WHAT IS A VIRTUAL OFFICE?
The virtual office concept, also known as telecommuting or a mobile office, emerged as the American work force shifted from physical labor to knowledge-based work. Workers who create or manipulate information can generally perform anywhere there is a telephone, desk, chair, and computer.
Technology enables the knowledge-based worker's office to be portable.
"Virtual," by Webster's definition, means "being such practically or in effect, although not in actual fact or name." Employees who work from home or some place other than the main office location are considered to be working in a virtual office. These employees are called telecommuters, a term coined in 1973 by Jack Nilles, a professor at the University of Southern California. A 1990 study estimated that 33 million people were telecommuting at that time, and the number continues to increase.
To succeed in the highly competitive global economy, companies must adapt quickly to change. This includes creating assignment-oriented jobs rather than 9-to-5 jobs. Flexibility is the theme of business in the 1990s-and in the next millenium. A virtual office environment allows you and your business to perform in infinitely flexible ways. Let's review the pros and cons of creating a virtual office in the insurance industry.
BENEFITS OF A VIRTUAL OFFICE TO THE AGENCY/COMPANY/VENDOR
Generates greater productivity. Studies show that employees working in a virtual office are 15% to 30% more productive than their counterparts in a central office. Working in a virtual office allows uninterrupted focus on projects. Your telecommuters can complete assignments in 30 hours that used to take more than a 40-hour week. Off-site employees enhance their productivity by avoiding:
- Lengthy meetings and luncheons
- Long breaks in the hallway or at the copy machine
- Distractions from fellow workers
- Absenteeism due to car problems, sick children, and so forth
Reduces office expenses. When your employees work off site, your office and parking space requirements decrease, reducing your costs. Employees who telecommute part-time can share office space. For example, three or four producers may use the same desk and computer in rotation, each one having separate password-protected files in the system.
Enhances recruiting.
As you interview new employees, you can be more flexible in the selection process. Since the physical location of your recruits is not as great an issue, you can avoid relocation costs. The option of telecommuting makes your company more attractive to prospective employees. Chances are good that you will even reduce employee turnover by providing a work environment that adapts to a variety of circumstances.
Saves money. You are guaranteed to save money with your telecommuters. The quality and quantity of work increase, office expenses decrease, and you retain productive, satisfied employees.
BENEFITS OF A VIRTUAL OFFICE TO THE EMPLOYEE
Offers flexibility. People are searching for quality of life as they balance work and family responsibilities. A virtual office provides you with flexibility and more control over your life. You can creatively work around personal errands, child care, continuing education, and so forth. Ultimately, the satisfaction derived from this new lifestyle usually translates into greater productivity.
Eliminates commuting stress. Futurist Alvin Toffler wrote "Commuting is the single most anti-productive thing we do." For instance, it is estimated that Californians waste 300,000 hours in traffic delays every single work day. A trip that took 15 minutes on a southern California freeway in 1984 will probably take 47 minutes in 2010, and other urban areas are seeing comparable increases in commuting times. A virtual office allows you to translate the wasted time and stress of commuting into top-quality work performance.
Enhances productivity. Telecommuters focus on achievement rather than time.
Structure your work hours to the times you are most productive and creative. If you function best during the morning, you can begin work at 7 a.m. in your virtual office instead of wasting valuable time in traffic.
Saves money. Telecommuting enables you to save money on gas, tolls, child and family care, restaurant lunches, dry cleaning, and new clothes. Employees can work in their jeans after their one-minute commute to the spare room or garage office.
CONSIDERATIONS FOR A SUCCESSFUL VIRTUAL OFFICE
Carefully select the correct job. Not every job can be transferred to a virtual office. If you own a storefront agency with walk-in traffic, your receptionist needs to be at the front counter, not working at home. Generally, the guidelines for determining a telecommuting job include the following:
- Requires limited or infrequent face-to-face communication with other employees
- Uses a computer and telephone as its key tools
- Involves easily measurable performance and work
- Does not require routine access to materials at a central work location
Carefully select the correct employee. The ideal candidate is self-disciplined, self-motivated, trustworthy, not easily distracted, and organized, and enjoys working independently.
Budget initial expenses. You may have to purchase a computer with a modem (or notebook), a desk, a chair, a fax machine, insurance coverage, and an additional telephone line for your telecommuter. You may even buy a beeper or portable telephone to keep telecommuters accessible at all times. However, these investments will soon pay off with dramatic productivity gains.
Establish a performance agreement. Determine with your off-site employee how to measure job achievements. This guarantees that your telecommuters are working, not playing, at home. Experiment with a virtual office for a limited time to ensure it is appropriate for your business and your employees. You may start with telecommuters working two or three days away from the central office and then increase the number of days as you see the positive results.
Manage the change. Telecommuting is unfamiliar for you and most workers.
Managing change within your organization will be your greatest challenge. Maintain regular communication with your on-site and off-site employees as you implement this new organization.
TYPES OF POSITION TO CONSIDER
Many positions in the insurance industry are ideally suited for telecommuting. For carriers, ideal jobs for a virtual office include actuary, field marketing representative, programmer, and systems analyst. For agencies, positions that work well in a virtual office include marketing representative, producer, and telemarketer. Automation vendors can use telecommuting with positions such as programmer, sales support representative, sales representative, systems analyst, technical support representative, and trainer.
Your challenge is to think creatively and flexibly. Be willing to re-engineer your organization to meet the demands of today's changing business needs. Consider Peter Drucker's counsel: "Commuting to the office is obsolete. It is now infinitely easier, cheaper and faster to . . . move information . . . to where the people are."