks (PCNs),
etc.
Text Processing: word processing, desktop publishing, etc.
Image Processing: the capture, enhancement, manipulation, storage, display,
and management of images for animation, 3-D modeling, fax, videoconferencing,
scanning, etc.
Utilities: spreadsheet, text and graphical retrieval from databases, file
transfer, etc.
"Number Crunching:" computer simulation, statistical packages,
mathematical packages, etc.
Symbolic Reasoning: artificial intelligence support for logical and
qualitative reasoning.
The above services are being combined into multimedia systems over local and
wide area networks.
1.2 Telecommuting Services
1.2.1 Mobile Radio
Mobile radio enables people without access to a fixed, stable communications
system to communicate with each other and/or a central dispatcher. Advances in
wireless transmission technology have made available myriad techniques and
devices for mobile voice and data communications. Among the most effective of
these are private network services such as mobile satellite communications,
Automatic Vehicle Monitoring (AVM), Radio Determination Satellite Service
(RDSS), and Specialized Mobile Radio (SMR) systems. Many of these systems are
restricted to the 800MHz to 900MHz frequency ranges, although the FCC has
considered allowing trunked mobile systems at frequencies below 800MHz.
1.2.2 Paging
Paging systems range from the office intercom system to complex wireless
systems of interconnection which allow one to receive messages in the field, the
latter being obviously more useful to telecommuters. Wireless paging systems
offer several signaling options, including tone only, tone-voice, digital,
alphanumeric, and computer interface.
1.2.3 Cellular Mobile Telephone
Cellular mobile service operates much like the wireless telephone service in
homes and offices - it uses full-duplex mode, permitting two-way simultaneous
transmission, with each mobile unit assigned its own private telephone number.
In general, cellular telephones are not designed for data transmission. The
IS-41 standard defines signaling and handoff rules among dissimilar systems to
create a seamless network. This standard is very important in the movement
toward enhancing cellular service and providing a seamless nationwide network.
1.2.4 Personal Communication Networks (PCNs)
PCNs are relatively new in mobile communications. Like cellular telephony,
a PCN relates telephone numbers to persons rather than fixed locations. The
PCNs planned over the next 5 years will provide the first truly personal,
portable communications with a lightweight, wallet-sized handset. The PCN will
feature more capacity than exists in today's mobile communications network and
will make more efficient use of the spectrum.
PCN services are a multibillion dollar undertaking; for them to be
successful there will have to be major competitors in the marketplace. Cable TV
companies may be the only ones financially able to handle the high startup cost
associated with quality PCN services. In addition, PCN represents a value-added
service to complement the position already enjoyed by cable TV companies in the
marketplace.
1.2.5 Audio/Audiographic Teleconferencing
Audio teleconferencing allows participants in geographically dispersed
locations to converse simultaneously over telephone lines using various bridge,
microphone, and loudspeaker combinations; audiographic teleconferencing adds
visual support capability. Because of recent developments, hundreds of callers
can now hold a common meeting by phone; but the average is seven callers per
teleconference.
Advances in computer communications and voice/data/image workstations will
greatly affect the traditional audiographic market and could enable convergence
between office automation systems and teleconferencing systems.
1.2.6 Videoconferencing Systems
Videoconferencing provides users with a fuller sense of participation than
is given by a telephone conversation or audioconference. Videoconferencing's
rapid growth in the last decade is largely a result of technical advances. The
basic components, coder/decoders (codecs), cameras, audio systems, and displays,
have all been radically improved. Moreover, telecommunications carriers have
improved their transmission facilities while dropping their prices.
While users still hold some analog videoconferences, the cost of the
necessary bandwidth (approximately 90M bps) has converted most users to digital
videoconferencing techniques. To complement the improved hardware, standards
efforts are now beginning to produce results. With the adoption of the CCITT
H.261 (P X 64) video compression standard, customers can look forward to the
double benefit of greater choice and lower equipment costs as vendors introduce
mass-produced, standard-compatible equipment.
The impact of videoconferencing on broadband networks is dependent on a
number of interrelated factors: system costs, transmission costs, transmission
availability and variety, digital compression, multipoint videoconferencing,
cost of videoconferencing rooms, standards, and network type (LAN, MAN, or WAN).
Eventually, the demands of video and voice will be accommodated on LANs. This,
coupled with cell relay-type metropolitan and wide area transmission services,
will permit videoconferencing to be integrated into corporate, national, and
international internets and could stimulate an explosion in bandwidth
consumption. Increased videoconferencing use is due, in part, to current
economic conditions that are putting extreme pressure on business people to cut
travel costs and time in order to be more efficient.
1.2.7 Business Television
Business television (BTV) is the production and electronic transmission of
video programming to targeted user groups in corporations, educational
institutions, government agencies, and other organizations. Almost without
exception, BTV is transmitted via satellite (primarily Ku-band, these signals
being subject to far less terrestrial interference than C-band signals) using an
analog signal. Because satellite transmission costs are distance insensitive,
programs can include large numbers of locations cost-effectively. Many
organizations realize tremendous savings because BTV removes the need for large
numbers of employees to travel to particular training locations.
There are four forms of BTV: special event networks, permanent private
networks, programming networks, and programming services. Examples of four
customized programming networks are: Automotive Satellite Television Network
(ASTN), which is used to train sales and service staff of 4500 automobile
dealerships; Hospital Satellite Network (HSN)/Health Information International,
which provides about 730 hours of educational programs to health care
professionals per month, National Technological University (NTU), which offers
graduate level courses to almost 300 sites in the country; and Law Enforcement
Television Network (LETN), which provides programming to about 2500 law
enforcement agencies nationwide.
1.2.8 Imaging
Although many workers depend on computers today, not all business
information is computer-created. Much is still generated on paper --
typewritten material, notes, photographs, drawings, etc. Optical scanning
allows computer systems to capture and store bit-mapped images representing
physical documents. Image systems consist of a scanning element that converts a
document to a bit-mapped data representation, a storage element on which
representations are stored, and a display element used to access and view stored
images. Image capture and access involves the exchange of bit-mapped files. A
high-contrast image of a printed page, scanned at 30 dots per inch, results in a
file ranging from 80,000 to 250,000 characters, even with compression,
corresponding to between a quarter-million and two million bits. For grey scale
or color images, storage and communications requirements rise sharply.
Users rarely access a given stored image but, when they do, it may be
necessary to transmit it some distance. In image processing, however, the
greatest problem is normally volume. Image applications do not necessarily
require large bandwidths. If a user will tolerate multisecond transmission,
image systems can operate with connections at 56K bps or less. Imaging is a
proven, leading, broadband application.
1.2.9 Visualization
Visualization is one of the most exciting applications for high-performance
computing systems. Visualization of information relationships, unlike
CAD/CAM/CAE (Computer-aided design, manufacturing, and engineering), can be
applied to abstract concepts for which no physical models exist. Visualization
applications create demands for broadband communications because the data
storage and processing units may not be located near the point of display. Most
process simulations and data point visualizations generate data rates of between
4M bps and 45M bps, and sometimes higher, requiring broadband LAN and WAN
support. A visualization system is supported by a specialized visual display
and a high-speed vector computer. The number of such visualization workstations
is expected to grow from less than 100,000 in 1991 to nearly a million by
year-end 1994, contributing to the demand for broadband services.
1.2.10 Multimedia
Multimedia conferencing systems consist of video and personal computer
monitors, remote controls, speakers, computer software, cameras, and
microphones. These systems transmit video, audio, text documents, computer
data, and video mail between two or more geographically separated locations. A
single screen can be partitioned into windows that display text, graphics, and
individual participants. Some systems offer a real-time drawing capability,
permitting users to diagram difficult concepts to facilitate communication.
Special bridging arrangements with carriers enable three or more locations to
interactively participate in a multimedia conference.
Whether implemented on stand-alone or shared systems, multimedia programs'
bit-intensity and the real-time nature of multimedia audiovisual data put new
performance demands on computer systems and networks. These demands are already
accelerating the development of more powerful desktop computers. This, in turn,
is hastening the move to broadband networks that can handle a mix of
variable-bit-rate and constant-bit-rate traffic over LANs and WANs.
Telecommuting applications that will fuel the growth of networked multimedia
include: education and training; personal communications, including electronic
mail and desktop videoconferencing; kiosk and business presentations; and
information repositories, such as electronic catalogs, libraries, and manuals.
1.2.11 Telecommuting Services Now Used
The telephone companies offer the following services:
- Additional phone lines
- Other add-on services such as Custom Calling & Custom 800
- Voice mail and cellular service
- Automatic Call Distribution (ACD)
- E-mail, data entry, graphics, file transfer through ISDN
- Automated Customer List
- Automatic Callback
- Voice messaging with Out Call notification
- Advanced Call Forwarding
- Advanced Call Waiting with Calling Number Delivery and Take Message
- Automatic Call Routing service
- Professional Sales Assistant (PSA)
- Citywide Centrex
- Remote LAN access
- Video phones
- Desk-to-desk teleconferencing/videoconferencing
- Telecommuting center, satellite office hookups
The "1991 Home Office Overview" published by LINK Resources Corp.
provides us with some interesting statistics based on their survey of
telecommuting services and technologies used in the United States. Their survey
revealed 38.4 million homeworkers part- or full-time in 31.2 million U.S.
households, up from 34.3 million homeworkers in 26.4 million households in 1990.
People who work at home at least occasionally now constitute one-third of the
entire U.S. work force aged 18 or older.
- Home information products now constitute 25 percent of total consumer
electronic product factory shipments, as reported by the Electronic Industries
Association.
- Sales of home office products and services are estimated to total $21.2
billion for the 12 months ending in the second quarter of 1991.
- Work-related telephone spending reflects 35 percent of total household
monthly phone spending. The latter averages $80/month in homeworker households.
Call waiting continues to rank first among custom calling services used by
homeworkers, but speed calling and three-way calling are gaining in popularity.
- Computers are now found in 47.5 percent of work-at-home households. And
in 5.9 percent of U.S. households, individuals bring PCs home from work at least
occasionally. Selected work-at-home computer peripherals include: hard drives,
modems, laser printers, scanners, and fax-boards.
1.3 Value-Added Network Services
Value-Added Networks (VANs) permit data communications between similar or
dissimilar customer premises equipment. VANs offer enhanced services that
change the data stream in some way upon entry to and/or exit from the network.
These services include packet assembly/disassembly and protocol, speed, and code
conversion. In an effort to meet the demand for a more advanced means of data
transfer, VAN providers offer enhanced, application-oriented services to their
customers. These services are critical to many businesses' everyday
communications needs and are being heavily used by telecommuters.
Applications that currently use VAN packet switching include: electronic
mail, credit card verification, point-of-sale transactions electronic data
interchange (EDI), database search, order entry, electronic messaging, LAN/WAN
connections, remote computing services, distributed data processing, ATM
networks, information gateways, international access services, fast packet
switching, frame-relay services, electronic publishing, and electronic trading.
One example of a successful VAN is CompuServe Information Service. Since
its introduction in 1979, CompuServe has become a leading worldwide provider of
on-line information services for personal computer users, both in terms of the
number of members and the amount and scope of information offered. More than
one million members can now access the service by a local phone call in most
U.S. cities and by local phone call or gateway network from more than 100
countries. CompuServe members can choose from a selection of more than 1700
databases for data retrieval, including information resources, communications,
and transactional services. As an enhancement to its basic service, CompuServe
also offers an Executive Service Option with access to exclusive financial
databases, a special news clipping service, and other amenities.
CompuServe Mail users represent the largest group of E-mail recipients in
the world and also have links to other worldwide E-mail networks, such as AT&T
Mail, MCI Mail, and Internet. Fax, bulletin boards for special interest forums,
and the CB Simulator which permits electronic dialogs are other services.
Particular applications of such services include: News, weather, sports,
travel, shopping, as well as investment data and on-line brokerage.
1.4 Telecommunications Infrastructure
1.4.1 LANs, WANs, and MANs
The telecommunications infrastructure that supports the above end-user
technology services consist of various public and private local, metropolitan,
and wide area networks.
Local area networks (LANs) are data communication networks that are
relatively limited in their reach. They generally cover the premises of a
building or a campus. Like all networking technologies, LANs facilitate
communication and sharing of information and computer resources by the members
of a group.
