,;;.:;:__·,--~-

United States Air and Radiation - EPA 420-S-01-007 

Environmental Protection Transportation and Air Quality September 2()M 

Agency 

I Telecom~utin?Jfelework 

iProgrants. 

j 1mplementing Commuter 

Benefits Under the 

Commuter Choice 

Leadership Initiative 

COMMUTER CHOICE LEADERSHIP INITIATIVE 

The National Standard of Excellence for Commuter Benefits 

Telecommuting/1elework 

Implementing Commuter Benefits under the 

Commuter Choice Leadership Initiative 

• Telecommuting, also known as telework, is a work arrangement in which employees 

work part- or full-time from alternate locations, such as their homes or telework centers. 

• Telecommuting has a number of important benefits for employers: it can serve as a valuable recruitment and retention tool, increase employee morale and productivity, and 

reduce costs through office space and parking savings. 

• Current estimates show that over 10 percent of the U.S. workforce telecommutes either 

part- or full-time. Improvements in information technology and remote computing 

access make this number likely to rise in the future. 

• Studies have shown that telecommuters tend to drive less on the days they telecommute, 

which reduces both road congestion and air pollution. 

• Telecommuting is one of the primary benefits under the Commuter Choice Leadership 

Initiative (CCLI). Employers must offer at least one of three primary benefits to their 

employees in order to participate in the CCLI (the other two are transit or vanpool benefits 

and parking cash out). 
COMMUTER CHOICE LEADERSHIP INITIATIVE 

The National Standard of Excellence for Commuter Benefits 

This document is one in a series of Commuter Choice Leadership Initiative briefing papers designed to help 

employers implement commuter benefits. 

The U. S. Environmental Protection Agency (EPA) and the U. S. Department of Transportation (DOT) have 

established a voluntary National Standard of Excellence for employer-provided commuter benefits. 

Commuter benefits help American workers get to and from work in ways that cut air pollution and global 

warming pollution, improve public health, improve employee recruiting and retention, improve employee 

job satisfaction, and reduce expenses and taxes for employers and employees. Participants in the Commuter 

Choice Leadership Initiative (CCLI) agree to meet the National Standard of Excellence, and qualify as 

Commuter ChoicesM Employers. CCLI participants agree to: 

• Centralize commute options information so that it is easy for employees to access and use; 

• Promote the availability of commuter benefits to employees; 

• Provide access to a guaranteed ride home program; 

• Provide one or more of the following primary commuter benefits: 

./ Vanpool or transit benefits of at least $32.50 per month 

./ Parking cash out of at least $32.50 per month 

./ Telecommuting program that averages six percent of daily work force 

./ Other option proposed by employer and agreed to by EPA 

• Provide three or more of the following additional commuter benefits: 

,/ Ridesharing/carpool matching ,/ Employee commuting awards programs 

,/ Pre-tax transit/vanpool benefits ,/ Discounts/coupons for bicycles and walking shoes 

,/ Shuttles from transit station ,/ Compressed work schedules 

,/ Parking at park-and-ride lots ,/ Telecommuting 

,/ Provision ofreal-time transit information ,/ Lunchtime shuttle 

,/ Preferred parking for ridesharers ,/ Proximate commute (working closer to home) 

,/ Reduced parking costs for ridesharers ,/ Incentives to encourage employees to live closer to work 

,/ Employer-sponsored vanpool or subscription bus ,/ On-site amenities (dry cleaning, etc.) 

programs ,/ Concierge services 

,/ Employer assisted vanpools ,/ Active membership in a Transportation Management 

,/ Secured bicycle parking, showers, and lockers Association (TMA) or similar organization 

,/ Electric bicycle recharging stations ,/ Other options proposed by employer 

• Exceed a minimum benchmark of either 14 percent of employees who do not drive alone to work or an 

average vehicle ridership (the number of vehicles divided by the total number of employees) of 1.12. 

Please see the CCLI Agreement and Agreement Particulars documents for specific information about 

employer participation requirements. 
COMMUTER CHOICE LEADERSHIP INITIATIVE 

The National Standard of Excellence for Commuter Benefits 

Disclaimer 

EPA provides this briefing as a service to employers participating in the CCLI. Information about private 

service providers is intended for informational purposes and does not imply endorsement by EPA or the 

federal government. 

The information presented here does not constitute official tax guidance or a ruling by the U.S. Government. 

Taxpayers are urged to consult with the Internal Revenue Service of the U.S. Department of Treasury or a tax 

professional for specific guidance related to the Federal tax law. 
CCLI: Telecommuting/Telework 

!i!flil1ifi~l··'li""--ir""r""t-·~r'""t'"~:---,,-,rrr1;~i!"'-·-~·-, -.____,,.,,.--."T'l-~_,,_,..,.....,........-- -,, ....... ,,.,,_._r-·-·-··.---; ""''!!!! 

[;fable of ~ontents . . · . ,~ --:::.--~"-----------·~-------~~--------~---""'--··--

