With gasoline prices soaring to their highest levels in almost three years, employers are looking again at ways to help employees keep their tanks filled—or at least get to work each day.
Some employers opt to cover the cost of mass transit and other commuting options. Others subsidize employee fuel purchases.
But two time-tested strategies—compressed workweeks and telework—may find less favor in these cash-strapped times.
According to AAA, the national average price for regular unleaded stands at $3.94 per gallon, down slightly in the last week. That’s 38% higher than in May 2010. And motorists in some urban areas pay upwards of $4.50 per gallon.
The last time gas prices spiked so high, during the summer of 2008, many employers implemented compressed workweeks—40 hours spread over four days instead of five, for example—to help trim commuting costs. At the time, 57% of HR execs polled by consulting firm Challenger, Gray & Christmas said they were offering some kind of benefit in response.
But that was right before the 2008 economic meltdown. With companies still recovering from the resulting recession, fewer employers are interested in tweaking schedules, according to John A. Challenger, CEO of Challenger, Gray & Christmas.
“Circumstances have changed significantly from early 2008,” he said. “Companies are focused primarily on rebuilding efforts as they struggle out of the worst recession in decades, and right now in this job market, they have the upper hand and do not have to offer extra incentives to attract or retain workers.
“Even if the hours are the same by condensing 40 hours over four days, the loss of a day when customers and prospective customers might need service is too much to risk at this point in the recovery,” Challenger said. “Telecommuting is also less likely to be increased in this environment.”
5 strategies for your organization
That doesn’t mean employers don’t have options for helping workers deal with high gas prices. Consider which of these strategies might work for you and your employees.
1. Provide mass-transit subsidies or vouchers. Check with local mass transit authorities about related discounts and tax breaks. For more advice on commuter benefits and the various tax advantages offered for employers and employees, see www.commuterchoice.com.
2. Point employees to cost-saving web sites, such as www.fuelcostcalculator.com, which helps estimate what gas will cost for a given trip, and www.gasbuddy.com, which lists the spots with the best and worst gas prices in your region.
3. Distribute gas cards as a spot bonus or as a regular perk for certain segments of employees, or all staff.
4. Launch a car-pooling program. Post a car-pooling bulletin board in your break room or create an online version on your Intranet. Reserve desirable parking spaces for car-poolers. Consider offering car-pooling subsidies, which only 5% of employers currently do.
5. Encourage commuting by bike. It doesn’t cost much to install a bike rack near the entrance.
See if there’s a bike-sharing program in your area. Bike share programs typically charge an annual membership fee of $50 to $75. The first half-hour of any trip is usually free, with longer rides costing a buck or two per hour. Bike sharing is spreading fast in cities such as Chicago, Denver, Miami, Minneapolis and Washington, D.C.
Tip: Bicycle commuting is more attractive if workers can shower before getting down to work.