Wide area networks (WANs) are data communication networks that provide
long-haul connectivity among separate networks located in different geographic
areas. Many businesses are using WANs to extend and restructure their
operations on a national or worldwide basis, while at the same time gaining the
economies of scale and scope that can be achieved by large-scale, shared
networks. WANs make use of a variety of transmission media, which can be
provided on a leased or dial-up basis. WANs can also be privately owned.
Recently, many businesses have chosen satellite networks, taking advantage of
the recent development of relatively low-cost small aperture terminals to link
their various offices to a headquarters facility.
Metropolitan area networks (MANs), still in the field-testing stage, provide
switched data networking services at very high speeds (45 to 50 megabits per
second) within a geographic area of at least 50 miles. MANs connect LANs to
LANs, as well as LANs to WANs.
1.4.2 Telecommunications Infrastructure Contributions
The telecommunications industry has become one of the most technologically
advanced and efficient industries in the United States. At the same time, major
structural changes in the U.S. economy, most notably, the shift from basic
manufacturing industries toward services, have greatly increased the demand for
telecommunications as a vital input to commercial and industrial activity.
A study, "The Contribution of Telecommunications Infrastructure to
Aggregate and Sectoral Efficiency," commissioned by a group consisting of
most of the major U.S. telephone companies and prepared by DRI/McGraw-Hill, made
estimates of the relationship between telecommunications infrastructure
investment and economic growth. According to that study:
- Advances in telecommunications since 1963 saved the 1982 economy $81.3
billion in labor and capital.
- From 1963 through 1982 the telecommunications industry experienced a high
and stable rate of efficiency growth relative to other U.S. industries.
- The ability to produce telecommunications more efficiently from 1963
through 1982 saved the 1982 economy $46.5 billion in labor and capital.
- From 1963 through 1982, the average industry has increased its rate of
telecommunications usage by 167 percent; some industries have increased their
usage by more than 800 percent.
- Increased use of telecommunications in place of other inputs from 1963
through 1982 saved the 1982 economy $52.0 billion in labor and capital. This
was offset by a $17.2 billion increase in resources needed by the
telecommunications industry to accommodate increased demand, for a net savings
of $34.8 billion.
- Empirical evidence comparing the use of telecommunications in the economy
in 1963 and 1982 suggests that increased telecommunications investment and usage
causes economic growth in later years.
2.0 Assessment of Basic Trends in Functionality and Cost of
Telecommuting Technology
2.1 Basic Trends
There is a clear trend toward greater ease of use, accompanied by expansion
of the role of the computer and information services in problemsolving and
transaction processing assistance. In addition, there is a trend toward greater
standardization, linking, and integration of the different categories of
services. Today the intelligent network is becoming the heart of the
information system, consisting of an integrated system of communication and
business applications. The network peripherals have become an array of attached
personal computers, messaging facilities, file servers, special processors, and
mainframes. The computer age is becoming the network age.
Accompanying this growth of the network is a growing demand for a common
architecture across different machines and devices, that can provide the user
with a single environment which can manage and coordinate multiple concurrent
processes. This desire for greater integration, linking, and sharing of special
resources has been accompanied by two trends: distribution and sharing of
various specialized resources across a network; and greater standardization of
the basic hardware, software, and network component building blocks.
This latter trend results in two benefits: it becomes easier for various
distributed (often specialized) heterogeneous computing and messaging systems to
communicate, to cooperate, and to share tasks and information; and basic
technology components become more like commodities. This results in increased
vendor competition and thus further acceleration of the trend toward cheaper,
high-performance, easy-to-use components. Finally, there is a transformation of
the software applications and basic services from specific problem-solving and
custom-designed solutions to more generic service offerings that serve as a tool
kit for the telecommuting user to do his or her own exploratory problemsolving
without prior computer technology experience.
Many VAN providers are also vying for a dominant position in the development
of enhanced services and the introduction of new products. Northern Business
Information/Datapro reports that the market for E-mail and EDI is growing at an
annual rate of 30 percent, sustained by the popularity of PC- and LAN-based
messaging systems. This necessitates a need for third-party messaging services
from VANs. An outcome of this demand for enhanced services is the widespread
use of the CCITT-approved X.400 international messaging standard. In 1990,
X.400 allowed several VANs including GEIS, AT&T, Infonet, and BT Tymnet, to
connect their messaging systems, thus allowing public and private networks to
communicate.
The VAN market will probably begin to slow down after 1993, due to the
impact of several alternatives to CCITT X.25 packet switching, including
bandwidth-on-demand services such as switched T1, Switched Multimegabit Data
Service (SMDS), and ISDN services. X.25 will not, however, become obsolete.
While many of the larger companies will look to adopt the latest technologies,
the appeal of a less expensive, low-speed service will still remain prevalent
among smaller businesses and telecommuters. Datapro forecasts continued growth
in VAN revenues at an annual rate of 17 percent over the next 3 years.
SMDS is a high-speed (1.544M and 45M bps), connectionless public packet
switched service that can provide LAN-like performance and features over a
metropolitan area. SMDS complies with the IEEE base standard for MANs at the
protocol level and is the first step in the evolution toward high-speed WAN
service. Although initially local exchange and interexchange carriers will
offer SMDS as a data service only, future plans will include transporting voice,
data, and video over an SMDS fiber-based network at the 155.52Mbps SONET
standard rate.
Metropolitan area networks and SMDS use asynchronous transfer mode (ATM)
technology, also known as "cell switching," at the Data Link Layer.
ATM is an internationally agreed-to set of standards for high-bandwidth,
low-delay, packet-based switching and multiplexing.
In a knowledge-oriented society, progress is greatly dependent on the means
whereby both information and knowledge are captured, transmitted, stored,
retrieved, manipulated, and used. Artificial Intelligence (AI) is a pivotal
point in this progression of networks, databases, deep models that focus on
specific applications, and human windows to ease human-machine communication
problems.
Not only is the intelligent transfer of larger volumes of text, graphics,
data, image, and voice important, but this must also be done at reduced
communications costs. Greater cost-effectiveness is likely to be achieved
through a more advanced organization of resources by using computers and AI in
the communications domain. This will include intelligent networks, evolving
from the current, rather embryonic state of network usage to an expanding
horizon of any-to-any multimedia support.
Although multimedia technology is still in its infancy, many industry
analysts believe it will become the premier desktop technology for the 1990s.
In the United States alone, gross earnings from sales of multimedia devices and
technologies were almost $4 billion in 1991, and may reach $15 billion by 1994,
depending on how multimedia is defined.
In the near term, highly-compressed multimedia applications will be
supported over WANs via frame relay, a bandwidth-on-demand service that can
handle bursts of traffic up to the T3 rate of 44.736M bps. Over time, the
demand for more sophisticated multimedia applications will overwhelm even frame
relay and SMDS. The ultimate solution for interconnecting FDDI standard fiber
optic networks without regard to distance rests on the successful deployment of
Broadband ISDN (BISDN) expected by 1995, which employs the SONET fibre optic
standard for the physical medium. Multimedia is just one example of the dynamic
and innovative application market that will shape the direction of the
telecommunications infrastructure because of its demand for bandwidth and range
of integrated technologies required to support it.
Four enabling technologies that are emerging now will reshape existing
telecommunications products and services across a wide range of industries by
the year 2000:
- Commodity bandwidth;
- Wirelessness;
- Intelligent network management; and
- People-oriented product design.
By the year 2000, corporate telecommunications users will have greatly
improved ability to match their communications networks to their actual needs,
essentially unconstrained by the network operators and independent of distance.
Wireless products sell. In the past 10 years, a large number of products
that previously used cables have been freed of their umbilical cords and
successfully launched in wireless form. Wirelessness will spawn many new
businesses by adding a communications link to devices that were previously
stand-alone. The prevalence of wireless communication within offices will lead
to more flexible working practices, including the ability of intelligent
wireless devices to travel with the user.
From the user's point of view, the intelligent network will provide seamless
integration and control over many public and private networks, both wired and
wireless. Intelligent network management will support the birth of the truly
portable office, as the network will be able to provide the bandwidth and the
services than an individual requires wherever he or she is, i.e., not only at
prearranged, fixed locations.
Advances in the technology of hand-held electronic products make it easier
to offer very powerful features in compact packages. Soon there will be no
physical reason why one hand-held device should not incorporate all the features
of a telephone, a pager, an electronic organizer, a calculator, a fax terminal,
and a game machine.
Personal communicators will have embedded tools to facilitate organization,
document preparation, and planning. They will also communicate through the
network with our office
information systems in order to help us be more effective. The ability to
handle this level of machine support will depend on the power and simplicity of
the user interface.
Telecommunications technology in the year 2000 will be powerful but also
very expensive if misused. Furthermore, when it fails, it can demoralize staff,
paralyze the organization, and alienate customers, as demonstrated by
much-publicized complaints about voice mail systems and the recent outages of
telecommunications service in several regions of the United States.
2.2 National Network Developments
The Internet is a global network linked by means of various protocols, a
collection of interconnected regional and wide-area networks based on the
ARPANET, the first packet-switched network sponsored by ARPA under the DoD. As
of 1990, it was estimated that the Internet consisted of up to 50,000 hosts,
more than 1,000,000 users, and at least 400 interconnected networks in several
dozen countries of the world. It is a collaboration involving private, public,
and government- and industry-sponsored networks, whose operators cooperate to
maintain the infrastructure.
Connectivity to the Internet allows users access to a wide variety of
resources. Of these, electronic mail, bulletin board, file transfer, and news
services are perhaps the most widely used.
The Internet is growing at an exponential rate. Trends in the Internet
community are rapidly evolving in many areas including bandwidth, media,
protocols, and standardization. The Internet backbone is currently
transitioning to T3 (4.6 M bps). Soon, with the advent of the National Research
and Education Network (NREN) even greater bandwidth will be implemented.
Test-bed efforts and research are already underway with Gigabit networking.
Speed and cost remain critical factors.
Proposed public investments in information infrastructure would include
funds for the National Science Foundation (NSF) for work on developing massive
databases. The databases, called digital libraries, would make text, imagery,
video and sound available over networks such as the foundation's NSFNet. NASA
would make databases of software and remote-sensing images available over the
Internet. NIST also would spearhead development of networks for manufacturing.
NSF would fund projects to give primary and secondary schools access to NSFNet,
which already connects colleges and universities. NSF and the National
Institutes of Health would develop health care applications that could link
doctors' offices, hospitals, and universities.
NREN will lay the groundwork for the universal fiber-optic "intelligent
network" likely to connect virtually all homes, offices, and schools
nationwide, making high-speed, seamless interactive communications among
sophisticated computer devices as simple as using the telephone.
A nationwide fiber optic network will upgrade the capacity of the existing
copper network from 2,400 bits/sec to between 45,000,000 to 500,000,000
bits/sec. The effects of this will be dramatic. For example, fiber-to-the-home
will provide full color, high definition, video capabilities, rather than
limited graphics currently provided by shop-at-home services.
A question frequently asked in the business world is, "When will the
truly mobile office actually appear?" In fact, much of it is here and
available today. Wireless handsets are already operating in office environments
behind local switches or private branch exchanges, and radio technology has been
incorporated in laptop and palmtop computers and in electronic diaries. One
phenomenon fueling the growth of wireless communications activity is that, as
subscribers begin to use these new products, services, and technologies, they
quickly find new applications for them. These in turn broaden the market for
wireless products and services and create demand for new ancillary services.
Clearly, the institutions that will feel the greatest impact from the
introduction of these new services are the well-established wireline telephone
and cellular networks. Arthur D. Little estimates (Prism, 2Q 92) that
some $10 billion to $15 billion will need to be invested in network facilities
over the next 10 years in the United States alone merely to support future
wireless operations. These investment projections are based on current industry
estimates that average investment per subscriber will total $200 to $300 and
that networks must be configured to handle upwards of 60 million subscribers in
North America.
The wireless personal communications market will attract many new players
beyond today's telephone companies and providers of cellular and radio paging
service. Other radio service entrepreneurs are appearing encouraged by the
FCC's emphasis on competition. Key factors for success in the wireless
marketplace are:
- The ability to obtain government franchises and an adequate radio
spectrum.
- The ability to gain access to adequate levels of capital investment.
- The ability to develop complementary strategic alliances and
partnerships to satisfy the full range of needs and political influences in the
marketplace.
- The ability to develop effective distribution channels and pricing
strategies to meet the widely varying needs of different market segments.
In order for the above forecasts for greatly enhanced wireless services
(e.g., personal computer networks) to become realities, further developments of
equipment must occur in a timely fashion in the following areas: intelligent
network hardware and software; radio transmission standards; and multimode
portable radios.
