Guide to successful telecommuting

An employee who telecommutes works away from a central place of business, like an office. Typically, the employee performs their work from home or at a location such as a coffee shop, library, or co-working space, and “commutes” to work via telecommunication channels — phone, email and chat programs, and video conferencing.

While there is no one universal meaning to the term “telecommuting,” it typically refers to an arrangement between an employer and an employee — not a self-employed freelancer or independent contractor.

These arrangements vary; a telecommuter may work remotely full time, or they may work onsite part of the time. They may be required to visit the office for meetings, professional development, or company events. Many companies evaluate eligibility for telework on a case-by-case basis, according to the candidate’s role, performance, and background.

Telecommuting can be informal, with the employee periodically working from home as personal or company needs dictate, or it can be a formal agreement, with the employee regularly working offsite. Organizations that allow telecommuting in some form or another should have a policy in place to define the terms of the arrangement.

There are three basic types of telecommuting:

Regular telecommuting

This is when an employee spends every workday or regularly scheduled workday working from a home office or other remote office.

Occasional telecommuting

This is when an employee works from a home office periodically to avoid interruptions, while on a business trip, or for some other personal reason.

Temporary or emergency telecommuting

This is when employees work from home for a limited period of time to ensure business continuity during a temporary disruption, like the COVID-19 pandemic, inclement weather, a natural disaster, or a public event that causes significant traffic- or parking-related disruptions.

Types of telecommuting jobs

Traditionally, the jobs most suited to telecommuting are those that have clearly defined outcomes and rely on computers and digital technology. Examples are

• Technology: software developers, engineers, IT support
• Customer service: call center and customer support agents
• Marketing, media, and journalism: writers, content creators, designers, digital marketers, social media managers, community managers
• Education: virtual tutors, virtual personal trainers, curriculum writers, course creators
• Administration: administrators, project managers, accountants, virtual assistants

However, technology advancements are rapidly expanding the types of jobs that can now be done by telecommuting, and the COVID-19 pandemic has encouraged previously resistant industries to try new modes of telework. Lawyers, for example, have started to telecommute thanks to online legal databases and electronic case management systems. Even healthcare is now trending toward telemedicine, with doctors “seeing” patients using video conferencing software that helps with HIPAA compliance. As technology continues to advance, it’s likely more and more jobs will become more compatible with telecommuting.

Telecommuting and working from home are two commonly used phrases to describe similar work arrangements.

Telecommuters are employees who have jobs that are usually done in an office but work offsite part time or full time. They may need to come to an office for certain tasks or events, or they may never meet their team in person.

This may be a formal arrangement or done ad-hoc. They most often work from home but can work from anywhere as long as their jobs are completed. Telecommuters are usually knowledge workers whose work is enabled by technology.

Working from home means just that: working from home. Some who work from home may have a home office or a home-based business. Not all people who work from home are telecommuters, just as all telecommuters don’t work from home, but there is crossover between the two.

According to Global Workplace Analytics’ analysis of American Community Survey data, a typical telecommuter is

• College educated
• 45 years old or older
• Earns an annual salary of at least $58,000
• Works for a company with more than 100 employees

Of those who telecommute, 75 percent earn more than $65,000 per year, putting them in the upper 80th percentile of all employees — home- and office-based. In more than half of the top U.S. metro areas, telecommuting exceeds public transportation as the commute option of choice. It has grown far faster than any other commute mode, such as public transit, bicycling, or driving.

In enterprises, telecommuting is popular among executives and high-ranking managers. According to an Owl Labs survey, there are 18 percent more executives working remotely than there are working onsite. Forty-six percent of C-suite members and 55 percent of VPs work remotely at least part of the time.

Size of the telecommuting workforce

• According to American Community Service data from 2018 (the latest data currently available), 5 million full-time employees, or 3.6 percent of the U.S. workforce, is telecommuting half the time or more.
• IWG, a remote workspace provider, estimates that 50 percent of the global workforce telecommutes at least once a week.
• Owl Labs estimates that 54 percent of U.S. workers work remotely at least once per month, 48 percent work remotely at least once per week, and 30 percent work remotely full time.

Telecommuting productivity statistics

How does telecommuting impact productivity? Let’s look at the numbers:

• A 2014 Stanford study showed that call center employees increased their productivity by 13 percent when they worked from home.
• A similar study by the University of Texas found that telecommuters worked, on average, five to seven hours longer than their in-office counterparts.
• In a survey by CoSo Cloud, 77 percent of remote employees reported being more productive when working from home.
• Statistics compiled by Global Workplace Analytics show that more than two-thirds of employers report increased productivity among telecommuters. Best Buy, British Telecom, Dow Chemical, and others report that telecommuters are 35–40 percent more productive, while American Express teleworkers have a 43 percent edge over their office counterparts.

