Executive Summary

During the first six months of 1996, the Arizona Department of Administration conducted an overall evaluation of the telework program to determine how telework was working for the various stakeholders: senior management, mid-management, employees, legislators and the general public.  Objectives for the evaluation were determined in consultation with the Governor's Office in October of 1995.  The evaluation originally addressed three main objectives:

• Measure the current perceptions, attitudes and level of support for telework at various levels  within agencies participating in the State of Arizona Telework Program.

• Estimate the current level and potential of telework within agencies.   

• Determine what the purposes are (should be) for telework within State government.   

After hearing of the evaluation and its scope, the States of California, Oregon and Washington recognized an opportunity to conduct similar research.  These three States and Arizona recognized that telework programs in general, while they have been implemented widely by both public and private organizations, have not been fully embraced by mid-management and tend to remain limited in their size.  For this reason, one further objective was added to the evaluation relating to this issue:

• Explore middle management's perceptions of the potential barriers and incentives to further implement telework in both public and private sectors.

Funding for the evaluation was secured in December, 1995 from the Arizona Department of Environmental Quality and Arizona State University Advanced Public Executives Program was contracted to conduct several phases of the evaluation in February, 1996.  ADOA staff conducted the preliminary research, briefed ASU staff on the State of Arizona Telework Program and other studies on the subject and worked with the ASU contractor and partnering states to design the study protocols and instruments.  Finally ADOA coordinated with all State agencies to carry out the study during March, April and May of 1996.

The executive summary includes information from the six study areas of this evaluation.  The six study areas are:

• Interviews with Senior Management - Twenty-three agency directors were interviewed out of a sample of 27.  Sixteen agencies had teleworkers, seven did not;

• Focus Groups with Front-line Supervisors and Mid-level Managers - Fifty-one participants were selected from a sample of both public and private organizations;

• Survey of Employees - a stratified sample of 1,189 State employees yielded 979 non-teleworkers and 210 teleworkers.  Fifty-three percent of the non-teleworkers and 62% of the teleworkers returned surveys;

• Survey of Legislators - all 90 Arizona Legislators were surveyed, 26 responded;

• Survey of the General Public - telephone interviews were conducted with 825 Arizona residents; and

• Research on Other Public and Private Programs - case studies were collected of other telework programs and initiatives.

This executive summary will summarize the key findings of the above study areas under the following topics:

• Current Perceptions and Attitudes about telework;

• Current Level of Support;

• Potential for Growth;

• Incentives for Telework;

• Research on Other Public and Private Programs, and

• Recommendations Based on this Evaluation

Current Perceptions and Attitudes about Telework

Telework is perceived as a positive, viable, and desirable work option for qualified State employees, with many benefits for the State, its employees and the community.

Senior Managers - Twenty-three agency directors were interviewed, by a neutral third party, to determine their perceptions and attitudes about telework and the State program. Senior managers were interviewed from three different levels of participation with the State program: agencies that were already participating in the program, agencies that had decided against participating in the program, and agencies that had not yet been invited by the Governor to join the program.  Sixteen agencies had teleworkers, seven did not.

All senior managers were positive about telework regardless of their level of familiarity with the work option or the State program.  Most of the senior managers responded about the positive effects of telework.  The most commonly mentioned benefits of telework by senior managers were increased work efficiency and productivity, and increased employee morale. 

Senior managers decided to implement telework programs because it was of benefit to their agency, their employees and the community, in that order. 

Front-line Supervisors and Mid-level Managers - Six focus groups were conducted by a neutral third party.  The focus groups included 51 front-line supervisors and mid-level managers from both participating State agencies and from private organizations with telework programs.

The participants in the focus groups, both from the public and private sectors, appeared overall to have positive perceptions regarding telework.  The most frequently cited benefit of telework was increased productivity.  This perception was reportedly based on assumptions that the teleworking employee would have fewer interruptions, less overall distraction, the ability to work at peak performance times, and the incentive to work harder to retain the ability to telework. The second most commonly perceived benefit to telework, across all groups, was improved morale among teleworking employees.  In general, participants in all focus groups saw telework as a way to enable employees to have a more positive attitude toward their jobs. 

