TITRE DE LA PRESENTATIONSmart Work Centres: Benefits for Employees, Employers and Municipalities
Alise VitolaRiga Technical University
Latvia
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Why promote smart work in rural areas?
Notable share of global GDP consists of immaterial (digital) content
ICT allow to work anytime and anywhere
The “geographic paradox” - investments in digital economy tend to be located in large urban centres
TITRE DE LA PRESENTATIONIn UK a working population of 29 million commuters daily:• spent >20 million hours travelling to and from work• lost at least an hour of their time• caused production losses >266 million pounds
In 2010
More than 740 million people migrated within their country, almost 4 times the extent of international migration
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Why Smart Work?Personal reasons:• Time economy• Flexible work arrangements• Work/life balance• Residing outside cities Economic reasons:
• Increase in productivity• Reduction of costs (transport,
real estate etc.)• Recruitment and retention of
staff• The image / reputation
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• More than 42% of working adults willing to give up some portion of their salary for more flexibility at work
• Working men 2 times more likely to give up >10% of their salary (12% vs. 6%)
• 18-34 age group is 3 times more likely to give up >10% of their salary (15% vs. 5% among working adults aged 35+)
Nation-wide survey in US (2012)
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• Flexible staffing firm in US – 100% virtual work force• Established in 2005 by Allison O’Kelly, Harward Business
School graduate and a mother of 3 sons• Grown to 17 franchises
• > 50 000 candidates• Industries: accounting, legal, marketing, HR, finance,
management etc.
• Several awards since 2006: Moving into the Future Award (2007), Entrepreneurial Success story in Atlanta (2009) etc.
An example
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• New building in 2008• No assigned desks - work anywhere in the building• Layout of the building - to maximize communication
and collaboration• Encouraged to work more from home & allowed to
work anytime• A weekly 1:1 with their manager - a physical or virtual
meeting
Microsoft Netherlands
An example
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• Increased productivity by 25%• Won “Great Place to Work” award in 2009, 2010 and
2011• Employee satisfaction rose from 5/10 in 2008, to 8/10
in 2011• Sick leave days are down to 1,5% from 2,5%• Increased market reputation• Increased Employees’ mobility• Reduced real estate costs by 30%
Measurable improvements
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Why SmartWork Centre?
Technological benefits:Quality working space & technologiesData protection
Social benefits:MotivationSocialisation and mentoring
Cost reduction:Costs of maintaining the equipmentEnergy costs
Other:NetworkingAdditional services
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• Small village (70 inhabitants) 40 km from the capital city Tallinn
• Established by 5 local women, now 12 women working
• Women share their knowledge, jobs and childcare duties & compete as a unit in the labour market
• Communication and social life – events, projects, courses for children, consultations to local officials etc.
An example
Kõnnu SWC, Estonia
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Business allocation
New jobs
Increase in the attractiveness
Critical mass (innovation & productivity)
Increase in the number of inhabitants
Fiscal effects (infrastructure
& services)
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Tacit knowledge & face-to-face communication
Infrastructure, skills and knowledge
The rigidness of labor market inrural areas
The adaptation of behaviour
Main challenges
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Awareness campaign Get Online Week in Estonia
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• How Flexible Are You? Business Benefits of Flexible Staffing (Mom Corps): http://www.workshifting.com/2012/05/business-benefits-of-flexible-staffing.html; http://www.momcorps.com/docs/Mom_Corps_press_and_media.pdf
• How Microsoft Netherlands Reinvented the Way of Work (really): http://www.managementexchange.com/story/microsoft-netherlands
• Launching of a network of telework centres to promote employment of risk groups: http://www.smartwork.ee/en/smart-work-centres
• Linda Gratton (2011). The Shift The future of work is already here
Links