1. Both employers and employees save money

Commuting to and working in an office costs both employers and employees big bucks. These expenses are reduced when workers telecommute. Employees working from home or close to their residence can save between $2,500 and $5,000 per year (or more) when telecommuting since they no longer have to pay for transportation, parking, and lunch on workdays. A survey by CosoCloud showed that 30 percent of remote workers reported saving as much as $5,240 per year.

For employers, telecommuting can reduce or eliminate the costs associated with maintaining an office. The primary savings are in real estate, but additional savings come from reductions in parking spaces, utilities, facility compliance costs, office supplies, travel subsidies, business travel expenses, and more. Global Workplace Analytics conservatively estimates that for every employee who telecommutes half-time, the employer saves an average of $11,000 per year.

2. Employees are more productive

Employees who telecommute can control their environment and work in a manner that best suits them. They don’t have to deal with the interruptions and distractions that so often happen in the office.

3.  Employees have more flexibility and a better work-life balance

Many employees are attracted to telecommuting because it gives them more control over their time. The flexibility of telecommuting allows workers to work during the hours they are most productive, take healthier breaks, and tend to the other responsibilities in their lives like household chores, personal errands, and caring for their families and children. This flexibility usually results in better work-life balance, happier employees, and greater productivity.

Employees also get the time back they would otherwise spend commuting — for a half-time telecommuter, that saves 11 workdays per year. Extreme commuters can save more than three times that amount. That’s time better spent working, relaxing, or taking care of non-work responsibilities.

4. Employers can hire from a wider talent pool

Companies that offer the opportunity to telecommute are no longer restricted to hiring professionals within driving distance of the office or left paying expensive relocation costs. Having access to a global talent pool also opens up positions to a much broader and more competitive range of applicants, allowing employers to hire the candidate who is the best fit for the job, regardless of where they live. This paves the way to a more diverse and more balanced workforce.

5. Teams experience improved morale and higher employee retention

In addition to being more productive, telecommuters are also happier and enjoy their jobs more. A survey by OwlLabs found that 83 percent of employees said having the option to telecommute would make them happier. Similar percentages of employees indicated it would make them feel more trusted, alleviate stress, and improve their health and well-being, making them more likely to recommend their company as a good place to work. Telecommuters were also 13 times more likely than onsite workers to say they planned to stay in their current job for the next five years.

For employers, happier and healthier employees mean less turnover and greater employee retention, fewer missed days of work due to illness, and a more motivated workforce. These all add up to direct savings — and a more enjoyable working environment for everyone.

It’s important to be aware of the potential disadvantages of telecommuting so you can properly prepare. Many of these aren’t necessarily a problem with telecommuting itself but with how it’s implemented. You can mitigate these issues by taking the steps laid out in the next two chapters.

1. Managers have less oversight over employees

One reason telecommuting hasn’t been widely adopted sooner is employers’ fear that once workers are offsite — and out-of-sight — they will have no idea if workers are actually working. It’s true: For managers who are used to micromanaging or who need direct oversight over their employees, that’s simply not possible with telecommuting. For telecommuting to be successful, managers must trust their employees, relinquish some amount of control, and create clear performance benchmarks.

2. Employees can be more vulnerable to distractions

The ability of telecommuters to focus depends on the individual employee and the company culture. While many workers can flourish in a telecommuting situation, some may not. Clear benchmarks can serve as motivators for employees who find the distractions of home difficult to overcome.

3. Employers need to address security concerns

Another common concern for employers, especially larger enterprises or those dealing with sensitive information, is security. Allowing workers to telecommute can open up a whole range of vulnerabilities. Employees may work from insecure networks, such as a coffee shop, leaving network traffic exposed. They may access sensitive data from unsecured devices or expose them to others outside the office. They may back up data on personal devices.

4. Unplugging after work can be difficult

According to a study by Buffer, the biggest challenge remote workers face is being able to unplug after work hours. It might sound like a paradox, but telecommuting can make work-life balance more difficult because there’s less of a clear delineation between work and leisure time.

5. Team members may feel lonely

For many employees, the lack of social interaction that comes naturally in an office can be a big disadvantage of telecommuting. The Buffer report found that 19 percent of remote employees report loneliness as their biggest challenge. The CoSo Cloud survey found that more than half of remote employees say they feel disconnected from in-office employees. The lack of “water cooler” conversations can hit extroverts particularly hard.

