August 2006

High gas prices may affect healthcare spending.

Rising gas prices may be affecting your practice. According to a study conducted by an associate professor of management at Florida State University in Tallahassee, 25 percent of survey respondents are going without basic necessities.

Researcher Wayne Hochwarter said, “I was surprised to see how strongly gas prices affected personal finances.”

Findings from Hochwarter’s study indicate that most people have had to make drastic changes in the way they spend money. For example:

“What was surprising was how changes in personal finance affected behavior at work,” Hochwarter said.

Changes in personal finance were associated with lower levels of job performance, less enthusiasm, less willingness to help others, fewer positive feelings about the organization, higher levels of depression, and an increased sensitivity to minor irritants at work.

The stress caused by increased gas prices may be increased by employers’ failure to recognize the problem. The vast majority of employees (92 percent) indicated that their company has failed to even acknowledge that a problem exists, while 30 percent of employees felt that employers should do something to help. When asked, employees indicated that their company should offer financial support. On average, employees felt that a $30 a week subsidy would reduce much of the stress caused by high gas prices.

Interestingly, more than one-third (35 percent) of employees indicated that they would change jobs with comparable pay and responsibility if some form of assistance was offered. Finally, only 15 percent of employees felt that the price of gas would affect company profitability.

“Certainly, there are things that organizations can do to help,” Hochwarter noted. “Subsidizing employees for their travel is problematic for a number of reasons.

However, companies can help by developing carpool programs and offering tips on how to maximize gas mileage. Companies may also find allowing employees to telecommute may alleviate much of the financial strain.”

Source: Florida State University, www.fsu.com