All participants who reported supervising teleworkers or telework themselves cited positive experiences.  Those who were currently supervising or had previously supervised a teleworker, or who were teleworkers themselves, were  more prolific and specific in their list of benefits. 

Both private and public sector participants reported using telework as a management tool, encouraging employees to improve their productivity.  The private sector participants did report that they felt supervising a teleworking employee involved a change in management style from management by observation of the job being done to management of the results.  The participants routinely reported as positive any changes they made to their management style in order to more effectively supervise a teleworking employee.

Employees - A stratified sample of State employees from 18 agencies participating in the State of Arizona Telework Program were selected to receive questionnaires.  The sample included 979 non-teleworkers and 210 teleworkers.  Fifty-three percent of the non-teleworkers and 62% of the teleworkers returned surveys.  Approximately  34% of both groups were managers.  Employees and managers answered alike.

State employees have positive attitudes about the effects and benefits of telework on the individual as well as on the organization.  Employees indicated they thought their own and their co-worker's productivity increases with telework, that absenteeism and turnover decrease, that job satisfaction increases, and that it takes no more time to supervise a teleworker than any other employee. 

Those respondents who perceived their jobs as suitable for telework on a frequent basis (at least once a week) were four times more likely to be positive about the effects of telework on the organization as a whole.  This pattern was apparent in both teleworkers and non-teleworkers.

An overwhelming majority (86%) of teleworkers indicated positive attitudes toward their telework experience, noting reduced stress levels and increased ability to effectively meet work objectives.   Non-teleworkers as a group were surprisingly positive about the impact of telework on individual job satisfaction and personal life, regardless of their level of familiarity with telework.  Those respondents who were very positive about telework on the individual were also those who saw their jobs as suitable for telework on a frequent basis (at least once a week).  This positive-frequent block of responses was the largest group (64%) among non-teleworkers and also among teleworkers (79%).

Managers were also supportive of telework and held positive attitudes toward the organizational and individual benefits of telework.

Legislators - Ninety State legislators received a short survey at both their State and home offices to determine their attitudes and perceptions about State employees teleworking. Follow-up calls were made to the home office of each non-respondent to encourage a response. Twenty-six surveys were returned.

While half of the responding legislators were somewhat familiar with the State of Arizona Telework Program before this survey, all responding legislators agreed that it is important for the State to provide its employees with flexibility in the workplace (such as telework, flextime, etc.) to allow them to balance work and family responsibilities.

All responding legislators agreed that State employees could probably be trusted to work productively from home with appropriate supervisory oversight.

General Public - Eight hundred twenty-five Arizona residents were surveyed by random over the phone by a neutral third party over a period of two months.  They were asked how they feel about a plan to allow qualified State employees to work from home one or two days a week.

Overall, response to public employees teleworking was positive.  Nearly seven out of ten heads of Arizona households responded favorably to a plan that would allow qualified State employees to work at home.  Arizona residents commented that telework would cut down on pollution, reduce traffic, allow employees to spend more time with their families, save on gas and reduce stress.

Current Level of Support

Senior managers, front-line supervisors, mid-level managers, State employees, legislators and the general public all generally support telework.  This support is linked to the benefits of telework for the employer, the employee and the community.

Senior Managers - Twenty-three agency directors were interviewed, by a neutral third party, to determine their perceptions and attitudes about telework and the State program. Senior managers were interviewed from three different levels of participation with the State program: agencies that were already participating in the program, agencies that had decided against participating in the program, and agencies that had not yet been invited by the Governor to join the program.  Sixteen agencies had teleworkers, seven did not.

In general, agency directors were very supportive of the State of Arizona Telework Program.  Support for telework appeared to be influenced by factors such as resource availability, senior managers' perception of middle level management support for telework, and suitability of job tasks for telework.

Front-line Supervisors and Mid-level Managers - Six focus groups were conducted by a neutral third party.  The focus groups included 51 front-line supervisors and mid-level managers from both participating State agencies and from private organizations with telework programs.

In all groups, participants were either very supportive (63%) or somewhat supportive (all others) of telework.  Thirty-five percent of the participants became more supportive of telework by the end of the focus groups.  Researchers noted that support for telework strengthened during focus groups where managers and supervisors shared their telework experiences with less knowledgeable peers.  This group dynamic served to quickly dispel common misconceptions (myths) about telework that were due to the lack of information or experience.  These common myths are further explored beginning on page 27.

