Telecommuting offers big savings at the pump
Sunday, September 11, 2005
BY DAVID SCHWAB AND ROBERT GEBELOFF, Star-Ledger Staff
With gasoline prices soaring after Hurricane Katrina, here's something workers can do to control rising costs: try working more from home.
Millions of American workers already telecommute one day or more and experts say those ranks are likely to swell.
Employees typically work at home to save time and take care of family business. But with gasoline rising more than $3 a gallon, more workers may be tempted by the opportunity to cut costs, especially in states such as New Jersey where commuters often drive an hour or more.
"With the rise of gas prices, we have seen a change," says Charles Wilsker, chief executive of Telework Coalition, an advocacy group in Washington, D.C.
Gil Gordon, a consultant in Monmouth Junction who advises employers on telecommuting issues, says he expects "at least smart employers to realize they can really win some points with employees by making telecommuting more acceptable."
Kimberly Manigault , a tax manager at Prudential Financial, who has been working from her Somerset County home two days a week for about five years, has noticed the savings. "I'm definitely saving on gas," says Manigault, who drives about 70 miles round trip from Branchburg to downtown Newark.
The costs can mount up.
Gasoline prices have risen about 85 cents a gallon to an average of about $3.16 since Hurricane Katrina struck two weeks ago. A commuter who drives 50 miles a day to and from work and averages 25 miles a gallon burns about 2 gallons of gas per day, which would cost about $6.25.
Work two days a week at home and the savings amount to $12.50 per week in fuel, or $54 per month.
Every Tuesday and Friday, Manigault's commute consists of walking down the stairs to the basement of the Branchburg townhouse she shares with her 15-year-old daughter, where she puts in a full workday keeping up with the latest tax regulations.
"I am able to do more things for myself and my daughter with that extra time," Manigault says. A number of her Prudential co-workers periodically work at home as well.
Manigault and her co-workers are part of a legion of millions of American workers who can telecommute, thanks to technological advances that make them a phone call or an e-mail away. Estimates of how many workers spend part of the week working from home, vary from as few as 7 million to as many as 75 million. Wilsker estimates about 30 million.
Recent Census figures in New Jersey show the ranks of those working at home, including telecommuters and independent contractors, is rapidly growing-- a 28 percent increase in New Jersey between 2000 and 2004 compared with a 22 percent rise nationally.
At Prudential, about 6 percent of its 23,000 workers in the U.S. are classified as telecommuters. The Newark-based company has about 8,400 employees in New Jersey.
Maureen Corcoran, the company's vice president for diversity, expects more to try it out.
"It makes sense that people will be looking for ways to manage their finances," she says.
Prudential employees can check a company Web site for details and how to arrange schedule changes with their manager.
Prudential isn't alone. A recent survey by the Society of Human Resource Management of 386 managers found that 37 percent of their companies offered some form of telecommuting.
"This is something organizations can offer to their employees who are saying they are really hurting from these gas prices," says spokesman Jen Jorgensen. But the percentage has not changed in several years, suggesting this may be the limit of corporate America.
One indication of how important workers consider this benefit comes from the annual surveys by Working Mother Magazine, which have found all of the companies it considers the 100 best offer the option.
Carol Evans, the magazine editor, says rising gas prices will probably prompt more companies to offer employees the chance to work from home, one of the most important perks to employees, especially women.
"It's a really inexpensive way for a company to give a highly desirable benefit," she says.
Still, telecommuting doesn't work for many employees, even those who would like to try it. Many jobs can't be done from home, such as the chief executive or an assembly line worker, and the option is not offered by every company.
"The nature of my work demands that I be here. It would be pretty difficult to be at home," says Tyree Thomas of Rahway, who spoke during his lunch break. He dispatches messengers for the law firm of McCarter & English in Newark.
But when it does work, telecommuting can be a blessing.
Bill Dewey, director of recruiting for Pfizer's consumer healthcare business based in Morris Plains, normally drives to work from Denville.
But he spends many Fridays on conference calls sitting in his family's home in Binghamton, N.Y., about two hours away, where he was born and raised. Meanwhile, a Pfizer colleague who lives in New York City also works from home on Fridays.
"It's really a great opportunity," he says.
David Schwab may be reached at dschwab@starledger.com or (973) 392-5835.
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