TELECOMMUTING: A SUMMARY ....•..............• 1 

BRIEF IDSTORY .•......•.••.•...........•................•.......... 1 

El\.1PLOYER BENEFITS ••.................•...............•.... 2 

RECRUITING AND RETENTION ............................................. 2 

COST SAVINGS .......................................................................... 2 

INCREASED PRODUCTIVITY ................................................. 2 

BENEFITS AT INDIVIDUAL EMPLOYMENT SITES ............. 3 

TAX CONSIDERATIONS .•.•..•..........•..•.............•.... 3 

El\.1PLOYEE BENEFITS •••..........•.•..............•......... 3 

WHEN TELECOMMUTING MAKES SENSE .... 3 

EMPLOYERS WITH INFORMATION WORKERS ................. .4 

ESTABLISHED EMPLOYEES .................................................. .4 

EMPLOYEES WITH PERSONAL NEEDS ............................... .4 

COMPETITIVENESS IN A CROWDED 

EMPLOYMENT FIELD ............................................................. .4 

IMPLEMENTATION ISSUES AND COSTS ........ 5 

ELIGIBILITY ............................................................................... 5 

AMOUNT OF TIME SPENT TELECOMMUTING ................... 5 

TELECOMMUTING PROGRAM TURNOVER ........................ 5 

COSTS .......................................................................................... 5 

COST SAVINGS .......................................................................... 6 

TELECOMMUTING AND USE OF OFFICE SPACE ............... 6 

MANAGEMENT ISSUES ........................................................... 6 

GUIDE TO IMPLEMENTATION •••.............•......... 7 

EMPLOYER QUESTIONS AND ANSWERS ...... 6 

QUESTION: HOW PRODUCTIVE ARE EMPLOYEES 

WHEN THEY ARE NOT IN THE OFFICE? ............................ 10 

QUESTION: HOW DIFFICULT -AND COSTLY - IS IT 

TO ESTABLISH AND ADMINISTER THE PROGRAM? ...... 10 

QUESTION: HOW DOES WORKING AT HOME 

AFFECT DEPENDENT CARE ISSUES? ................................. 10 

QUESTION: WHO PAYS FOR CHARGES SUCH AS 

INCREASED ELECTRICITY AND TELEPHONE COSTS? . .11 

QUESTION: IS THERE AN IDEAL PERCENTAGE OF 

EMPLOYEES WHO SHOULD TELECOMMUTE? ................ 11 

QUESTION: HOW DOES TELECOMMUTING AFFECT 

MORALE AND PRODUCTIVITY AMONG WORKERS 

WHO CONTINUE TO WORK ON-SITE? ............................... 11 

QUESTION: DO EMPLOYEES AND SUPERVISORS NEED 

TRAlNING BEFORE STARTING A TELECOMMUTING 

ARRANGEMENT? .................................................................... 11 

QUESTION: CAN I REQUIRE EMPLOYEES TO 

TELECOMMUTE? .................................................................... 11 

QUESTION: DO ANY STATE OR LOCAL GOVERNMENTS 

OFFER INCENTIVES FOR DOING TIDS? ............................. 12 

EMPLOYER CASE STUDIES .••.......................... 12 

NEW YORK CITY, NEW YORK - MERRILL LYNCH .......... 12 

MINNEAPOLIS, MINNESOTA - SOPHEON RESOURCE 

NETWORK CORPORATION ................................................... 12 

NEW JERSEY - PHARMACEUTICAL MARKETING 

FIRM .......................................................................................... 13 

MINNEAPOLIS, MINNESOTA- ABBOTT 

NORTHWESTERN HOSPITAL ................................................ 14 

MULTIPLE LOCATIONS - DAVIS WRIGHT 

TREMAINE LLP ....................................................................... 14 

SERVICES THAT SUPPORT 

IMPLEMENTATION .•..............•..•............•............ 15 

ASSOCIATIONS AND OONTACTS .................... 15 

ORGANIZATIONS THAT PROMOTE 

TELECOMMUTING ................................................................. 15 

ONLINE RESOURCES ............................................................. 16 

REGIONAL RESOURCES ........................................................ 16 

EMISSIONS AND TRANSPORTATION 

BENEFITS .............................................................. 18 

REFERENCES AND PUBLICATIONS .............. 19 
CCLI· Telecommuting/Telework 

Telecommuting is a workplace arrangement in 

which employees work part- or full-time away 

from the primary workplace. Most telecommuters 

work out of their homes, but a smaller number 

work out of "telecenters:" offices with communications access to the main workplace, but closer 

to the employee's home. 1 

Most telecommuting is based on exchanging 

information via telephone and computer. 

Telecommuting has been increasing as communications technology improves and becomes cheaper, and as employers and employees have become 

more comfortable with it. However, many 

employees and employers have also begun to 

regard telecommuting as having a positive impact 

on employees through reducing long commutes. 

As a result, in addition to providing emissions 

benefits, telecommuting is also a valuable recruitment and retention tool for employers. 

The term "telework" is generally interchangeable 

with telecommuting. However, some authors use 

the term "telework" for a broader category of 

employees who are able to work from any location (e.g., hotels, airports, client offices) using 

communications technology, and are not tied to a 

fixed location. The distinction between these 

terms may become more blurred with the growth 

of communications technologies. However, most 

surveys of telecommuting do not make this distinction, and accurate estimates of the number of 

teleworking employees are not available, so this 

paper uses the term telecommuting for both types 

of work. 

1 Telecommuting does not include the following 

employment arrangements: home-based businesses (small 

companies with their main offices co-located in a residence), work in branch offices, and employment in which 

the regular work location is not fixed (for example, truck 

drivers and airplane pilots would not be considered to be 

telecommuters). 

1 

Telecommuting is linked to the proliferation and 

advance of telecommunications technology. Until 

the 1980s, most office arrangements required 

employees to be physically present to perform 

their jobs. However, with the ability to exchange 

documents over phone lines via modems, many 

jobs (in whole or in part) can be performed from 

remote sites. Such tasks as entering and analyzing 

data, writing and editing documents, and computer programming are no longer tied to specific 

locations. The term "telecommuting" was coined 

by Jack Nilles in 1973, during a period in which 

interest in the concept was high due to the growth 

in computer technology and the oil crises. 

Telecommuting has increased dramatically over 

the past .several decades, for several reasons: 

advances in computer and remote access technology, longer commutes, and the desire of employees to spend more time with family. However, the 

actual number of telecommuters is difficult to 

measure accurately because of varying definitions 

and the small sample size of many surveys. 

Current estimates from the International Telework 

Association & Council (ITAC) put the number of 

telecommuters in the U.S. at 16.5 million in 2000 

(ITAC, 2000). According to the U.S. Department 

of Labor, 17. 7 million non-agricultural workers 

worked on their principal job from home in 1997, 

the most recent year for which figures are available (Dept of Labor, 1999, table 3-10). These figures imply that approximately 12 percent of the 

workforce telecommutes at least occasionally. On 

the other hand, market research firm IDC puts the 

total number of home-based offices at 34.3 million, of whom only 8.7 million are classified as 

telecommuters (IDC, 2000). 
CCLI: Telecommuting/Telework 

'i'I, -----------------------·--·-------,I 

~J.\.~PL_~:ER BENEFITS , , ,, ,,,, . ,· ,__j 

Telecommuting can assist a business in several 

key areas. 

Recr11iti11g and Retention 

Many employers are looking at telecommuting 

primarily as an employee benefit, not a cost- or 

space- saving measure. The literature abounds 

with anecdotal evidence that employees seek out 

jobs and firms with telecommuting possibilities: 

Schilling [owner of telecommuting consulting 

firm TCS] cites the case of a competitor of 

American Express, one ofTCS' earliest 

clients. "They didn't have any of the issues 

that ordinarily lead to a formal program," 

says Schilling. "So I [say], 'OK, we don't get 

it. Why do you want to do telecommuting?' 

And they [say], 'Because American Express is 

doing telecommuting.' We are after the same 

people as it is, and we're starting to get an 

increased number of people coming through 

the door, and they ask us 'Do you offer workat-home programs?' When we say 'No,' they 

say, 'Thank you very much.' So we have all 

this space, we have all these great things, 

we're rural, and the cost oftelecom and network is under control, but we've got to offer 

this because those guys offer it." (Rotch, 

1999) 

In addition, many employers have found that 

telecommuting allows them to retain employees 

who would otherwise leave for personal reasons, 

such as moving out of the area or the birth of a 

child. Fitzer (1997) makes a typical case: 

Some companies have come to view telecommuting options as important components of 

their competitive strategies for attracting and 

retaining valuable talent. For example, a 

Connecticut-based insurance company 

arranged for one of its most productive software programmers to telecommute from 

2 

Canada. The company calculated it was less 

costly to pay for the employee's regular office 

visits and for installation of the needed technology in the worker's home than to lose the programmer's business knowledge and creativity. 

Cost Savings 

Many companies find that telecommuting saves 

money in the long run, because cost savings can 

be achieved in a number of areas: 

• Reduced rent costs if telecommuting employees use less office space; 

• Reduced recruiting and retention costs; and 

• Increased productivity for telecommuting 

employees. 

Fitzer (1997) speculated that the net savings per 

telecommuting employee could reach $12,000 

annually: 

Another powerful driver spurring the use of 

telecommuting is potential real estate cost 

savings from housing fewer employees onsite. These savings easily offset the expense , 

of equipping telecommuters with hardware, 

software, and other needed supplies. June 

Langhoff, author of the recently published 

book, The Telecommuter's Advisor, says that 

employees telecommuting two days a week 

can save companies 15 to 25 [percent] in 

higher productivity, as well as decrease 

turnover, reduce space requirements, and 

decrease sick-time usage by two days, resulting in a total savings per employee of an estimated $12,000 annually. 

Increased Productivity 

Many telecommuters report higher productivity 

while working from home, due to reduced workplace distractions. For example, according to the 

1999 Telework America National Telework 

Survey, almost one-half of telecommuters 
CCLI: Telecommuting!Telework 

surveyed reported higher productivity at home 

than in the office ( 40 percent said their productivity was unchanged, while only 10 percent said 

their productivity had declined.) (Pratt, 1999) In 

addition, use of sick leave tends to decline when 

employees telecommute. This may be due to a 

several reasons: employees are less likely to call 

in sick for spurious reasons, less likely to need 

time off for doctor's appointments, and less likely 

to need time off because of a sick child. 

Benefits at Individual Employment Sites 

Employers that institute telecommuting programs 

may be able to reduce parking at their workplaces 

if the number or percentage of telecommuters is 

sufficiently high. 

