When Hurricane Katrina struck the coast of Louisiana in the United States (US) in late August, few people around the world were aware of the impact the storm would have on one of the fastest growing industrial trends globally: teleworking.

Oil prices soared to above USD$70 per barrel after Katrina shut down oil production in much of the oil-rich Gulf of Mexico. The consequential king-hit to industry costs was felt worldwide.

In the US, the high cost of oil forced an unprecedented call of restraint from the White House asking Americans to consume less petrol. The flow-on effect of high oil prices on the rest of the US economy had near-crippling consequences for many industries.

Subsequently, teleworking or working remotely from places of employment became recognised by analysts as one the most important economic and industrial issues to face the US for years.

In most cases, teleworkers use their computers for work in an environment where they are in a remote location – either at home or in the field. Teleworking is a subset of remote working which includes virtual teaming where people work together in teams while apart.

According to officials in the US Office of Personnel Management (OPM), teleworking presented US agencies with significant opportunities to reduce fuel consumption while addressing growing traffic congestion problems in capital cities.

In a memo to US President, George Bush, the Director of the OPM, Linda Springer said, “with today’s technology, many employees can perform at least some of their work functions at their homes or at alternate worksites closer to their homes, eliminating or reducing the need to commute.”

As soon as the storm subsided, US Government officials stepped up efforts to increase teleworking by government workers.

In Australia, the troubling economic ripples generated in the Gulf of Mexico had similar effects on the Australian economy. The financial trauma inflicted by Katrina in the US also lacerated Australian businesses which were forced to raise prices to cope with increased transportation costs.

According to International Data Corporation (IDC) which provides global research for the information technology and telecommunications industries, the business case for teleworking in the past 20 years in Australia has focused on the soft benefits to employees.

Those include improved life/work balance and increased employee satisfaction. However, Hurricane Katrina began encouraging Australian businesses to focus more on the harder benefits of teleworking.

In recent years, cost cutting derived from reduced overhead costs and office/parking savings were among some of the reasons businesses embarked on the practice. But perhaps the greatest reason behind the robust growth of Australia’s teleworking population is the need for businesses to maintain their competitive strength in a global marketplace.

In an IDC report titled Australia Telecommuting Services and Equipment 2004 – 2008 Forecast and Analysis, 2.8 million Australians out of a workforce in excess of 9 million were recorded as teleworkers. According to IDC researchers, that figure is set to increase to 3.4 million by 2008.

At a recent conference called ‘Going Virtual, The Future of Work’ held in Brisbane, speakers said Australia must embrace teleworking to maintain its competitive edge in a ‘wired business world’.
Margaret Aspin, Director of Melbourne-based Aspin Online Consulting and a Co-Chair at the ‘Going Virtual’ conference said:

“The benefits of teleworking which are enjoyed by both employers and employees are considered a key driving force that is shaping employment strategies both in Australia and internationally.

“As the Australian workforce ages and skills shortages increase, the need for businesses to become more agile and maintain low infrastructure will become imperative within the global economy. As a result, the need for telework and other forms of flexible working arrangements will also continue to rise.

“Teleworking makes a lot of sense for governments keen to decrease motor vehicle use in cities, attract more people to work in regional Australia and provide better opportunities for disabled workers. It also allows government to better manage the risks associated with terrorism and other disasters, by decentralising the workforce.”

Reflecting those needs, the growth rate of flexible working conditions and environments is picking up pace globally. A survey conducted by the Australian Sensis research company, Insights Teleworking Report (completed in June 2005) indicated 34% of Australian small and medium-sized enterprises have already introduced teleworking as part of their operating environment.

When releasing the Sensis survey, Australia’s Minister for Communications and Information Technology, Senator Helen Coonan said, “Small to medium sized enterprises (SMEs) who use teleworking record consistently higher sales and profits, and greater confidence, than their non-teleworking counterparts.

“The report also shows that 52% of businesses with broadband access used teleworking, compared to 23% of those without broadband.”

According to the US-based Mellon Financial Corporation, the percentage of US companies offering teleworking to employees grew from 9% in 1996 to more than 50% by 2004.

Research carried out by the International Telework Association and Council (ITAC), indicated that the number of employees who telework in the US increased to 28.8 million during 2003. That was a jump of 17% from the previous year.

Further improving the appeal of teleworking to employers, US studies found that telework was shown to reduce absenteeism by up to 80%. That factor counts for tens of millions of dollars worth of savings for businesses each year in the US alone.

ITAC researchers in the US said an overwhelming majority of teleworkers say they are more satisfied with their jobs, are more productive and feel more loyal to their employers.

Research in the United Kingdom (UK) conducted by the Centre for Economic and Environmental Development found that worker productivity rose by up to 80% and the quality of work increased by up to 77% when teleworking.

Despite all of the good statistical news, there are some challenges that await employers.

Dr John Gundry, an international expert on remote, virtual working and Director of Knowledge Ability Ltd in the UK and contributor to the Australian Telework Advisory Committee's current research, said:

“A survey of teleworkers in Australia and New Zealand headlined mistrust as a barrier to the adoption of teleworking. Surveys in the UK have repeatedly found the same."

According to Dr Gundry, there are two principal sources of mistrust. Firstly, managers having insufficient trust in teleworker's ability to deliver agreed results on time. Secondly, managers being suspicious that home-based teleworkers are abusing home working arrangements.

"The conclusions are that managers need to be trained to manage people who work away from a traditional office setting,” he says.

"A big part of this is the manager and the teleworker jointly agreeing a specification of the work that needs to be done and by when. Another part is building trusting relationships with and amongst remote work groups."

The Sensis review commissioned by the Australian Government’s Department of Communications, Information Technology and the Arts (DCITA) also revealed some negative aspects of teleworking.

The review indicated 13% of teleworking individuals believed that teleworking had not increased their productivity and had increased their working hours.

However, the review found that teleworking has an overwhelmingly positive impact for both individuals and businesses.

As well as benefitting people in remote or rural areas, teleworking is proving to be of major benefit to people with disabilities.

Dr Neville Meyers, Senior Lecturer in Information Systems at the Queensland University of Technology told a recent teleworking conference:

“The long-term employment benefit of teleworking for people with disabilities is considerable. About 18% of the population of most western countries has some form of disability.

"Through teleworking, many of these people, depending on the level of their disabilities, can be engaged in work which was previously impossible.

“Many people with disabilities engaged in well-run telework programs often report a greater sense of control over their lives and improved well-being. However, a 'quick fix' solution is not the answer. Instead, we need to carefully look at both the positives and negatives of telework to open up employment prospects for the disabled.

"There can be downsides if the organisation is not sufficiently aware of the potential obstacles. There might be a lack of an organisational teleworking champion in the company concerned. The teleworker might feel professionally or socially isolated and face problems with technical literacy.

“In these cases he or she will need communication and support of
co-workers back in the office. The overcoming of these potential environmental obstacles is a big predictor for telework sustainability.

“In essence however, there is a real need for industry representatives and policy-makers not only in Australia but around the world to seriously consider teleworking for disabled persons as part of future employment strategies.”

The idiom, ‘It’s an ill wind that blows no good’ may not be entirely accurate when telecommunications analysts consider the impact Hurricane Katrina has had on global business practices.

High oil prices usually encourage the prompt attention of policy makers to investigate fuel-conserving measures. With the last decade’s technological advances and today’s globally wired business environment, teleworking is widely viewed as one of the most effective fuel-efficient work alternatives.

Throughout southern Louisiana, Katrina has graphically highlighted to both government and big business the importance of creating a strong and geographically dispersed teleworkforce.