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Business Reasons for Alternative Work Arrangements

Business Reasons for Alternative Work Arrangements. Reduced real estate expenses AT&T Square feet per person Traditional office: 225 Shared office: 125 Virtual: 30 $24 per square foot to rent the space Save $2 in expenses for every $1 invested. Business Reasons for AWA.

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Business Reasons for Alternative Work Arrangements

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  1. Business Reasons for Alternative Work Arrangements • Reduced real estate expenses • AT&T • Square feet per person • Traditional office: 225 • Shared office: 125 • Virtual: 30 • $24 per square foot to rent the space • Save $2 in expenses for every $1 invested

  2. Business Reasons for AWA • Recruitment & Retention • Employee productivity • Productivity of telecommuters increase up to 40% at IBM and at USWest

  3. Types of Alternative Work Arrangements • Shared desk/office arrangements • Replacing the traditional private office for each worker • People share the same desk space • Not everyone is in the office at the same time • AT&T: up to six people could share the same desk/office

  4. Types of AWA (continued) • Hoteling • Call in and reserve an office for a few hours, days, or a week at a time • Your paper files, pictures, plaques, etc. are stored in a mobile “cubbie” • You check in and your office is assigned to you and your calls are routed accordingly

  5. Types of AWA (continued) • Satellite offices • Closer to where your employees live • Suburban locations • Telecommuting • Working electronically from wherever you choose • Home, coffee shops, etc.

  6. Types of AWA (continued) • Home office • More complete and sophisticated arrangement than telecommuting • Computers, printers, fax, dedicated phone lines, etc.

  7. Stakeholder Benefits/Concerns of AWA • Employee • Time available versus “face time” • Employer/shareholder • Reduced rent expense versus loss of interaction • Environment • Consider commuting miles • Manager • Can I / Should I embrace this type of change? • How to evaluate performance? • “Does the org need me anymore?”

  8. 1984 250K temps 100 temp agencies Most work as temp by choice Clerical workers 1994 1.5 million temps 1500 temp agencies Most (80%) do NOT work as temp by choice Technical, nurses, accountants, etc. Growth in Temporary Employees

  9. Who Benefits from working as a temporary employee? • Working mothers • College students • Retirees • Short-run unemployed

  10. Fringe Benefits Received by Temporary Workers • Paid • vacation (30%) • sick leave (2%) • Holiday (22%) • Health insurance (7%) • Retirement (0)

  11. Concerns of Temporary Workers • Related to • temp agencies • their assignment • Interaction with full time employees • their future • General feelings toward the corporate world • Benefit issues, etc.. • Other

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