As gas prices rise, companies may rethink in-office attendance requirements

The return-to-office debate is heating up once again…

Conflict in the Middle East has disrupted the global oil supply chain, causing gas prices to soar. In the US, the average price for a gallon of gas hit $3.59 earlier this month, according to AAA, up $0.65 from last month and $0.51 from last year.

Gas prices are rising at a time when companies have been pushing for more in-office attendance, and employees have been largely dissatisfied with their commutes. If the trend continues, it may create recruitment and retention issues for HR pros, Ron Porter, a senior partner at consulting firm Korn Ferry, told HR Brew.

“If you’re an employer, and you’ve got people who are on the edge of, let’s say, ’Is this job affordable? Are there other things I could be doing instead of this?’ You could have some risk of some turnover,” Porter said. “This may have been a problem that existed before. It’s just being exacerbated now with the oil crisis.”

What HR needs to know. It’s hard to gauge how quickly companies may see retention issues due to rising gas prices, Porter said, as employees aren’t likely to make “career decisions based on the current situation.” But, if the price of gas is persistently high, or continues to rise, he said companies may need to reevaluate their in-office requirements.

“There would be, probably, a bit of an adjustment, or a bit of a return to the Covid-stance around being in the office,” he said. “[It’s] a step back to something that is maybe a little bit more moderate from what might be two extremes.”

During the pandemic, companies that offered remote and flexible options were able to expand their talent pools. The current in-office requirements, combined with high gas prices, may decrease their geographic reach, Amy Glaser, SVP of business operations at staffing firm Adecco, told HR Brew.

“Although somebody might be willing to drive 40 miles today, if gas prices continue to go up, they’re going to look for a job within 20 miles,” Glaser said.

What HR can do. People leaders should acknowledge how global issues are impacting employees’ daily lives, Deb Muller, CEO and founder of employee relations software company HR Acuity, told HR Brew. They should also encourage leaders to avoid thinking with their “old-school hats on.”

“The world is just different. Our employees are just different. The expectation of employees on their employers is different, so we can’t have the old way of doing things,” Muller said. “The most important thing is that consistency and communication, sharing the why, not hiding behind it, being transparent about what you’re doing…Even if it’s bad news, the worst thing to do is to hide behind it.”