There are currently no federal tax incentives or 

implications for establishing a telecommuting 

program. Legislation introduced at the federal 

level would allow a $500 tax credit for employers 

or employees who begin telecommuting over 75 

days per year. Rep. Frank Wolf (R-VA) most 

recently introduced a bill in March, 2001 (a 

February, 2000 introduction of identical legislation died in committee), and companion legislation was introduced in the Senate by Sen. Rick 

Santorum (R-PA). The tax credit could be taken 

by either the employer or the employee, depending on who incurred the expense of setting up a 

home office. 

For tax purposes, telecommuters are considered 

regular employees (not persons running a business out of a home). If a telecommuting employee lives in a different state than the employer's 

main office, s/he should consult a tax expert to 

determine applicable state tax laws. Generally, 

most telecommuters will not be eligible to claim 

the home-based office tax deduction. According 

to IRS regulations, in order for a telecommuter 

home office to qualify for the home office deduction, it must be regularly and exclusively used for 

3 

business, and the arrangement must be at the 

employer's request (i.e., ifthe telecommuter 

chooses to work out of the home for convenience, 

the deduction would not be allowed). (Flynn, 

1999) 

At the state level, Oregon allows employers to 

take a tax credit of 35 percent for investments 

made in telecommuting (i.e., costs of purchasing 

and installing office and computer equipment). 

The credit, which employers must be approved 

for in advance of their investments, is spread over 

a five-year period: 10 percent in the first two 

years, and five percent annually for the next three 

years. Telecommuters must work from their home 

or telework center at least 45 days per year to 

make the program eligible. 

Employees generally react very positively to 

telecommuting programs. The main benefit is 

commute time savings, which can amount to several hours per day or more. Employees can spend 

this extra time with their families, or on other 

personal needs. 

Employees also enjoy the following benefits: 

• Decreased stress. Many drivers find solo 

commutes in heavy traffic stressful. 

Telecommuting allows them to avoid traffic. 

• Reduced costs. Telecommuters save on gas, 

depreciation, and general wear and tear on 

their vehicles. 

Many disparate factors affect employers' ability. 

to offer telecommuting, and the effectiveness of 

telecommuting programs. While the following 

discussion is not exhaustive, it covers the main 

factors. 
CCLI: Telecommuting/Telework 

Employers with Illformation Workers 

Only employees who can perform their tasks away 

from the main workplace can telecommute. The 

U.S. Office of Personnel Management (OPM) suggests the following types of jobs as most suitable 

for telecommuting (OPM, 2001): 

• Jobs that involve thinking and writing 

• Data analysis 

• Writing decisions or reports 

• Telephone intensive tasks 

• Computer-oriented tasks (data entry, web page 

design, word processing, programming, engineers) 

• Payroll transaction processing 

• Analysis-type work (investigators, program 

analysts, financial analysts) 

• Engineers 

• Architects 

• Researchers 

• Customer service jobs 

As the list above describes many white-collar jobs, 

offices with high concentrations of such workers 

are good candidates for telecommute programs. On 

the other hand, jobs that require face-to-face communication, access to on-site materials or files 

(including confidential material), and site-specific 

occupations are not as amenable to telecommuting. 

Within companies whose primary occupations are 

not right for telecommuting, there may still be positions with the potential to telecommute (for example, a large construction company with an in-house 

human resources department might allow an 

employee in the payroll section to telecommute). 

There may also be positions whose duties would 

lend themselves to telecommuting on a part-time 

basis. In general, however, telecommuting has the 

most promise in offices with large concentrations 

of information workers, whose outputs depend 

largely on computer access. 

4 

Established Employees 

Because telecommuting requires supervising 

employees not at the workplace, telecommuting 

tends to work better for employers who are already 

assured of their employees' work quality and reliability. Most employers are reluctant to allow new 

employees to telecommute, because of concerns 

that they may not perform well or that they will not 

become sufficiently acquainted with the company's 

internal structure and culture. Similarly, at a very 

new company, the importance of face-to-face interaction among all employees may outweigh the 

potential benefits of telecommuting. 

Employees with Personal Needs 

Telecommuting may be used by employers to 

retain established employees who would otherwise 

resign for personal reasons (moving, child- or 

eldercare issues). In addition, some employers have 

found that disabled employees can be accommodated through telecommuting when physical access 

issues are problematic. 

Competitiveness in a Crowded Employment Field 

Many companies have begun to view telecommuting as primarily an employee benefit, rather than a 

transportation strategy or means to reduce costs. 

For example, one survey of 3,400 high tech workers in the Washington, DC area asked what 

employer perk they would most appreciate; the 

largest response (548 respondents, or 16 percent) 

was telecommuting, followed by training and flextime. (Behr, 1999) 

However, employers should also be aware that 

because not all positions are suitable for telecommuting, they may not want to characteriie telecommuting as a "benefit." Rather, they may wish to 

publicize a telecommuting program or arrangement, so as to minimize the perception that 

telecommuting will be available to all employees. 
CCLI: Telecommuting/Telework 

-~~":~i~EH~~g~'.·,~~!¥~l~u~~~B%¥~;JJ This section addresses a variety of implementation issues, including supervision and evaluation. 

Eligibility 

An employer should establish guidelines for 

determining which employees can telecommute. 

There may be two components to eligibility: 

which activities within a company are suitable fol' 

telecommuting, and which employees have the 

job skills that make them eligible to telecommute. 

Even if a particular activity or position lends 

itself to telecommuting, the employee may not be 

allowed to telecommute until after a training period, or obtaining a certification. Telecommuting 

guidelines and policies should address both 

issues. 

Amount of Time Spent Telecommuting 

Few telecommuters spend their entire workweek 

off-site. One study (Varma, et al., 1998) found 

that the average number of days worked at telework centers by California employees was 1.1 

per week. Handy and Mokhtarian (1996), reviewing the research, found that the average number 

of days telecommuters spent working off-site was 

one to two per week. While this may vary with 

the type of work performed, most firms find that 

full-time telecommuting is far less common than 

occasional telecommuting. 

Telecommuting Program Turnover 

If programs are solidly implemented _and telecommuters selected well, telecommuting programs 

are generally successful. However, a few studies 

suggest that some employees encounter problems 

with the arrangement and return to regular commuting. In a study of approximately 275 telecommuters at telework centers in California, 50 percent stopped telecommuting within nine months. 

(Varma, et al., 1998) Most reasons were job-related (e.g., a change in position or request from 

5 

supervisor to return to a regular office schedule), 

rather than personal dissatisfaction with the 

arrangement. Also, turnover may be higher at 

telecenters than for home-based telecommuters ' and some telecenter employees find it is just as 

easy to work at home. 

Costs 

Employers usually pay the costs of telecommuting arrangements for their employees. Costs 

might include computer equipment, networking 

access (including internet, intranet, and/or company servers), additional phone lines, fax 

machines and printers, and in some limited cases 

general office equipment (ergonomic chairs, files, 

cabinets, etc). 

Costs to implement a telecommuting program 

will vary dramatically depending on the type of 

equipment currently owned by the employer; 

according to one recent article, "Starting from 

scratch, you'll pay anywhere from $1,500 to 

$30,000 for network server alone," in addition to 

monthly costs (Sandlund 2000b ). Another study 

advised companies that average investment per 

employee would be $3,000 to $5,000, with an 

additional $1,000 incurred in costs each year 

(Cascio, 2000). JALA International's general estimate claims that the average employer will spend 

$5,500 in establishing each individual employee 

as a telecommuter (estimate available at 

http://www.jala.com/homecba.htm). Most costs 

are depreciable, so the bottom-line costs will be 

less. 

