WASHINGTON, DC: OCTOBER 27, 1999 — Employees who telework can save their employers $10,006 each in reduced absenteeism and job retention costs according to new research announced today, Telework America Day, by the International Telework Association & Council (ITAC).

The research survey, sponsored by AT&T, is the first time a study has focused on the financial impacts of absenteeism and job retention. The random digit-dialed telephone survey was conducted between August 9 and September 13, 1999.

The survey found that employers can save 63 percent of the cost of absenteeism per teleworking employee, or $2,086 per employee per year, based on the average salary reported by teleworkers, combined with the average number of days absent on which teleworkers were still able to work from home. That's because teleworkers are able to work, on average, one-half a day after completing their personal, child- and adult-related tasks compared with the alternative of taking a full day off.

Retention of teleworkers who said that working from home is an important job consideration leads to a replacement cost avoidance of $7,920 per teleworker. This reflects an assumption that organizations spend, on average, one-third of an employee's salary to recruit that employee. More than half of teleworkers surveyed said that the ability to work at home was important to them in considering a new job.

"An organization with 100 employees, 20 of whom telework, could potentially realize a savings of $200,000 annually," stated Gail Martin, ITAC Executive Director. "We've known for years that telework reduces employee absenteeism and improves job retention, but now we can quantify the effect in terms of dollars."

The survey also found that teleworkers report productivity gains equating to approximately $685 per teleworker annually based on increases of 22 percent.

The research results are being announced on Telework America Day, the day when millions of American workers in communities across the nation are encouraged to demonstrate the benefits of telework by working from home or a telework center.

"Telework enhances the 'triple bottom line' of fiscal, environmental and social performance. AT&T's sponsorship of the Telework America research survey helps provide a greater understanding of telework's overall impact on our society," said Dr. Braden Allenby, AT&T Environment, Health & Safety vice president.

Number of Teleworkers Nationally Increased

The number of American employees who telecommute from their homes to their place of business has jumped to 10 percent of U.S. adults in the last year according to research results released today by ITAC. More than 19.6 million people reported working as telecommuters in 1999.

According to Joanne Pratt, president of Joanne H. Pratt Associates and director of the research survey, three factors are leading the growth of telework:

1. The Internet - The impact of the Internet has reached the level of universal awareness, which has created a demand for PCs and an incentive to set up a home office
2. Technology has reached a critical mass - Cell phones, notebook computers and other technologies — with telecommunications linking it all together — have resulted in the workforce being equipped to work anywhere, including in the home, i.e. to telework.
3. American employees are realizing they have Work/Life choices:
   • They recognize they have the means to telework
   • They are making the choice to do so
   • They are conditioning their acceptance of new jobs on approval from the employer to telework

"Telework is increasingly being recognized not as a luxury, but as a necessary component of the evolving structure of modern work patterns essential for helping employees better balance work and home life," said Pratt.

Telework America Summits Boost Community Involvement

As part of Telework America's goal to encourage employers and communities to initiate and expand the scope of telework throughout the U.S., ITAC hosted regional community leader Action Summits in September, sponsored by AT&T, in four western cities including Phoenix, Denver, Salt Lake City and Minneapolis. Another summit is scheduled for December 15 in Washington, D.C.

Business, government and community leaders explored telework as a solution to air quality and traffic congestion challenges and to improve public health, productivity, economic growth and quality of life. The goal of the summits was to catalyze action toward implementing telework programs in the local workplace.

"AT&T is committed to partnering with community leaders to find practical solutions that will help them improve the quality of life in our cities," said Mark Trierweiler, AT&T vice president. "AT&T has long recognized telework as a solution which can benefit businesses, employees, their community and the environment."

The action summits provide ITAC with the opportunity to localize its efforts. "We are reaching key community and business leaders in the cities in which they live and work, and we are demonstrating how telework can benefit their organizations' success," said Martin.

Telework America Online Curriculum

To support its efforts, ITAC developed a comprehensive telework education and implementation initiative for use by employers, employees and communities throughout the country in developing and instituting telework programs. Leading public and private telework experts developed the curriculum on telework program implementation from initial considerations to successful ongoing operation. This in-depth workshop series is available on ITAC's Telework America web site (www.telecommute.org).

ITAC Blue Ribbon Panel

ITAC's Blue Ribbon Panel is currently developing recommended practices for telework excellence to help employers develop telework programs. The recommendations will officially be released in October, 2000 and will cover change management, program management, human resources, cost/benefits, technology considerations and the remote office environment. Preliminary information about the Blue Ribbon Panel's work can be found on ITAC's web site at www.telecommute.org.

The International Telework Association & Council

Telework America was established in 1995 and is now a project of the International Telework Association and Council (ITAC).

ITAC is the world's leading telework professional organization. Originally founded in 1987, ITAC has grown to an international organization that provides education and information about telework as it pertains to business, travel reduction, technology and human resources strategies within organizations.

For further information, please contact:

Marni Casassa
602 993-2574
casassa@gateway.com

Susan Sears
303 798-0760
303-601-0697 (wireless)
susan.sears@worldnet.att.com