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Case Study: Holland America Line

  • Telework
  • Service industry, call center
  • Seattle, Washington

Business benefits:
• Retention of experienced staff.
• Improved coverage.
• Higher percentage of “in available” state,
consistently higher customer service scores.
• Improved use of real estate.
• Payoff from investment in training.
• Disaster recovery option.
• Sick leave decreased.

Statistics:
• Telework began: 1994
• Teleworkers: 78 full-time, plus 12 management staff

"Our top performing reservation agents in January and February of 2005 were teleworkers, and this is typical of the results we've seen since telework was implemented."

–Brian Clement, Director of Guest Programs

What started as an experiment...
Holland America Line (HAL) implemented a pilot telework program in 1994, expanded the pilot, and ultimately formalized the program in 1997. Headquartered in Seattle, this tour and cruise company initially encouraged five reservations agents to begin working from home in 1994 partly as an experiment to comply with the Washington Commute Trip Reduction Law. Early on, program implementers recognized the potential for productivity gains in an environment with fewer distractions. One year later, extensive data confirmed productivity was up for the teleworkers. So, in 1995, HAL expanded the program to 10 agents. A year and a half later, telephone time spent with the customer, number of calls handled, and revenue from the pilot program participants continued to exceed the levels of in-office agents.

… is now an integral part of serving the customer
The 'OK' to make telework a standard work option was clinched when then-President Kirk Lanterman enthusiastically approved an increase in the number of at-home agents to 20 in 1997 and 30 by the end of 1998. According to Employee Transportation Coordinator Laurie Mitsui, in 2005 there are 78 full-time teleworkers. Telework is catching on with other groups at Holland America Line, too. In 1998, the 15-member sales staff team launched a pilot telework program, and most of them continue to telework today. Two of the Crew Travel Specialists telework full time, as well as a Revenue Management Analyst. Other departments approve work at home on a part-time or as-needed basis.

Productivity up, sick leave down
"I feel telecommuters are a valuable asset to the company, as we are able to work during inclement weather situations or other crisis times when the office staff might not be able to make it in to work," says Reservations Agent Lisa Draper, who has been with HAL for 19 years. "Productivity is good when I’m able to work in a quieter environment with less distractions. I’m less apt to take sick time if I’m able to work from home. Plus, I’m able to work on snow days when travel conditions would otherwise prevent me from making it into the office."

Senior Reservations Agent Liza Rios-Gilmore echoes similar comments from other agents. "I am 100% more productive working from home. I am in a position to work before and after regular operation hours if the situation warrants it," Rios-Gimore says. "I can work around doctor appointments, daycare and emergencies, whereas a typical commute would cause me to be absent without the opportunity to make up time. I am available to work at a moment’s notice when necessary. When poor weather conditions impact agents in the office, I can work so that non-teleworkers can go home."

Retaining top performers and improved coverage
According to Brian Clement, Director of Guest Programs, retention of the best agents and overtime support during call load spikes are the two most significant advantages to HAL’s telework program. Telework also has helped the company with business continuity during emergency situations. HAL was able to continue call center operations in the aftermath of the Nisqually earthquake. In the event of a crisis on a ship or a hurricane, teleworkers make it possible for the company to open the call center early or stay open late to deal with the resulting issues. Previously, HAL limited teleworking to 25% of call center agents. Now, with proven reliability, it is up to 50%. "Telework has clearly been a success at Holland America Line," says Clement. "Our top performing reservation agents in January and February of 2005 were teleworkers, and this is typical of the results we've seen since telework was implemented."

Karen Merriam, Ship Services Accounting Agent, says, "After working for many years in the office, and now having the opportunity to telework, has definitely made me want to continue being an employee with HAL. The commute was stressful, and hard to fit in with my schedule now that I have a child."

Reservation Agent Seng Theriault says her interest in staying with HAL has clearly been influenced by the option of teleworking. "I would not have lasted this long [seven years] because of the long commute [4-5 hours daily, depending on ferry schedule]. I’m able to have more time for my family and friends at the end of the day."

Lisa Draper agrees. She says what she likes best about teleworking is "the lack of stress and being closer to my children and their activities since I’m not spending the bulk of my day commuting."

Training investment and real estate savings
Turnover in the travel industry can be expensive because of the amount of time and money invested in classroom and telephone training and teaching employees about the travel industry culture not to mention the hiring process itself. For that reason, HAL management utilizes screening criteria in selecting teleworkers to ensure that each teleworking employee has adequate training and demonstrated self-sufficiency to succeed in the home office environment.

In addition to reducing employee turnover, Holland America Line has also seen savings in real estate costs as a result of its telework program. From the time the telework program was implemented at HAL, the company has built more ships which has in turn added more cruises to the companies schedule. This naturally resulted in the need to hire more reservations agents at a reservation call center that was already close to full capacity during peak seasons. Because of its telework program, HAL was able to add additional call center agents without adding more office space to house them. There are economic trade-offs between fewer desks and higher phone bills, but telework has penciled out to the company's advantage.

Setting up the home office
With the specialized technology required to send incoming calls to a residence, monitor the calls, and access rate information rapidly on a PC, Holland America Line does not leave equipping and setting up of home offices to chance. After being screened on performance and work habits, potential teleworkers are set up for a week in the office at a system that mimics the one they will have at home. Then, the necessary phone or ISDN lines are installed at their home, and they are set up with a PC and other equipment in a space that is reserved for work.

"What I like best about teleworking is that now I can spend an extra two hours a day with my daughter instead of driving," says Michelle Voorhees, Reservations Lead Helper. "Also, the cost of gas, wear and tear on my vehicle and parking have been eliminated which was a huge advantage for me as a single mother. I often hear from fellow employees as well as travel agents that they can tell when they’re working with a teleworker. They say we seem more relaxed, calm and happy. Apparently the benefits of our work option are noticeable in our mannerisms."

According to Voorhees, "My application to work for HAL stemmed directly from the possibility of working from home. In fact, I was in the Workfirst Program as a single mother and they put me through Travel School at Pierce College to accomplish this goal. If it wasn’t for teleworking, I’m afraid I would have to find another job."

Revised June 2005 by Commuter Challenge. Original version © 1998 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.

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On shore, two cruise ship passengers enjoy a sandy beach. This vacation may have been created by a Holland America reservations agent working from home.

Photo courtesy of Holland America Line.

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