Case
study:
Hewlett-Packard Company
Telework
High-tech, manufacturing, sales
28
major sites, more than 600 sales offices and worksites in
120 countries.
| I want HP to be
the employer of choice.... When people
come to work here, they want to stay
here. Lew Platt, CEO
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Business benefits:
- Retention of top performers,
increased work/life satisfaction.
- Enhanced employee effectiveness.
- Office space and travel savings.
- Improved customer service.
- Emergency coverage.
- Disaster recovery.
Statistics:
- Formal telework began: 1994.
- Teleworkers: 6-10% of HP's U.S.
staff work at home at least once
a week.
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The HP way
You don't have to be at Hewlett-Packard long
before someone refers to the HP way. Co-founders
Bill Hewlett and Dave Packard built an international
corporation based on the belief that men and women want
to do a good job and they will do so if they are
provided the proper environment. These days, providing
the proper environment at Hewlett-Packard can mean
helping employees work at home instead of the office,
when the option meets business needs.
Summarizing HP's experience with telework, Tom
Johnson, Human Resources Manager at the Measurement
Solutions Division in Lake Stevens, WA, says,
Telework is a tool, which can be used effectively
in many jobs and circumstances.
Between 6 and 10% of HP's 68,000 U.S. employees work
from home or other remote locations during business hours
on a consistent basis. Technology, some of it invented
and manufactured by HP itself, has provided a backbone to
support the growth of telework.
Telework provides business edge
Two points uppermost in managers' minds when reviewing an
employee's telework request are the benefits to the
individual's job performance and the problem telework
resolves, or the opportunity it creates, for a specific
HP division.
HP managers find telework a desirable work option for
a variety of business reasons. Key reasons include:
retention of top performers due to increased work/life
flexibility, the ability of employees to work more
effectively, emergency coverage, disaster recovery,
office space and travel savings, and a better ability to
serve global clients through flexibility in work location
and length of business day.
CEO Lew Platt likes the fact that telework helps
recruit and retain high-tech employees. I want HP
to be the employer of choice, he says. That
means that college graduates want to interview with HP.
When people come to work here, they want to stay
here.
Work options linked to work/life balance
Because Platt previously had been widowed and
left with two young daughters, he used his first-hand
experience with work and personal issues when he became
CEO by championing the 1993 introduction of a package of
work/life initiatives, including telework.
Since 1995, when HP began surveying employees about
work/life balance, employee satisfaction with how work
and life fit together has jumped an average of 10 points.
Attrition rates are stable or down in most areas of HP.
Because it costs HP at least the equivalent of one year's
salary to replace an employee, retention
especially of technology workers is a bottom line
issue.
Decisions emphasize return on investment
Darryl Roberts, a human resources manager
located at HP's Bellevue, WA, offices, characterizes
telework as an employee-driven business
decision. In most cases, an employee requests it,
then a cost analysis by their manager focuses on the
return to HP compared to the budget outlay. Managers are
encouraged to account for intangible benefits, such as
retention and effectiveness, in their decisions. An
interactive, seven-question form asks potential
teleworkers to establish how their work arrangement will
meet a business need and asks managers how results
will be measured.
HP support system
Teleworkers are provided remote but critical support from
Information Technology, and HP reserves the right to have
a representative from Health and Safety make a home visit
to ensure the work environment meets ergonomic standards.
Telework information on HP's intranet includes an
explicit list of equipment and services enabling managers
to determine precise costs and to order appropriately.
Costs vary from $0 to $5,000
Existing telework arrangements represent a broad
continuum of business and personal needs. Set-up costs to
HP can range from zero to more than $5,000, per
teleworker. In many situations, $30 per month of remote
network access may be all that is required to make a
laptop user fully functional at home one day a week. A
systems engineer with a physical handicap has worked from
home for several years using a UNIX work station
installed by HP. Experienced systems engineers are a
valuable resource in the high-tech employment market. The
decision to have him telework was easy for HP, and the
additional cost outlay of $3,500 justifiable based on
productivity and retention reasons alone.
Teleworker profiles
As a Learning Products Engineer, Cheryl Marks
finds ways to help people do their work faster, cheaper
and easier. Given her mission, it is not surprising that
Marks works from home one to two days per week so she can
focus and comprehend the information she has gathered.
One of the reasons I stay with HP is because
they allow me to telework, she says. If you
knew me, you would understand how much happier a person I
am because of working at home. I get burned out if I
can't be as productive as I want to be.
Nikki Cheatham, an HP Traffic Manager, teleworks one
day a week. In Nikki's job, it is very, very
valuable to have her telework, Procurement Manager
Cathy Thran says. If she didn't do a lot of
uninterrupted reading on Tuesdays to stay up to date on
export regulations, she wouldn't be as crisp on her job
as she is. Cheatham estimates it takes her roughly
half as much time to absorb complex information at home
than in her office cubicle.
85% affirm effectiveness increases
HP surveys its entire workforce every two years
to track employee satisfaction. Its last survey indicated
85% of all employees who telework feel it enables them
not only to maintain, but to increase effectiveness. In
fact the effectiveness question scored higher than the
questions relating to increased job satisfaction and
accommodation of personal needs.
Johnson says it is difficult to measure effectiveness
increases because in many cases the work products are
intangible. But I believe we have enough hard data
and anecdotal evidence to suggest telework can increase
productivity in a wide variety of jobs and tasks,
he says. Most important is the issue of fit.
Employers should ask if telework fits the job content,
the individual's work habits, the manager's style and the
corporate culture.
Space and overhead savings
Hewlett-Packard sales offices throughout the
nation have hot desks, or unassigned desks,
for employees who work from home, the road and customer
sites, but need to drop by the office once or twice a
week. The Bellevue sales office has nine hot desks. Of
250 Bellevue employees, 15 to 18 have a home office.
Approximately 60 more work at home at least one day a
week as needed. The full-time teleworkers save HP sales
offices significant space and overhead costs. Even
part-time teleworkers cut fuel and maintenance costs by
decreasing travel to the office in a company car.
Emergency capacity enhanced
Telework is a piece of HP's emergency management
plan for weather-related down time or disasters. The
company has already reaped a return on a minimal
connectivity investment by enabling employees who fill
critical roles to telework when they have car trouble, a
sick child or during a snow storm.
Moving work to the workers
HP is well-versed in
remote management. Eighty percent of employees in
Bellevue are managed by people in other offices across
the nation. The same is true in varying degrees at most
HP worksites. When changes in product lines or
organizational structure occur, we've found you don't
need to move the employee to the work. Knowledge work can
move to the employees, says Human Resources
Representative Sharon Watts. In fact, Watts cites
instances of people who report to one site, are based out
of another site, and also work from home one or more days
per week.
Informal telework growing
The use of telework is
growing at HP, but not within the standard program, which
requires employees to fill out an application with their
manager and establish a regular schedule. It is the
number of informal teleworkers that is increasing;
however, it is difficult to confirm an exact number.
Corporate Work/Life Manager Jerry Cashman does know that
approximately 30,000 of Hewlett-Packard's 68,000 United
States employees have remote network access, 19,000 have
borrowed surplus equipment, and 550 U.S. field employees
have given up their HP offices for a full-time telework
arrangement.
© 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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