06/ 30/ 2008
by Jeffrey Moses
Economic analysts agree that the gas crisis isn't going away any time soon, and prices will continue to rise significantly. This puts small businesses in a crunch for two reasons: a business' operating cost is increasing, as well as its employees' overall cost-of-living.
The rising costs of gas, food and other essentials translate into a reduced standard of living for employees if salaries remain unchanged. Therefore it is essential for small businesses to get real with gas-saving alternatives for employees. Small companies at this time will find it crucial to work with employees in establishing effective and practical ways to cut down on costs by reducing gas consumption.
The following tips can serve as guidelines toward this end:
Encourage carpooling. Establish official, company-sanctioned ride sharing bulletin boards and other means for employees to communicate. Even if employees take a little time off work to coordinate ride sharing, or if they arrive a few minutes late to work once in a while because of carpooling, the company can still benefit from this practice.
Don't limit carpooling to employees in your company only. Coordinate with employees in other businesses in your building, or buildings nearby.
When possible, allow employees to drive to and from work at times other than rush hours. Traffic jams and slow going during rush hour, reducing gas mileage significantly.
Consider establishing telecommuting programs for employees. Previous Tools and Tips articles have gone into some depth about the practicality of implementing these programs. Now it's time to get serious about using them.
Consider establishing a four-day workweek for employees. This automatically eliminates two commutes a week. Setting up a four-day work schedule is an art and a science. You might want to consult with an expert in the field.
Put special attention on employees who have very long commutes to work, especially if they are key employees who would be hard to replace. Without your knowing it, they may already be looking for work closer to where they live. The farther from work employees live, the harder it will be for them to line up ride sharing. In some cases, the company may need to set up reimbursements for key employees, based on their distance from work and the price of gasoline.
Encourage all employees to follow basic gas-saving driving habits:
- Avoid fast starts that eat up gas
- Turn the car off whenever possible instead of idling
- Use cruise control when possible
- Don't let the car warm up excessively before starting to drive
- Keep cars well maintained to reduce fuel costs.
Small businesses that have company vehicles should also look for ways to cut down gas consumption. These include:
- Turning off service vehicles when parked during delivery.
- Organizing and consolidating business trips to reduce total miles driven. This includes trips to meetings, jobsites, deliveries and general errands.
- Using the U.S. postal system or local delivery services if you determine they can save you money. The U.S. mail may be a little slow, but if a package can arrive a day or two later, you could save a bundle.
- Geting a business credit card that gives you cash back or discounts for gas and other purchases. Even a two percent discount will add up at the end of the year. Pay the card balance each month so finance charges don't eat up any cash back or discounts you receive.