2.3 The Cable-Fiber Connection
Telephone companies are busy laying fiber-optic wires, and are
planning to deliver movies and newspapers, along with bill paying, banking and
other two-way video services to American homes. However, the cable TV (CATV)
companies are also in this market. For example, Tele-Communications Inc., the
country's largest cable operator agreed to buy 49 percent of Teleport
Communications Group, Inc. from Merrill Lynch in February 1992. Teleport has
built up a $100 million-a-year business by interconnecting major buildings and
corporations with fiber-optic cable and linking customers to other phone
networks, thereby often bypassing the local telephone companies and their higher
switching costs.
With phone company data service revenue rising some six times faster than
voice service revenue, the TCI-Teleport connection will be used to challenge the
phone companies in one of their most profitable areas. The CATV industry is
changing from being a video entertainment source to being a full-service
telecommunications supplier.
The CATV companies already enjoy a substantial lead over the telephone
companies in the race to put smart wires into U.S. households. Currently, 93
percent of American homes are wired for cable TV. Likewise, 93 percent of U.S.
households are connected for telephone service.
But those penetration figures are misleading. What matters is not the
quantity of wire but its quality: how much data can be passed through the
wires, and how easily. On this score, the CATV companies are far ahead of the
telephone companies.
The arteries of a CATV system are the coaxial cables that run from the
center of the system, the so-called head end, out to subscribers' homes. Over
long distances, coaxial cable is not a very efficient conduit of electronic
impulses; it is far inferior to fiber-optic cable. About every quarter-mile,
coaxial cable requires an amplifier to boost the signal and compensate for
resistance on the line.
Over short distances, however, coaxial cable is a highly efficient data
conduit. Over stretches of 300 feet or less into the home, coaxial cable
requires no amplifiers. Thus, across the so-called drop (the distance from the
curbside into the living room) coaxial cable can now handle as much data as
fiber-optic cable, and far more than phone companies' conventional twisted-pair
copper wires can transmit.
In telecommunications industry jargon, coaxial cable over short distances is
what is called a "broadband pipe" -- a conduit through which huge
amounts of data can flow at enormous speed. Through a broadband pipe, for
example, the entire contents of the Library of Congress could flow in under 8
hours. To send the same quantity of information by modem over a conventional
telephone line would require 500 years.
The point is this: the telephone companies' existing narrow band copper
wire links to homes can normally carry only voice and data. But CATV's coaxial
broadband links to the home can carry full-motion digital video, high-resolution
medical images, vivid educational simulations, and lifelike videoconferences.
Congress and the courts continue to limit the freedom of the telephone
companies on the grounds that they are local monopolies. Thus the phone
companies generally cannot own cable franchises in their own service areas, or
have they been allowed, until recently, to get into electronic publishing. This
allows cable operators to explore parts of the telephone business before the
companies can get into their business.
One thing is already clear. The telephone, television, and computer are
rapidly merging into a single, very intelligent box -- a telecomputer. This
telecomputer will be linked to the rest of the world by high-capacity smart
wires. As things now stand, the cable companies have done more to move these
broadband wires close to homes and offices than anyone else. Telecommuters will
readily be able to take advantage of these services.
2.4 Open Systems Standards
Today most of a business's systems are incompatible, resulting in the
multiple appearance of data in inconsistent or inaccessible forms, a
prohibitively high cost of updating data and applications, awkward manual
interfaces, and little systematic support for ad hoc decisionmaking. This often
becomes a roadblock in any effort to achieve important strategic and tactical
objectives requiring integration and linking of these systems. To help overcome
these problems, it is important to move toward standards and open systems.
Open systems will allow users to take an architectural approach, making
available a variety of systems that may be purchased and adapted so that
businesses can take advantage of telecommuting opportunities in creative and
efficient ways. With an open systems architecture, users will no longer need to
restrict themselves to the purchase of a short list of allowable vendor's
products. This increases in importance as the useful life of the technology
products grows progressively shorter, while the useful life of an application
can be relatively much longer.
Open systems promise to eliminate much of the redundant effort involved in
maintaining today's plethora of operating environments and in building many
one-to-one links between them. Not only must these standards address the
operating system and communication data exchanges, they must also address
interactive access to remote databases, human interfacing, security, and
multilingual support.
2.5 Electronic Data Interchange
The American National Standards Institute (ANSI) has developed the
Electronic Data Interchange (EDI) for computer-to-computer transactions
involving ordering, shipping, and billing. EDI is a prime example of a set of
standards for government and business transactions being widely adopted with
huge telecommuting potential.
EDI is a worldwide phenomenon that provides the infrastructure necessary for
mission-critical transactions. It is being aggressively implemented and backed
by national governments in the United States, Canada, Europe, Asia, and the
Pacific Rim. EDI has the potential to spur economic development by facilitating
commercial transactions.
EDI is defined as the computer-to-computer interchange of business
transactions that conforms with specified standards over a communications
network that includes at least two trading partners. These transactions include
the interchange of common commercial information typically consisting of
purchase orders, invoices, shipping notices, and related acknowledgements.
Most notably, EDI has been more user-driven than any other automated
business solution. This has been advantageous for users because they have not
been constrained by corporate information systems organizations.
EDI growth has been bolstered by its appeal to some 30 vertical industry
markets, each of which has become involved in specifying EDI standards for
special interest organizations within that vertical industry. Three of the
major EDI standards are:
- Uniform Communication Standard (UCS), used primarily by the grocery
industry;
- Voluntary Interindustry Communication Standard (VICS), used by the general
merchandise retailing industry; and
- Warehouse Industry Network Standards (WINS), used by public warehouses and
their depositor customers.
Although the EDI market is worldwide, it originated in the United States and
continues to enjoy most of its popularity here. The EDI market comprises three
components: EDI software, data transport/network services, and professional
services. The International Data Corp. estimates that the EDI revenues for
these three components in the United States, Europe, and Asia/Pacific was $368
million in 1991, and is expected to reach $1.8 billion in 1996. This represents
a compound annual growth rate of 37 percent. The potential for telecommuting
growth by tapping into these EDI networks for at-home and satellite office use
is enormous.
Although communication carriers such as AT&T, MCI, Sprint, and the
regional Bell operating companies are in their early startup stages for EDI,
VANs may expect greater competition here once the carriers better understand the
requirements of EDI. There is a challenge to carriers to become more than just
a voice or data communications network offering customers wide area
communications. Carriers have the opportunity to become more closely associated
with customers and their business activities by managing EDI transaction sets.
They also have the opportunity to provide enhanced services that significantly
extend present voice and data communications infrastructures and offerings.
3.0Technological Uncertainties and Issues with Potential Impact on
Telecommuting
3.1 Uncertainties of Technology Standards and Integration
The network technology and standards needed to build network-enabled
multimedia applications will become available in the next 5 years. For example,
the emergence of high-speed networks based on FDDI and ATM standards will enable
companies to distribute multimedia information on demand from network servers
instead of physically distributing CD-ROMs to every desktop. This will make it
easier for companies to provide up-to-date multimedia information, reduce
equipment costs, and save time.
However, there are some challenges to overcome before networked multimedia
becomes possible. While compression techniques can reduce the bandwidth
required for full-motion video to 1.5M bit/sec, today's networks still have
difficulty supporting multimedia information because of the different ways data,
audio, and video consume bandwidth on a network.
Data is well suited for connectionless, data-packet environments because it
is transferred in bursts and does not require packets to arrive in sequence.
Audio and video, on the other hand, require steady high bandwidth (16K to 384K
bit/sec) for the duration of a session, and packets that arrive sequentially.
FDDI offers one solution to this dilemma because it supports high-speed
packet switching for digital data, and isochronous or time-dependent circuit
switching for audio and video. Once users build FDDI-II networks, they will use
FDDI Follow-On LAN standard being developed by the ANSI X3T9.5 committee to
interconnect those nets.
Besides FDDI technologies, ATM will offer the best support of multimedia
applications. ATM supports fixed-length cells and speeds up to 1G bit/sec, as
well as connectionless channels for data and connection-oriented channels for
audio and video.
Another problem facing networked multimedia is synchronizing video and audio
segments. Most users today run parallel networks in which data, video, and
audio run on separate networks.
Toward the end of the decade, many companies will run multimedia
applications across public networks that support broadband Integrated Services
Digital Networks (BISDN) or other broadband services. Following is a sequence
of highlights of networked multimedia applications and the key technologies and
standards supporting them:
Technologies/StandardsApplications
1990 PX64 for video Videoconferencing
1991 FDDI Image management
1992 Switched MultimegabitMultimedia presentations
Data Service and training programs
1993 FDDI-II Multimedia E-mail
1994 Asynchronous TransferLAN-based desktop
Mode/Synchronous Videoconferencing
Optical Network
1995 Broadband ISDN -
1996 FDDI Follow-On LAN -
1997 Open Document Network-enabled
Architecture Multimedia
4.0 Possible Scenarios of Future Technological Developments Relevant to
Telecommuting
4.1 Future Technologies
4.1.1 Advanced Multimedia and Virtual Reality
By the turn of the century, most companies will be implementing multimedia
applications that pull digitized audio, full-motion video, image, and text
information from distributed servers across an enterprise network.
Users will regard multimedia as an indispensable tool for enhancing
corporate productivity and expect that network-based multimedia applications
will make the same inroads into corporations that desktop publishing did in the
1980s. Perhaps the ultimate expression of multimedia is to be found in the
emerging concept of "virtual reality." Virtual reality relies on a
multimedia computer system that allows the user to become totally immersed in a
computer-generated world of real-time simulation, an artificial world where
objects and environments create the illusion of being real.
A new interface archetype, that of the virtual interface, permits us to
revise both the way we think about computers and the way we think with them.
These interfaces allow three-dimensional panoramic presentations to be made to
the eyes, ears, and hands of the user.
Virtual images presented directly to the senses provide a participant with a
total global experience. The human literally wears the computer. The
participant is surrounded by a "circumambience" of
computer-synthesized information, a spatial world in which the person and the
computer can more effectively communicate. The user interacts with this
inclusive medium by looking at objects, pointing his or her hands and giving
verbal commands. The medium permits virtual objects which appear real to be
touched and manipulated by the participant.
To create the virtual world representation of information, the
virtual-display hardware components are programmed with "mindware."
Mindware is a special class of software that takes into account human perceptual
organization and dynamically creates three-dimensional sound, video, and tactile
images which surround the user.
Virtual reality is not limited to a single person. Virtual worlds can be
shared by two or more participants. Each participant has the ability to
customize the rendering to his or her particular needs and preferences. With
the addition of telecommunication links, these worlds can be shared by many
participants, at different locations and at different times. This creates a new
medium of communication: televirtuality -- a form of future telecommuting.
Virtual interfaces solve many existing interface problems and empower new
and novel interfaces for teleoperation, computer-aided design, education,
medical imaging, entertainment, and prostheses for individuals with
disabilities.
Virtual interface technology provides a bold new opportunity for solving
many of the perplexing problems of interfacing human and machine intelligences.
With systematic development, virtual interfaces can become one of the greatest
advances of our age and a boon to industry.
Virtual Reality (VR) is one of the most promising of the advanced
technologies that will influence telecommuting. Although it sounds like science
fiction, VR is already a science, a technology, and a business, supported by
significant funding from the computer, communications, design, and entertainment
industries worldwide.
Imagine a wraparound television with three-dimensional programs, including
three-dimensional sound, and solid objects that you can pick up and manipulate,
even feel with your fingers and hands. Imagine immersing yourself in an
artificial world and actively exploring it, rather than peering in at it from a
fixed perspective through a flat screen in a movie theater, on a television set,
or on a computer display. Imagine that you are the creator as well as the
consumer of your artificial experience, with the power to use a gesture or word
to remold the world you see and hear and feel. That part is not fiction. The
head-mounted displays and three-dimensional computer graphics, input/output
devices, computer models that constitute a VR system make it possible, today, to
immerse yourself in an artificial world and to reach in and reshape it.
Some of the advanced human sensing interface research technologies that
support VR include:
- Eyes as output: this emphasizes looking at evidence of interest and as a
means of reference.
- Observing people: noticing peoples' gestures and positions as they move
about the work environment, e.g., lip reading and observations that lead to
personal identification.
- Micromovies: window systems with multiple small moving images that can
each become animated as they are signaled.
- Hyperspace: this enables a designer to "walk inside" the object
designed (building, vehicle, etc.).
