Low Productivity? Blame high gas prices!

A recent survey completed by Florida State University professor Wayne Hochwarter reveals that when the price at the pump goes up, employee productivity and morale goes down.

“People concerned with the effects of gas prices were significantly less attentive on the job, less excited about going to work, less passionate and conscientious and more tense,” Hochwarter said. “These people also reported more ‘blues’ on the job. Employees were simply unable to detach themselves from the stress caused by escalating gas prices as they walked through the doors at work.”

Hochwarter surveryed over 800 people early this spring when gas prices were hovering around $3.50 per gallon.  Everyone surveryed each used their own personal transportation to cummute to work and traveled on average of 15 miles each way.

Some of Hochwarters main points:    

52 percent have reconsidered taking vacations or other recreational activities 

45 percent have had to cut back on debt-reduction payments, such as credit card payments

Nearly 30 percent considered the consequences of going without basics including food, clothing and medicine

45 percent report that the escalating gas prices have “caused them to fall behind financially”

39 percent agreed with the statement “Gas prices have decreased my standard of living”

About 33 percent — or one in three — said they would quit their job for a comparable one nearer to home.

The interesting point about this survey is that is was completed in the spring with gas prices significantly lower than what they are today.  Here in Arizona, with gas prices hovering around $4.19 per gallon for regular unleaded, I wonder if these same statistics will hold true  in our own backyard.  I'd be willing to bet the results would be staggering now that the prices have increased and more than likely will continue to rise.  I recently heard of a man here in Phoenix taking a significant paycut to find a new employer within walking distance of his home.   His only reasoning for it was the cost of fuel since his trip was about 30 miles each way.  I personally know people driving double that mileage just to get to work.

Many companies are now getting very creative in an attempt to boost moral and get their employee motivated by helping privide solutions or band-aids for the increased prices of fuel.

A few suggestions we have seen from helpful companies are:

•  Organizing car pools
•  Telecommuting or allowing employees to work from home a few days of the week (if it's feasible for your position),
•  Exchanging tips with one another on fuel coservation
•  Pre-Paid Gas Cards as incentives instead of movie and lunch gift certificates

Hmmmm, what would you rather have?  A gift certificate for $25 to Chili's or a $25 pre-paid gas card?  I'll take the gas! 

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Posted June 20th, 2008 by Vincent - Posted in Benefits, Human Resources, Other, Productivity | |

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