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CEM Insights Telecommuting CEM Insights 2014 Issue 2 Telecommuting Practices in Pension Administration: Current and Future Trends Reasons to introduce a telecommuting program and for what positions Managing security, productivity and coaching Three case studies on existing pension administrators’ telecommuting programs Telecommuting Policy template example Welcome to CEM Insights Welcome to the second issue of CEM Insights with a focus on best practice research in pension administration. Look for three more issues in 2015 on a range of topics relevant to pension administrators. Current and Future Trends In this issue, we look at telecommuting practices by analysing the 41 responses from a short survey we sent to 75 pension administrators. Our key findings are: • There is a strong trend to implement a telecommuting program with 60% either having or considering a program within 5 years. There will be more and more telecommuting positions – throughout all levels of the organization – to improve recruitment and retention and meet legislative mandates. • ‘Ad hoc’ or informal, non-documented telecommuting practices can expose both employee and employer to unnecessary risks. • Telecommuting policies generally don’t apply to special, unique HR situations (e.g., recovering from a medical condition, accommodating a disability, etc.) • IT security solutions and equipment now Snapshot of 41 Responses make telecommuting more accessible and viable. No program now; considering • To ensure telecommuters stay ‘in the within 5 years; loop’, most must attend regular on-site 24% meetings in person. In some circumstances, telecommuters may call No program; not Have program considering into meetings. now; 37% within 5 years; 37% • Anecdotal evidence suggests that systems Discontinued have seen increases in productivity and program; employee engagement and decreases in considering re- implementation; absenteeism since rolling out a 2% telecommuting program. • In general, major concerns about telecommuting before implementation were reduced after implementation. Telecommuting Positions Currently, the majority of telecommuting positions are in mass Telecommuting Definition communications and IT positions and not in transaction processing. “Other” For the purposes of this best practice telecommuting positions include HR, legal counsel, member education, research, we will define telecommuting investment management and executive staff. as follows: Administration activities eligible for telecommuting A telecommuter will… Often work 1-2 days from an alternate work location. Mass communication 75% Perform regular work responsibilities Information technology 64% or approved special projects away Other* 46% from the office. Transaction processing 33% Work the same amount of hours in a Call center / member calls 8% day as is expected in the office. Comply with a defined, well-thought % of systems that indicate that the activity if eligible for telecommuting out written policy requiring supervisor approval. *Employer communications, investment, legal, management, specialists, policy development, etc. Use available technology to provide a Reasons for Introducing a Telecommuting Program seamless workflow and to uphold security. As shown below, many of the top incentives for introducing a Telecommuting is not… telecommuting program focus on the employee experience. Karen Chavez, For employees working remotely HR Director at Oregon PERS, echoed this sentiment: “We are a union shop o who never come into the office. so we do tend to be employee-centric and have been pretty flexible at Used for ‘ad hoc’ or infrequent meeting work/life balance. Although we currently do not have a o special requests. telecommuting policy, implementing one would not only support business continuity, but be a way to help our culture, leading to more happiness – and happiness leads to higher productivity.” Reasons why systems introduced or are considering a telecommuting program Employee satisfaction Work/ life balance Top 3 reasons Operational continuity in the event of a disaster Retaining key employees Employee demand Considering (10 systems) Improved productivity Needed a policy to deal with special circumstances Introduced (15 systems) Reduced absenteeism Location/ logistics issues Recruiting incentive Environmental consideration Industry leadership Cost savings Policy of controlling agency Collective bargaining demand 0 1 2 3 4 5 Most important (1) to Not important (5) 2 Security For 80% of pension administrators that are considering implementing a telecommuting policy, lack of security/ handling confidential information is a major concern, not surprising given computer privacy issues. However, systems with telecommuting programs reported that although security was a major concern prior to implementation, it did not seem to be an issue once the program was in place. For 36% of systems with telecommuting programs, security is not a concern at all with the current telecommuting program. Working closely with IT to clearly define security measures may further reduce apprehension. Telecommuter training is a powerful tool for maintaining security. Bart Seure, Client Manager at PGGM explained that PGGM has a compulsory company awareness program for all employees, with topic-specific modules. They have found that the security component of their telecommuting module provided telecommuters with necessary skills, eliminating PGGM’s concerns regarding security prior to implementation. Of the 15 pension systems that allow remote login, 12 systems use a Virtual Private Network (VPN). Security measures include password rotation and/or security tokens. Only 47% of systems with telecommuting programs require a ‘paperless’ office. A similar percentage requires paper files in locked and secure offices/filing cabinets. Two pension systems require a dongle stick, which is a USB stick used to verify credentials and/or supply a password. Security requirements typically consist of either company or employee-owned computers with appropriate security software/hardware. The type and extent of access depends on the tasks that must be completed by the telecommuter. Case Study 1: PGGM [The Netherlands] Overview PGGM offers both telecommuting or flexwork in a hotelling*-style configured office layout. Introduced in 2010, employees that enroll into the telecommuting program must work at least 1 fixed day a week at home. Although there are many reasons why people enroll in the telecommuting program, it appears the primary reason is to avoid long commutes. Only 3-4% of PGGM’s employees telecommute. Most employees do flexwork, working from home on flexible days in an informal, ad-hoc basis which is fully supported by the IT group. Features All employees, except call center employees, are eligible for telecommuting pending supervisor approval and a signed contract. Telecommuting training is one of the core modules of the company’s awareness program. Telecommuters receive a home office furniture allowance, including a catalogue of approved furniture and configurations. There are no pre-defined workspaces at the office. “When we designed our new building a few years ago, we introduced the concept of flex work. No one has a personal desk – you work wherever you need to work at work stations,” said Bart Seure, Client Manager. Each employee stores belongings in a locker at the end of the day. Productivity metrics are the same. “We measure at-home productivity the same way we measure in-office productivity. We don’t see a difference. Telecommuters are more satisfied and still as productive,” added Bart Seure. *Hotelling-style model: An office model that encourages short-term, unassigned seating. Office spaces may be reserved as needed versus a more traditional defined office space. 3 Managing and Coaching Telecommuters Because most telecommuters only work at home typically one to two days per week, hands-on supervision is done in the office. For 10 out of the 15 pension administrators with a telecommuting program, managing and coaching staff is done through telephone calls. Compliance with the telecommuting policy for the alternate work location is rarely audited. All but one pension system stated that telecommuters must be available during specific hours. However, there could be benefits to providing schedule flexibility for telecommuters. “The current core hours will probably change in the future where as long as employees put in a full day, it doesn’t matter when they start,” said Tony Falconi of OMERS. “As the client services telecommuting program is in the process of coming online, they’re looking to tie that in to extended hours of operation.” Case Study 2: Virginia Retirement System (VRS) [USA] Overview In 2006, Virginia’s then Governor called for 20% of eligible state workers to telecommute by 2010. In response, the telecommuting program at Virginia Retirement System was introduced in 2008 after a 6-month pilot, and has continued to evolve over the years. There are currently 75 telecommuters in the Pension Operations group including IT, transaction processing, communication and call center; most participants are in IT. Overall, the Virginia Retirement System has a staff participation rate of 66% with 208 formal telecommuters. All employees are eligible. According to Wendy Battle, Human Resources Administrator, “We find that historically those that do not telecommute are administrative assistants, positions that don’t lend themselves to telecommuting, and those employees who choose not to telecommute. Supervisors are eligible
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