- Knowledge-based animation: an intelligent animation system which allows
non-expert users to control the behavior of realistic, articulated figures in
complex, simulated environments.
- Data glove: novel 3-D interaction techniques which have resulted in the
implementation of hand gesture-driven interfaces to the computer graphics
environment. This interface makes it possible for users to directly manipulate
objects in these simulated environments.
- Tactile simulation: human interfaces which provide realistic, real-time,
3-D tactile simulation of computer-generated objects and environments.
- Alcove holograms: viewable version of the alcove projected image hologram
which permits full-color "walk-around" images to be produced.
- Back seat driver: a computer program that accompanies a driver, keeping
track of current positions and giving spoken directions to the destination.
- Pilot associate: a computer program that accompanies a pilot.
4.1.2 Coordination Science
It's an age old question: How can people and machines most effectively work
together? In today's era of rapid technological and social change, new answers
to this question are being formulated by researchers in industry and academia.
Researchers are exploring the meaning of coordination and are developing
collaboration technologies to help groups of people and firms better integrate
their work.
The Massachusetts Institute of Technology (MIT) has gone so far as to call
for a national research agenda to create a new interdisciplinary field called "coordination
theory." The idea is to develop a scientific theory that would explain how
the activities of separate players, both individuals and machines, can be
coordinated.
An important area for coordination theory will be developing and using
computer and communications systems to help people work together in small or
large groups. Successful commercial versions of coordination technologies have
already appeared under the names of "groupware" and "computer-supported
cooperative work." Some industry observers maintain that in moving from
stand-alone personal computers to a more distributed model of computing, these
applications represent a shift in computing paradigms equal in significance to
the earlier shift away from sharing time on a mainframe computer.
Two years ago, MIT opened the Center for Coordination Science at the Sloan
School of Management, with original sponsorship by Digital Equipment Corp. and
the National Science Foundation. The MIT Center is working with people in a
variety of disciplines, within and outside MIT, as it seeks to integrate
existing coordination theories from such fields as economics, computer science,
and organizational theory.
These coordination theories and emerging technologies are being applied to
such telecommuting-related areas as developing decentralized organizational
structures, exploring distributed systems that can coordinate multiple
processors, and groupware.
A few examples of the MIT's innovative tools for supporting group and
organizational coordination are listed:
- Oval - A tool kit for prototyping groupware applications.
- Answer Garden - A tool for growing organizational memory.
- Sibyl - A tool for supporting group decisionmaking.
- Hypervoice - A telephone interface for semistructured "voice
databases."
4.2 Scenarios of Future Applications of Telecommunications
In this section, the three future technologies described above (advanced
multimedia, virtual reality, and coordination science) will be illustrated in
terms of possible future scenarios. These technologies are actually
combinations of many other technologies under development in university,
industrial, and governmental laboratories today. Although these scenarios may
lie far in the future, they illustrate possible long-term implications that need
to be understood in making near-term policy decisions.
If broadband network services were easy to use, with resultant high quality
teleconferencing, much business-related and other travel would be unnecessary,
we could all stay home, preserve the environment, energy resources, and our
peace of mind. Yet, staying at home would not be the most interesting
consequence of better networks.
The often overlooked point is that we can freely move about precisely
because we have the electronic means to stay in touch with our home base. No
one needs to be more than a telephone call, data transfer, or fax transmission
away from the office -- indeed, from any office. What network planners should
be looking at is the computational and telecommunications resources that will
allow us to be more or less independent of space and time.
Travel embargoes during the Persian Gulf War increased interest in
video-conferencing and teleconferencing, which undoubtedly will continue to gain
appeal. The more fascinating developments, however, will come from new services
that free you to wander and that create an electronic surrogate for you on the
network with which others can communicate.
These developments will hinge on storing and transmitting information,
either through electromagnetic broadcasts or over optical fiber. Broadcast
spectrum is scarce, whereas fiber, like computing power, can be produced in
virtually unlimited amounts. These facts mean that the channels for
distributing different types of information, as we know them today, will trade
places. Most information we receive through the ether today, television for
example, will come through the ground by cable tomorrow. Conversely, most of
what we now receive through the ground, such as telephone service, will come
through the airwaves.
Two rules of thumb guide decisions as to how information is best
distributed. First, use the broadcast spectrum to communicate with things that
move: e.g., cars, boats, airplanes, and people with telecommunication
terminals. Second, deliver information to the desktop or living room by fiber.
Cellular telephones and cable television illustrate these "rules".
Television manufacturers are increasingly adding computing power to their
receivers, and computer makers are putting more video into their workstations.
Although this development may seem like a merger of the technologies, each side
is disregarding the underlying utility of the other's techniques and aims. As a
result, the television makers are cutting off their own access to the broader
information delivery market, and computer manufacturers are missing an
opportunity to become a part of the entertainment industry.
Two fundamental attitudes toward digital image transmissions in general and
television in particular need to change before we will see creative thought in
this area. First, we must think of images as scalable in physical dimensions
and time. Second, in the long run, model-based image transmission and encoding
are better than transmission of pictures alone. Mathematical models of a scene
can describe the spatial relations of the objects in it and maneuver them
through space.
Information has value, but it may be as perishable as fresh fruit. It
varies from person to person, from moment to moment. But when information leads
to a transaction, such as booking for an empty seat, the value is less
ephemeral. A service that facilitates transactions earns the gratitude of both
the buyer and seller.
Multimedia computing is likely to be an important tool for transactions. It
is anticipated to be a serious bandwidth consumer; but short-term multimedia
solutions need not be. Customers at home could access some information at a
remote site by narrow band communications. The rest could already reside in the
home, say on a videodisk, at the time of the transaction for fast access
locally.
More generally, the problem and solution can be described as a kind of
Yellow Pages. For example, electronic Yellow Pages could be geographically
coded so that a company or service could be related to who you are, where you
are, where you are going, and what might be along the way. The opportunity is
made-to-order for multimedia network products and services.
Almost all services can distinguish themselves by becoming personalized. We
are pleased to be recognized and catered to as individuals rather than being
treated as a faceless part of the mob. Personal information systems are also
extremely efficient. In this regard, the most desirable interaction with a
network is one in which the network itself is invisible and unnoticeable.
The fax, a "dumb" terminal par excellence, perfectly represents
the services that result when we do not focus on the intelligence of the network
and its ends but instead rely on the lowest common denominator of transceiver.
This approach limits the quality and originality of the products and services
that can later arise.
One possibility is the increasing importance of "answer networks,"
networks of experts available to answer questions in different areas. One might
go to these services with questions such as "How many bars of soap were
sold in Guatemala last year?" or "What are the prospects of
room-temperature superconductivity in consumer products by 1995?" The
services would include massive data bases and access to people at various levels
of expertise in many different topic areas.
Network marketing of services within geographically dispersed organizations
could operate as follows. Extensive internal markets for the services of people
and groups could replace reliance on supervisors to allocate work to people.
Improved technology can also help create decisionmaking structures that
integrate qualitative input from many people. For instance, in making complex
decisions, such as where to locate a new plant, the amassing of many facts and
opinions is critical. Today, companies often make such decisions after
incomplete discussions with only a few of the people whose knowledge or point of
view might be valuable. In the future, companies may use computer networks to
organize and record the issues, alternatives, arguments, and counter arguments,
in graphical form. Then many different people can review and critique the parts
of the argument about which they know or care.
What will happen as the globally networked society leads to a world in which
vast amounts of information are freely available or easily purchased? Clearly,
this world will require services, both automated and human, to filter the
tremendous amount of information available. In general, as the amount of
information increases, people who can creatively analyze, edit, and act on
information in ways that cannot be automated will become even more valuable.
But what else people will do will depend on the values that are important to
them. When trains and automobiles reduced the constraints of travel time, other
values became more significant in determining working and living patterns.
Similarly, when the costs of information and coordination are not a barrier to
fulfilling peoples' needs and wants, other values may emerge to shape the
workplace and society, such as a need for self-actualization or spiritual
fulfillment.
Virtual reality brings with it a set of questions about the industries and
scientific capabilities it makes possible. It also brings with it a set of
questions about human uses of technology, particularly the technologies that
don't yet exist but are visible on the horizon. VR vividly demonstrates that
our social contract with our own tools has brought us to a point where we have
to decide fairly soon what it is we as humans ought to become, because we are on
the brink of having the power of creating any experience we desire. The first
cybernauts realized very early that the power to create experience is also the
power to redefine such basic concepts as identity, community, and reality. VR
represents a kind of new contract between humans and computers, an arrangement
that could grant us great power, and perhaps change us irrevocably in the
process.
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(1)Telecommuting Case Studies, LINK Research Report.
Appendix B - Details of Analysis
Spread Sheet - Transportation Impacts of Telecommuting - Projected (Lower
Bound pg. 1)
Spread Sheet - Transportation Impacts of Telecommuting - Projected (Lower
Bound pg. 2)
Spread Sheet - Transportation Impacts of Telecommuting - Projected (Upper
Bound pg. 1)
Spread Sheet - Transportation Impacts of Telecommuting - Projected (Upper
Bound pg. 2)
Assumptions
Total Telecommuters = Sum of the number of telecommuters in each of
the 5 categories.
percent of Infoworkers Telecommuting = Total Telecommuters/# Infoworkers
Telecommuting Days/Week = (# of Home-CBD telecommuters*Avg. Days per
week)+.......(sum of the 5 categories)
Average Days / week - beginning with 1-2 days per week and gradually
increasing (rate?).
Commute Distance
Assume no exacerbation of urban sprawl.
The average distance traveled to work according to the NPTS 1990 is 10.7
miles one way / 21.4 miles round trip, this figure was uses as the distance from
home to CBD Office. Distance for regional offices is anticipated to be
substantially less, we assume 9 miles (round trip) for the home to regional
center commute.
Since data indicates that commute distance has not been changing annually,
this figure was not adjusted over the spreadsheet time frame.
Commute Time
This is generally increasing with the years. 1990 Journey to Work reports
average commute time is 22.4 minutes
Home to CBD - 22.4 minutes
Home to Regional Center - 11.2 minutes
This figure was not adjusted over the spreadsheet timeframe.
Commute Speed
19.6 mph was used for urban since that is the default for mobile 4.1; 45 mph
was used for rural.
Average Fuel Efficiency
Impacted by improved automobile efficiency. This has risen slightly in the
past 10 years; new car fuel economy seems to be leveling.
Average MPG for US passenger cars for 1990 = 20.92 Miles per Gallon (NTS
Table 52). The average increase per year for 1988 - 1990 was 2.8%.
Gasoline Prices
Average Retail Price in 1991 for regular unleaded was $1.14/gallon (NTS
1992, Table 49).
Gasoline Saved
Gasoline saved due to telecommuting = (Vehicle Miles Saved)/(Average MPG)
total fuel 1990 - 72,434,884,000 gallons
average consumption for 1990 -- 505 gallons per year/vehicle
42 gallons per barrel was used as the conversion factor.
Mode Choice
Gradual but slow move to ridesharing and mass transit
average vehicle occupancy 1.6 -- 1990
76 percent of all carpools - 2 person
private auto used 73.2 percent of the time - 1990 (Journey to Work)
VMT
Table B-3. Vehicle Miles Traveled
Assume trip savings are not offset by increased noncommute travel.
total VMT 1990 passenger cars - 1,515,370,000,000
32.1 percent of VMT are for work (NTS Table 72).
Calculations for savings as percent of total VMT were made with the
assumption that VMT would increase 3.7 percent per year; this is the average
percent increase from 1988-1990 (NTS 1992, pg. 51)
Passenger/Vehicle Miles Saved
Vehicle miles slightly lower because most telecommuters travel by private
automobile with no passengers other than the driver.
Passenger Miles Saved
Part Time Home, CBD Workers: = (# Home,CBD Workers) * (Telecommuting Days
per Week) * (Average Round Trip Dist. Home,CBD) * (48 weeks)
Part Time RC, CBD Workers: = (# RC,CBD Workers)*(Telecommuting Days per
Week) * (Average Dist. Home,CBD - Average Dist. Home,RC) * (48 weeks)
Part Time Home, RC Workers: = (# Home, RC Workers)*(Home Telecom. Days per
Week) * (Avg. Dist Home, CBD)*(48 weeks) + (# Home, RC Workers) * (5 - Home
Telecom. Days per Week) * (Average Dist. Home,CBD - Average Dist. Home,RC) * 48
weeks
Full Time Home Workers: = (# Full Time Home Workers) * (5 days) * (Average
Dist. Home,CBD) * (48 weeks)
Full Time RC Workers: = (# Full Time RC Workers) * (5 days) * (Average Dist.
