The Distributed Workforce

Insurance company Aetna shuttered 2.7 million square feet of office space, saving the company $78 million, while American Express estimates it saved between $10 to $15 million dollars per year by expanding its distributed workforce. Was this a sign that these company were in trouble? Far from it. Instead of maintaining expensive offices in multiple locations, they sent employees home to work and adopted a new model for employees: the distributed workforce. Employees have no permanent office space and work from home or on the road. The shift to virtual workers has been a huge success, and not only do companies save on their personnel and related costs, but they also have happier, more productive employees.

Aetna and American Express are not alone in recognizing the benefits of distributed workers, especially in companies that depend on knowledge workers. Work Design Collaborative LLC in Prescott, Arizona, estimates that about 12 percent of all workers in the United States fall into this category, and in urban areas the number could be as high as 15 percent. There are estimates that this trend could eventually reach 40 percent over the next decade, as long commutes, high gas costs, and better connecting tools and technologies make this an attractive option for many workers who like the flexibility of not working in an office.

Already, employees use the internet to conduct video-conferenced meetings and collaborate on teams that span the globe. On the downside, working from home can also mean being available 24/7 - although most workers consider the trade-off well worth it.

According to recent statistics, close to four million U.S. workers work from home at least half of the time. Remote workers continue to be recruited by companies of all sizes, including Amazon, Dell, Salesforce, and others.

Intel has a successful virtual-work program that has been popular with working parents. "Technology allows working remotely to be completely invisible," says Laura Dionne, the company's director of supply-chain transformation. At Boeing, thousands of employees participate in the virtual-work program, and it has been a critical factor in attracting and retaining younger workers. Almost half of Sun Microsystems' employees are "location-independent," reducing real estate costs by $300 million. Additional benefits for Sun are higher productivity from these workers and the ability to hire the best talent. "Our people working these remote schedules are the happiest employees we have, and they have the lowest attrition rates," says Bill MacGowan, senior vice president for human resources at Sun. "Would I rather settle on someone mediocre in the Bay Area, or get the best person in the country who is willing to work remotely?"