Telework Plug In, Leverage Tax Incentives and Ensure Business

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                       Plug In, Leverage Tax
                      Incentives and Ensure
                       Business Continuity

Mike Williams, Director of Programs and Employer Services
 37% of the smog in
Augusta comes from
Factors We All Face

•   Tough Economy
•   Need for Work/Life Balance
•   Increasing Commute Time/Distance
•   Technology Advances
•   Globalization of the economy
•   Recruitment/retention, productivity, absenteeism
    still at the forefront of business issues
•   Sustainability and Green are the way to go!
Telework – No Better Time Than Now

•   Increase worker productivity (10-20%)
•   Reduce employee absenteeism (2-4 days)
•   Increase employee morale, recruitment, retention
•   Tax Savings for Employer
•   Environmentally Friendly, “green” program
•   Lower facility costs, demand for parking spaces
•   Better communication among time zones
•   Solutions for Disaster Recovery/Business
  Fortune Magazine’s
  “100 Best Companies to Work For”

 In the 1980’s, only three offered telework.
 In 2009, 83 offer telework.

The number of U.S. employees who worked remotely at
least one day per month increased 39 percent the past
two years, from approximately 12.4 million in 2006 to 17.2
million.    “WorldatWork Telework TrendlinesTM 2009”
    Georgia Employers Embracing Telework

The Clean Air Campaign has assisted over 200 organizations
          implement telework programs since 2005:

   Georgia Power
   GE Energy
   The Home Depot
   Solvay Pharmaceuticals
   Assurant Specialty Property
   Quintiles
   State of Georgia
   Bank of America
    Successful Telework Programs
     have Certain Characteristics
   Initial pilot
   Top level commitment
   Planning and selection process
   Seamless
   Flexible
   Fit corporate culture
   Plan for access & communication
   Expandable
    Services offered by
    The Clean Air Campaign
 One-on-One expert assistance
 Design & Implementation of program
 Development of policies and agreements
 Marketing to upper & middle management
 Sample documents, case studies and
  implementation kits
 Program evaluation guidelines & strategies
 Training sessions & Focus groups
                     Telework Tax

Erin O. Clark, Alternative Work Schedules Specialist
     What is the Telework Tax

 The Georgia Telework Tax Credit (Code 48-7-
  29.11) allows qualified employers to receive a
  tax credit in 2010.
 Georgia businesses that start or expand a
  telework program may be eligible for a tax credit
  for the expenses incurred to set-up their
  program, and the expenses incurred to enable
  each individual new teleworker.
       Who Should Apply?

 Employers who will pay State of Georgia Income
  Tax in 2010 and will incur expenses to enable
  employees to begin teleworking in 2010.
       Telework Tax Credit
 Telework must
  include regular work
  functions during
  normal work day/time
 Cannot include home-
  based businesses,
  extension of workday,
  or work on
 Eligible Telework Expenses

 Expenses that will incur during 2010 calendar
 Limit of $1,200 per employee for expenses that
  enable employee to begin teleworking (i.e.,
  laptop, software, Internet connectivity,
  installation, maintenance)
 Does not include cost for replacement
  Telework Assessment Credit

 Up to $20,000
 Credit for expenses incurred during design &
  assessment of a telework program:
   – Raw labor costs
   – Professional consulting fees
 Assessment expenses incurred on or after July
  1, 2007 may qualify
             How to Apply

 Applications must be post marked between
  September 1, 2009 and October 31, 2009

 The application can be found on our website
    Approval of Applications

 $2.5M aggregate limit in credits for 2010

 If limit is exceeded, credits will be allocated on a
  pro rata basis

 Employers will be notified of tentative approval
  by December 31, 2009

 GA Department of Revenue may disclose
  employer names and amounts of credit claimed
                   Continuity and

Elham Shirazi, Alternative Work Schedules Specialist
       Potential Disasters & Incidents
           Affecting Commuting

   Hurricanes
   Construction             SARS
   Special Events           Power Outages
   Rising Gas Prices        Snow Storms
   Pandemic Flu             Terrorist Activities
   Transit Strike           Earthquakes
         State of the Practice
 91% of Americans live in areas
  prone to natural disasters
  (hurricanes, wildfires,
  earthquakes, etc.)

 No federal law requiring
  officials to plan for evacuation
  of the poor, elderly and sick

 Congress passed laws for the
  evacuation of pets

 According to FEMA, most
  cities are unprepared
  Readiness Across the U.S.

 80% of cities lack sufficient funding for
 56% of cities have an evacuation plan
 70% of cities cannot handle a pandemic flu on
  their own
 28% of businesses do not have emergency
  preparedness plans
 40% of companies with plans have not tested
  them in 12 months
                    Is Atlanta Ready?