Home,CBD - Average Dist Home,RC) * (48 weeks)
Note: 48 weeks = 52 weeks - 2 vacation - 2 holiday
Vehicle Miles Saved = (Total Annual Passenger Miles Saved)*(73.2 percent)
Note: 73.2 percent is the amount of commuters who drive alone. (NPTS)
1.16 is the average occupancy per car.
Annual Pollution Avoidance
Table B-2 lists figures used from the EPA MOBILE 4.1 model in calculating
emissions avoided.
Table B-4. EPA MOBILE 4.1 Emissions
|
EPA - MOBILE 4.1
Average Emissions (grams/mile)
|
|
Default Operation
|
Urban
(1990 Base Fleet)
|
Rural
(1992 Base Fleet)
|
Average speed
|
19.6 mph
|
45.0 mph
|
Pollutant
|
|
|
Total HC
|
4.71
|
2.44
|
Exhaust CO
|
29.01
|
8.83
|
Exhaust NOx
|
3.02
|
2.46
|
Carbon: = [(Total Miles Saved)*(.78,Urban Commuters)*(29.01 grams)/ + (Total
Miles Saved)*(.22,Rural Commuters)*(8.83 grams)]/(454,grams per lb.)
The other pollutants were calculated in a similar manner.
Notes: The urban pollution rate was taken from grams of emission at the
average urban commute speed 19.6 mph. The rural rate was calculated at 45 mph
default operation. The emission figures at varying speeds were taken from the
EPA Mobile 4.1 model. The percentages of urban (75.2%) vs. rural(24.8%)
commuting were obtained from the 1990 Journey to Work.
Gasoline Excise Tax
An average tax rate for all states was calculated to be 15.8 cents/gallon
Source: U.S. Department of Commerce Statistical Abstracts of the U.S. 1992
Safety
Fatalities avoided = (Total Passenger Miles Saved)/(1,000,000)*(.0232)
The annual fatal accident rate of .0232 fatal accidents per 1,000,000 miles
travelled was taken from 1989 rate in MVMA Facts & Figures.
No adjustment was made for time of day of accidents.
Appendix C - Profiles of Major Demonstration Projects
California Telecommuting Project
Federal Flexiplace Project
Hughes Ground Systems Group Telecommuting Pilot
Los Angeles County Pilot Project
Puget Sound Telecommuting Demonstration Projects
Sears
SNET (Southern New England Telephone Network)
Project: California Telecommuting Project
POC: Pat Mokhtarian (UC, Davis)
Phone: 916-752-7062
David Fleming (formerly with CA)
Phone: 916-752-1987
Carol Nolan (Pacific Bell)
Phone: 213-975-7495
Fax: 213-977-0641
Company: State of California
Department of General Services
601 Sequoia Pacific Blvd.
Sacramento, CA 95814
Type of Business: State government
Project: California Telecommuting Project
Implementation Date: January 1988
Formal/Informal: Formal
Funding: California state. Caltrans funded some evaluation.
Telecommuting Strategy:
Program objectives were to study telecommuting as a response to traffic and
air pollution problems and a state mandate to reduce trips for state employees.
Telecommuting in San Francisco, Sacramento and Los Angeles. Provide options for
physically disabled. Predominantly work-at-home using telephone and/or personal
computers.
Effects on Business:
Productivity Gains: Productivity hasn't suffered on the whole.
Potential for space savings: Over-crowding in state facilities. Share
existing space more efficiently.
Direct benefits include: increased employee effectiveness, decreased sick
leave, decreased medical costs, increased organization effectiveness, decreased
turnover, decreased move rates, reduce parking requirements, and office space
savings. Indirect benefits include: decreased energy consumption, decreased air
pollution, decreased highway costs, and decreased traffic congestion.
Project Manager: David Fleming
Participants:
California Energy Commission, California Youth Authority, Department of
General Services, Department of Social Services, Franchise Tax Board, Public
Utilities Commission, CalTrans.
Type: The average telecommuter is 41 years old and employed by the
state for 14 years. Sixty-four percent are male. Ninety percent own their
home. Most are seasoned state employees.
Jobs: Jobs range from accountant to researcher, including
administrative law judges, lawyers, policy analysts, and appraisers.
Secretaries and clerical workers: 3 percent, managers: 3 percent, managers and
professionals: 18 percent.
Number: 150 (1990) Mostly from 6 of 14 participating state agencies.
Twenty-two agencies involved at different points in time.
Employee
Type: Seventy-two percent considered professional. Half own a
personal computer.
Home /
Center:Home.
Number of
Days: 1.6 full days and .4 partial days per week. Some more than 3
days per week.
Technology/Services Used:
Most telecommuters did not require separate phone lines. Those who needed
separate lines telecommuted more than 3 days per week or required dedicated
lines in order to connect to establish a mainframe connection. Thirty-six
percent of telecommuters have multiple phone lines. Sixty percent of
participants and 80 percent of telecommuters own personal computers. Several
agencies supplied telecommuters with laptops for home and office.
Equipment Provider:
Mostly the telecommuter, but the state provided equipment in some cases.
Who pays for:
Equipment(emp/company/both-reimbursement): Primarily employee-owned
equipment.
Maintenance: About $250 annually.
Electricity: Telecommuter.
Phone: State pays for phone services. The average telecommuter
paid an average of $9.43 more than other employees for phone services.
Transportation:
How did employees formerly commute: For nonwork trips and household as a
whole, trip making didn't increase.
Labor:
Union:
Workmen's Comp:
General Problems/Barriers:
Legal:
Labor:
Documentation:
Documents/Citations:
Empirical Studies:
Panel Three-day Travel Diary Survey (1988: 252 respondents, 1989: 219
respondents)
Project: Federal Flexiplace Project
POC: Wendall Joice
Phone: 202-606-0860
Fax:
Company: Federal Government
Type of Business:
Project:
Implementation Date: September 1990
Formal/Informal: Formal
Funding:
Telecommuting Strategy:
Effects on Business: See report below.
Productivity Gains:
Project Manager:
Participants:
Type: 13 Federal agencies
Jobs:General Services Administration
× Position Classification Specialist
× Budget Analyst
× Architect
× Clerk-Typist
× Chemist
Department of the Interior (Washington, DC and Denver, CO)
× Geologist
× Accounting Technician
× Program Analyst
× Physical Scientist
× Oceanographer
Department of Agriculture
× Secretary
× Editorial Assistant
× Regulatory Analyst
× Program Analyst
× Management Analyst
× Budget Analyst
Department of the Treasury
× Comptroller
× Federal Finance
× Personnel Specialist
Department of Health and Human Services
× Medical Officer
× Pharmacologist
× Personnel Management Specialist
× Writer-Editor
× Biologist
× Supervisory Medical Officer
Office of Personnel Management
× Employee Development Specialist
× Investigator
× Psychologist
Number: 6/92: 700, 13 agencies
Employee
Type: Seventy-two percent of 522 participant survey respondents
were married and/or living in families, 47 percent had children under 18 living
at home. Seventy percent were full-time professional employees and 80 percent
had pre-Flexiplace job performance ratings in the "Exceeds Fully Successful"
or "Outstanding" levels. Most worked in urban downtown areas.
Sixty-one percent were 40 or more years old and 84 percent had 11 or more years
of work experience. The participant group had proportionally more females,
higher grades, more part time employees, and more employees with outstanding job
performance ratings than the Federal workforce in general. Forty-three percent
reported that their most productive work was accomplished outside normal working
hours.
Home/Center: Home
Number of Days:
Technology/Services Used:
Equipment Provider:
Who pays for:
Equipment(emp/company/both-reimbursement):
Maintenance:
Electricity:
Phone:
Transportation:
How did employees formerly commute:
Labor:
Union:
Workmen's Comp:
General Problems/Barriers:
Legal:
Labor:
Training:
A workshop for employees, supervisors and personnel specialists is part of
the U.S. Office of Personnel Management training curriculum and available to
agency offices nationally through OPM Training Centers and the Washington Area
Service Center. The package, "Flexiplace: A Workshop for Employees,
Supervisors and Personnel Specialists" is also available from the National
Technical Information Service (NTIS). Component training materials include
fifty 35mm color slides, and instructor's manual, participant handouts and
preclass exercises. The 30-minute "Federal Flexible Workplace Project
Training Overview" videotape is also available from NTIS.
Documentation:
Documents/Citations:
Empirical Studies:
"The Federal Flexible Workplace pilot Project Work-at-home Component",
June 1992, Summary report condensed below.
Data Results:
522 participant background/baseline questionnaires
224 participant 6-month evaluations
102 participant 1-year evaluations
388 supervisor baseline evaluations of participants
213 supervisor 6-month evaluations of participants
100 supervisor 1-year evaluations of participants
62 supervisor 6-month evaluations of organizational performance
49 supervisor 1-year evaluations of organizational performance
40 supervisor evaluations of control participants
40 control participant evaluations of work experience
30 customer/client 6-month evaluations of participants
× Participant Job Performance Ratings
More than 90 percent of the supervisors and 95 percent of the participants
judged that job performance was either unchanged or improved relative to
previous levels.
× Customer/Client and Control Group Ratings
Samples of 30 customer/client ratings, 40 supervisor ratings of control
employees and 40 control employee self-assessments considered too small.
× Interpersonal Communications
The pattern of judgements regarding interpersonal communication is similar
to that regarding job performance. More than 90 percent of the respondents,
both participants and their supervisors, judged that there was no change in the
effectiveness of work-related interpersonal communication; of those perceiving a
change, significantly more saw an improvement as opposed to a decline in
communication effectiveness.
× Quality of Personal Life
Flexiplace has positively affected personal life quality. For most of the
examined factors, more than half of the participants responded that there had
been at least some improvement attributable to the advent of Flexiplace (3
percent or less reported a decline).
× Quality of Work Life
Ninety percent indicated no change or improved. Twenty-five percent and 37
percent for the first six months (17 percent and 29 percent for the final six
months) indicated that the job-related home office equipment and access to work
materials were less adequate than their at conventional offices.
× Participant Costs
More than 70 percent reported reductions in job-related transportation and
miscellaneous costs and no change in dependent care costs. Approximately
one-third of the participants, however, experienced increased home maintenance
costs due to participating in Flexiplace. In terms of an overall cost
assessment, more than half of the indicated no change in job-related costs while
nearly a third reported a reduction.
× Other Findings
Participants indicated reductions in both rush-hour vehicle usage and sick
leave.
× Organizational Performance
(This information is based on a relatively small sample of organizations.)
Data suggest that Flexiplace is a desirable option for most organizations. More
than 70 percent of supervisors indicated that Flexiplace is feasible in meeting
organizational objectives and supervising participants and more than 90 percent
indicated that it did not result in significant organizational expenses. Focus
group summaries and information from agency Flexiplace coordinators suggest that
some of the modifications desired by supervisors include more supervisor control
over selection and number of participants, more guidance on technological
issues, more flexibility in agency-specified procedures and increased agency
funding.
× Overall Reactions
About 80 percent of the supervisors and nearly all participants judged
Flexiplace to be a desirable option requiring minimal refinement.
Project: Hughes Ground Systems Group Telecommuting Pilot
POC: Michael Chaffee
Commuter Services Administrator,
PO Box 3310, MS TC12/A104
Phone: (714) 732-7433
Fax:
Company: Hughes Ground Systems Group
PO Box 3310
Fullerton, CA 92634
Type of Business: Aerospace and Defense sector
Project:
Implementation Date: May-Oct. 1990
Formal/Informal: Formal
Funding: Hughes Ground Systems Group (HGSG)
Telecommuting Strategy:
Telecommuting has been implemented in several small organizations on a "pilot
program" basis, in order to ascertain the feasibility of expanding its use.
The pilots focus on maintaining or increasing productivity over conventional
work arrangements, and contribute to clean air efforts. Telecommuters completed
a questionnaire and were selected by supervisors to participate in the pilot.
Participants were required to sign agreements detailing company and employee
liabilities and responsibilities. Only salaried exempt employees participated.
HGSG reserved the right to inspect the home work environment provided 24 hours
notice and the right to terminate telecommuting at any time. The pilot was
supported by Carol Nolan of Pacific Bell.