The most frequently chosen motivation to support telework among all groups was the ability to attract and retain qualified employees.  Private sector participants most commonly cited the ability to have employees work better, faster, cheaper.

Employees - A stratified sample of State employees from 18 agencies participating in the State of Arizona Telework Program were selected to receive questionnaires.  The sample included 979 non-teleworkers and 210 teleworkers.  Fifty-three percent of the non-teleworkers and 62% of the teleworkers returned surveys.  Approximately  34% of both groups were managers.  Employees and managers answered alike. 

Almost every employee surveyed stated their jobs had some tasks that were suitable for telework.  Employee support for telework was evident by their willingness to make sacrifices for the opportunity to telework:

            67% have access to (or would buy) the equipment they need

            87% are willing to keep daily logs in order to telework

            69% are willing to share offices in order to telework

Legislators - Ninety State legislators received a short survey at both their State and home offices to determine their attitudes and perceptions about State employees telework. Follow-up calls were made to the home office of each non-respondent to encourage a response. Twenty-six surveys were returned.

One-hundred percent of the responding legislators were supportive of telework by State employees and most legislators were supportive of telework by private sector employees.  No one indicated a somewhat negative or negative opinion. 

General Public - Eight hundred twenty-five Arizona residents were surveyed by random over the phone by a neutral third party over a period of two months.  They were asked how they feel about a plan to allow qualified State employees to work from home one or two days a week.

Residents of Phoenix and Tucson were almost twice as likely to be supportive of State employees telework, to reduce traffic congestion and air pollution, than their more rural counterparts who suffer less of these effects of travel.  Outlying residents tended to favor telework to reduce the costs associated with travel.

Potential for Growth

This evaluation indicates a high potential for the growth of the State of Arizona Telework Program.  This fact is encouraging as the program is now moving into its third phase of expansion.  Telework is widely supported in State government and the community.  A large percentage of employees are willing and able to telework.  The program will likely grow as the option is more widely offered.

Senior Managers - Twenty-three agency directors were interviewed, by a neutral third party, to determine their perceptions and attitudes about telework and the State program. Senior managers were interviewed from three different levels of participation with the State program: agencies that were already participating in the program, agencies that had decided against participating in the program, and agencies that had not yet been invited by the Governor to join the program.  Sixteen agencies had teleworkers, seven did not.

All senior managers from the 16 agencies with teleworkers intended to continue the telework program at the current level.  Approximately half of these senior managers stated that they were willing to expand their programs if resources became available.  Four of seven agencies with no teleworkers were considering or planning a telework pilot in their agencies.  Increased employee interest was seen by three senior managers as an opportunity to expand the telework option to more employees.

Most senior managers thought that telework should play a role in agency short-term and long-term planning.  Thirteen senior managers responded that telework would or should have a role in their agency's future plans.

Barriers to growth:

The majority of agency directors (18 out of 23) indicated that the lack of technology and equipment resources, and the financial resources to support automation, presented a significant obstacle to initiating (or expanding) a telework program.  While not mentioned explicitly, financial resources were an implied resource need.  Approximately half of these senior managers stated that they were willing to expand their programs if resources became available.

Front-line Supervisors and Mid-level Managers - Six focus groups were conducted by a neutral third party.  The focus groups included 51 front-line supervisors and mid-level managers from both participating State agencies and from private organizations with telework programs.

Front-line supervisors and mid-level managers indicated that there was potential for expansion of telework in State agencies that currently do not have teleworkers or have limited programs.  Support from upper management appeared to be a key factor in the participants' willingness to support and advocate telework within their agencies.

Front-line supervisors believed that the supervisor is the best person to select an employee for telework.  Managers and supervisors appeared to be strongly influenced to select employees for telework based upon their previous experience with that employee.  They did not seem to believe that every employee has the skills or temperament necessary to telework.  They expressed the belief that the employee has to be a certain type in order to be successful as a teleworker (e.g. self starter, someone with good time management skills).

Private sector organizations seemed to be more interested in pushing the limits of the number of teleworkers as far as job suitability would allow.