 62% have a continuity plan

 40% of those with a plan have tested it in past 6 months

 57% outsource plan development

 50% do not take action when the government issues an

 84% state that they never suffered from emergency, yet
  many impacted by Katrina
* Source AT&T survey of 100 IT managers
            Is Atlanta Ready?
 Black-outs are most common disaster listed

 Numerous incidents- (i.e. road closures, construction,
  water main breaks, school closures)

                            • Atlanta received an “F”
                              for their evacuation plan by
                              the American Highway
                              Users Alliance
         Why Aren’t We Ready?

 It won’t happen to me
 If it happens, it still won’t happen to me
 If it happens, it won’t be that bad
 If it happens to me and it is bad, then there is nothing I
  can do about it
  What is Business Continuity?
 Developing procedures and actions that
  enable an organization to continue
  critical business functions during a crisis
  or a disrupting event

 Assisting employees in commuting in
  the event of a natural disaster or
  regional emergency
  Goals of Business Continuity
 Maintain critical operations

 Protect image, reputation, time to market, customer

 Provide solutions that either eliminate trips to work, shift
  work hours, or use alternative transportation
          Elements Include…
 Emergency Preparedness

 Emergency Response (0-24 hours)

 Crisis Management (1 hour - 3 days)

 Business Recovery (48 hours – months)
     2008 Survey of 539 workers
           and gas prices
   Increased carpooling or ridesharing           46%
   Driving a more fuel –efficient car            33%
   Teleworking                                   33%
   Looking for a new job closer to home          30%
   Working from office locations close to home   29%
   Working fewer days                            26%
   Taking public transportation                  23%
   Walking or biking                             18%
  Pandemics and Continuity of
 During the SARS breakout of 2003, many Hong
  Kong and Montreal based firms opted for

 In the event that there is a pandemic avian or
  H1N1 flu epidemic, many businesses are
  integrating teleworking into their business
  continuity plans as a means of “social
  distancing” while operating critical functions
  within the organization.
  Hurricanes Rita and Katrina

 Mandatory evacuations, road closures
 Power outages
 Gas shortages
 Loss of housing and businesses
 Slow or no recovery
 Out-of-state servers and remote access allowed some
  Terrorist Attacks on 9/11/01

 Businesses, Buildings, Infrastructure damaged or
  destroyed - Travel, Safety impacted
 Increases in webconferencing and voice/video
 Quick investments in portable technology
 Overnight implementation of teleworking
 Decentralization
 Alternative locations
 Merrill Lynch, Empire Blue Cross, American Express, and
 Power Outages – 1999 and 2003

 Millions affected
 Roadway infrastructure not usable

 Dial-up and laptops worked
 Alternative locations
 Telework if possible
Earthquake - Northridge 1994

 Transportation Infrastructure severely damaged, 26%
  of operations closed at least one day

   Teleworking increased from 9 to 12 percent
   Alternative locations were important
   Flextime
   Compressed work weeks
           Energy Crisis 2005
 Rising cost of commuting caused employees to consider
  leaving Lathem Time

 80 employees work compressed weeks
 22 employees in two vanpools
 30 carpoolers
 1/3 teleworking
Telework Disaster Preparedness
1.  Gain management support
2.  Identify essential functions/job assessment
3.  Develop lists of employees who could work from
    home or other locations
4. Conduct cross training for crucial functions
5. Locate alternative facilities
6. Develop remote access to office network
7. Test technology
8. Develop telework policies
9. Train employees and managers on telework
10. Establish a pilot program and monitor results
11. Conduct an emergency drill
 Lessons Learned from Recent
 Invest in technology.
 Telecommunications infrastructure more robust
 Decentralized approach to business makes
 Use teleworking to reduce absenteeism and
  increase social distancing
 Organizations with existing remote access are
  more resilient
 Pre-planning is key to quick recovery
 Quick fixes do not always stand the test of time
   The Future of Work in the
    Aftermath of Disasters
 Reductions in square footage to employee
 Office more as a meeting place
 Move from building centric to netcentric
 Robust remote access
 Greater use of netconferencing
 Greater distribution of workforce
 More mandatory programs
 Let’s ride the wave of change and not just for
      Clean Air Campaign can
            assist with:
 Gaining employer commitment to teleworking
 Developing telework policies, agreements, and
  selection criteria
 Conducting job assessments
 Implementing pilot programs
 Training of teleworkers and their managers
 Providing overall consulting services for program
  development, implementation and evaluation.