(HGSG has also implemented a video-teleconferencing capability that was not
part of the telecommuting pilot. Teleconferencing is available to all employees
who have reserved the on-site studio on a first-come/first-serve basis. The
studio has 35-inch color video screens, and provides connections to eight other
Hughes sites.)
Effects on Business:
Telecommuting required new clerical procedures to report and record daily
time card data. Time keeping procedures were approved, documented, and issued.
Also, customers were unaware that they might be being serviced by an off-site
employee. Most customer servicing was accumulated and handled at appointed
times. Only emergency requests were handled immediately. Internal departmental
support requirements changed, requiring better planning for meetings, and work
coordination.
Productivity Gains:
Benchmarks measuring overhead costs throughout the pilot indicated a
55-percent drop. According to Mr. Chaffee, the productivity of employee's
performing quantitative tasks increased significantly and telecommuting makes
good business sense from this perspective. According to supervisors,
telecommuting promotes high morale, better time management, Rideshare
participation and productivity, while reducing absenteeism. Customers were not
affected by telecommuting. All telecommuters responded that their morale had
improved and 60 percent believed their quality of work improved. They also
desired better telecommunication links and more flexible days for telecommuting.
On-site colleagues favored telecommuting, but found some increase in
interruptions and workload and also had to arrange meetings around the
telecommuters' schedules. From management's perspective, telecommuting promotes
employee retention, attracts new employees and supports Rideshare participation.
The project also resulted in a 55 percent reduction in paid time off.
Project Manager: Multiple managers by site.
Participants:
Type: Information Systems professionals, ranging from programmers to
senior computer scientists.
Jobs: Documentation, performance appraisals, analysis, program
coding and testing, course development, training preparation, and special
assignments.
Number: 12
Employee Type:
Home/Center: Home.
Number of Days: 1-2 days, or special assignment
Technology/Services Used:
PCs with modems, intercom telephones for group communication, and normal
telephone service. Employees must have necessary software. Employees
communicated via telephone and E-mail.
Equipment Provider: Employee.
Who pays for:
Equipment(employee/company/both-reimbursement): employee.
Maintenance: Employee.
Electricity: Employee.
Phone: HGSG. For security reasons, the HGSG host computer always
connected to the remote PC, resulting in connect charges being billed to the
company. Additional phone lines at employee homes were considered a convenience
and the responsibility of the employee.
Empirical Studies:
Multiple surveys were completed by telecommuters, management, in-office
colleagues and customers throughout the pilot.
Project: Los Angeles County Telecommuting Project
POC: Carol Nolan, Pacific Bell
Phone: 213-975-7495
FAX: 213-977-0641
Nancy Apeles, LA County
Phone: 213-974-2637
Company: Los Angeles County government
Project:
Implementation Date: September 1989
Formal/Informal: Formal
Funding: County of Los Angeles
Telecommuting Strategy: Home and Telework Center.
The county has a work force of 80,000 distributed across 39 departments.
Its population is 8.5 million and it encompasses 4083 square miles (800 square
miles larger than Delaware and Rhode Island together). The county represents 31
percent of the state's population and is growing. Since the passage of
Proposition 13, the county has experienced budgetary difficulties.
Many employees commute long distances to work. According to the Wall Street
Journal the average person living in Moreno Valley (about 65 miles from Los
Angeles) spends less than four waking hours at home. People from Santa Barbara
commute about 105 miles each way. Also at issue is Regulation XV of the Air
Quality Management Plan for the South Coast Air Basin mandating the reduction of
vehicle ridership. The telecommuting project seeks to reduce work-related
vehicle usage by local government employees 12 percent by 1994.
Other factors affecting the work environment is increasing traffic
congestion. In 1988 California had 22.4 million vehicles and 16.6 million
drivers. By the year 2000, California anticipates about 23.8 billion vehicles,
22 million drivers and a 200 percent increase in traffic delays. It is
interesting to note, that two hours on the freeway is equivalent to 3 months in
a car, instead of at the office. California drivers spend 400,000 hours a day
in traffic delays at a cost of $2.4 million a day or $600 million per year.
County Management Issues
× Shortage of funds and increased demands for services.
× Increase employee productivity.
× Improve ability to recruit and retain employees.
× Decrease absenteeism and sick leave
× Improve management effectiveness
× Reduce employee stress
× Address air quality/traffic management problems.
Effects on Business:
Telecommuting reduces hours of child care needs and supports sick child and
elderly care. Savings are realized by both the employee and the employer.
Managers tend to manage better and employee loyalty increases, promoting
recruitment and retention.
?× Reduced commute time, cost, and frustration
?× Decreased stress
?× Increased flexibility to handle work/family schedule
?× Better work environment
?× Increased job satisfaction
?× Wider opportunities for the handicapped
?× Decreased number of employees on workers compensation
?× Decreased cost of clothing, food, dry cleaning
?× Closer bonds with the family/community
?× Increased safety in the home/community
Productivity Gains: According to a survey of employees performed by
Shirazi and Associates:
Work Hours
More Same Less
Prior 18% 80% 2%
One year later 28% 70% 2%
Productivity
Increased Same Decreased
Prior 61% 34% 5%
One year later 65% 32.5%2.5%
Quality of Work
Improved Same Decreased
Prior 50% 45% 5%
One year later 48% 52% 0
Problems Completing Work on Time
AGREENeutralDisagree
Prior 6% 18% 76%
One year later 0 30% 93%
Quantity of Work
More Same Less
Prior 77% 16% 7%
One year later 70% 30% 0
Project Manager: Management of the overall county program is the
responsibility of the Chief Administrative Office. The program is decentralized
to line departments which implement the program according to local needs.
Participants: More than 950 people telecommute under the aegis of
the Los Angeles County Telecommuting Project. This includes employees of:
× Department of Community and Senior Citizens Services
× Department of Public Social Services
?× Bureau of Planning and Program Development
?× Management Information and Evaluation Division
× Department of Health Services
?× Contract Monitoring Unit
?× Civil Service Advocacy Unit
× Probation Department
?× Central Adult Investigation Section
?× Transcriber Typists
× Assessor
× Superior Court
× Department of Public Works
× Auditor-Controller
× Chief Administrative Office
?× Office of Affirmative Action
?× Human Relations Commission
?× Coroner
?× Sheriff
?× Marshall
× Internal Services Department
× Department of Children's Services
× Department of Mental Health
× Department of Animal Control
× Museum of Art
Type: 68 percent female/32 percent male
Use computers: 48 percent
Married: 55 percent
Single: 25 percent
Widowed/divorced: 20 percent
Children under 18 at home: 33 percent
Average Tenure: 15 years
Income between $25,000 to $50,000: 34 percent
Income less than $25,000: 14 percent
Jobs: Wide range, including accountants, administrators, clerical
staff, nurses, psychologists, analysts, data processing personnel, tax
collectors, division chiefs, environmental health specialists, electricians,
office managers, auditors, property agents, personnel clerks and managers,
transcription typists, investigators, and word processors.
Number: About 950
Employee Type: Managers, administrators, technical, and clerical
personnel.
Home/Center: Home and center
Number of Days: Average about two days per week.
Technology/Services Used: PC (preferably laptops) and telephone
services from home or telework center.
Equipment Provider: The employee may use personal equipment or
equipment may be provided by the employee's department.
Who pays for:
Equipment(employee/company/both-reimbursement): County pays for
equipment provided by the county. Employees may elect to use personal
equipment.
Maintenance: Employee is responsible for the repair and maintenance
of personal equipment, otherwise, the county is responsible.
Electricity: Employee.
Phone: Individual county department.
Transportation:
How did employees formerly commute:
Drive alone: 76 percent
Carpool: 14 percent
Vanpool: 1 percent
Bus: 5.3 percent
Mix: 4 percent
Avg. commute mileage: 19
Avg. commute minutes: 75
Labor:
Union: Resistance from Unions.
Workmen's Comp: Employees only are covered by Workman's Compensation
at home for job-related accidents. The county reserved the right to inspect the
employee's work area at home, as well as maintain, repair, inspect or retrieve
county-owned equipment.
General problems/barriers:
× Reluctance of some managers to try new programs
× Union resistance
× Delays in computer programming
× Delays in equipment procurement
× Reluctance of some managers to deal with non-telecommuters
Empirical Studies: Shirazi & Associates Telecommuting Survey
Project: Puget Sound Telecommuting Demonstration Project
POC: Maureen Quaid or Dee Christensen
Phone: (206) 956-2000
FAX: (206) 753-2397
Company: Washington State Energy Office
809 Legion Way SE, PO Box 43165,
Olympia, WA 98504-3165
Type of business: State energy office working in conjunction with local
businesses.
Project: Washington State Telework Center
Implementation Date: October 1990
Formal/Informal: Formal
Funding: Washington State Department of Information Systems
Telecommuting strategy:
The telework center was established on the fifth floor of an office building
in North Seattle, supporting state employees who normally work in Olympia. The
center consisted of an entry area, conference room, lunch room, computer room,
and workstation area. The workstation area was partitioned into 13 cubicles
using modular furniture and dividers. The center provided work space for state
employees living in King and Snohomish counties. A consultant from WCCCC,
available full-time, provided part-time on-site hardware and software support.
The center closed in January 1992 because of a lack of funding.
Effects on Business:
Productivity Gains: Unknown.
Time savings for employees who reduced commute by as much as two hours per
day and reduced travel costs. Telecommuters indicated an improvement in job
performance because of fewer interruptions and reduced stress associated with
commuting.
Project Manager:
Participants:
Twenty-four employees from state agencies used the center. Participating
agencies included the Department of General Administration, Department of
Transportation, Department of Social and Health Services, Department of
Employment Security, Utilities and Transportation Commission, African- American
Affairs Commission, Department of Community Development, Washington Community
College Computer Consortium (WCCCC) and Washington State Energy Office. The
federal Bonneville Power Administration rented one workstation, but rarely used
it. Employees volunteered to use the Telework Center and none were screened or
formally selected.
Type: Primarily administrators and managers.
Jobs: Support staff; assistant, deputy and executive directors;
administrators; program managers; planners and analysts; and field workers.
Number: 24
Employee Type:
Home/Center: Center.
Number of Days: Variable.
Technology/Services Used:
PCs (80286 microprocessors) with 40MB hard-drives connected by LAN to a file
server and Laserjet printer. Each workstation had a touch-tone phone accessing
the state's long-distance phone system. Some people added answering machines.
The conference room was equipped with a speaker phone and a security card access
system was installed at the facility's entrance.
Equipment Provider:
Leased from R&D Industries, a regional distributor for Hewlett-Packard,
by the state.
Who pays for:
Equipment(emp/company/both-reimbursement): Primarily state.
Maintenance: State.
Electricity: State.
Phone: State. Long distance calls were not tracked.
Transportation:
How did employees formerly commute: Most commuted by automobile from the
Seattle area to Olympia. Just more than half used the center regularly. The
rest used it less than one day in two weeks or did not use it for more than six
months at a time. Several people found it more convenient to telecommute from
home. Three people moved to Olympia and another three changed jobs. Five
people normally used the center for three or more days per week. Transportation
characteristics tended to be complicated. Some performed field work or had
business elsewhere. The one-way commuting distance to the main office was
typically more than 60 miles. The center did not reduce the number of commute
trips; however, it did reduce mileage. The estimated annual savings was about
60,000 miles or 2,600 miles per telecommuter. The six telecommuters with the
highest annual savings accounted for more than 80 percent of the total estimated
savings.
General Problems/Barriers:
Initial funding was expended after 13 months. Agencies using the center
could not pay the monthly workstation cost and the center was closed. Telework
center was less than half occupied when open.
Documentation:
Empirical Studies: Case study based on interviews with employees estimates
affects on energy consumption for transportation, office and home computer
equipment, lighting and heating. Energy consumption was not measured directly.
Energy use changes were estimated for transportation, home, office, and the
telework center.
Project: Puget Sound Telecommuting Demonstration Project - GTE
POC: Maureen Quaid or Dee Christensen
Phone: (206) 956-2000
FAX: (206) 753-2397
Company: GTE Northwest
Project:
Implementation Date: November 1990.
Formal/Informal: Formal.
Funding: GTE Northwest.
Telecommuting Strategy:
The objective was to develop data, experience, and knowledge in
telecommuting. Participants worked from home. Prior to the project a few GTE
employees telecommuted informally. GTE had no formal telecommuting policy and
no official budgets or policies were established for the project. Telecommuter
support (mostly technical) was limited and handled informally.