Barriers to growth:

The most commonly discussed barrier to telework across all public sector groups was the lack of technical resources.  This perceived barrier received the most discussion time in all four public sector groups, both in the discussion of benefits and barriers and in the discussion of possible business incentives to promote telework.  Those who had a higher level of involvement in telework saw the lack of technical resources as a barrier that might reduce but not eliminate the possibility of teleworking.  Those less familiar with telework were more likely to see the lack of resources as an insurmountable barrier.  Private sector participants did not consistently list lack of technical resources as a barrier to telework. 

Employees - A stratified sample of State employees from 18 agencies participating in the State of Arizona Telework Program were selected to receive questionnaires. The sample included 979 non-teleworkers and 210 teleworkers.  Fifty-three percent of the non-teleworkers and 62% of the teleworkers returned surveys.  Approximately 34% of both groups were managers.  Employees and managers answered alike. 

Whether or not employees were currently teleworking, the majority of employees indicated they considered their job tasks suitable for working from home. 

Employee views on the growth of telework are divided into two categories:

Teleworkers:

The analysis of the separate survey for current and former teleworkers showed that most current teleworkers work from home on an ad hoc, rather than a regularly scheduled basis and that an even greater percentage of former teleworkers worked from home on an ad hoc basis. 

Those teleworkers who responded that they stopped teleworking, cited the following as reasons for stopping: 

40% assigned to a new supervisor

36% supervisor decided against telework

30% employee changed jobs or tasks

Eighty-seven percent of these employees said they would telework if given the opportunity again.  Their reason for stopping did not seem to affect their desire to restart.

Non-Teleworkers:

A strong majority of non-teleworkers (83%) indicated that some of their job tasks were suitable for telework. 

Sixty-six percent of non-teleworkers thought they could work from home between one and five times per week.  Seventeen percent suggested that they could telework several times per month.

Sixty-seven percent of non-teleworkers have or would be willing to purchase the equipment necessary to allow them to telework.

Job requirements such as computers, short notice meetings, and access to reference material at the job location may be important factors influencing the decision to telework but were not perceived as significant barriers to telework. 

Legislators - Ninety State legislators received a short survey at both their State and home offices to determine their attitudes and perceptions about State employees teleworking.  Follow-up calls were made to the home office of each non-respondent to encourage a response.  Twenty-six surveys were returned.

One-hundred percent of the responding legislators thought that telework would be popular in the workplace over the next 5-10 years.

Eighty-one percent of those surveyed felt that the telework program should be continued at its current pace or should be expanded.

General Public - Eight hundred twenty-five Arizona residents were surveyed by random over the phone by a neutral third party over a period of two months.  They were asked how they feel about a plan to allow qualified State employees to work from home one or two days a week.

Female heads of households were more likely than males to react 'very favorably' to a plan to allow State employees to telework.  The increasing percentage of women entering the Arizona workforce will likely lead to a growing support for telework in the future.

Incentives for Telework

Senior managers, middle managers and front-line supervisors indicated that funding for additional technologies that facilitate telework, and more education on the subject of telework would likely encourage more teleworking in State agencies.

Senior Managers - Twenty-three agency directors were interviewed, by a neutral third party, to determine their perceptions and attitudes about telework and the State program. Senior managers were interviewed from three different levels of participation with the State program: agencies that were already participating in the program, agencies that had decided against participating in the program, and agencies that had not yet been invited by the Governor to join the program.  Sixteen agencies had teleworkers, seven did not.

Technology:

Senior management often commented that agencies need to provide technologies that allow secure remote access to agency work stations.  They felt this access would allow more employees to work from home or satellite offices and increase the frequency of teleworking.   Some senior managers indicated a willingness to expand their telework program if resources became available.  Others cited lack of resources as an obstacle, but indicated full willingness to expand their programs anyway.  Several senior managers stated that agency budgets did not have flexibility in purchasing computer equipment or in establishing automated databases.

Education:

Senior managers indicated more education on telework would likely encourage more teleworking.  For example, those senior managers who decided against implementing telework programs cited common issues that all organizations deal with when implementing telework.  The barriers cited by these senior managers appeared to be obstacles that could be overcome: determining suitable job tasks which could be supported at home with available equipment and instituting measures to prevent unauthorized access to restricted materials (see Myths).

