Beyond the Caregiver Crisis: Flexing Our Perspective on Workforce Development SHARON E. REED ©

Flexing Our Perspective on Workforce Development Traditionally considered an HR issue, work flex programs are rising in prominence across the globe in response to mass urbanization trends and corresponding transportation and congestion challenges. Speaking from the perspective of sustainability, we’ll explore work flex as an innovative means to meet civic and corporate carbon emission reduction goals, while making a compelling business case for productivity, employee retention, and operational savings. SHARON E. REED ©

What is Sustainability? “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” SHARON E REED © Source: United Nations, World Commission on the Environment and Development, 1983

One Word. Multiple Perspectives.  Environmental Impact  Economic Performance  Human/Social Equity SHARON E REED (C) Sustainability has become a key business focus in response to climate change, regulatory pressures, and societal demands for greater environmental and social responsibility.

Sustainability, Supply & Demand SHARON E REED (C)

One Facet. Multiple Impacts. SHARON E REED (C) Source: of-citysumers-around-the-globe/ In China alone, each year 15MM people are expected to move into Chinese urban areas, creating additional challenges in the areas of transportation, congestion, and air quality.

SHARON E REED (C) Source: of-citysumers-around-the-globe/

One Facet. Multiple Impacts. SHARON E REED (C)  There are now 1 billion cars and trucks on the road globally, up from 980 million at the end of This figure is expected to double by 2020 (1).  The United States boasts the highest density of cars and trucks – one for every 1.3 people.  1% vehicle growth rate in U.S. pales compared to China, India, and Brazil, where annual vehicle growth rates are 27.5 %, 8.9%, and 9%, respectively (2).  Transportation represents approximately 26% of GHG emissions worldwide. (1)‘How Telecommuting Lets Workers Mobilize for Sustainability’, Daniel Walsh, February 17, 2011 (2)Ward’s (trade journal); J.D. Power

Case Study: Texas  Topping the 2012 Texas Department of Transportation’s 100 Most Congested Roadways list, is a section of the I-35W in Ft. Worth that caused Texas motorists to spend more than 2 million more hours annually traveling on a section of road that is only 3.7 miles long.  40% of the delays encountered by drivers in Texas occur in the top 20 roadways on the list, with a total annual delay of 37 million hours at an estimated economic cost of $3B in lost productive time and fuel costs. (3)  The report also indexes stress, which currently costs U.S. employers appx. $300B per year in lost productivity, healthcare and replacement costs. (4) SHARON E REED (C) (3) Source: (4) Stress Institute of America

What Does Sustainability Have to Do With Workflex?  While a recent survey found that less than 4% of U.S. private sector workers work from home, that figure could reach as high as 30% by (5)  According to the Telework Research Network, if the estimated 41 million Americans with telework-compatible jobs worked from home just one day a week, U.S. savings would total $772M:  $494 million in commuter costs  $185 million from 2.3 barrels of oil saved  $ 93 million from 775 fewer traffic accidents  423,000 tons CO2 saved = taking 77,000 cars off the road for a year. SHARON E REED (C) (5) TechCast survey, George Washington University

What’s Driving the Value Proposition? Public  Emissions Reduction  Traffic Flow  Safety  Energy Independence  Public Health  Space Utilization Private  Regulatory  Corporate Values/Culture  Corporate Branding  Supply Chain  Human Resources  Productivity  Retention  Efficiency SHARON E REED (C)

Tax Incentives for Workflex  In an effort to reduce the number of vehicles on the road, officials in the State of Virginia are considering tax reprieves for those who opt to work from home.  Companies operating in Virginia will receive over $50,000 worth of tax breaks if they put systems in place that enable employees to work from home by the beginning of  Employees will also be eligible to receive tax credits worth $1,200 for qualified expenses.  The State of Georgia offers up to $20,000 in tax credits to conduct feasibility studies and up to $1,200 credit per teleworker.  In Los Angeles, Orange and Ventura counties, the government provides a $500 tax credit to companies initiating telework programs. SHARON E REED (C)

Environmental Stewardship & Telecommuting: The Case of Aetna “As a company long focused on leadership in corporate responsibility, Aetna is committed to fulfilling the goals outlined in our environmental policy statement by further reducing our carbon footprint. This significant commitment of resources has generated award-winning initiatives that have helped Aetna earn recognition as a company committed to protecting our most valued resources” SHARON E REED (C)

Aetna, Cont.  As part of their corporate environmental policy initiatives, Aetna encourages carpooling and telecommuting to help reduce commuter traffic and related pollutants.  Today, formal programs are in place with increased employee access and participation.  Aetna estimates a carbon footprint impact equal to reduction of 79 million driving miles per year, 3.3 million gallons of gas saved, and reduced CO2 of 29,000 metric tons/year. SHARON E REED (C)

The World is Flat (and Mobile) A telecommuting pilot program is being implemented in Hubei, China to test the effects it will have on decreasing carbon emissions. Devoteam’s second European survey of Green IT shows telecommuting and telepresence is up 50%, while a report initiated by the U.K. government indicated that over £15 billion would be saved annually if more people opted to telecommute. According to a recent poll conducted by Reuters, approximately 50% of workers in India telecommute. SHARON E REED (C)

Measuring Impact for the Triple Bottom Line: People, Profits and the Environment  Evaluating just over 200 employees in several locations over a period of six months, Verizon determined that the employees avoided 10,680 hours (445 days) of commuting time, saving more than 18,000 gallons of fuel.  In 2007, Sun Microsystems reported a savings of $387 million in IT and real estate + a 28,000 reduction in annual CO2 emissions.  A 2006 U.S. General Services Administration (GSA) study found that for an investment of $16 million, the government could realize a benefit of $36 million (232% ROI), achieved in the first year.  As early as 2002, AT&T determined it could save an average of $3,000 per teleworker annually (reduced real estate and energy costs) and could increase employee productivity by 15% to 20%. SHARON E REED (C)

National Telework Week 2012  Public-private initiative  71,324 telework week pledges helped save over $5.6 million in transportation expenses, estimated at $282 million annually.  Federal government participation increased by 97%, with a savings of over 235,000 commuting hours.  The Federal Government leads the country in the number of workers who telecommute.  Benefits cited included increased productivity and a balanced work life. SHARON E REED (C)

State Initiatives SHARON E REED (C)

DNC 2012: A Green Perspective  Security perimeter created challenges for commuters during the DNC.  KPMG closed offices, enabling approximately 90% of the Charlotte office to telecommute during the convention.  By comparing 2011 data to 2012 data for the same time period, KPMG reduced energy consumption by just under 21%.  This energy reduction aligns with the goals set by Envision Charlotte, a public-private initiative to reduce energy consumption by 20% within the Charlotte central business district. SHARON E REED (C)

A Little Interactive Fun! SHARON E REED (C) reWorldofWorking/

SHARON E REED (C) Questions, Thoughts, Ideas…

Thanks! SHARON E REED (C)