Electrik, a Slovak construction firm that provides electrical installation services domestically and throughout Europe, reflect on the use of digital tools to remote work as they grapple with the current energy crisis.
Teleworking technologies to increase efficiency, weighing up the pros and cons: the case of a Slovak construction SME
Abstract
Background
Electrik operates in the construction sector and is specialised in the installation of electricity infrastructure in large buildings of all kinds – residential, administrative, commercial etc. Based in Bratislava and employing 55 workers and management employees, Electrik has implemented more than 1000 projects in 12 countries across Europe since 2022. In recent years, however, they have additionally started building charging stations for electric cars, actively contributing to the electrification of the car fleet.
Challenges
Electrik has been confronted by challenges specific to the construction sector long before the start of the COVID-19 pandemic. SMEs operating in the construction sector more widely have been under pressure from inflation due to the rising prices of aluminium, copper, and plastic, three materials essential for manufacturing electricity and power infrastructure. Price shocks in the wake of the Russia-Ukraine aggravated this situation by leading to increased volatility in the price of metals globally (OECD, 2022[1]).
Moreover, the current energy crisis poses a challenge for Electrik. High energy prices continue to push up productions costs within the construction sector and disrupts the already post-pandemic fragile supply chains (OECD, 2022[1]; IEA, 2022[2]). These new conditions have put pressure on existing contracts with suppliers as well as customers. SMEs often lack the economic or legal capacities to navigate contract disputes within complex supply chains. This applies specifically to SMEs such as Elektrik that operate in foreign markets. Conflicts along the supply chain are difficult to resolve due to a lack of sophisticated dispute resolution mechanism, time, knowledge and high costs of accessing foreign legal systems (OECD, 2009).
Digitalisation Path
Electrik uses a range of digital tools and productivity software for business purposes:
Internal communication software such as email and cross-platform instant messaging software for more immediate exchanges or to help prioritize different email work streams;
Videoconferencing software to hold online meetings;
Microsoft Office, including presentation and spreadsheet software;
Landing webpage with business contact details;
Building Information Modelling (BIM) software and a commercial computer-aided design (CAD) and drafting software application for 3D modelling and designing purposes.
Looking into the future, Electrik plans to integrate new digital solutions to improve their customer service.
Approach
Remote working digital technologies presented advantages for Electrik during the pandemic, although productivity still remains higher when working face-to-face. Teleworking is a satisfactory alternative when needed, particularly for management level to communicate outside of typical working hours. While the overall impact of teleworking is ambiguous and much discussed, evidence from other OECD countries reveals that teleworking even has the potential to increase productivity and improve work-life balance (OECD, 2020[3]). For example, statistics on Canada show that 90% of teleworkers that did not usually work from home before the pandemic reported to be at least as productive working from home as compared to working at their usual workplace (Statistics Canada, 2021[4]).
Moreover, teleworking can have an important impact on the organisation of task and the workflow of SMEs. In the case of Electrik instant messaging software allowed to create groups, improve coordination and save time by avoiding the need to hold long meetings. When the workload is heavy, this tool allows them to identity pending tasks at the close of business and set objectives for the next day. However, for Electrik these services and platforms remain a complementary tool as they found operating solely online decreased the efficiency of teamwork and result in gaps in the decision-making process.
Government Support
Electrik has not participated in any government (national or local) programmes and is unaware if there are initiatives that could be relevant to them.
To learn more about SMEs digital transformation
OECD (2021), The Digital Transformation of SMEs, OECD Studies on SMEs and Entrepreneurship, https://dx.doi.org/10.1787/bdb9256a-en.
OECD (2021), SME Digitalisation to Build Back Better, https://doi.org/10.1787/f493861e-en
References
[2] IEA (2022), “World Energy Outlook 2022”, License: CC BY 4.0 (report); CC BY NC SA 4.0 (Annex A), https://www.iea.org/reports/world-energy-outlook-2022.
[1] OECD (2022), OECD Economic Outlook, Interim Report September 2022: Paying the Price of War, OECD Publishing, Paris, https://doi.org/10.1787/ae8c39ec-en.
[3] OECD (2020), OECD Policy Responses to Coronavirus (COVID-19), https://www.oecd.org/coronavirus/policy-responses/productivity-gains-from-teleworking-in-the-post-covid-19-era-how-can-public-policies-make-it-happen-a5d52e99/.
[4] Statistics Canada (2021), The impact of telework on workers’ productivity and preferences, https://www150.statcan.gc.ca/n1/daily-quotidien/210401/dq210401b-eng.htm.
