U.S. Workers Waste $3.9 Billion Annually By Not Telecommuting

National Survey Finds Most of the 25 Percent with an Option to Telecommute Prefer to Drive

Americans’ love affair with the automobile is costing the U.S. economy $3.9 billion a year in fuel and time equal to 470,000 jobs, according to the 2005/2006 National Technology Readiness Survey (NTRS) released today. The annual survey – sponsored by the Robert H. Smith School of Business’ Center for Excellence in Service at the University of Maryland and technology research firm Rockbridge Associates Inc. – found that despite 25 percent of respondents citing supportive employer telecommuting policies or jobs that would allow work from home, only 11 percent are doing so.

“With national gas prices hovering near $3 a gallon, American workers could suffer less pain at the pump if they took advantage of workplace telecommuting policies,” said Roland Rust, executive director of the Center for Excellence in Service. “In addition to saving billions of dollars to the economy, the time and money saved on a long commute – even just two days a week – could significantly increase productivity and employee satisfaction.”

The survey also finds even workers that could telecommute still would choose not to do so the majority of the time.

“It seems the professional and social environment of the workplace wins out over money and time savings,” said Charles Colby, president of Rockbridge Associates. “Though a fourth of the population could be working from home, most American workers still choose the office environment for the majority of their work week.”

Findings from the 2005/2006 NTRS regarding telecommuting – working at home or outside the traditional workplace – include:

  • Only 2 percent of adults who work telecommute full time; another 9 percent telecommute part time and 8 percent have home-based businesses.
  • Ninety-one percent of full- and part-time workers with a commute drive to work.
  • The median commuting time reported by U.S. workers with commutes is 20 minutes each way, and the median distance is 10 miles each way.
  • Of those who could feasibly telecommute, less than half would choose to do so more than two days per week and 14 percent would not telecommute at all.
  • Eighty-two percent of full-time American workers have a Web connection at home, 69 percent of which are high-speed.

Other findings in this year’s NTRS include information on e-commerce and e-government trends; G3 technology, which provides faster bandwidth and greater functionality for cell phones and other mobile devices, for desired features such as global-positioning technology; and e-health trends to purchase prescription drugs and research ailments online. A summary of the 2005/2006 survey can be found online at www.rockresearch.com8/NTRS_2006 report 6 20 06.pdf.

The NTRS determined $3.9 billion could be saved if everyone with the potential to telecommute did so 1.6 days per week, based on a driving average of 20 miles per day, getting 21 miles-per-gallon at a gas price of $2.89 per gallon.

According to the Energy Information Administration, the typical commuter pays $688 a year in gasoline. Nearly 100 million adults commute to work each day, the vast majority alone in their cars. Increased telecommuting is one potential solution for a range of problems the country faces: escalating energy cost, traffic congestion and harmful carbon emissions affecting the environment.

About the 2005/2006 National Technology Readiness Survey

The National Technology Readiness Survey (NTRS) is an annual study produced by Rockbridge Associates Inc., and the Center for Excellence in Service at the Robert H. Smith School of Business, University of Maryland. The NTRS, founded by Center for Excellence in Service Senior Fellows Charles Colby and A. Parasuraman, tracks beliefs about technology and key behaviors related to e-service. The 2006 NTRS was based on a random sample of 1,015 U.S. adults (18 years or older) and was administered in December 2005 by telephone and online in February 2006 via Web surveys sampled from a Web panel.

About the Center for Excellence in Service

The University of Maryland’s Center for Excellence in Service is one of the world’s leading service research centers. The center, directed by marketing professor P.K. Kannan with marketing chair Roland Rust as executive director, is devoted to advancing research and business strategy related to service. The center is funded by corporate memberships and grants, as well as grants from foundations and other nonprofit sources. More information about the center can be found at www.rhsmith.umd.edu/ces/.

About the Robert H. Smith School of Business

The Robert H. Smith School of Business is an internationally recognized leader in management education and research for the digital economy. One of 13 colleges and schools at the University of Maryland, College Park, the Smith School offers undergraduate, full-time and part-time MBA, Executive MBA, MS, PhD, and Executive Education programs, as well as outreach services to the corporate community. The school offers its degree, custom and certification programs in learning locations in four continents including North America, Europe, Africa and Asia. More information about the Robert H. Smith School of Business can be found at www.rhsmith.umd.edu.

About Rockbridge Associates, Inc.

Rockbridge Associates Inc. is a leading technology research firm based in Great Falls, Va. Clients include Fortune 500 companies, government agencies and associations. Rockbridge conducts primary research and consulting to help with product design, positioning, pricing, and customer satisfaction. www.rockresearch.com8