With gas prices at an all-time high, healthcare costs on the rise, and the economy in or near recession, the summer of 2008 found many U.S. workers struggling to make their budgets work. And, in some cases, struggling to make it to work.

Today, the cost of filling up a car with gasoline is cutting so deeply into workers’ incomes that many have been forced to make substantial and often painful cutbacks in other areas just so that they can afford to get to work each day.

A June 2008 Gallup survey revealed that the high gas prices have left 11 percent of Americans with little or no disposable income. Similarly, the Workforce Institute found in their study, “Working in America: Drivers Cope With Soaring Gas Prices,” that 59 percent of respondents were driving less when outside of work, 57 percent were eating out less, and 30 percent had postponed a vacation because of high fuel costs.

And those are just cutbacks in discretionary spending. Another study by Florida State University, which surveyed 800 full-time workers who drove an average of 15 miles each way to work, found that 45 percent of the survey respondents had fallen behind on their finances due to gas prices, while 30 percent were considering cutting back on essentials, such as food and medicine, in order to make ends meet.

“Many employees are taking the commute to work very seriously,” says Steven Williams, director of research for the Society of Human Resource Management. “It’s not just a hassle. It’s an economic issue now.”

And in turn, the high cost of commuting to work has become an HR issue. “Three years ago the price of gas wasn’t considered an HR issue. Today, it’s starting to take its toll on employee loyalty and [is] becoming a serious concern,” says Larry Filler, president and CEO of TransitCenter, a not-for-profit organization that promotes mass transit use by providing tax-free transit benefits to commuters.

What Filler is referring to is the fact that the anxiety of dealing with high gas prices, coupled with the economic downturn, has left workers even more stressed, which in turn affects productivity.

“People are just worn out…they see no end to this,” says Wayne Hochwarter, a management professor who conducted the Florida State University survey. “Worse yet, this is happening at a time when corporate profits are down and nobody is getting the 4 to 5 percent raises of the past, which might have helped them to keep up. Instead, they’re falling behind and struggling financially, and they’re thinking, ‘The company isn’t stepping up and helping me out. The days of me busting my butt for my employer are over.’”

What’s worse, the high cost of commuting has led many workers to re-evaluate their career choices altogether. Recruiters report that job candidates are frequently turning down jobs that require a longer commute in exchange for those closer to home, even when those jobs offer less opportunity for career advancement or pay increases.

Furthermore, of the 800 workers surveyed by Florida State, one in three long-distance commuters said that they would be willing to leave their current job for one with a shorter commute. Another survey commissioned by TransitCenter revealed that 26 percent of workers said they would consider changing jobs if it meant an easier commute.

And, whereas the cost of commuting to work was once considered a deterrent only for lower-income workers, current research shows that even workers who earn six figures are thinking twice about their long drives to work.

With little relief in sight elsewhere, workers are looking to their employers to ease the burden. And while some companies have responded, too often relief comes in the form of programs that have nothing to do with getting to and from work, such as mileage reimbursement, which compensates employees for work-related travel only and not for commuting costs.

Though extending more benefits to employees requires a significant financial commitment from employers, many of whom have also been hit hard in the economic downturn, experts say that the investment is well worth it, especially considering the strategic advantage that such benefits give them in a job market in which retaining top talent is as difficult as recruiting it.

“Employers may be missing an opportunity to improve morale and reduce turnover by helping their staff cope with the burden…” says Max Messmer, president and CEO of Robert Half International, a staffing firm. “Companies can build loyalty and motivation by showing employees that they are empathetic to their concerns during challenging times.”

So what can organizations do to help their employees through difficult financial times, and at the same time boost employee moral and loyalty? One answer is simple and quite familiar—expand traditional benefits packages to include perks that ease commuting burdens, similar to what employers have done to assist workers with health care and child care costs.

Here are some alternative benefits that creative employers may offer their employees:

1. Flexible Schedules. Once offered as a benefit only to working mothers who wanted to continue working, flexible scheduling, which allows employees to set their own work hours, has become one of the most popular perks a business can offer its employees. Besides reducing commuting costs, flexible schedules can also promote a better work/life balance, which often results in a more relaxed and productive workforce.
2. Compressed Workweeks. Summer 2008 saw a trend of state governments and educational institutions implementing compressed workweeks, by which employees worked longer hours each day but, in most cases, only four days a week. Not only can compressed workweeks reduce commuting costs and mitigate employee burnout, but the arrangement may also help to reduce an organization’s energy costs by about 20 percent.
3. Telecommuting. Telecommuting has often been touted as a solution for the problems of overcrowded highways and air pollution, as well as high fuel costs. While permitting employees to work outside the office saves them money on gas, it also provides the added benefit of enabling them to care for a child or elderly parent without having to take time off from work. Employers should also consider the increases in productivity and morale that follow when employees feel trusted and valued by their organizations.
4. Carpooling. Though certainly not a recent phenomenon, carpooling has increased in popularity in recent months. Organizations can encourage carpooling by setting up a bulletin board that enables employees to coordinate their rides to work with coworkers or by offering incentives for carpooling, such as priority parking spaces.
5. Public Transportation. Shuttle services to and from public transportation access points, discounts for using mass transit, and even reimbursements for using public transportation are benefits that are growing increasingly popular among employers in areas where public transportation is a viable option.
6. Pre-Tax Commuter Benefit. Employers can also offer their employees the option to pay for qualified parking and public transportation on a pre-tax basis, resulting in substantial savings for employees and minimal costs to employers.
7. Gas Cards. While some companies are using gas gift cards instead of cash bonuses to reward high-achieving employees, others are offering them to all employees needing relief from high fuel costs. STS Telecom in Cooper City, Florida has gone so far as to reimburse employees for a portion of their commuter costs after realizing that the current average price for a gallon of gasoline is about $2.00 higher than it was two years ago, when gas was $2.67 a gallon. Now, STS pays employees $2 for every mile they commute to work.
8. Encouraging the Purchase of Hybrid Vehicles. Companies such as Bank of America Corporation, Timberland, and Patagonia provide monetary incentives to employees who purchase hybrid cars.
9. Relocation Assistance. A few organizations help new employees find housing closer to work; others offer relocation services for current employees who have long commutes.

Before employers select which benefits to offer their employees, experts suggest that they do their homework. One necessary step is to survey employees to get a clear picture of their commuting habits, the impact that high gas prices have had on them, and the benefits that would best suit their needs. Equally important is the need to study employees’ transportation options; in areas where public transportation is limited, offering discounted rates or subsidies would offer little benefit to employees.

Prior to offering employees additional benefits, employers should also take the time to remind workers of the benefits they currently enjoy. Sometimes, employees aren’t even aware of existing benefits because they haven’t yet taken advantage of them.

Perhaps the best thing for employers to remember when trying to ease their employees’ pain at the pump is that it is not always necessary to spend a lot of money to demonstrate concern for their workforce. Many of the benefits employers can offer to help employees through difficult times are cost-effective and easy to implement. What may matter most to employees, what may stick in their minds even after the price of gas goes down, is that their employers paid attention to them and acted to alleviate their burdens. Such an expression of concern will almost certainly boost morale and promote loyalty.