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Businesses continue to help their employees deal with high fuel prices through a variety of measures, according to results of a questionnaire gathered by the Rochester Business Alliance.

A total of 179 businesses, representing 43,000 local employees responded to an online questionnaire as to actions they are taking to offset the affect of high fuel prices on employees. Of that group, 62 percent reported that since June, they have increased the mileage rate being paid to employees for driving that is work-related, while another 7 percent said they are considering a higher mileage reimbursement rate. An additional 3 percent have taken other actions, such as providing employees with gas cards and bus passes.

When asked how much employers are paying for mileage reimbursement, 158 respondents reported an average of 53.7 cents per mile, with 60 percent paying the IRS standard business rate of 58.5 cents per mile, which increased effective July 1. In a related survey conducted in May 2008, 51 percent were paying the previous IRS approved rate of 50.5 cents per mile, with an average paying 47.2 cents.

Results also showed businesses are trying or contemplating a myriad of solutions to help offset these costs to their businesses as well as their employees. Among the solutions reported:
  • Limiting business travel – 31 percent said they are currently doing so, 19 percent are considering. In the May survey, 45 percent of the respondents said they were limiting business travel.
  • Offering flexible scheduling - 27 percent said they were offering some type of flexible scheduling, such as employees working 4, 10-hour days, and another 20 percent are considering it. That compared to a May result of 15 percent of respondents offering flexible scheduling.
Employers were also continuing to urge organizing of car pools, use of public transportation (including offering pretax reimbursement accounts as well as discounts and subsidies), and allowing telecommuting as an option.

The survey was conducted by the Business Information Division of the Rochester Business Alliance, which is the regional chamber of commerce, representing about 2,000 businesses in the nine-county region.

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