To maintain team rapport, managers need to be more conscious and creative about finding ways to bring people together, whether through regular in-person events, online team-building activities, or casual video meetings that encourage socializing.

6. Some types of work suffer when telecommuting

While working alone can boost productivity, isolation can also prevent spontaneity, creativity, and happy accidents that can happen when people work together.

For creative teams who rely on group brainstorming and new ideas, getting the creative energy flowing in person can be the superior option. And for teams that work closely with physical items, telecommuting can also be a hindrance.

A telecommuting policy should determine which employees are eligible for telecommuting and when; how these employees can switch to telecommuting; and the practices, conditions, expectations, and tools they need to use while telecommuting. The policy should be flexible enough to accommodate changes and be a continuous work in progress as you discover the most effective practices for telecommuting for your organization.

Legal considerations of telecommuting

If you have to begin telecommuting before your policy is in place, ask legal for guidance as soon as you’re able, because telecommuting can impact compliance in various areas, such as

• Wage and timekeeping. Federal and state wage and hour laws still apply for telecommuters. If nonexempt employees are allowed to telecommute, it’s important to track their actual work hours to ensure compliance with the Fair Labor Standards Act (FLSA).
• Equal Employment Opportunity compliance. Equal employment opportunity laws mandate nondiscrimination in wages, hours, and other terms and conditions of employment.
• Workers’ compensation. Many workers’ compensation laws don’t distinguish between telecommuters and office-based workers, so be sure to clarify liability and safety issues for offsite workers.
• Privacy and confidentiality. Evaluate how having employees offsite may impact compliance with data privacy laws and any other confidentiality standards relevant to your business.
• Independent contractor status. Sometimes employers attempt to avoid legal issues by classifying offsite workers as independent contractors. However, if the individuals aren’t truly independent contractors, misclassification can lead to violations of a range of wage, tax, and employment laws, opening you up to criminal penalties.

Determining eligibility for telecommuting

The first step in creating a telecommuting policy is to determine who is eligible to telecommute and when they are eligible to do so. Organizations implement a broad range of policies that vary from allowing workers to telecommute full time, whenever they want, or a certain number of days per week.

• Which roles are eligible? Telecommuting eligibility can be determined by role or job title, as certain jobs are well-suited for telecommuting, while others may be better done onsite.
• Which individuals are eligible? Individual factors, such as meeting certain performance metrics or length of time spent at the company, can be factored into telecommuting eligibility.
• How often are employees able to telecommute? Do you want to limit the amount of time employees can telecommute? Flexible work policies may limit telecommuting to certain days or a certain percentage of overall time worked.

Cybersecurity for telecommuters

When developing your security policy and IT guidelines for telecommuting employees, here are some potential practices to include:

• Keep a current inventory of devices that have GPS tracking turned on.
• Ensure devices are password-protected and up to date on security patches.
• Ensure devices and traffic are encrypted.
• Address whether or not employees are permitted to use personal devices for work. If so, clarify how your security policy applies.
• Install software to remotely wipe devices if they are lost or stolen.
• Provide guidelines on passwords and/or use a password manager such as LastPass.
• Document procedures for acceptable remote access. Do you want to limit remote access to sensitive data? Consider requiring a VPN to access company resources and using endpoint security software.
• Give guidance on the types of public Wi-Fi networks telecommuters can use, if any.
• Require multifactor authentication to access company accounts.
• Educate your employees on the dangers of phishing. Phishing is a cyberattack where someone tries to obtain sensitive information through emails or other communications designed to look like they’re from a trustworthy party.
• Use secure forms from Jotform to collect data internally.

Creating a telecommuting agreement

Once you’ve drafted your telecommuting policy, it’s time to create an agreement for employees to sign. A signed agreement helps guide a telecommuting arrangement and can be used to settle any disputes.

If you use one of Jotform’s agreement templates, your telecommuting agreements will automatically be saved as secure PDFs that can easily be downloaded, shared with all involved parties, or printed for future reference.

In this chapter, we discuss best practices and tips for both telecommuting employees and managers, the importance of a proper workspace, and the essential equipment and software that all distributed teams need.

Tips and guidelines for telecommuting employees

Create a work routine

Some remote workers are allowed to work at the time that best suits their schedule and natural rhythms.

If your job doesn’t require set hours, you get to choose the time that works for you. Take advantage of this, but be sure to maintain consistency.

For more tips on creating a daily work routine, check out our article on being productive while working from home.

Take charge of your time

When you’ve carved out a routine, protect your time from family, friends, and coworkers. Start each day with an action plan of prioritized tasks to complete.

Prioritize focus 

Telecommuters have a whole new world of distractions that could potentially take time away from work — from household chores and noisy roommates to phone notifications, social media, and distracting websites.