Effects on Business:
Benefits to GTE are difficult to quantify. The project resulted in minimal
office savings of about $50 per year.
Productivity Gains:
The major benefits to telecommuters were fewer interruptions, additional
time.
Project Manager:
Participants:
Twenty-three official participants: 7 from Canyon Park and 16 from Everett,
WA. About two-thirds telecommuted regularly; the remainder generally started
then either stopped telecommuting for six months or more or quit altogether
because of job demands, job changes or inability to get required support. Less
than half are telecommuting and intend to continue. About one-third intend to
discontinue formal telecommuting.
Type:
Jobs: Canyon Park: (client/sales focus) applications specialist and
account executives. Everett/main office: administrators, analysts, programmers
and other central office support and development staff.
Number: 23
Employee Type:
Home/Center: Home
Number of Days: Variable.
Technology/Services Used:
Personal computer, modems and telecommunication lines.
Equipment Provider:
Most equipment supplied by GTE. Some individuals used their own personal
computers. GTE installed business lines as necessary.
Who pays for:
Equipment(employee/company/both-reimbursement): Mostly GTE.
Maintenance: minimal/GTE.
Electricity: telecommuter.
Phone: unknown.
Transportation:
How did employees formerly commute:
Distance to site: The average commute distance was 19 miles and required
about 26 minutes. The maximum one-way commute was 63 miles. The minimum
commute was three miles. Eleven of the 18 survey participants have one-way
commutes of 15 miles or less. Sixteen respondents indicated that telecommuting
required no additional travel, but two respondents said they incurred additional
travel to day care facilities twice each day. During the first year, the 18
respondents saved an estimated 940 gallons of gasoline and eliminated 29,800
miles of highway travel. One telecommuter had higher gasoline consumption,
although another saved 179 gallons alone (more than three times the average).
The telecommuters reduced the number of trips by 18.5 percent or about 650 trips
per year, which is consistent with telecommuting one day per week.
Documentation:
Empirical Studies: Case study interview conducted with 21 GTE employees of
which 18 interviews were usable. Discussions were held with the telecommuting
coordinator, public affairs director, office services manager, building manager,
and a representative of Information Systems Field Services. Information was
collected on office characteristics and the operation and implementation of
GTE's telecommuting pilot. An analysis of affects on transportation is based on
interviews, as well as affects on energy consumption connected with commuting
and computer, lighting and heating in the home and office.
Project: Puget Sound Telecommuting Demonstration Project - Redmond
POC: Maureen Quaid or Dee Christensen
Phone: (206) 956-2000
FAX: (206) 753-2397
Company: City of Redmond, WA
Project:
Implementation Date: October 1990
Formal/Informal: Formal
Funding: City of Redmond
Telecommuting Strategy:
The primary goal was to demonstrate on an organization can reduce demand on
the region's transportation network. Other factors included stress reduction,
overcrowding in city facilities and the 1989 Governor's Conference on
telecommuting.
Effects on Business:
Unoccupied offices were used for informal meetings or by interns and
temporary staff. There were no formal desk sharing arrangements. The city
established telecommuting policy, covering eligibility, work hours, computer
equipment availability and liability, workspace, injuries, and telephone
expenses. Telecommuting had to requested and approved by an individual's
supervisor, department head and a telecommuting committee.
Productivity Gains:
Not directly measured: Telecommuters indicated they were more productive
because of fewer interruptions.
Project Manager:
Participants:
Type: Finance, planning, parks, public works, and human resources.
Jobs: Secretaries, administrators, planners, accountants, analysts,
recreation directors and engineers. Many must interact with the public or
staff.
Number: Officially, 10 city staff members and 10-15 unofficial
participants, representing about 5-10 percent of the city's work force. Seven
of ten official participants telecommute regularly.
Employee Type:
Home/Center: Home.
Number of Days: Variable. Virtually all telecommute at least one day
per week.
Technology/Services Used:
IBM-compatible computers, modems, and standard telephone services.
Equipment Provider: City or Redmond and/or participant.
Who pays for:
(Costs for the telecommuting project were not tracked directly.)
Equipment(emp/company/both-reimbursement): Most equipment provided
by the city (laptop computers). Telecommuters were responsible for damage to
equipment due to negligence, intentional destruction and power surges. At the
office, most employees have 80286 or 80386 PCs, linked to local printers.
Maintenance: The city covered maintenance, repair, and replacement
costs.
Electricity: Employee covers electrical costs in the home.
Phone: City of Redmond. No additional phone lines were installed.
Some employees did not submit phone bills for reimbursement.
Transportation:
The average one-way commute for the ten official participants was 16 miles,
requiring about 35 minutes to commute. All travel during peak hours (6-9 am and
3-6 pm). Three telecommuters sometimes came to work in car pools. The 10
official participants saved about 295 commute trips during the year -- a
reduction of 13 percent representing about 9,000 annual commute miles and 336
gallons of gasoline. The unofficial participants reduced commute trips by 17
percent. All the participants indicated that telecommuting did not result in
additional travel.
Labor:
Workmen's Comp: Policy in place to cover injuries at home.
Documentation:
Documents/Citations: "Puget Sound Telecommuting Demonstration
Case Study: City of Redmond"
Empirical Studies: Case study interviews were conducted with each
available person during a site visit. The rest were interviewed by telephone.
Interviews were also conducted with other city staff who telecommute, but were
not part of the WSEO Demonstration Project. Discussions were also held with the
telecommuting coordinator. An analysis of telecommuting's effects on
transportation was calculated for 1991. Some of the telecommuters did not
participate for the entire year. Costs and benefits for these individuals are
annualized. The transportation analysis is based on information obtained from
interviews. The reduction of commuting miles is based on the commute distance
and the number of commute trips eliminated. The case study also analyzes the
effects of telecommuting on energy consumption, including gasoline, power for
lighting and equipment, and home and office heating costs. Energy consumption
was not directly measured.
Project: Sears
POC: Audrey Walker
Phone: 708-286-8168
Jerry Esposito (Dept. 707-2)
Phone: 708-286-8448
Fax:
Company:
Address: Chicago, IL.
Type of Business: Retail, Credit Card
Project:
Implementation Date: September 1990 (Gil Gordon)
Formal/Informal: Formal
Funding: Corporate
Telecommuting Strategy:
Project initiated in spring of 1990. Objective was to show that
productivity and other gains could cost justify the continuation and roll out of
the program. Ten associates from three departments (704F, 704MR and 704EUC)
were selected initially. PCs and modems were obtained during the summer of 1990
along with access IDs and extra phone lines to the homes of associates. Gil
Gordon provided training and helped establish project policy. Pilot was in
progress in September 1990. Participants provided feedback after three months.
Telecommuters working at home must manage dependent care and personal
responsibilities in a way allowing them to successfully meet job
responsibilities.
Effects on Business:
Productivity Gains:
Questionnaire results revealed: (1) without exception, all telecommuters
said productivity increased with estimates varying from 5 to 50 percent,
although many claimed a two- to three-fold increase in specific tasks. No
negative comments were received. (5) Many felt that telecommuting motivated
people and that in turn is likely to mean better service for the client.
(6) Telecommuters said they would like to continue telecommuting, although
one indicated only for another year. Many said it gave them more time with
family or on other interests, and still "do a fine job" for Sears.
Overall, they felt the arrangement made them a better employee. Some expressed
interest in a satellite office.
Project Manager: Audrey Walker
Participants:
Type: Telecommuters have regularly scheduled work hours and are
accessible at a "work site" during normal business hours.
Jobs: Selection as a telecommuter depends on mutual consent; the
needs of the job, department and company; suitability and desirability, and the
associates past and present levels of performance. Each arrangement is
cost-justified, subject to benefit tracking and reviewed regularly. Jobs also
characterized by:
??× low face-to-face communication requirements
??× individual works alone handling information
??× clearly defined tasks and deliverables
??× measurable work activities
??× objectives with identifiable timeframes and checkpoints
??× content- versus process-oriented
??× tasks not driven from outside the work group with short term
deadlines
??× tasks require concentration and/or large blocks of time
??× job performed with close supervision
??× minimal requirements for special equipment and for non-portable
resources (e.g., frequent access to file cabinets).
Number:
Employee Type:?× proven ability to perform; high job knowledge
???× self-motivated, disciplined, and directed
???× desires to make telecommuting work
???× above average managerial skills
???× lower need for office social contact
Home/Center: Home
Number of Days: 1-5 days per week, generally split between home and
office. A full home schedule requires justification and prior arrangement.
Technology/Services Used:
Equipment Provider:
Equipment needs vary. Sears may provide equipment as agreed between
supervisor/department and associate and based on business need. Associates may
use their own equipment if compatible with Sears' needs and approved by
supervisor.
Who pays for:
Equipment(employee/company/both-reimbursement):
Telecommuters must absorb any costs related to remodeling and set up of work
site. Expenses not specifically covered are dealt with on a case-by-case basis.
Taxes related to the home workspace are the responsibility of the associate.
Maintenance:
Telecommuter is responsible for maintenance of associate-owned equipment.
Sears installs, repairs, and maintains company equipment.
Electricity: Telecommuter.
Phone: Sears reimburses charges for all long distance
business-related calls. Sears reimburses business-related expenses associated
with additional telephone access line. The line must be used solely for
business.
Transportation:
How did employees formerly commute:
Distance to Site:
then:
now:
Labor:
Union:
Workmen's Comp:
General Problems/Barriers:
Legal:
Labor:
Security: Equipment, software, data, and supplies provided by the
company are limited solely to authorized persons conducting business for Sears.
Telecommuters take all precautions to secure proprietary information in their
home and prevent unauthorized access to any company system from their home.
Documentation:
Documents/Citations:
Empirical Studies:
Project: SNET (Southern New England Telephone Network)
POC: Connie Goebel
Phone: 203-771-6301
Fax: 203-777-0411
Company:
Address: 195 Church St, 5th Floor, New Haven , CT
Type of Business: Telecommunications company
Project:
Implementation Date: December 1991, June/July 1992
Formal/Informal: Formal
Funding: SNET
Telecommuting Strategy:
Objectives:
× Use telecommunications internally increase effectiveness, improve
morale, and provide greater flexibility to employees
× measure impact of telecommuting on individuals, work groups, and the
environment
× develop expertise to assist other employers in setting up
telecommuting programs
× identify components of possible telecommuting packages
× test relevant new technologies like ISDN.
Project team director formed an interdepartmental team with representation
from Business Research, Corporate Telecommunications, External Affairs, Human
Resources, Information Technology, Internal Auditing and Market Plans. Efforts
included a corporate Telecommuting Policy and Handbook, internal and external
communications, a research plan, a technical plan and a selection process to
choose participants. Mandatory training for participants.
Effects on Business:
Productivity Gains: Tabulating data from a midpoint survey now.
Three-types of survey based on target group:
March 1992: sample of participants (800-900 people), measured population:
will be surveyed again in November. Collecting attitudinal info: qualitative
information from telecommuter's perspective: co-worker oriented.
Telecommuter/Supervisor: one prior on sent out now and another at end:
behavior changes: productivity/effectiveness, impact on peer/work group:
transportation-related questions:
Transportation: mode of transportation/mileage, per leg of trip, standard
5-day week : all travel for 5 days. Each month fill out same log for one week
for only days they telecommute.
Project Manager: Connie Goebel
Participants:
Type: Various management positions, Business Services,
Comptrollers, External Affairs, Human Resources, information Technology Center
(data processing), Market Plans, Network staff, Operations South (field
operations group/staff group -- planners), Secretary Treasury (finance,
shareholders).
Jobs: programmers, planners, financial analysts, writers, sales
support, field support, and customer contact personnel
Number: ~100
Home/Center: Home
Number of Days: 1-3 days
Technology/Services Used:
All have additional business line with custom calling features -- those on
line a lot have two additional business lines, (eliminate use of private line
for business-inconvenience). Some got equipment from department depending on
availability. Some use pencil and paper (most want a computer) and primarily
use voice line. Some use own computer: has been a real problem. Upgrading has
been troublesome: in Connie's opinion the amount of time in human resource
expended far exceeds cost of buying a computer. "Some companies it would
work fine," but she stresses the need for standards for computing.
Equipping the home office: in any situation of entitlement -- in local
vanpooling -- some discussion of cellular phones in vans -- people want to be
compensated. Some people are bought equipment -- some or not -- two-tiered
society -- potential problem -- this is not a problem at SNET.