In addition, employers should consider liability 

issues, such as responsibility for lost data, theft of 

equipment, or damage due to power spikes, and 

insure telecommuters appropriately. There is a 

small field of telecommuting law that considers 

under what circumstances employers could be 

held liable for workplace injuries incurred in the 

employee's home (Sandlund, 2000a). 
CCLI: Telecoinmuting/Telework 

Cost Savings 

Although implementing a telecommuting program requires investment, many find that it produces long-term savings. For example, telecommuting consultant JALA International estimates 

that the average business will achieve net benefits 

of $6,400 in the first year of telecommuting, 

through a combination of increased productivity, 

reduced sick leave, decreased turnover rate, and 

reduced need for parking and office space (see 

www.jala.com/twctrcba.htm). ITAC (International 

Telework Association & Council) found that the 

equivalent values in 1999 were $11,850. (Pratt, 

1999) 

Not surprisingly, cost savings vary. In a pilot 

project in which 60 employees at the Minnesota 

Department of Administration telecommuted for 

12 months, supervisors reported no change in the 

use or amount of new office space needed. In 

addition, only eight percent of supervisors reported reduced operating costs; most reported no 

change. (Minnesota Office of Technology, 1997) 

Potential cost savings depend on many factors: 

current operating costs, investment in telecommuting infrastructure (for example, if a firm 

invests in a computer server for only one 

telecommuter, savings will be much less than if 

the same investment handled 10 telecommuters), 

and whether telecommuting is linked to changes 

in organizational structure. 

Telecomm11ti11g a11d Use of Office Space 

Telecommuting can be performed: 

• From the employee's home; 

• From an employer's satellite office close to 

the employee's home; 

• From a telecenter (an office in which employers rent space for telecommuters); or 

• Entirely remotely (from locations such as 

hotels, airports, or client offices). 

6 

Most telecommuting is currently done from the 

employee's home. According to ITAC's Telework 

America 2000 survey, only seven percent of 

telecommuters work exclusively from telecenters, 

while another four percent work from both home 

and telecenters. Entirely remote work is uncommon; it is most likely to be practiced by a mobile 

sales force or other employees who travel extensively. 

In a "hotelling" arrangement, employees no 

longer have a permanent workspace in the main 

office, but are assigned an office based on their 

need for space. This arrangement can reduce rent 

costs, since several telecommuting employees can 

share a single office, on different days. This 

arrangement tends to work best when telecommuting employees use the main office infrequently, and need relatively few physical files-that is, 

they need only phone and computer access. 

However, there are many varieties of hotelling 

and space-sharing, and in some cases they are 

used by telecommuters in the office as many as 

three days a week. 

Management Issues 

Managing employees who are not at the workplace daily poses a number of challenges. 

Duxbury and Neufeld (1999) studied how workplace communication changed when employees 

began telecommuting, and reported that employees and managers raised three main issues: 

• Communications between managers and 

employees became more formal (increased 

use of phone and memos, with a concurrent 

decrease in face-to-face meetings); 

• Loss of informal office culture and decrease 

in the ability to make spontaneous work 

assignments and decisions; 

• Perceptions by co-workers that the telecommuter was not working while at home (e.g., 

"Co-workers seem afraid to call me at home. 

They think they'll be bothering me.") and 

occasional jealousy of telecommuters. 
CCLI: Telecommuting/Telework 

These potential problems can be avoided through 

careful selection of telecommuting participants 

and training. 

Telecommuting can reward businesses in terms of 

recruitment, retention, and cost savings. 

However, implementing a telecommuting program involves a high degree of investment in 

information technology, trust in workers, changes 

in supervisory techniques and expectations, and 

support from management. The following suggested 12 steps are drawn from two sources: 

OPM and the American Health Information 

Management Association (AHIMA). The steps 

are meant as a rough guide for interested employers; specifics will necessarily vary from employer 

to employer depending on the size of the firm, 

the nature of the work, and the potential number 

of telecommuters. 

1) Designate a telecommuting coordinator 

and/or implementation committee. 

Before proceeding with a telecommuting project, 

key stakeholder personnel should be identified. 

This committee include representatives from 

human resources, information management, risk 

management, facilities management, and senior 

management, as well as employee representatives. 

2) Obtain support from senior management. 

Senior management should be involved and supportive from the inception of the program. 

Telecommuting may raise issues such as changes 

in supervisory techniques and productivity measurement that senior management should be aware 

of; in addition, telecommuting will involve both 

start-up and on-going costs. 

7 

3) Determine employee interest. 

The program coordinator or committee should 

determine the extent of employee interest in 

telecommuting, perhaps through survey or orientation sessions. General parameters of a possible 

program could be discussed. 

Two other groups should be considered at this 

time. First, unions should be included in the decision-making process. Employers sometimes 

encounter concern from unions, from fear that 

employees will be forced to work at home when 

they prefer to remain in an office setting, or that 

telecommuting may become a way to squeeze 

more work out of employees. Second, managers 

will benefit from orientation and education about 

telecommuting. Early involvement by managers 

may avoid the fear that telecommuting is something being "done to them," and can also alert the 

coordinator or committee to real or perceived 

problems. 

4) Explore which arrangement - home-based, 

hotelling, telework center, or other - will be 

most feasible and productive. 

Companies can set up telecommuting programs 

in many ways, as described above. The best 

arrangement for a particular employer will 

depend on many factors - the type of work (for 

example, data entry from home one day per 

week, or most time at sales and client meetings), 

the size of the company (will there be enough 

employees to make setting up or renting telecenter space economically feasible?), and the type of 

remote computer access needed. 

If there are area telecenters, the committee should 

make a recommendation as to whether they are a 

possibility. The decision should be made with 

input from affected departments and senior management. Telecenters offer the advantage of being 

already set up with computing equipment and in 

many cases professional staff; on the other hand, 

fees may be several hundred dollars per month or 

more to use the facility one day per week. 
CCLI: Telecommuting/Telework 

5) Identify specific positions appropriate for 

telecommuti11g arra11gements. 

Not all positions are suitable for telecommuting. 

Generally the most likely positions for telecommuting are knowledge- and information-intensive 

positions (analysts, researchers, data entry, programming, etc.), positions that require outside 

meetings (sales representatives, etc), and other 

positions whose duties can be performed out of 

the office (telephone work, reading, writing). 

Positions that require face-to-face interaction 

with co-workers or clients (medical/nursing, 

receptionist, elementary school teaching), access 

to site-specific files (military personnel dealing 

with classified information), and other jobs that 

require presence in a particular location (photographer) are generally not be suitable for telecommuting. Also, telecommuting does not have to be 

all or nothing; many positions may require some 

face-to-face contact, but still be suitable for parttime telecommuting. 

6) Determine equipment, teclznology, security, 

and liability needs and costs. 

Telecommuting requires, in most cases, sophisticated information technology equipment to give 

employees access to company files, internal networks, e-mail, and the like. In addition, many 

employees may require additional phone lines, 

fax and printers, and standard office equipment. 

The information technology department should 

assess the company's current infrastructure and 

determine whether upgrades or new equipment 

are needed, and what level of security should be 

provided. Employees should have access to similar equipment that they have in the office to 

maintain the same level of productivity. In general, the older the current equipment, the more costly and difficult it will be to implement telecommuting. 

8 

The technical issues around remote access are too 

complicated to explore in depth in this paper. A 

useful list of articles reviewing broadband and 

DSL options can be found at http://www.gilgordon.com/resources/reports.htm Also, the ITAC 

e-Work Guide has a chapter dedicated to technology 

issues; it is available at http://www.telecommute.org/brp/ework_guide.shtml 

Cost estimates for equipment procurement and 

installation may take time to prepare, especially if 

a company has complex security or proprietary 

information issues to address. 

In addition, employers should explore potential 

liability issues regarding loss or damage to homebased employer-owned equipment, loss of valuable company information through computer failure or hacking, and workplace injuries that occur 

off-site. The company's insurance policies should 

be updated accordingly. 

7) Prepare and present a telecommuting 

proposal. 

Before beginning any telecommuting program, 

the following parameters should be well-defined: 

Pilot program. Will there be a pilot program to 

be evaluated before an organization-wide adoption of telecommuting? If so, these guidelines 

should be drawn up. 

A telecommuting policy for the organization. 

