Gas prices take a bite out of employment relationships

In the past, employees could justify a long commute if the work was worth it. Now, more than just a long commute, employees are feeling the burden of the highest gas prices our country has ever seen.

It’s predicted that by 2012, American gas prices could reach $7 per gallon. At that rate, a 2008 Toyota Corolla with a 13.2 gallon gas tank would cost $92.40 to fill up (pre tax). Depending on how many times you fill up, how long your commute is, that number takes a big chunk out of most paychecks.

An article by WorldatWork editor Bob King examines how gas prices are affecting employment relationships. Employers can actually help “ease the pain at the pump” and use it as a chance to gain employee appreciation and loyalty.

“Organizations that can efficiently and effectively respond to the needs of employees in scheduling have an advantage over their competitors,” Tom McMullen U.S. Reward Practice Leader for Hay Group, said in the article.

Rose Stanley, WorldatWork practice leader suggests companies should look into ways they can help alleviate the burden of high gas prices, including:
  • Transit subsidies
  • Car pooling/van pooling
  • Flexible scheduling
  • Teleworking for part of the week
King advises companies to first try to mitigate employee gas prices with the examples above before boosting employees’ base pay. Increasing employee base pay would be a quick fix to a continuing problem. What if you increase pay this month and next month gas prices are up again?

For the full details read the WorldatWork article. Also, visit Compensation Force for more discussion on this topic and others affecting employee performance.

This issue will continue to grow as long as gas prices continue to rise. How have increasing gas prices affected your employment relationships?

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