Will Your Future Be Working Remotely?

Employees Can Get A Raise Without Companies Spending A Dime?

Date: August 21, 2008

Category: About Consulting

20080729- Photo 1 Guy on Computer There's a growing phenomenon in American business that could well impact the way you work as a consultant. And it might just mean more money in your pocket with a major savings on gasoline that is, in effect, an indirect salary increase!

That was one of the surprising outcomes of a conference held recently in St. Louis sponsored by the St. Louis HDI chapter at which Barnes-Jewish Hospital reported on an extensive survey they completed regarding the working remotely issue.

While some workers today are part of a "remote workforce" usually working from home, it's not a common occurrence except perhaps in emergency situations: power failures, fires, etc. However, that may be about to change as a number of factors are driving companies to more seriously consider the "remote" option, the BJC study discovered:

Space demands: For every remote worker employed, the company can save on average 200-250 square feet. With tightening budgets, and growing space needs, this could be a significant cost saving.
Retaining experience: Great employees move, retire, get ill. Having the option of employees working remotely allows a company to hold onto a valuable knowledge base.
Skills availability: For consultants, you open yourself up to a wider job pool, if you can work from anywhere in the country. The best person in a city of 3 million will likely not be the best in the entire country.
Increased productivity: BJC found an increase in productivity working from home and as a result, more companies are choosing "average" workers to pilot their programs rather than so-called "superstars".
Work/life balance: Employees save travel time coming in and going home; they can work in comfortable clothes. Work/Life balance is better.

SALARY BOOST?

And speaking of saving travel time, it means you also save a bundle on gas, and that's where the "indirect" salary increase comes in:

Here’s how the “raise” issue works: If you figure an average worker travels 20 miles both ways to and from work, that equals 200 miles a week, 10,000 miles a year. A car getting 20 MPG will use 500 gallons of gas; with a national average of $4 a gallon, an employee sees an immediate $2,000 “raise” in the money not spent on gas.

With predictions that gas could eventually reach $5 a gallon or more, that “raise” factor grows. And that doesn’t even take into account the predictions that oil could hit $150 to $200 a barrel in the next few years — with no major new sources of energy coming on line in the foreseeable future — gas rationing might also be a possibility, making getting to work even more arduous… and the gas savings leaving even more money in your pocket.

BECOMING COMMONPLACE?

It appears that working remotely is becoming more common than many believe:

In 2006 there were 12.4 million full time or part time employees working from home. That number goes to 29 million if you include contractors.
The U.S. government has mandated any employee that can work from home shall do so. In 2005 20 percent of all government workers worked from home.
A 2007 study of 120 IT executives by Nemertes Research revealed that more than 80 percent of companies have at least some employees who work away from their supervisor and/or workgroups; on average they classify 27 percent of their employees as “virtual.”

It's food for thought for every consultant. Do you think it's something you would like to do?

Send us a note with your thoughts: newsletter@neteffects.com.