Fifty percent of senior managers implied that their mid-management would likely be encouraged to allow more teleworking if the following issues were addressed:

• office scheduling with teleworkers;

• managing by work product instead of observation; and

• developing performance measures for teleworkers.

Education as an incentive was more frequently mentioned when senior managers were asked about continuation or expansion of their agency's program.  Two agency directors indicated that agency planning and management training for their pilots had a positive impact on management resistance to telework. 

Front-line Supervisors and Mid-level Managers - Six focus groups were conducted by a neutral  third party.  The focus groups included 51 front-line supervisors and mid-level managers from both participating State agencies and from private organizations with telework programs.

Technology:

Lack of technical resources was the barrier most often raised in the public sector groups.  Funding for equipment was not an incentive or a problem for private sector groups. 

Education:

Managers participating in focus groups and interviews seemed to indicate that more education on telework for managers and supervisors would likely increase the amount of telework.  This education should include: information on the benefits of telework; information dispelling the common myths about telework; information on how teleworkers are properly selected, trained, and supervised; and information communicating the support for telework at each level of the organization. 

In all groups, managers and supervisors who were supervising teleworkers, or were themselves teleworkers, brought up training they had received as the source of information for solving or avoiding problems that might come up in a telework program.  The participants brought up training both to explain how they solved problems or planned for issues within their own work units, and to offer information acquired through the training to counter barriers raised by other participants. 

Other incentives:

All groups, both public and private, indicated that the benefit that telework helps to attract and retain qualified employees was an important incentive to encourage front-line supervisors and mid-level managers to allow more telework.  Public sector participants mentioned that, as it was difficult to compete with higher salaries, being able to offer the flexibility of telework might give the State the edge in competing for qualified applicants.  Increasing the employee's commitment to the organizational goals also ran across all groups as an important incentive.

Employees - A stratified sample of State employees from 18 agencies participating in the State of Arizona Telework Program were selected to receive questionnaires. The sample included 979 non-teleworkers and 210 teleworkers.  Fifty-three percent of the non-teleworkers and 62% of the teleworkers returned surveys.  Approximately 34% of both groups were managers. 

State employees indicated that they would be encouraged to telework if the technology was in place to allow secure remote access to office information, and provided they knew more about how the State handled telework issues. 

Technology:

Even though many employees either had access to office equipment in the home or would purchase the equipment they would need to telework, employees indicated that additional agency equipment would encourage more teleworking.

Education:

Familiarity with telework was related to one's perception as to the suitability of job tasks for working from home.  Familiarity also appeared to have some relationship to the perception that computers were necessary in order to telework; i.e., those who were more familiar with telework were more likely to disagree with the statement that computers are necessary to telework (see Myths, page 27). 

Most teleworkers considered the State of Arizona Telework Program training as good preparation for telework.  The existence of a formal agreement and its usefulness was a factor in the ability of the teleworker to work from home.  Those who followed a formal agreement precisely indicated the agreement was important to their ability to telework. 

Legislators - Ninety State legislators received a short survey at both their State and home offices to determine their attitudes and perceptions about State employees teleworking.  Follow-up calls were made to the home office of each non-respondent to encourage a response. Twenty-six surveys were returned.

Legislators indicated that more information on how the State trained and managed teleworkers might influence them to be even more supportive of telework than they currently are.  Eighty-eight percent of responding legislators thought State employees could probably be trusted to work productively at home.  But, 100% of the responding legislators thought State employees could be trusted when "with appropriate supervisory oversight" was stipulated.

General Public - Eight hundred twenty-five Arizona residents were surveyed by random over the phone by a neutral third party over a period of two months.  They were asked how they feel about a plan to allow qualified State employees to work from home one or two days a week.

The general public indicated that more information on telework and how the State trains and manages teleworkers might influence them to be even more supportive of telework than they currently are.  For instance, the small percentage of the general public that were not very supportive of State employees teleworking cited that it offers an unsupervised work environment with questionable productivity and too many distractions.  These beliefs are contrary to current information and research on telework.

Research on Other Public and Private Programs

Current research and case studies indicate that the attitudes and perceptions of State managers, supervisors and employees are very similar to those of other public and private organizations with telework programs:

1.         Organizations are drawn to telework because of the many benefits telework offers to the employer, the employee and the community.

2.         Most employers overcome the barriers to implementing telework. Although, some employers still wrestle with management and technology concerns.

