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Using Flex Time and Telecommuting to Cut Costs

One of the biggest challenges for CFOs is finding new ways to cut costs, especially in today’s tight economy.  With many companies unable to offer raises, stock options and other benefits to their employees, they must look for new ways to lower operating and training costs.  Today we are going to talk about two such methods: Flex time and telecommuting.

Flex Time

Flex time, or flex scheduling, allows employees to work a non-traditional schedule in order to meet their personal needs.  The number of work hours per week is the same, but employees choose which of those hours they will spend working, and which they will spend taking care of personal matters.  There are three ways to implement flex time:

1. Compressed work week.  An employee squeezes a 40 hour work week into less than 5 working days, such as 4 ten-hour days.
2. Core hours schedule.  The employer defines a range of core hours, such as 10:00 am to 3:00 pm, during which employees must be at work.  The individual employee can then pick an arrival and departure time, for a total of 8 hours per day, that includes those core hours.  For example, an employee may choose to start work at 6:30 am and leave at 3:00 pm.
3. Adjusted lunch period.  Employees can choose to take time off in the middle of the day to run errands and adjust their start or leave time accordingly.  For instance, if an employee started the day at 8:00 am and went to work out from 11-1, their work day would end at 6:00 pm.

(Womans-work.com)

Where it helps the employer’s bottom line is through better employee retention and therefore lower training costs, and increased productivity.   

Telecommuting

Another cost-cutting strategy is telecommuting or teleworking, where employees work at home via email, fax and phone for all or most of the work week, and usually only attend at least one weekly, monthly or quarterly meeting at the job site.  The advantages of telecommuting are:

• Increased productivity—currently estimated to be between 10 to 15% according to The American Telecommuting Association. 
• Saves money. By having just half your workforce telecommute at least one day a week, you cut down on your need for offices, lighting, desks, and everything that goes with them by 10% (ATA). 
• Saves time. Employees who telecommute save an average of one hour per day that can be spent working for their employer instead of driving to and from the business location (ATA).
• Better employee retention. Telecommuting helps the best employees remain longer with the same employer, cutting down on hiring and training costs.  Telecommuting also makes it possible for an employer to reach out another 30 miles or more when searching for qualified employees.  

You should also keep in mind that teleworking does not necessarily mean telecomputing. Non computer-related tasks such as reviewing documents, going over expenses, or practicing for a presentation can all be done at home without expensive office equipment.

 Two things you must do when implementing such programs:

1. Take into account the needs of the entire workforce, including both employees who would benefit and those who would have no need for such programs.
2. Ensure proper communication to your employees so they know that these programs are available to them. This includes training direct managers and supervisors on the importance of these programs for the employee as well as the firm.

Flex time and telecommuting are great cost-cutting strategies that lower costs while also building and maintaining employee loyalty.  If you’re looking for some innovative ways to lower your company’s operating expenses, you might want to give one or both of these methods a try.

 David Payne

dp@benchmarkresources.net

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