Employers Offset the Rising
A survey published by the Society for Human Resource Management (SHRM) in May of this year shows that employers are offsetting increased gas prices with a variety of benefits and initiatives. While only 2% of respondents have raised their fixed costs by offering a cost of living increase, nearly half of the best practices brought out in the survey do show employers incurring some cost.
The most common benefit cited in the survey is an increase in mileage reimbursement to the IRS cap, offered by 42% of respondents. The current IRS cap rose to 58.5 cents per mile on July 1st and will remain in effect until December 31st, a 13% increase from last year.
A lower cost option to offset fuel prices is offering – or increasing – public transportation discounts. Gas cards are another option, with 14% of respondents indicating they have offered them to employees. If you already offer other types of gift cards to your employees, it may be a good time to re-evaluate and apply these funds toward fuel gift cards or another aspect of employee transportation.
Employers who are not interested in offering additional benefits that have a tangible price tag may want to look at flexible work arrangements. Of responding employers, 26% indicated that they offer flexible schedules, including compressed workweeks and flextime.
Telecommuting is becoming increasingly popular, as 18% of respondents indicated that they offer telecommuting as a benefit, and another 3% intend to begin offering the benefit. If flexible work arrangements are compatible with your business, it may be time to seriously consider implementing such practices. If you already offer flexible work arrangements, provide employees with a reminder and communicate your support for this policy.
Other initiatives that employers are incorporating include organizing employee carpools, recruiting employees living closer to the office, posting public transportation information, and offering monetary incentives to employees who purchase hybrid cars.
As rising gas prices cut deeper and deeper into employee budgets and more organizations are helping to offset these costs, it will become increasingly critical to offer these benefits in order to attract and retain your workforce. What better way to gain a competitive advantage in staffing then to jump ahead of your competitors in benefit offerings?
Author – Robert Krajewski – Associate HR Business Partner, Helios HR
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Employers frequently benchmark their benefits offerings against those of other organizations competing for the same talent. But it is only recently that gas cards are included on the benchmark list. As of June 23rd, the average price of gasoline in the greater Washington area was $4.10 per gallon, up $1.11 per gallon from one year ago. As gasoline prices continue to rise with no end in sight, some employers are helping their employees offset the increased expense.| Issue 7 | July 2008 |
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