Business benefits:
• Eliminated need to lease additional space for 50 employees.
• 10-20% increase in productivity.
• Improved retention of top performers.
• Enhanced employee satisfaction.
• Increased overtime potential.
• Reduced absenteeism.

Statistics:
• Telework began: 1994
• Teleworkers: 50 full time — increasing to 76, and several part time.

"I'd hesitate to change jobs even for more pay."
– Denise Loehlein, Claims Approver and full-time teleworker

Telework plays part in expansion and productivity increase
The Western Regional Office of The Guardian Life Insurance Company of America (Guardian) in Spokane, WA, with 635 employees, ran out of office space five years ago, yet continues to expand its work force and increase productivity. Fifty top-notch claims approvers and customer service representatives – who are happy working full time from their homes – play leading roles in Guardian's success story.

Guardian's financial statements do not reflect savings from reducing the need for leased space due to telework. Nor do they account for the opportunity to grow without adding new space. However, the efficiency of not needing 50 work areas, with plans to increase that number to 76 by the end of 1999, is significant. Despite an investment in hardware and telecom-munication services, and the five months it took to plan a detailed telework program from scratch, the response is the same from people at all levels within the company: “It was worth it.”

Top management saw win/win possibilities
Management's reasons for embracing telework are many – from space efficiency, to increased productivity, to employee satisfaction and retention of top-performing employees. Headquartered in New York, senior management asked the regional office to try a telework program in 1994. “Philosophically, we liked the idea of teleworking from day one because we saw it as a win/win situation for the company and the employees,” says Joe Crimmins, Second Vice President, Regional Operations.

“Even if we received neither productivity nor space savings, telework is part of creating a flexible, accommodating work environment for employees, and the rest is gravy,” Crimmins says. “Very good gravy,” he adds.

Planning = success = growth
The first to try telework were 10 medical claims approvers. Their manager at the time, Jay Smith, says decisions were not made in a vacuum. The first question was, “Can we do it?” Information Systems Manager Rollin Hasness was asked to figure out the feasibility and cost of technology requirements. The second question, “How will the program be designed?” was assigned to the human resources and medical claims managers, to determine selection, monitoring and work flow processes. Finally, the legal department in New York approved the plan and developed a teleworker agreement that serves as the official policy.

“I attribute the success of our telework program to the fact that we did our homework. It wasn't a huge amount of work, but being thorough meant the bumps in the road were not as big. Because we planned for success, the program grew,” says Kathleen Greco, Director of Regional Administration.

Work flow, selection and supervision
When the mission to implement a pilot telework program was handed off to first-level medical claims managers, and a few months later to dental claims managers, they admit to harboring initial fears. One bonus that helped allay the managers' fears was the ease of remotely measuring and monitoring claims work over the computer system. Claims managers and supervisors planned for any differences in how teleworkers would receive work, approve claims and communicate from home. Selection was largely based on performance and the ability to work well independently.

For the first two or three years, teleworkers were grouped together under one supervisor. Today, they are divided evenly among supervisors and attend weekly group meetings with in-office staff. Teleworkers are required to visit the office two or three times a week to pick up work. They call 24 hours ahead to have their mail prepared, but vary the office visit time. Turn-around time for processing claims averages four days. Of the total claims taken home, 95% have a one-day turn around.

Managers reap increased productivity and gain happy employees
Direct supervisors and claims managers at Guardian value being able to offer top employees the opportunity to telework rather than viewing the program as adding to their workload. “We win because of increased productivity in our group, and who wouldn't want happier, more loyal employees?” asks Schelle Retherford, Group Dental Claims Manager. Guardian has discovered that offering telework to top performers becomes a motivational performance goal for in-office staff. It is an earned benefit that also increases the desirability of the claims approver positions. Staff stay with the company longer and employees from other departments sometimes request a transfer and step down in pay for the flexibility of telework.

Managers report productivity increases of 10-20%. In fact, because it is assumed that reducing office disruptions will yield an increase, the standard performance expectation for teleworkers is 10% higher than in-office staff. Guardian teleworkers are more willing and able to work overtime during peak periods, since they have more flexible hours and no regular commute. Another benefit is lower absenteeism. Denise Loehlein, a Claims Approver who works from home, says she has not used a sick day in two years, despite being a single parent with two school age children. “Even if you or your kids are feeling low for a few hours, you can work around it rather than taking the day off or leaving work,” Loehlein says.

“I'd hesitate to change jobs even for more pay,” Loehlein adds. “Being able to work from home is worth a lot to me.”

Vital link: Making remote connections work
Information Systems Manager Hasness believes the future of rural telecommuting will be in wireless technology. For the present, Guardian uses a combination of digital ISDN connections (via the local cable company) and some analog telephone connections (where cable does not reach) to provide its teleworkers with dedicated and secure access to its data system. Teleworkers are provided with PC's and standard software, three-in-one print/fax/copy machines, and a desk or chair if needed.

Hasness has advice to an employer starting to research the best telecommunications set up: Keep abreast of changing technology by reading appropriate internet news groups; and ask a variety of vendors in your area if they can provide the service you need, what the installation and monthly costs are, and how responsive their customer service will be. At Guardian, the Information Systems department installs and maintains the computers. The company contracts with a local delivery service to pick up and deliver the computers when necessary for maintenance.

Costs, benefits and the bigger picture
Initial equipment and telecommunication costs to set up a claims approver at home are a little more than the annual costs of housing an approver at the office – if there was space for them. But management is less interested in short-term dollar comparisons than the bigger picture and the ever-present office space problem. Also, space efficiencies continue to accrue each year after a teleworker is set up. “Start up costs are overshadowed by other benefits. Even if it were significantly more expensive to set them up at home, it would be worth it on the basis of employee retention, improved productivity and space efficiency,” Greco says.

Extending telework to other groups, offices
Greco and some of her Disability Underwriting staff work at home about 15% of the time to maximize their productivity in processing paperwork without interruptions. Teleworking part of the day enables them to be available in the office during core business hours and avoid the peak commute. Information Systems employees are able to provide service on line from home during their on-call hours.

Outstanding results and satisfaction with telework voiced by all levels of employees within the organization have encouraged Guardian to begin implementing similar programs within select departments at other regional offices in the country.

© 1999 Washington State University Cooperative Extension Energy Program. This publication contains material written and produced for public distribution. You may reprint this written material, provided you do not use it to endorse a commercial product. Please reference by title and credit Washington State University Cooperative Extension Energy Program and Commuter Challenge. Published April 1999.

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