Green Business Sustainable Economics

Currently, over 34-million Americans regularly telecommute, working from a virtual wireless platform reports the U.S. Department of Commerce. Fueled by high-speed broadband adoption, better collaboration tools (SaaS), and growing knowledge management resources; the US telecommuting ranks are set to reach 63-million (43% of workers) by 2016. The widespread shift to virtual business models offers companies cost reductions up to 45% in some cases while reducing CO2 pollution by 25% or more. 

Today, we see Facebook, Twitter and other social media tools ushering in a new age of tech savvy consumers and workers. This has changed the dynamic of the way work is performed whether sitting in a car, home, or shopping mall people are connected able to simultaneously contribute productively. In essence, we now focus on projects for intense periods of time better able to more rapidly access virtual knowledge resources that yield cost effective solutions.     

Leading the surge are occasional telecommuters and regular telecommuters who work from home between one and four days a week. The impact of this expanding remote workforce is far-reaching. It is forcing firms to expand their digital footprints, harness new social media software, crisply define their culture, and examine their real estate overhead and energy policies.  Increasingly, thousands of innovative businesses are outsourcing projects through cost effective virtual-wireless enterprise model or collaborative software networks that reduces the workforce carbon footprint by more than 28% resulting in cleaner air and reduced commuter oil consumption.   

Progressive companies now are increasing profits significantly by reducing costs up to 45% through efficiency savings. This productivity gain comes by eliminating unnecessary face to face conference meetings, travel expenses, onsite training, technical media/financial writing, market research, administrative, public relations, marketing, sales support, and other expenses all virtually reduced expenses.   

Another word, why do we need expensive office overhead costs to send an email to co-workers located down the hallway when it could just as well be done telecommuting from home and/or wherever remotely saving huge amounts in reduced overhead? This efficient productivity savings is what’s driving much of the increased profits reported today by companies.     

A recent study conducted by the U.S. Environmental Protection Agency supports this data showing that over 34-million Americans hold jobs that are in part performed by Sustainable Virtual Geographically Dispersed Teams. Based on research such productive teams have the ability to reduce oil imports by over 48%, and reduce greenhouse gases by over 67-million metric tons saving more than 12-Billion gallons of gasoline each year.   

Department of EPA studies find that 150,643 Federal employees tele-commuted on a regular basis in 2008. Some agencies made tremendous progress with their programs – for example, these agencies’ with virtual tele-working populations increased by the following percentages in 2008: 

Board of Governors of the Federal Reserve System – 58 percent

Corporation for National and Community Service – 37 percent

Court Services and Offender Supervision Agency - 59 percent

Department of Health and Human Services – 46 percent

Department of Housing and Urban Development – 26 percent

Department of Interior – 248 percent

Department of Transportation – 72 percent

Farm Credit Administration – 37 percent

Federal Deposit Insurance Corporation – 597 percent

Federal Housing Finance Board – 150 percent

Federal Trade Commission – 250 percent

Inter-American Foundation – 47 percent

Overseas Private Investment Corporation – 32 percent

Peace Corps – 270 percent  

Gartner Research studies supports that sustainable virtual models and geographically dispersed teams decrease business overhead expenses of between 30% to 55% savings while increasing worker productivity enabling a collaborative 24-hour work day spread, dispersed over global workforce time-zones. The vast majority 91% agree that virtual work saves their companies time and money.  Studies performed by the Department of Transportation estimates the yearly costs savings of virtual - telecommuting. 

Companies benefit from huge savings for the following expenses: 

Decreased job related travel and parking expenses

Decreased employee use of sick leave – healthier workers

Decreased turnover

Decreased Utility Bills - electricity to run an average computer workstation is $1,687.40 per year 

Savings on office space – eliminates $2,400 per year per 64 square foot cubicle based on Office of Enterprise Performance cost data 

Generally increased productivity and employee morale Employee’s benefit by not incurring operation, maintenance and fuel costs associated with motor vehicles reducing costs if they work at a satellite or home office. Virtual Wireless - Telecommuting to a satellite office generally change the employee’s mode of transportation (e.g., riding a bicycle, or walking), thus benefiting employee health. Already, we are seeing a growing trend towards virtual teams in the global marketplace. For example in 2008, virtual office teams grew by more than 40% in the United States, whereby over 30 million individuals worked three or more days per week outside the traditional office.   