This would define eligible positions, guidelines 

for participation (e.g., an employee must work 

full-time for a year before becoming eligible, or 

have certain defined work skills), financial 

responsibility (e.g., the employer pays for equipment and installation, but the employee agrees to 

pay for additional insurance against theft), and 

any change in status or benefits for telecommuters. 
CCLI: Telecommuting/Telework 

Develop a telecommuting agreement. Both 

OPM and AHIMA recommend formal agreements between employers and individual employees who want to telecommute. The agreement 

should include such topics as trial period, official 

duties, work schedule, timekeeping and leave, 

equipment and supplies (including ergonomic 

standards and other OSHA issues), security and 

liability, worksite criteria, costs, injury compensation, and performance evaluation. Sample agreements are available at: 

• www.opm.gov/wrkfam/telecomm/TeleSam.htm#Sample%20Agreement 

• www.ahima.org/journal/pb/99 .02.ex3 .html 

• www.telecommute.org/brp/ework _guide.shtml 

Screening criteria. Subject to equal employment 

opportunity criteria, an employer should screen 

potential telecommuters via survey form or personal interview. Criteria might include the type of 

job duties to be performed, the degree to which 

the employee can be evaluated based on work 

products, not physical presence, and suitability of 

employee's home as office space. The company 

should have a clear policy on telecommuting eligibility to diminish perceptions or possible accusations of favoritism or discrimination. 

Similarly, employees should screen themselves if 

the home situation is not suitable in some way, or 

if the person does not have the self-discipline 

needed to work from home. Also, employees 

should be clear that they cannot both telecommute and care for dependents simultaneously. 

Evaluation criteria. If the employer sets up an 

initial pilot program before implementing a fullscale telecommuting program, evaluation criteria 

should be selected. These could include employee 

productivity (along with basis for measurement), 

employee satisfaction, client or customer satisfaction (for example, if a customer service representative begins working from home), and degree to 

9 

which other employees in a section are affected 

by a telecommuter (e.g., is other employees' work 

hindered by the telecommuter's absence) If a formal evaluation is to be completed, baseline 

benchmarking data should be established so that 

before-and-after comparisons can be made. 

8) Take final steps toward implementation. 

This includes procuring and installing equipment, 

selecting telecommuters, disseminating telecommuting guidelines and policies, signing telecommuting agreements, and setting an implementation date. 

9) Train all personnel involved. 

Telecommuting involves new ways of working as 

well as supervising and evaluating, so participating personnel - whether employees or supervisors 

- should receive training. Some companies even 

set up a simulation lab in which potential 

telecommuters can work for several weeks under 

conditions similar to their potential home office 

set-up: no face-to-face contact with other employees and remote computing access. This allows 

them to determine their suitability for telecommuting. 

In addition, a company may wish to develop a 

training program for supervisors so they will be 

familiar with the demands and issues raised by 

telecommuting - lack of direct personal contact, 

potential difficulties with on-site employees, and 

measuring productivity. Some consider supervisor 

training as important as employee training. 

10) Administer pre-telecommuting evaluation. 

If a before-and-after benchmarking survey is to 

be done, the pre-telecommuting survey should be 

administered at this point, before program implementation begins. 
CCLI: Telecommuting/Telework 

11) I111pleme11t tlze program. 

Once equipment, guidelines, agreements and 

training have been signed and completed, 

telecommuting can be implemented. 

12) Assess results. 

After a period of time, the firm should assess the 

program's effectiveness. If a before-and-after survey was carried, the after data should be assessed. 

Those results, as well as other measures of cost, 

productivity, and morale, should be compared to 

evaluation criteria established earlier. This will 

form the basis for determining whether the program should be continued in its current form, 

expanded, or otherwise modified. 

I111ple111e11tatiou Costs and Administrative Burden 

Unlike many other commuter benefit programs, 

telecommuting involves a major commitment of 

both financial and staff resources. The heaviest 

burdens tend to fall on two groups. Supervisors 

must revise their methods of managing employees out of their direct contact and deal with the 

tensions that can arise between employees at the 

workplace and those working remotely. However, 

this can yield benefits, according to one telecommuting expert: 

In fact, we consistently hear that managers 

who manage remotely report that doing so 

makes them better managers not only of the 

remote workers but also of their in-office 

staff. (Gordon, 2001) 

Information technology departments will be 

responsible for carrying out an IT gap analysis to 

determine telecommuting infrastructure start-up 

needs and costs and providing ongoing support to 

telecommuters, who rely more heavily on computer networks and remote access. 

IO 

These questions might commonly be asked by an 

employer (e.g., a human resources administrator 

or business manager) considering a telecommuting program. Several are variations of each other. 

Question: How productive are employees when 

they are not in the office? 

Usually as productive as they are in the office, if 

not more so. Many telecommuting employees 

report that they experience fewer distractions. 

Some employers have been pleasantly surprised to 

find that employees are more accessible when they 

are working from home, because managers know 

exactly where they are, and they have fewer meetings and/or spend less time with co-workers. 

Question: How difficult - and costly - is it to 

establish and administer the program? 

It depends on several factors: the scale of the program (size of company and number of employees 

who will telecommute), the type of information 

technology selected, and the goals of the program 

(will telecommuting mean a few employees performing their regular duties out of their homes, or 

a more :fundamental re-engineering of the workplace?) Large-scale programs require substantial 

commitment for planning and implementing the 

program, and the involvement of the information 

technology departments will be much more significant and critical. In addition, telecommuting 

programs require continuing investments of both 

money and staff time. 

Question: How does working at home affect 

dependent care issues? 

Telecommuting employees should not expect to 

simultaneously work and care for their dependents (children or elders). Although many employees who telecommute do so because they prefer 

to be near home in case of an emergency, or to 

have additional time to spend with their families, 
CCLI: Telecommuting/Telework 

employees must make arrangements for dependent care. This understanding should be part of a 

formal telecommuting agreement, so that employees are aware of the need to separate dependent 

care from work. 

Question: Who pays for charges such as 

increased electricity and telephone costs? 

This is generally covered under the telecommuting agreement. In the federal government, the 

OPM guidelines allow reimbursement for official 

telephone calls, but not for increased electricity 

costs resulting from use of computing equipment. 

Question: Is there an ideal percentage of 

employees who should telecommute? 

No. Some firms have only a small percentage of 

employees telecommuting; others have near-virtual offices, where everybody works independently. It depends on the nature of the business, the 

type of work performed by the employees, 

employees' suitability to working independently, 

the company culture, and the technological capabilities available. 

Question: How does telecommuting affect 

morale and productivity among workers who 

continue to work on-site? 

It depends on a number of factors, including the 

number or percentage of telecommuters and their 

roles within the office, how their work affects 

other co-workers (i.e., is work collaborative or 

independent? Do co-workers require face-to-face 

interaction?), and how well supervisors manage 

the transition to telecommuting. Some employers 

have found feelings of jealousy and resentment 

from on-site co-workers who may believe the 

telecommuter is not really working. Others find 

that on-site workers have no interest in telecommuting themselves and do not mind their colleagues' absence. Supervisors must take care to 

ensure that all employees, regardless of location, 

are selected and treated equitably and with simi11 

lar expectations. Also, most telecommuting 

guides recommend that even full-time telecommuters come to the office periodically to establish 

and maintain personal relationships with colleagues and supervisors. 

Question: Do employees and supervisors need 

training before starting a telecommuting 

arrangement? 

Training is generally a good idea, because of the 

major change in the working relationship and risk 

management issues related to telecommuting. 

Some guidelines even recommend setting up a 

simulation for employees who want to telecommute, so that they can experience remote work 

for several weeks and judge whether they would 

suitable candidates for the arrangement. 

Supervisors might also be trained in management 

techniques for distance employees, such as how 

to manage by results and assess productivity. 

Question: Can I require employees to telecommute? 

Although private employers may require telecommuting as a condition of employment for certain 

positions, most guides do not recommend it. 

