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Increase your productivity with homeworking08 August 2005

View of a persom working at home through a window

Small companies in the UK are increasingly realising the benefits a homeworking workforce can deliver, in terms of both business performance and employee flexibility. With the widespread and affordable availability of broadband Internet connections, facilitated by innovations in wireless technology, homeworking is fast becoming an integral part of business interaction.

Recent research by IBM and the Economist Intelligence Unit found that 15 per cent of small businesses in Europe with homeworkers had started the practice in the last year. Since April 2003, businesses of all sizes have been legally obliged to consider employee requests to work from home. But small companies are increasingly taking advantage of the concept and using the benefits to help their business grow.

What are the advantages of homeworking?

Homeworking can help small companies increase productivity in two key ways. The first is with regard to the positive effects flexibility can have on the workforce. Working in the home environment can:

  • Increase productivity, as employees are in a familiar and comfortable environment and travel to and from work is eliminated.
  • Reduce absence from work, either for sickness or necessities such as doctor's appointments.
  • Improve staff life-work balance.

These benefits will impact positively on the performance of small businesses by:

  • Improving customer satisfaction. A productive and motivated workforce will be more efficient in terms of output, and could interact better with customers. This could result in increased business retention and growth.
  • Reducing costs. With a workforce that can function remotely, accommodation requirements are decreased, allowing a lower expenditure on the day-to-day running of the office. According to analysts Cisco, homeworking can generate efficiency gains of at least 20 per cent for small businesses.

However, the IBM survey of 350 remote workers in Europe found that without full technological support homeworkers could feel alienated and under-appreciated. Mary Sue Rogers of IBM Business Consulting Services said: "Key issues around mobile working have moved way beyond reliable and appropriate technology. Our research shows that if mobile working is to realise its full potential, management support, training and the opportunity to network are essential."

How can technology bridge the gap between home and office?

It is essential that employers provide their remote workers with technological and IT support if the company as a whole is to benefit. According to an international survey, 44 per cent of homeworkers are most concerned that being away from the office will reduce effective collaboration with colleagues.

The most important technological aspect of homeworking is ensuring that employees are connected to the company network. Fast access to company data and communication is vital for remote working to help rather than hinder performance. This can be achieved through a wired broadband connection, but many businesses opt for wireless technology to allow homeworkers mobility while working, and wireless networks can be cheaper and easier to install and maintain. For more information, see our previous wireless networking feature.

The ability to use video conferencing technology will also benefit businesses, as employees can interact with colleagues or clients "face-to-face" through a broadband Internet connection. Analysts have estimated that worldwide revenue from video conferencing will grow from around £280 million in 2005 to almost £5 billion by 2008, indicating the importance of keeping remote workers and customers in contact. For more information, see our previous video conferencing feature.

Establishing an efficient extranet will also help homeworkers deliver benefits to small businesses. An extension of a company intranet, an extranet can be accessed by remote workers and customers over the Internet securely through the use of passwords. In this way, homeworkers are afforded access to the same data at the same time as office based employees.

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