More secrets of a virtual company CEO

Just because 32 of Daniel Turner's 33 employees don't work in Turner Consulting Group's Washington, D.C., headquarters doesn't mean they're second-class citizens toiling in Spartan home offices. From the latest computer and communications equipment to home office furniture, Turner's policy ensures his remote staffers are ready for business.

"These are employees, not contractors," he reasons. "They expect to be treated that way."

Independent consultants working from home have long battled the stigma that "home-based" is really a euphemism for "low-cost" or "low-overhead." While the commute is by foot and monthly rent is nonexistent, having the right tools is key to a home office worker's success. Turner knows it's no different for a virtual company that employs full-time -- albeit remote -- workers.

In Turner's company, the details of home office setup fall to the individual workers, with Turner paying for specific equipment and services. He's found that most new hires already have home offices, so furniture hasn't been much of an issue. Even so, he will pay for a desk or chair, but says the furniture must be returned if the employee leaves the company. (Not surprisingly, employees rarely take him up on the offer.)

Turner knows technology is key to his remote workers' success, so that's where he kicks in the real coin. Workers negotiate their own phone services, and Turner reimburses long-distance calls. For managers, Turner pays for dedicated business phone lines, cellphones and multifunction printers that include fax and copier capability. When DSL or cable service becomes available in an employee's area, the workers negotiate the service agreement, but Turner reimburses $50 of the service cost each month.

Turner also purchases computer systems for his employees, and every 18 months spends $900 on upgrading everyone's CPU. If a worker wants a new monitor or keyboard, they'll have to pay for that themselves. And if they want to use the old CPU for personal use, Turner will sell it to them for $100. Turner says paying for new systems ensures that his employees have the latest technology available and that they're working on company-owned equipment -- not their own.

With 32 virtual offices in operation, that potentially amounts to $1,600 per month each for broadband access, and more than $28,000 every 18 months on new computer technology. Tack on full health insurance, workman's compensation, life insurance for his six managers and property coverage, and supporting remote office workers gets pricey. Still, Turner reasons, it's much cheaper than paying $40 to $50 a square foot for commercial office space in D.C.

» posted by ITworld staff

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