3.         As organizations become more serious about implementing flexible work options like telework, they actively educate and encourage their managers to utilize the option.

Organizations Share Similar Views on Telework:

A survey of 500 employers with telework programs recently conducted by the Department of Management Science and Information Systems at the University of Texas at Austin, revealed that there are very few differences among employers with respect to their views about telework.  Although the employers differed in organizational type, size, and experience with telework, there was no statistically valid differences among the employers with respect to: their reasons for starting telework; the advantages for the employer; productivity of the teleworkers; cost savings; or the future of telework in their organization.  Employers were highly positive about their telework program and felt that a greater percentage of their work forces would be telework in the next five years.

Most Organizations Overcome the Barriers:

Only 25% of the employers surveyed in the above study mentioned that any barriers remained to telework in their organization.  The Texas study notes that most of the barriers to telework seem to have been overcome.  Although, management resistance and equipment needs were reported as barriers by some employers.

Serious Organizations Promote Flexibility to Managers:

The Families and Work Institute surveyed 188 Fortune 1000 companies and found that organizations typically go through several stages when implementing flexible work options like telework, compressed work weeks and flextime.  Each of these flexible work options are offered at the discretion of management, and each option provides similar benefits to the individual and organization.  While one-third of all the US companies surveyed by the Families and Work Institute fell short of the first stage described below, forty-six percent of the companies were stage one organizations, nineteen percent were stage two organizations and two percent were stage three organizations.[1]

In the first stage of implementing organizational flexibility, an employer typically makes a business rationale for adopting one flexible work option like telework.  After the option has been tested, it is offered as an option to more employees. 

In the second stage, the organization realizes that one flexible work option won't meet the needs of all employees, and the organization offers a more comprehensive package of flexible work options. 

In the third stage, the organization realizes that the full benefits of flexibility can only be realized if mid-managers and supervisors exercise the option.  At this stage, organizations begin to educate management to recognize the values of flexible work options and learn how to work with their employees and utilize flexible work programs. 

Recommendations Based on this Evaluation

Because the State of Arizona Telework Program is now mandated under the Governor's OPERATION OZONE, ADOA must assure the compliance of all State agencies charged with reaching or exceeding their goal of 15% active participation by December 31, 1998. (Note:  The mandate was later increased to 20%)

This evaluation indicates that several changes in the State of Arizona Telework Program would likely increase the amount of teleworking and thereby help the State meet its goals.

In one year, these recommendations should be reviewed and amended if required.

Because the State of Arizona Telework Program is now mandated under the Governor's OPERATION OZONE, ADOA must assure the compliance of all State agencies charged with reaching or exceeding their goal of 15% active participation by December 31, 1998.  To assure the compliance of State agencies, ADOA TRP should:

1.         Require all agencies to report on a semi-annual basis:

• The current number of active agency teleworkers with signed agreements, their name, job class, work address and phone

• The current number of agency employees in Maricopa County; and

• progress made on agency action plans.

2.         Make at least semiannual contact with agency directors about the status of the State of Arizona Telework Program.

3.         Assign staff consultants to the Telework Coordinators Committee from the ADOA divisions of Risk Management, Personnel and the Information Resource Management Group. These consultants would work together to assist agencies to implement telework. 

This evaluation indicates that several changes in the State of Arizona Telework Program would likely increase the amount of teleworking and thereby help the State meet its goals by:

1.         Encouraging agencies to acquire technologies that facilitate telework.  This might be facilitated by:

Requiring IRMG to include a question for all agencies to answer on their 1997-1999 Information Technology Plans.  The new question would ask them to list the resources and activities that they are committing to enable them to meet their agency’s goal of 15% active employee participation in their telework program by December 31, 1998.

2.       Providing additional education for State agencies charged with implementing the State of Arizona Telework Program.

 ADOA should provide orientations for State managers and supervisors as selected by their agency to participate.  These orientations should address: the need for flexibility in the workplace; the advantages of telework, the common myths about telework, participant’s concerns about telework, and instruction on selecting and supervising teleworkers. These orientations should be offered by ADOA at least twice annually to support agency telework expansion efforts, in advance of Ozone and Carbon Monoxide seasons.

In one year, these recommendations should be reviewed and amended if required.