MSMEs reluctant to use telecommuting — survey

Micro, small and medium enterprises (MSMEs) are reluctant to introduce telecommuting in their operations as they want to understand first how it could enhance their business, a survey from the umbrella organization of Philippine exporters has shown.

The survey conducted by the Philippine Exporters Confederation Inc. (PhilExport) covering 53 companies showed that more than half or 28 are hesitant to begin including telecommuting in their work.

Of the 53 companies covered by the survey, most or 75 percent was accounted for by micro and small firms, followed by medium enterprises and a few large ones.

More than half of the companies covered by the survey said they have reservations on telecommuting, citing additional cost implications, inapplicability to their business operations, as well as concerns on data security.

Philexport’s survey also showed that 35 out of the 53 companies did not see the use of telecommuting as practical for their business as they are engaged in manufacturing, which requires employees to be physically present in their work sites.

“This means that companies that are heavily involved in manufacturing (and some in services as well) cannot (adopt) telecommuting into their businesses due to the nature of their work,” the survey read.

“This also suggests that a large number of MSMEs are involved in manufacturing, where their work requires physical presence/interaction and careful supervision to be able to deliver a physical or interactive output,” it added.

Companies also have misgivings on adopting telecommuting due to the lack of knowledge on the technology of parts of the supply chains.

Dealing with many suppliers that prefer to do transactions manually also makes it harder for firms to get into telecommuting.

While there are concerns on integrating telecommuting to their operations, the survey showed companies recognize its benefits.

Telecommuting can be beneficial in promoting work-life balance of employees, the survey showed.

It could also help reduce traffic near business premises and enable faster communication among employees.

Philexport said the survey showed that there is a need to raise awareness among MSMEs on the Telecommuting Act to fully understand how it could affect their operations.

“When MSMEs are given all the available information on the latest laws that may affect them as businesses, they have better chances to make necessary preparations and appropriate management decisions for it,” the survey read.

Signed into law last December, Republic Act 11165 or the Telecommuting Act encourages employers to adopt telecommuting or an arrangement allowing employees to work from an alternative location using telecommunication and/or computer technologies.

While the decision to adopt the work-fromhome scheme will be up to the employer, the law seeks to ensure that the rights of home-based workers are protected through equal pay, leave benefits and promotion as employees working in the office.