The decision to allow employees to work from home could lead to happier workers as individuals are able to create a better balance of both work and lifestyle.

Studies reveal that employees who work from home are much more focused and motivated than those who work at the office. Working from home also means that parents can still remain part of the workforce whilst undertaking their everyday child care duties. From the perspective of the employer, the employment field becomes wider as working parents, disabled staff and those who live in remote areas are also able to offer their professional input. Add to this the massive savings on office space, lighting, heating etc and home working becomes a viable commodity.

The world is wired for home working but the virtual office should still be classed as a place of work. Therefore, it is vital that guidelines are clearly defined before such a practise is put into place. Employees suited to home working should display excellent time management skills, be great self-motivators and possess excellent communication skills. These are the type of people who will increase productivity whilst working in such an environment.

If you have doubts as to who would be suited to such an environment, why not give selected employees a one month trial to see if productivity increases? Then you can distinguish those who will relish from working independently.

In some instances, employers are legally obliged to offer work from home. Staff with parental responsibility for children under sixteen years of age, employees who have disabled children under 18 and are in receipt of disability living allowance and carers for adults can request different working arrangements to coincide with their commitments. This could include the option to work from home.

A virtual office team can still be closely monitored in 'real time' via tele-conferencing, instant messaging or video conferencing. Keep in contact with your workforce by setting up regular meetings either online, by phone or face to face. Although your staff may be scattered, email makes it easier to keep in touch with them any time of the day. Be sure to treat your home workers as you would your office staff and include them in any company benefits or weekly newsletters.

You have the technology. Most employers find it easier to equip their home working staff with a designated mobile phone. This means that calls can be monitored, the employee's phone bill does not have to be disclosed and staff are able to maintain their privacy. With wireless internet access and a nifty laptop, employees can work virtually anywhere, which means that you will always be able to reach a staff member even when he is sat at the table in the garden.

Employees could even hook up to your business network or database via intranet or extranet. This will provide a secure way to share information with your virtual team. Electronic diaries and email are great tools for arranging those all important online meetings and transferring documents.

Don't trip over the furniture. The responsibility will fall on you to equip your staff with the tools they will need for their home office. Essentials you may need to provide are:

A desk with drawers
A chair
Laptop or desk top with pre-installed software (including anti-virus and firewall), broadband connection and email
An independent business telephone line
Stationery plus any other relevant office supplies
Printer and fax.

You may want to extend your business insurance so as it covers equipment that you hire out to staff. However, employees could check to see if their home content insurance will cover equipment which has been borrowed from the company. Staff who use computers on a regular basis are also entitled to a free eye test which is paid for by their employer.

Mum's the word. Be 100% certain about employees you trust with sensitive information. These are the people who will likely use public internet access whilst working on a train. They therefore need to be tactful and discreet so as information is not on public display. For extra security, passwords should be used to control entry to the business pc.

When the cat is away. One worry employers have with home workers is that staff are more likely to play with their children or the cat (although this is unlikely to happen, especially if they have a dog!) rather than focus on their designated work load. Home workers will quickly dispel this thought as many view such a position as a privilege and not something that they would wish to jeopardise. By making it clear that employment could be terminated or staff may be asked to return to the office if daily obligations are not met, people are more likely to take their duties seriously. Surprisingly enough, employees who work from home are likely to be more productive than those who are constantly monitored in the office.

Home is where the heart is. A study carried out by the British Psychological Association found that home working created favourable results with regard to perceived autonomy, job satisfaction, turnover, work-family relationships and stress levels. Over 60% of employees have lowered their stress levels simply by not having to face the daily commute to work.

Working from home also means a healthier lunchtime as people are more likely to prepare a home cooked or healthy meal rather than head off to the fish and chip shop. As fewer hours are wasted in travel, more employees are finding it easier to wind down and sleep at night.

Working from home also reduces the amount of colds and days off in sick per year as staff are not exposed to employees who may be carrying viruses. With regard to the environment, fewer people commuting to work means less greenhouse gases emitted into the air. Working from home also gives employees the advantage of positioning their desk in such a way as to achieve positive results. No more having to sit in front of a wall or next to Fred who always seems to be sporting the latest allergy or virus which is sweeping the office.

If working from the spare bedroom, with a view of sweeping hills, fills the mind with inspiration and creativity, staff can wave goodbye to that windowless office which blocked or stunted their output. And no more having to hold in those frustrations from a heavy work load or difficult customer. Whilst working from home, a good blast of heavy metal (in between calls) or some soothing music lulling away in the background could be all that is needed to release those pent up feelings.

Working in an environment where there is no dress code, no set lunch times and the freedom to create an ideal ambience has to be the most natural and effective way of getting the most out of your employees.