Telecommuting has become an employment perk, 

and forcing employees to telecommute may 

remove that status. Further, while an employee's 

position may be suitable for telecommuting, his 

or her personality may not be. Some telecommuters complain of isolation, and being "left out 

of the loop." Some begin telecommuting with 

high hopes and find that they have a hard time 

managing their time, that there are too many distractions at home, or that that casual contact with 

colleagues was more important to their work than 

they realized. 

OPM regulations prohibit federal agencies from 

requiring an employee to telecommute. 
CCLI: Telecommuting/Telework 

Q11estio11: Do any state or local governments 

offer i11ce11tivesfor doing this? 

Some regional organizations offer technical assistance for implementing telecommuting programs; 

see below under Associations and Contacts for 

more information. In addition, the state of Oregon 

offers a tax credit for implementing telecommuting programs; see above under the Tax 

Considerations section for more information. In 

spring 2001 Virginia introduced a Telework!VA 

pilot program through which employers in northern Virginia could receive state reimbursement 

for certain telework start-up or expansion costs, 

up to $35,000 over two years. 

tjl\1~L~~E~~C~;~ ST~S ----- : ... "',.j 

New York City, New York - Merrill Lynch 

Merrill Lynch, an investment services firm, has 

over 400 employees in a telecommuting program. 

Employees wishing to participate must first complete a formal training program, which includes a 

detailed employee proposal outlining their work 

schedule and home office needs. They also participate in a series of meetings with both supervisors 

and the firm's alternative work arrangements 

group. Finally, employees must go through a twoweek simulation at a company lab, working on 

similar projects with similar equipment to get a 

first-hand feel for what telecommuting will be 

like. 

A Fast Company article explaining the program 

points out four lessons learned for implementing 

a telecommuting program: 

• The importance of keeping up ties with colleagues; 

• Organizational skills; 

• Creation of new routines to replace office 

routines; and 

• A well-equipped and ergonomic home office. 

12 

The article notes that for telecommuters, productivity has increased and turnover decreased, 

although no numbers are provided. (Chadderdon, 

1997) 

Minneapolis, Minnesota - Sopheon Resource 

Network Corporation 

Sopheon, an information services company, began 

a telecommuting program in 1994 after the loss of 

two valued employees due to a move and a long 

commute. The program currently encompasses 27 

percent of a workforce of over 100 employees. 

There are various categories of telecommuters, 

including mobile workers, virtual home office, 

hotelling, and flexible scheduling (part-time). The 

national sales force was effectively telecommuting 

prior to the current program; the pilot program was 

extended to research staff. 

Benefits to the company include improved 

employee morale and competitive advantage. 

There is no difference in productivity between 

telecommuters and on-site employees. 

The company provides different computers and connectivity to employees depending on their job. In 

order to minimize dependence on information technology staff, who experienced a significant increase 

in workload after program inception, all telecommuters must complete a hardware/software certification program before beginning to telecommute. 

Telecommuting employees receive a :furniture 

allowance; purchases must meet company ergonomic 

guidelines. If an employee leaves the company 

within one year of beginning to telecommute, s/he 

must repay 100 percent of the computing start-up 

costs and 50 percent of the :furniture costs. 

The program has become more formalized since 

its inception. For example, a Telecommuting Task 

Force reviews employee requests to telecommute. 

Employees wishing to begin telecommuting must 

complete a formal agreement and have a home 

site evaluation. Managers have also had to learn 

to include telecommuters in office decisions and 
CCLI: Telecommuting/Telework 

team meetings. Because some telecommuters had 

complained of isolation, there are monthly 

telecommuter conference calls, and the company 

brings all full-time telecommuting employees, 

many of whom live outside the area, into the 

office once or twice yearly. (MITE, 1999) 

New Jersey - Pharmaceutical Marketing Firm 

A company that provides marketing and distribution for the pharmaceutical industry implemented 

a telecommuting program for its 20-member sales 

force. The impetus to institute the program came 

from the firm's executive board, which thought 

that a move to telecommuting would increase 

productivity and sales. The program required a 

major upgrading of the firm's information technology infrastructure to allow remote access and 

automation of sales tracking data that had previously been entered manually. The information 

technology department had to hire two new 

employees to plan and implement the project; the 

implementation period lasted six months. 

Not all members of the sales force were able to 

make the mandatory adjustment to telecommuting; two were terminated, partly due to poor 

records and partly due to their failure on qualifying tests to measure their ability to use the new 

technology. Two others requested and received 

early retirement. Those who remained were often 

reluctant to ask the IT department for assistance, 

because of embarrassment at their unfamiliarity 

with the technology. However, the remaining 

sales people became more productive, because a 

higher proportion of their time was spent on 

sales. The firm estimated that sales increased 

approximately 18 percent per year for the first 

three years of the project, and revenues increased 

21 percent. The nature of sales work changed as 

well; where previously the sales force had operated largely independently from the main office, 

their new technological capabilities gave them 

continuous access to up-to-the-minute information. As the case study explains: 

13 

The program affected every level of the 

organization. At the strategic level, the program helped the company maintain existing 

accounts, develop a new image, enhance relationships with clients, increase forecasting 

capabilities, and improve responsiveness. At 

the tactical level, the program helped increase 

management control, improve resource management, and promote accountability. At the 

operational level, the program freed more 

time for sales, thus increasing productivity. It 

enabled high-quality presentations, created a 

new information flow with clients, and simplified business procedures. Any negative 

impact on IT personnel and sales representatives, while costly, was only short term. Realestate savings and other benefits of having 

individuals work remotely were simply "icing 

on the cake." 

Average cost for a new telecommuter was approximately $5,600 to $5,800, with annual support costs 

of $1,000. (Net cost per telecommuter was $25,500 

during the first year, because of the price of the 

new technology infrastructure, but costs dropped as 

telecommuting increased.) The firm saved 

$183,000 in rent because it was able to close one 

branch office and avoid an expensive move at the 

main office. Finally, the firm saved approximately 

$35,000 annually in clerical costs, because the new 

technology eliminated data entry functions. 

The company also identified three unexpected 

consequences of the project: 

• Twelve non-sales employees began telecommuting part-time; 

• The new cost accounting system, originally 

intended for exclusive sales use, became the 

company's main cost accounting system; and 

• Managers were better able to track sales 

activity and make sales predictions. 

After several years almost one-quarter of the 

company's 150 employees were telecommuting 
CCLI: Telecommuting/Telework 

either part- or full-time. The start-up costs of the 

new infonuation technology infrastructure were 

recouped in the same period. (Watad and 

DiSanzo, 2000) 

Mi1111eapolis, Minnesota -Abbott Northwestern 

Hospital 

Abbott Northwestern Hospital began a pilot program in 1994 to allow some of its SI-person 

medical transcription staff to telecommute. The 

program began with three full-time telecommuters, and had over 30 telecommuters by 2001. 

The hospital found that medical transcription was 

a good fit for telecommuting because productivity 

could be quantified: minutes of dictation per 

hour. After the program had been in place for 

four years, telecommuters were found to be more 

productive than on-site employees: the 38 percent 

of the staff who telecommuted produced 46 percent of the output. The increased productivity 

was attributed to fewer distractions and side projects within the office. 

Abbott's telecommuters do so full-time. However, 

most telecommuters come into the office on a 

quarterly basis, either for formal meetings or to 

re-establish contacts with colleagues. Both 

telecommuters and supervisors have found that 

full-time telecommuting forces them to be more 

efficient in managing their time - instead of making several phone calls during the course of a 

day, a supervisor and telecommuter may instead 

handle several issues in one conversation. 

The hospital committed to providing telecommuters with the same standards of equipment that 

on-site employees enjoy, but early in the program 

it was assumed that outfitting telecommuters with 

appropriate equipment would be a one-time cost. 

However, it was found that upgrading and maintenance were ongoing costs. 

