When employers think about what will increase employee retention, they generally consider factors such as compensation, medical insurance coverage and perquisites like a company car or an on-site health club. Smaller businesses may despair that they will never be able to attract and keep the best workers because they do not have the resources to match the salaries and benefits offered by larger organizations.

In fact, there are key benefits that almost all employers can provide that will be more effective in retaining workers than compensation alone. Numerous surveys have shown that most workers are willing to accept less pay in lieu of flexibility allowing them to balance their work and family lives. Employers that offer options such as flextime or telecommuting enjoy high rates of employee retention even when they don't offer the highest salaries in town or the most comprehensive benefits in their industry. Most importantly, these programs generate significant goodwill at little or no cost to the organization.

Not that this is a new revelation to many employers. According to the 2003 Benefits Survey conducted by the Society for Human Resources Management, over half of the organizations responding offered flextime options, and over one-third allowed employees to telecommute part time.

Under flextime programs, employees may choose when they can begin and end their shift, within certain parameters set by management. Telecommuting employees work from home or other remote location anywhere from one or two days a week up to full time.

Most problems that arise from flexible work hour arrangements result from lack of proper planning. By thinking through some of the common issues before you implement your program, you will save yourself significant headache and ensure the success of your program as a morale and productivity booster.

Deciding Who can Participate

Not every position within your organization will be appropriate for flextime, either because of specific hours during which work must be performed, supervision needs, department staffing requirements or needs of customers. Or, there may be conflicts in a particular department if too many employees request a particular alternative schedule.

Some jobs absolutely must be performed in the workplace, and would therefore be unsuitable for telecommuting. You should also look at the characteristics of the individuals requesting to telecommute. Telecommuting works best for productive, skilled individuals who are able to work independently and meet deadlines without constant direction.

You are permitted to grant flextime and telecommuting benefits selectively to employees, as long as you do not discriminate and your criteria are reasonable in relation to your business. In order to diffuse resentment from employees ineligible to participate, rather than just denying their request, explain your reasoning.

Additional Considerations for Telecommuters

You will also need to determine what equipment and technology employees will need to do their jobs from home and whether the company or the employees will provide it. Necessary tools may include a high-speed internet connection, a secure way to dial into the company network, dedicated phone line with voice mail, conference calling and other business features, computer equipment and fax machine. When telecommuters deal with customers, vendors or other outside parties, you will want to be sure that they have an office set-up that enables them to project a professional image from home that reflects the standards of your organization.

Just because an employee works at home does not relieve you of the obligation to comply with minimum wage or overtime requirements, nor are you exempt from all responsibilities to provide a safe workplace. Workers can and have filed workers compensation claims for injuries that occurred while telecommuting. While the laws regarding workplace safety for telecommuters is still emerging, at a minimum workers should be trained on how to avoid foreseeable job related injuries, such as repetitive motion or carpal tunnel disorders.

Although telecommuters will be spending significant time outside of the office, it is important that you continue to treat them as an equal part of the team. Involve them in all critical communications; let them know about major events at the same time you inform other workers. Inform them at the outset how often you expect updates on their progress, and provide continuing feedback.