Shouldn't burden employee with purchase requirement, but should offer payback.
Higher technology provides better arrangements, such as LANs where people can
share software. Microsoft has new arrangement for copyright -- may install in
on a laptop and at home (stand-alone) as long at the prime computer is used 80
percent of the time. Some programmers have dumb terminals at home, not PCs.
Each telecommuter was provided a phone line with Totalphone (custom calling
features) and telephone set. Individuals with heavy data communications
requirements received an additional line. Telecommuters access mainframe
applications via ConnNet (SNET's packet-switched network) protocol converters or
a dedicated line. LAN access is via direct-dialing. In some cases, fax
equipment is being provided by the individual's department.
Participants choose how they wish to handle incoming calls. Some give out
home office numbers; some have notification at home anytime they receive a voice
message at the office; some check in with the office and their ACE at set
intervals. Regardless of how it is done, maintaining contact with the office is
a critical success factor.
Each department assigned a PC coordinator to help assess the PC/technical
needs of the telecommuters. Some individuals with PCs on their desk at work
determined that the work they planned to do at home required little more than a
pen and pencil. Others clearly needed to replicate the equipment they have in
the main office. In the end, working with a limited budget, SNET was able to
meet most of the needs of almost everyone.
Equipment Provider:
Who pays for:
All expenses are tracked to a work order number: Employees will also
identify any costs or savings associated with their participation in
telecommuting. Ascertain how it costs as a corporation. Tracking wages,
department/PC coordinator hours tracked, contract services, printing, graphic
design, computers, phone lines, consultant fees, etc.
Equipment(employee/company/both-reimbursement):
Maintenance: Internal maintenance organization: conflicts with
users of personal PCs at home. One-year on-site with DELL,
Electricity: Telecommuters.
Phone: SNET provides line, telephone and modems.
Transportation:
How did employees formerly commute:
Distance to Site: Some have to commute more than 1.5 hours each way. Prior
to beginning the project, telecommuters kept a log of travel for five days.
During a specified week each month, the same log will be completed. People that
also walk or ride bike/take bus. Carpool vans -- long distance still in
carpools: as we move people forward:still need to maintain seat on van.
Shoreline east train group: monthly pass so cheap, subsidized, few more empty
seats, but train will go anyway.
then:
now:
Labor:
Union:
Management senses the potential for PC maintenance people to be sensitive
about loss of work related to personal PC use at home. Spreading equipment
across a large geographic area creates new problems of how to staff the
maintenance group. Also might increase their transportation
requirements.
Workmen's Comp:
Having individual employees carry equipment: monitor down flight of stairs,
fall, and break leg. Safety recommendations: educate employees to caution,
supervisors have the right to inspect the work site -- no extension cords, not
using a flimsy card table, etc. Talk about ergonomics in training, and other
issues such as the placement of lighting relative to the terminal's screen.
Employees encouraged to get a good chair. SNET is responsible only for
work-related injuries.
General Problems/Barriers:
Legal: None specifically: one question is zoning. Many places have
obsolete laws on the books. This is a potential problem. SNET tries to prepare
employees for these issues while in training. Condos particularly present
problems, because of the need to add a phone line -- may not allow another phone
line. Employee should talk to the condo board first -- avoid them coming to the
employee.
Labor:
Training:
Mandatory training was held for all participants and their supervisors prior
to telecommuting. Employees in eligible departments were surveyed before the
pilot was announced to get a benchmark of SNET attitudes towards telecommuting.
These same employees will be surveyed again near the end of the pilot to see it
their attitudes have changed. Telecommuters and their supervisors were surveyed
during training, prior to telecommuting. A survey with similar questions will
be administered half way through the pilot and at the end. About six weeks
after telecommuting begins, focus groups will be held with telecommuters and
their supervisors to identify areas that need adjustment.
Prior to telecommuting, participants were asked to complete a transportation
log for five days. The log identified ALL one-way trips, the distance and the
mode of transportation, providing a baseline for a "normal" week
without telecommuting. During a specified week each month throughout the pilot,
the same log will be completed for telecommuting days. At the end, SNET will
know the number of miles saved overall by SNET telecommuting participants.
Documentation:
Documents/Citations: very little -- mostly internal.
Empirical Studies: in progress -- not ready for dissemination.
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Appendix E - DOT Telecommuting Workshop Participants
DOT Telecommuting
Workshop - Participant List May 27-28, 1992 Nassif Building, Room
2201 - Washington, DC
Addante, Beverly Christensen, Kathleen
President Professor, Environmental Psychology
Telecommuting Works The Graduate Center, CUNY
8928 North Linder 33 W. 42nd Street
Morton Grove, IL 60053 New York City, NY 10036
708-470-9335 212-642-2530
Aggazio, Donna Clarke, Ed
Program Analyst Minnesota Dept. of Transportation
Federal Transit Administration 395 John Ireland Blvd.
400 Seventh Street, SW St. Paul, MN 55155
Washington, DC 20590 612-296-3114
202-366-1668
Arrillaga, Bert Cross, Ron
Chief, Service Assistance Div. Director, Regulatory Policy Analysis
Federal Transit Administration Northern Telecom
400 Seventh Street, SW 200 Athens Way
Washington, DC 20590 Nashville, TN 37228-1397
202-366-0231 615-734-4415
Bagley, Lee Fulton, Lewis M.
Kentucky Science & Technology Council Economist
P.O. Box 1049 U.S. Dept. of Energy
Lexington, KY 40588 1000 Independence Ave.
606-233-3502 Washington, DC 26585
202-586-4447
Benson, Brien Gislason, Karen
Research Professor Director
George Mason University Telecommuting Bell-Atlantic Co.
Room 107, Science & Technology Bldg. 1 Parkway 3C
Fairfax, VA 22030 Philadelphia, PA 19102
703-993-1496 215-466-7056
Bringenberg, John Goebel, Constance B.
Manager of Strategic Planning Market Manager
Tele-Communications, Inc. Premium Market Segments
5619 DTC Parkway Southern New England Telephone
Englewood, CO 80111 195 Church Street
303-267-5621 New Haven, CT 06510
203-771-6301
Goodman, Joseph Mokhtarian, Patricia L.
Program Manager Assistant Professor
Federal Transit Administration Department of Civil Engineering
400 Seventh Street, SW University of California, Davis
Washington, DC 20590 Davis, CA 95616
202-366-0240 916-752-7062
Gordon, Gil Nolan, Carol
President Telecommuting Manager
Gil Gordon Associates Pacific Bell
10 Donner Court 1010 Wilshire Blvd.
Monmouth Junction, NJ 08852 Los Angeles, CA 90017
908-329-2266 213-975-7495
Hopkins, John Oliver, Charles
Senior Analyst, DTS-24 Senior Policy Advisor
RSPA Volpe Center Department of Commerce, NTIA
Kendall Square 15th & Pennsylvania Ave., NW
Cambridge, MA 02142 Washington, DC 20230
617-494-3455 202-377-1551
Jackson, Shelton Palese, Mike
Deputy Director, Office of Economics Staff Director, Economic Dev.
Office of the Secretary New York Telephone
U.S. Department of Transportation Room 3033
400 Seventh Street, SW 1095 Avenue of the Americas
Washington, DC 20590 New York, NY 10036
202-366-5397 212-395-0007
Joice, Wendell Paulhus, Jr., Norman G.
OPRD, Room 6462 Senior Technical Advisor, DRT-1
Office of Personal Management Office of Research & Technology
1900 E. Street, NW Transfer
Washington, DC 20415 400 Seventh Street, SW
202-606-2329 Washington, DC 20590
202-366-4208
Kessler, Jon Pratt, Joanne
Economist Joanne Pratt Associates
Office of Policy Analysis 3520 Routh Street
EPA (PM-221) Dallas, TX 75219
401 M Street 214-528-6540
Washington, DC 20460
202-260-3761
Miller, Thomas Quaid, Maureen
Director, LINK Resources Corporation Lead Analyst, Program Research
10 Hickory Trail State of Washington Energy Office
Ithaca, NY 14850 809 Legion Way, SE
607-539-2493 P.O. Box 43165
Olympia, WA 98504-3165
206-956-2000
Ramirez, Jack Silber, Sigmund
Administrative Assistant Management Consultant
Office of Senator Conrad Burns 143 Hoyt Street, Suite 6G
183 Dirksen Building Stamford, CT 06905
Washington, DC 20510-2603 203-327-0099
202-224-2644
Risse, Ed Smith, James K.
Principal Director, Federal Relations
Synergy/Planning, Inc., Suite 100 Ameritech
12501 North Lake Court Suite 730, Washington Square Bldg.
Fairfax, VA 22033 1050 Connecticut Avenue, NW
703-968-4300 Washington, DC 20036
202-955-3060
Risse, Linda Strickland, Sheldon
Principal Chief, Traffic Operation Div., HTV-30
Synergy Management, Suite 100 Office of Traffic Operations & IVHS
12501 North Lake Court Federal Highway Administration
Fairfax, VA 22033 400 Seventh Street, SW, Room 3419
703-968-4300 Washington, DC 20590
202-366-1993
Ritter, Gary T. Sutherland, Duncan
Plans Office, DTS-21 Chief Technology Officer
RSPA Volpe Center Fitch RS
55 Broadway P.O. Box 360
Cambridge, MA 01242 Worthington, OH 43085
617-494-2716 614-885-3453
Roye, Mike Teplitz, Steven N., Esq.
DTS-930 Legislative Aide
RSPA Volpe Center Office of Senator Conrad Burns
55 Broadway U.S. Senate
Cambridge, MA 02142 183 Dirksen Building
617-494-2030 Washington, DC 20510
202-224-3971
Schierer, Dan Thompson, H. Stan
Highway Engineer Staff Manager, Marketing Research
FHWA, HTU-32 BellSouth Telecommunications
400 Seventh Street, SW 20V93 Southern Bell Center
Washington, DC 20590 675 West Peachtree Street, NE
202-366-4672 Atlanta, GA 30375
404-529-0749
Schiller, Arthur
Arthur D. Little, Inc.
Acorn Park
Cambridge, MA 02140-2390
617-864-5770
Ulberg, Cy
Research Associate Professor
Washington State Transportation Center
4507 University Way, NE, Suite 2046
Seattle, WA 98105
206-543-0365
Wahl, Kathy
Government Relations
One Bell Center, Suite 37-B-1
St. Louis, MO 63101
Weil, Raymond
Chief, Policy Analysis Division
Office of the Secretary, P-35
U.S. Department of Transportation
400 Seventh Street, SW
Washington, DC 20590
202-366-5403
Weiner, Edward
Policy Analysis Division, P-35
Office of the Secretary
U.S. Department of Transportation
400 Seventh Street, SW
Washington, DC 20590
202-366-5403
Williams, Eva M.
Program Analyst, Budget & Programs
Office of the Secretary
U.S. Department of Transportation
400 Seventh Street, SW
Washington, DC 20590
202-366-4455
Yen, Jin-Ru
Department of Civil Engineering
University of Texas at Austin
Austin, TX 78712-1076
512-471-4379
ACKNOWLEDGEMENTS This document was prepared for the Office of
the Secretary of Transportation under the overall guidance of
an Inter-Departmental Task Force including representatives from
the Office of the Assistant Secretary of Transportation for Policy
and International Affairs, Federal Highway Administration, Federal
Transit Administration, Research and Special Programs Administration,
Department of Energy, and Environmental Protection Agency. The
overall activity was managed and directed by Edward Weiner of
the DOT Office of Economics.Preparation of the report was the
responsibility of the Department's John A. Volpe National Transportation
Systems Center. The project leader was John Hopkins, who provided
technical and editorial direction to the team and integration
of the final product. The report was prepared primarily through
contractual support from EG&G/Dynatrend; The EG&G team,
led by Marsha Haines, included Lana Agnew, Clive Carrel, Paul
Estey, James Frey, Deanna Mirsky, Gerald Powers and Michael Roye.
Robert Chew, EG&G, prepared the technology overview presented
in Appendix A. Gary Ritter, Volpe Center, organized the DOT Telecommuting
Workshop which provided the initial framework and "environmental
scan" for the study.The study benefitted greatly from the
comments and cooperation of many individuals active in the telecommuting
community, especially those who participated in the DOT Telecommuting
Workshop (listed in Appendix E). Appreciation is expressed particularly
to Pat Mokhtarian, Gil Gordon, Ed Risse, and Tom Miller.