Telecommuters at Abbott have high job satisfaction and loyalty. Although supervisors feared that 

the program might cause resentment among 

14 

employees who did not telecommute, many 

employees chose not to telecommute. (MITE, 

1999) 

Vienna, Virginia - Southern Management 

Corporation 

Southern Management Corporation, a residential 

property management firm, initiated a pilot 

telecommuting project at its suburban 

Washington, DC headquarters, which houses 75 

of its 1000 employees. Ten employees participated in the pilot program; their duties involved 

mostly phone-related work, writing and editing, 

data management, and general administration. 

Internal telecommuting guidelines address eligibility, work schedules and planning, performance 

measurement, customer and colleague support, 

home office set up, equipment and supplies, proprietary information, and taxes and insurance. 

The company spent $16,500 to set up its telecommuters, and another $5,300 in indirect staffing 

costs over a six-month period. A survey completed after the program was implemented revealed 

that telecommuters reported higher productivity, 

better morale, less stress, and good support from 

managers and co-workers. The main complaint 

from supervisors was that meetings became more 

difficult to schedule (most telecommuters worked 

from home or a satellite office two to three days 

per week). (Washington Metropolitan Council of 

Governments, 200 I) 

Multiple Locations - Davis Wright Tremaine 

LLP 

The law firm Davis Wright Tremaine became a 

telecommuting firm in 1990, investing between 

$4 and $5 million in technology and equipment. 

Many of the firm's 350 lawyers take advantage of 

the ability to telecommute, as do paralegals and 

office managers. With offices in both East and 

West Coast locations, as well as China, lawyers 

in one office often work on cases in another geographic area - or example, a group of health 
CCLI· Telecommuting/Telework 

care lawyers in North Carolina have clients 

throughout the country. 

The firm has found that employees generally 

become more productive when they begin 

telecommuting. One lawyer estimated that he has 

added 200 billable hours per year simply through 

the ease of working out of his home. A financial 

analyst who works at home with two computers 

can use one for budget numbers while the other is 

printing a monthly report; she covers a workload 

that would typically require 1.5 employees. 

Although law firms have traditionally been averse 

to telecommuting because of the paper and legal 

references involved, the firm has found that needed opinions and cases are increasingly available 

online through either commercial providers or the 

courts. Most lawyers find that they need access to 

a law library only occasionally. 

Perhaps surprisingly for a law firm, Davis Wright 

Tremaine does not have a detailed or formal telework policy. Telecommuting requests are handled 

on a case-by-case basis. The firm's own employment lawyers say that telecommuting requires 

more common sense than complex rules. 

Many regional and local governments provide 

services to help employers implement telecommuting programs. Metropolitan planning organizations (MPOs), city and county transportation 

agencies, transportation management associations 

(TMAs), and transportation management organizations (TMOs) throughout the U.S. provide 

assistance to employers in starting and maintaining transportation demand management programs 

such as telecommuting. They often provide information to employers about options to reduce driving to work, implementation issues, and local 

programs that support employer initiatives. Some 

of these resources are listed in the next section, 

Associations and Contacts. 

15 

Depending on the nature of the work, the ability 

to telecommute effectively may be linked to the 

availability of high speed internet connections. 

Access to these services varies throughout the 

country. 

This section includes information on regional and 

national groups that EPA and regional, state, and 

local governments might wish to utilize for 

expertise in understanding, promoting, or providing technical information on telecommuting. 

Individual employers are directed to contact EPA, 

their local MPOs, telecommuting consulting 

firms, or other groups that provide services to 

support telecommuting implementation. 

Organizations That Promote Telecommuting 

International Telework Association and Council 

204 E. Street N.E. 

Washington, DC 20002 

Tel: 202-547-6157 

Fax: 202-546-3289 

www.telecommute.org 

The International Telework Association and 

Council (ITAC) is a membership organization for 

businesses that sponsors research and surveys on 

telecommuting. ITAC maintains an extensive list 

of member consultants, available at 

www.telecommute.org/resources/ consultant_ mem 

bers.shtml. 

The American Telecommuting Association 

1220 L Street, NW, Suite 100 

Washington, DC 20005 

Tel: 800-ATA-4-YOU 

www.knowledgetree.com/ata.html 
CCLI: Telecommuting/Telework 

The American Telecommuting Association (ATA) 

is a membership organization whose members are 

employees who telecommute. 

National TDM and Telework Clearinghouse 

University of South Florida 

4202 E. Fowler Ave. 

CUTIOO 

Tampa, FL 33620-5375 

Tel: 813-974-3120 

www.nctr.usf.edu/clearinghouse/ 

The National TDM (Transportation Demand 

Management) and Telework Clearinghouse is a 

compendium of research and information on 

TOM and telecommuting. TDM refers to a set of 

programs and policies that are designed to make 

the best use of existing transportation resources 

without additional infrastructure investment. 

Much of the Clearinghouse information is available electronically at their website. The site contains information for employers interested in 

establishing various kinds of trip reduction programs, including telecommuting. 

Clean Air Council 

135 South 19th Street Suite 300 

Philadelphia PA 19103 

Tel: 215-567-4004 

Fax: 215-567-5791 

www.cleanair.org/green/index.html 

The Clean Air Council supplies information on 

telecommuting as a means to reduce air pollution. 

National Environmental Policy Institute 

Shelley Rappaport, Project Manager 

140 I K Street, NW 

Suite M-103 

Washington, DC 20005 

Tel: 202-857-4784 

Fax: 202-833-5977 

www.ecommute-nepi.org 

16 

The National Environmental Policy Institute 

(NEPI) administers the eCommute pilot project in 

five cities (Washington, Denver, Philadelphia, 

Houston, and Los Angeles) to encourage businesses to participate in telecommuting. 

Businesses can gain tradable emissions credits 

through implementing telecommuting programs 

and calculating their emissions reduction. The 

project began its second phase in January 2001 

and runs through December 2002. 

Online Resources 

Several other private firms and organizations 

have .online information regarding telecommuting; the list below is a sample. 

www.gilgordon.com 

Gil Gordon Associates maintains a web site with 

a wide variety of information, including links to 

research articles and "how-to" tips. 

www.jala.com 

JALA International is a consulting firm founded 

by Jack Nilles, who originally coined the terms 

"telecommuting" and "telework." 

www.workathomesuccess.com/telecomm.htm 

This site is aimed more at employees wishing to 

being telecommuting, but it also offers advice to 

employers thinking of implementing telecommuting 

programs. 

Regional Resources 

Some regions have programs offering technical 

assistance to local businesses that are interested in 

setting up telecommuting programs. The type of 

assistance offered depends on the program; it may 

include technical assistance tailored to a company's 

individual needs, presentations for business audiences on telecommuting issues, and/or compilations of case studies of other area employers. 

Several of these programs are listed following: 
CCLI: Telecommuting/Telework 

Atlanta, GA 

Metro Atlanta Telecommuting Advisory Council 

704 Beacon Cove 

Lawrenceville, GA 30043 

Tel: 770-831-6630 

www.matac.org 

Arizona 

Valley Metro 

302 N First Avenue 

Suite 700 

Phoenix, AZ 85003 

Tel: 602-262-7433 

www.valleymetro.maricopa.gov/telecommute 

Colorado 

Telework Colorado 

Tel: 303-458-8353 

www.teleworkcolorado.org 

Connecticut 

Telework Connecticut 

Clo Rideworks 

389 Whitney Avenue 

New Haven, CT 06511 

Tel: 203-777-RIDE 

Fax: 203-773-5014 

www.telecommutect.com/ 

Houston, TX 

Commute Solutions 

Houston-Galveston Area Council 

P.O. Box 22777 

3555 Timmons Lane 

Houston, TX 77227 

Tel: 713-627-3200 

Fax: 713-993-4508 

www.commutesolutionshou.com/telework/index.htm 

17 

Los Angeles area 

Southern California Economic Partnership 

21865 E. Copley Drive 

Diamond Bar, CA 91765 

Tel: 909-396-5757 Fax: 909-396-5754 

the-partnership.org 

Minneapolis, MN 

Midwest Institute for Telecommuting Education 

1900 Chicago Avenue 

Minneapolis, MN 55404 

Tel: 612-752-8010 

Fax: 6.12-752-8001 . 

