How to Factor Gas Prices in Recruiting and Retention

The online recruiting community ere.net reports that employers offering transportation subsidies, telecommuting options, and virtual office arrangements may be wooing the best and the brightest candidates right now, even without the highest salaries and biggest relocation budgets in the marketplace.

Today it isn’t unusual to find employees spending $5,000 a year just in gas to commute. Many firms are using telecommuting to increase the pool of prospective candidates. If you have a policy like this, you may be able to offer less salary because the employee will no longer need to absorb the daily commute cost.

ere.net also reports that even firm management who commute 30 miles or more to work are turning over at higher rates because of high gas prices and it will only get worse when the job market and the economy rebound. Fuel prices are also affecting the cost of relocation. Candidates are scrutinizing the cost of living in prospective urban areas and more are either turning down offers or negotiating for higher salaries. Firms too, are responding differently – many now require relocating managers to sign repayment agreements, obligating them to repay the relocation costs if they quit before completing one year of employment. You need to factor these realities into your management recruitment and retention strategy.

Bruce