Rising gas prices are making remote work even more attractive

High gasoline prices they are the last deterrent to millions of American employees returning to the office as they face more costly commutes.

According to GasBuddy, fuel costs rose by more than 20% in early March, pushing prices up by 50% a year ago. Nationwide, the national average for a gallon of gasoline is currently $ 4.19, according to AAA. Pump prices have risen with general inflation rises to its highest level in 40 yearsincreasing financial stress and as employers summon people back after more than two years of working from home during the pandemic.

“Russia’s sanctions have led to much higher gas prices, and higher gas prices have made people less willing to spend money to go to work,” said Matt Becker, a former House spokesman. White with the U.S. Small Business Administration under President George W. Bush and current owner of the national personnel agency Pridestaff. “With gasoline prices still above $ 4 a gallon, teleworking is a very attractive solution to this problem and an important factor for job seekers who weigh the benefits of job opportunities. “.

Ravin Jesuthasan, a job expert at consulting firm Mercer, said some of his corporate clients have recently slowed down the return of workers to the office because of concerns about rising gas costs.

“We’re seeing a lot of organizations start to take a step back in light of a very dramatic and rampant rise in gas prices,” Jesuthasan told CBS MoneyWatch. “A lot of companies were thinking about going back to the office after the Omicron wave crashed, but now they’ve paused. They’re saying, ‘In fact, let’s wait and see how this works.’ We expect gas prices to arrive. we are starting to slow down and not rush to the office right now. “

While companies remember workers, some people are reconsidering how often they move into the office because of the additional costs involved in the pump. Phillip Barton, a financial advisor based in Raleigh, North Carolina, said that while he enjoys working from the office, he has reduced the number of days a week he spends driving 70 miles from home. to Northwestern Mutual Financial Services.

“Given the option, I’d rather go to the office and be surrounded by my classmates. But with that said, I’ll probably limit it and only go in on Mondays and Fridays. expenses, “he told CBS MoneyWatch.

In fact, entering the office is now 1.6 times more expensive for Barton compared to just a few weeks earlier. I used to spend about $ 85 a week driving to the office every day. But this has risen to about $ 140 a week, which is why he has decided to start staying home three days a week.

“That was the catalyst that made me take the option of staying home more seriously, which my employer offered me,” he said.

Rising gas prices are causing some to ask those who can work remotely to stay home. One expert said workers who can do their job remotely should be allowed to do so by their employers.

“Employers would be prudent to allow flexibility when employees have deep-rooted concerns about rising energy prices,” Patrick De Haan, head of oil analysis at GasBuddy, told CBS MoneyWatch. “People who can work from home should do so, in order to reduce national gasoline consumption and reduce the impact on people who cannot work from home.”

Rising demand for gas as Americans resume their usual routines, combined with economic sanctions on Russia and US ban on oil and gas imports to Russiathey are contributing record gas prices. On April 4, the national average gas price was $ 4.19 a gallon, according to AAA.

Prior to the recent increase, the record had been $ 4.10 a gallon in 2008, just before the financial crisis. But this rise was temporary and prices fell rapidly in the ensuing recession. This time, however, there is little relief in sight. Rising gas prices and rising inflation could mean more high costs for the rest of the year.

Before gas prices rose, shared travel company Lyft had announced a “fully flexible workplace” that would allow employees to work from home as much as they wanted. While Lyft’s corporate policy was developed without regard to gas prices, it certainly alleviates the burden of higher costs for employees.

Starting this month, the language learning company Duolingo requires its employees to spend three days a week in the office. He is not reconsidering his policy in light of rising gas prices, a company spokesman told CBS MoneyWatch, noting that few employees drive long distances to corporate offices in Pittsburgh, Pennsylvania and New York City.

“At our Pittsburgh headquarters, most employees live on foot, by bicycle or within driving distance of the office. At our New York office, no one is driving,” the spokesman said in a statement.

Job roles also influence companies ’broader reviews of when and where work is done.

“Companies are figuring out the best location for the job you’re doing. For a researcher whose job involves sitting in front of a laptop, this is a job that can be done anywhere, and companies are giving that person the flexibility to work at their local Starbucks, ”said Jesuthasan of Mercer.

It’s a different story for factory workers or others doing physical work, with high fuel costs even causing some to quit their jobs to look for work closer to home.

JB Brown, CEO of BCI Solutions, a metal smelter in Bremen, Indiana, told Reuters that 14 workers, representing 7% of the company’s workforce, have resigned in the past two weeks, largely due to rising gas prices in the wake of the Russian crisis. invasion of Ukraine. Some used to share a car with colleagues who resigned, and others simply can no longer afford to drive to work with their current wages.

“When the gas goes up, people want to work closer to home,” Brown told Reuters.

Becker of Pridestaff said companies that go completely away will find that they have an advantage in recruiting talent over those that don’t.

“Companies that fail to force their future workforce with the resources and assistance they need run the risk of downsizing their workforce,” he said. “More than the salary and free time paid, that new wave of job seekers they are more concerned about the health benefits that allow them to maintain their mental well-being and, ultimately, their financial well-being. “