Yahoo! and organizational challenges

International BusinessRakesh Desai and Jason Nash

March 9, 2013

Flex Time and Organizational Challenges

How many of you work from Home or would love to work

in your PJ’s?????

Who are telecommuters

• A typical telecommuter is 49 years old, college educated, a salaried non-union employee in a management or professional role, earns $58,000 a year, and works for a company with more than 100 employees.

• Non-exempt employees are far less likely to work at home on a regular or ad hoc basis than salaried employees.

• Over 75% of employees who work from home earn over $65,000 per year putting them in the upper 80 percentile of all employees.

• Larger companies are more likely to allow telecommuting than smaller ones.

• Non-union organizations are more likely to offer telecommuting those with unions.

Current Telecommuters Statistics How many employees telecommute?

• About 20 Percent Of Global Workers Telecommute

• One in Five workers around the globe, particularly employees in the Middle East, Latin America and Asia, telecommute frequently and nearly 10 percent work from home every day

• 23% of American workers regularly do their jobs from someplace besides the office

• India where more than half of workers were most likely to be toiling from home

• 34 percent in Indonesia,

• 30 percent in Mexico

• But the job option is the least popular in Hungary, Germany, Sweden, France, Italy and Canada, where less than 10 percent of people work from home.

Source: http://www.pcworld.com/article/140003/article.htm, http://www.teleworkresearchnetwork.com/telecommuting-statisticsl

Current Telecommuters Statistics How many employees telecommute?

Source: http://www.pcworld.com/article/140003/article.htm, http://www.teleworkresearchnetwork.com/telecommuting-statisticsl

Potential Bottom Line Impact or Return on Investment of the Widespread Adoption of Telework in the U.S.? 

• If those with compatible jobs and a desire to work from home did so just half the time (roughly the national average for those who do so regularly) the national savings would total over $700 Billion a year including:

A typical business would save $11,000 per person per year

The telecommuters would save between $2,000 and $7,000 a year

The oil savings would equate to over 37% of our Persian Gulf imports

The greenhouse gas reduction would be the equivalent of taking the entire New York State workforce permanently off the road.

Organization Challenges of Telecommuting

• Survey conducted by telework research network found that

62 percent of people believe it is socially isolating and half thought that the daily lack of face-to-face contact could harm their chances of a promotion.

53 percent believe working from home can increase family conflict because of the blurred boundaries between work and private time.

Concerns about the impact on family were strong in India, Saudi Arabia and Turkey. Residents in Saudi Arabia and Turkey were also most likely to worry about the impact working from home would have on chances for promotion.

Yahoo! CEO and new Mom Marissa Mayer

stops flexible work program

Mayer has demanded that all remote

employees report to office facilities by

June 1.

Yahoo! employs 11,500 people in more than 20 countries across the globe.

Decision makes global headlines; Best Buy

followsA Confederation of

British Industry survey showed

number companies offering teleworking

rose from 14% in 2006 to 46% in 2008

British Telecom was one of the pioneers. It began a telework

scheme in 1986, and now has 15,000 homeworkers out of 92,000

employees. The company argues that homeworkers save it an

average of £6,000 a year each, are 20% more productive and take

fewer sick days.(bbc.co.uk)

Benefits of Telecommuting Proven Worldwide

India: experts estimate the percentage of teleworkers is comparable to North America—if not slightly higher (shrm.org)

Impact to Our Companies

“…the society’s effectiveness is associated with its cultural practices.” (GLOBE pg. 11)

New president brings more structured

backgroundInitial changes signal

cultural shift; news of change at other

major companies could impact us