Some employers plan to offer various benefits to employees to alleviate the
impact of higher gasoline prices, including a compressed workweek and increased
use of telecommuting, a new study has revealed.
Within the next six months, 22 percent of employers plan to offer at least
some of their employees the option of a four-day workweek, and 24 percent plan
to allow more employees to telecommute, according to Mercer’s 2008 Gas Price
Impact SnapShot Survey.
The survey also found that two-thirds of the responding companies plan to
increase mileage reimbursement amounts by as much as 20 percent for
business-related travel, while 41 percent anticipate raising car-allowance
provisions by as much as 20 percent.
Other findings indicate that organizations are considering creative steps to
help employees offset gasoline prices, including organizing car-pooling programs
and offering company-funded van services from bus and train stations. Some 30
percent of responding companies offer car-pooling programs, and 23 percent plan
to implement them in the next six months.
Organizations are also offering prepaid gas cards for perfect attendance and
subsidies for public transportation costs. The subsidies are provided by 20
percent of the respondents, and 8 percent plan to offer the option in the next
six months, according to the report.
“These options are more practical than raising salaries to cover high
gasoline costs because of the implications associated with increasing pay, such
as employer taxes, 401(k) matches based on percentage of pay and bonus payouts
that are a percentage of pay,” said Mitch Barnes, principal at Mercer in
Atlanta.
“Making the most of creative alternatives to help employees save on commuting
costs is good management practice, supports attraction and retention concerns,
and doesn’t add significantly to corporate expenses,” he said.
Mercer surveyed more than 300 U.S.-based companies last month. The report
will be available online in mid-September and can be accessed at www.imercer.com/snapshot.
Filed by Colleen McCarthy of Financial Week, a sister publication of
Workforce Management. To comment, e-mail editors@workforce.com.