What you can do to Ease the Burden of Rising Gas Prices

With gas prices surpassing $4.00 a gallon, it’s hard to imagine how employees are working for anything other than gas itself. Due to these sky-rocketing prices, many employers are beginning to implement various programs or incentives to help ease the burden. Programs such as commuter assistance, flexible work arrangements, and public transportation discounts are easy and cost effective ways to boost employee morale and keep gas prices from burning a hole in employees’ pockets.Below are some tips for helping your workforce deal with the ever increasing price of gas:

1. Create a carpooling program. Encourage employees to carpool with co-workers that have similar commuting times and destinations. Post carpooling sign-up sheets on bulletin boards and make it easy for employees to work together in sharing commuting costs. Be sure to communicate the benefits of carpooling, such as time savings in areas with high-occupancy vehicle (HOV) lanes, less wear and tear on employee vehicles, and of course the environmentally friendly benefits of less air pollution, traffic congestion and energy consumption.
2. Raise mileage reimbursement rates. Most jobs require some type of traveling on the part of the employee. As far as reimbursement rates go, the IRS standard is as follows: 50.5 cents* per mile for business miles driven; 19 cents per mile driven for medical or moving purposes; and 14 cents per mile driven in service of charitable organizations. However, due to increasing gas prices, it may be a good idea to offer more than the standard rate. In doing so, employers will ensure employees are better compensated for traveling time, gas, and vehicle wear and tear. Additionally, by offering more than the standard mileage rate, employers will be better able to retain those employees that are required to travel regularly.
3. Opting towards telecommuting. Telecommuting, or working from home, is becoming increasingly popular in today’s business world. In many instances, an employee’s work only requires access to a computer and the internet, allowing employees to meet work demands within the confines of their home. Although employees enjoy more flexibility in terms of the hours and location in which they work, management of this program may be a bit more difficult since face-to-face meetings are rare, the ability to measure performance goals is challenging, and training and support are minimal.

4. Public transportation discounts. The federal Transportation Equity Act (TEA), which was created in order to provide incentives for employers to help reduce the pollution and traffic congestion caused by commuters, offers tax benefits to employers participating in commuter assistance programs. Specifically, employers can provide up to $115 per month for transit or vanpool commuting costs as a tax-free benefit. Alternatively, employers can share these costs with their workers by paying part of their monthly commuting costs and letting workers pay the balance using pre-tax dollars. For extra employee savings, consider allowing employees to use pre-tax money to pay for company discounted public transportation.
5. Gas cards. When looking for ways to reward employees for a job well done, time off or extra monetary awards are no longer the only way to go. Gas cards are also a great way to reward your employees. Without a doubt, this incentive motivates employees just as much – or even more – than a few extra dollars in their paycheck would… which they will now be able to use on something other than gas!

6. Compressed workweek. Depending on your employees’ circumstances, work with their schedules to lessen the commuting burden. Some employers may wish to change their ‘standard workweek’ of 5 days per week, 8 hours per day to 4 days per week, 10 hours per day. Others may wish to stick with 8 hours a day, but implement one telecommuting day for employees. Whatever the case may be, allow for some give-and-take with your employees. Doing so will not only help to alleviate the gas price burden, but will also help to meet the demands of your employees’ personal lives.

With soaring gas prices, some employees are barely working for anything other than gas itself. By stepping in and easing the gas burden, employers will ensure a happier and more committed workforce. Hopefully, these tips have inspired you to make some simple, yet positive changes within your business.