To stay focused, create a suitable workspace. Whether it’s a home office, a co-working space, or even the back corner of your local Starbucks, have a place that facilitates productivity with minimal interruption.

Noise-canceling headphones are a great investment to help you “get into the zone.”

Once you’re settled in, make a plan for how you want your workday to go. One method is to break work out into timed blocks as laid out in the Pomodoro Technique, which recommends a 25-minute focus session followed by a short break. Apps and browser plugins such as RescueTime, StayFocusd, and Strict Workflow can help you track your time and block distracting websites. When you finish a focused session, reward yourself with a quick break to indulge in some of those juicy distractions.

Check in with your team regularly

When you’re not in the office, it’s easy to feel disconnected from your team. To make sure you’re on the same page, be transparent and communicate, even if it’s just for a friendly chat. Let your manager know if you run into any issues, and keep them in the loop.

Turn off when you’re not at work

Make sure to divide the two as much as you can, and when you’re not working, avoid the temptation to check your work email or messaging app.

Tips and guidelines for employers

Here are some tips for team leaders managing telecommuting employees.

Set clear expectations

For a telecommuting program to be effective, managers need to set clear expectations for remote workers. While this can be difficult at first, it’s a blessing in disguise for many organizations that are forced to examine and communicate the metrics and tasks that are most important, leading to improved focus and efficiency across the board.

Stay in touch, but don’t over-communicate

Obviously, it’s important to stay in touch with your employees while telecommuting. But for managers who are used to being very involved, this can pose a challenge. For a telecommuting program to work, you need to trust your employees to get their jobs done and give them the space to do this.

Telecommuters also need the right equipment to do their job. Whatever tools they need onsite they also need offsite — and potentially additional ones. These requirements will vary by company and role, but a typical telecommuter will at least need a laptop, a strong and secure internet connection, and all the software they need to do their job.

If they have a customer-facing role, they may need a suitable camera and background for video calls, a headset, and any other communication tools. Your policy should specify the equipment your company will provide, and what (if any) the telecommuter will provide (such as a desk or other office furnishings).

Investing in the right technology for telecommuting

Here’s the baseline of telecommuting software every distributed team needs in order to collaborate and stay on track:

• Communication platform. A communication platform is essential for keeping in touch while telecommuting. Though traditional methods, such as email and phone, have their place, it’s a good idea to use a real-time chat app like Slack, which allows teams to stay in touch via text, video, and audio, and organize communications into channels. Other good options include Microsoft Teams and Cisco Webex Teams for enterprises, or Flock, Discord, or Chanty for smaller teams.
• Cloud file-sharing platform. Using cloud-based file-sharing platforms such as Google Drive or Dropbox is essential for distributed teams. This allows everyone to access, share, and collaborate on files while protecting company information via permission and version controls.
• Videoconferencing software. Videoconferencing software like Zoom and Google Meet has become synonymous with telecommuting and for good reason. It’s the best way to communicate on a personal level while remote.
• Project management software. We’ve talked about the importance of setting clear benchmarks for telecommuters. They need milestones to make sure they’re completing important work that moves projects forward. Project management software supports this objective, helping to coordinate work and assign tasks. Some of the top choices include Asana, Trello, and monday.com.

As we’ve learned in this guide, telecommuting can help businesses operate during emergencies, cut costs, help the environment, and access better talent, all while making employees happier and more productive. But that doesn’t mean telecommuting has no challenges and downsides. Implementing a successful telecommuting program requires an organized and dedicated effort from both employees and employers.

While we don’t know what the future will bring, telecommuting will likely continue to become a bigger part of the way we work. We hope this guide helps your telecommuting journey be the best it can be.

Meet the telecommuting experts

Debra A. Dinnocenzo

Debra A. Dinnocenzo is the founder and president of VirtualWorks!, a learning and development firm that specializes in virtual work issues, such as telecommuting, leading from a distance, virtual teams, and work-life balance in the digital age. She’s a recognized expert on telework and remote leadership and has written several books on virtual workplace topics.

Blake Stockton

Blake Stockton is a business analyst at Fit Small Business, an online publication devoted to helping entrepreneurs across the U.S. Stockton has consulted with over 700 small business owners, and assisted with starting and growing their businesses, both brick-and-mortar and online. Outside of his work at FSB, he also serves as a frequent lecturer at the University of North Florida.

Henry O’Loughlin

Henry O’Loughlin is the founder of the blog Buildremote, a resource for building remote companies. He is also the director of operations at Nectafy, a fully remote marketing agency that specializes in growth content.