Today, many Fortune 500 companies such as Boeing, Microsoft, GM, GE, IBM, and Intel rely heavily on the R&D cost savings and increased productivity of sustainable virtual teams as highly competitive global economic tools.   Worldwide total collaborative tools revenue for software as a service - SaaS within the sustainable virtual team software markets surpassed $7 billion in 2009, a 25% increase from 2008 revenue, according to Gartner Research, Inc. The market is poised for strong growth through 2011, when worldwide revenue will reach $11.5 billion.    

Software that aids sustainable virtual teams functioning can be separated into two main categories – software that provides ease of communication and software that provides task and documentation or for example, R&D designed environments. Within the software as a service market; E-learning, Distance Learning, and Web Conferencing; accounts for more than 60% to 70% of total market revenue. Collaboration and social media tools are a rapidly developing necessity for organizations driving them to look for software that suits the size and functionality of the specific workforce needs while enhancing sustainable economics.  

When implementing a telecommuting program, the employer must develop new policies and procedures for people working out of the office. Management must invest time and resources to evaluate the effectiveness of employees working out of the office to ensure that productivity is maintained (or increases).  

Key elements of establishing a program may include the following: 

The telecommuting arrangement should be voluntary between the company and worker. Workers should not be forced to work away from the main office. The employee and employer should have the option of terminating the arrangement at any time. Job performance needs to be carefully monitored and tasks very clearly defined. Proprietary information needs to be secured at the employee’s home. Equipment needed (usually a computer) must be available to the employee. The employee may use either his or her own equipment or have equipment provided by the company. Utility and phone charges should be shared by the company. The employee will experience increased utility and phone bills associated with conducting business at home.  

Tax implications need to be carefully examined by the employee. There may be advantages to establishing a home office tax savings, which are detailed by the IRS. Arrangements that are associated with employees telecommuting should be clearly spelled out in a Telecommuting Agreement that addresses consequences of violating the agreement. 

Equity Issues 

Telecommuting benefits those in the information and service industries or those able to function independently once work has been assigned. By 1980, it was estimated that over half of the employment positions in the United States met these criteria.  The scope of the work assigned must also be significant enough to occupy an employee for an entire work day. Telecommuting potentially affects employers, employees, and employees’ household members. There is the potential that because some employees are eligible for telecommuting and others are not, issues of equity could surface.  

Case Study Conclusions One study recent showed that half of employers in Connecticut have noted an increase in employees seeking cost saving commuting alternatives, such as virtual wireless, telecommuting, carpooling and a four-day workweek. It's clear that rising gas prices and healthcare expenses are hitting Connecticut workers hard, the survey, conducted by the Connecticut Business & Industry Association (CBIA) and Telecommute Connecticut, found. For example, with rising fuel costing, the question is: Are record-high fuel costs driving Connecticut's employers to consider telecommuting to attract and retain valuable talent?  

Of the Connecticut employers polled, 27% now offer work-from-home options either one or more days a week to offset their employee's commuting costs. Furthermore, 37% of employers said they would consider offering this large scale work-from-home option if gas fuel prices reach $3.75 per gallon. Almost 60% of businesses surveyed (about 3 out of 5) agreed that skyrocketing fuel costs combined with the need to attract and retain high-quality employees, have made them more likely to create or expand their telecommuting program. With fuel prices bound for record highs, workers are paying greater attention to energy costs as a part of their household budget. Many are seeking jobs closer to home or asking for more job flexibility.  

In a recent national survey, 15% of respondents said they are considering leaving their jobs because soaring gas costs are making their commute to work unaffordable. As the world draws closer to peak oil output, CO2 footprint corporate taxing and energy prices continue to steadily increase, we find business investments accelerating towards virtual wireless – telecommuting as a more cost effective and productive solution that complements a healthier employee lifestyle. Bottom line, it increases profits and productivity while decreasing pollution.   

BIO: Mr. Rickman is a respected CEO/Developer living in Oregon. For over 30-years, companies large and small have relied on his innovative business development, Internet marketing/sales and video broadcast services. He is a published sustainable analyst, ghost-writer columnist and co-author worldwide of several books including Eight Billion People.  Mr. Rickman holds advanced business and technical degrees from Boston University. For more information visit: http://www.sustainablevirtualbiz.com  or call (503) 621-4953.