www.mite.org 

Oregon 

Oregon Office of Energy 

625 Marion Street, NE 

Suite 1 

Salem, OR 97301 

Tel: 503-373-7560 

www.energy.state.or.us/telework/teletax.htm 

Seattle, WA 

Commuter Challenge 

1301 Fifth Avenue 

Suite 2400 

Seattle, WA 98101-2611 

Tel: 206-389-8656 . 

www.commuterchallenge.org 

Washington State 

WSU Cooperative Extension Energy Program 

925 Plum Street SE, Bldg. #4 

P.O. Box 43165 

Olympia, WA 98504-3165 

Tel: 360-956-2178 

Fax: 360-956-2217 

www.energy.wsu.edu/telework/ 
CCLI: Telecommuting/Telework 

\Vashington, DC/Northern Virginia 

Commuter Connections 

777 North Capitol Street, NE 

Suite 300 

Washington, DC 20002 

Tel: 202-962-3286 

Fax: 202-962-3202 

www.mwcog.org/commuter/telresctr.html 

Commuter Connections also administers the 

Telework!VA financial assistance program for 

employers located in Northern Vrrginia, and 

administers the eCommute pilot program with the 

National Environmental Policy Institute (see 

Organizations that Promote Telecommuting). 

Commuter Choice Leadership Initiative 

For more information on the Commuter Choice 

Leadership Initiative, contact the Commuter 

Choice Hotline at 888-856-3131, or see 

www.commuterchoice.gov 

M..ISSIONS AND TRANSPORTATION 

. ENEFITS 

Telecommuting has great potential to reduce 

vehicle travel and emissions of air pollutants and 

greenhouse gases, because it eliminates many 

commuting trips. Most studies of the air quality 

and emissions benefits of telecommuting agree 

that telecommuters drive significantly less when 

telecommuting. That is, the vehicle miles traveled 

(VMT) reduced are not usually replaced with 

more local non-work driving. 

A review of the telecommuting research by the 

National Environmental Policy Institute found 

that the average round-trip commute distance for · 

telecommuters is 36.1 miles, and that on the days 

they telecommute they saved an average of26.3 

miles. However, only 74 percent of telecommuters drive alone, so that even on the days they 

telecommute, total vehicle miles traveled may 

remain unchanged (for example, if the telecommuter rides with a carpool). (NEPI, 2000) 

18 

The two studies that looked at total travel by 

telecommuters (including non-work trips on days 

they telecommute) found that the average number 

of miles traveled per day was 52.9 before 

telecommuting, and 13 .1 miles per day on 

telecommuting days. (NEPI, 2000) 

A study using travel diaries found similarly positive results. An evaluation of the Puget Sound 

(Washington State) Telecommuting 

Demonstration project compared a control group 

of non-telecommuters to a group of telecommuters, and telecommuting days to non-telecommuting days. Telecommuting had demonstrable 

effects in reducing VMT and emissions. On 

telecommuting days, the number of daily trips 

decreased by 30 percent, VMT decreased by 63 

percent, and the number of cold starts decreased 

by 44 percent. A "cold start" is particularly problematic for emissions, because the engine and 

emissions control systems work well only after 

warming up. A substantial portion of a cars' total 

trip emissions occur at start-up, so avoiding a trip 

altogether is far more "valuable," from a pollution perspective, than shortening the trip. The 

study calculated, using an emissions model, that 

for each telecommuting day, the telecommuter's 

vehicle released 50 to 60 percent less pollutants 

than if the telecommuter had worked in the 

office. This includes additional non-work trips 

made while at home - telecommuters drove less 

on the days that they telecommuted than they did 

on regular commute workdays. 

While this study concluded that telecommuting 

has a demonstrable effect on emissions, it also 

noted several reasons why more widespread 

telecommuting might not produce proportionally 

larger results. First, telecommuters had average 

commutes 2.5 times longer than the control 

group. Indeed, this is probably one of the reasons 

this group chooses to telecommute, because they 

save more time by not commuting. 
CCLI: Telecommuting/Telework 

This implies that as telecommuting increases, and 

telecommuters' commute length falls, the relative 

benefits produced by new telecommuters will fall 

somewhat-although they should still be positive. 

Second, the benefits are confined to the days 

telecommuted; if people telecommute only one 

day per week, those benefits amount to only 20 

percent of the potential benefit of telecommuting 

five days per week. Finally, the study notes that 

emissions benefits will differ with the time of 

year, because atmospheric conditions affect both 

the amount of pollutants released by vehicles and 

the formation of ozone. (Henderson, et al, 1996) 

Telecommuting is one of the most effective transportation demand management (TDM) emissions 

reductions measures. A study done by the 

Metropolitan Washington Council of 

Governments of four transportation emission 

reduction measures found that its Telework 

Resource Center (a program that assisted businesses in implementing telecommuting) was the 

most effective of the four, reducing the number of 

vehicle trips by almost 35,000 per day. The program was also estimated to reduce NOx emissions by .9 tons per day, and voe by .5 tons per 

day. However, the evaluation also noted that the 

effectiveness of telecommuting as a measure to 

reduce emissions is limited by two factors. First, 

although it was predicted that telecommuters 

would work remotely 2.65 days per week, the 

average was only 1.59 days. Second, only 71 percent of telecommuters drive alone on the days 

that they go into the office. (Metropolitan 

Washington Council of Governments, 2001) 

The National Telecommuting and Air Quality Act 

established a pilot program through which companies can receive emissions credits for creation of a 

telecommuting program; credits will be traded on a 

market basis. The pilot program is limited to five 

cities - Washington, Philadelphia, Denver, Los 

Angeles, and Houston - and will run for a year (the 

initial study was done in mid-2000). If the concept 

proves successful, it may be expanded to other areas. 

19 

American Health Information Management 

Association. 1999. Practice Brief 

Telecommuting. Available at 

www.ahima.org/j ournal/pb/99. 02.html 

Behr, Peter. 1999. "Tech Wish List." Washington 

Post, p E 7, February 11. 

Cascio, Wayne. 2000. "Managing a Virtual 

Workplace." Academy of Management Executive, 

v14 n3 pp 81-90. August. 

Chadderdon, Lisa. 1998. "Merrill Lynch Works -

At Home." Fast Company, issue 14, p. 70. April. 

Duxbury, Linda and Derrick Neufeld. 1999. "An 

empirical evaluation of the impacts of telecommuting on intra-organizational communication." 

Journal of Engineering and Technology 

Management, v16, pp 1-28. 

Fitzer, Mary Molina. 1997. "Managing from afar: 

performance and rewards in a telecommuting 

environment." Compensation and Benefits 

Review, v29 pp 65-73 January/February. 

Fletcher, Donna M. 1999. "Practice Brief: 

Telecommuting." .Journal of American Health 

Information Management Association. February. 

Flynn, Michael. 1999. "Taxing Situation: How 

the IRS Views Your Home Office Deduction." 

Telecommute Magazine.com. November .. 

Gordon, Gil. Gil Gordon Associates. Personal 

communication with Liisa Ecola, ICF Consulting, 

2001. 

Handy, Susan and Patricia L. Mokhtarian. 1996. 

"The Future of Telecommuting." Futures, v28, 

n3, pp 227-240. 


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FOR MORE INFORMATION 

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ACKNOWLEDGEMENTS 

This document was prepared for EPA's Office of Transportation and Air Quality under contract 68-W6-002. 

by Michael Grant and Liisa Ecola of ICF Consulting, 9300 Lee Highway, Fairfax, VA 22031, (703) 934-3000. 

We would like to thank the various reviewers who provided comments and feedback on the document. 

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