The New $100 Commute

Return-to-office efforts seemed complete: After years of attempts, firms had finally succeeded in bringing most workers back to their desks during the week. Then came an oil crisis in the Middle East.

With average gas prices jumping up more than 15% in a week, and the cost of filling up a tank exceeding $50, the return-to-office debate appears to be heating up again. In another week, gas could cost over $100 daily for a worker who commutes from a distance. Managers find themselves in a quandary. “It puts the boss in a tough spot,” says Dennis Deans, global human resources business partner at Korn Ferry.

To be sure, many companies have affirmed that workers need to be in the office on most days; after a long battle to restore that norm, they’re hesitant to give up an inch of ground. But employees with lower salaries may well push back on commutes that dig into their paychecks, especially while consumer prices remain high. Managers face particular angst over employees who might find remote options elsewhere. Is a job worthwhile if the commute is two hours and calls for pricey trips to the pump? “That equation needs to work for both employers and employees,” says organizational strategist Maria Amato, senior client partner at Korn Ferry.

Employees are not the only ones checking their wallets. If the oil crisis continues—alongside the ongoing energy-guzzling expansion of data centers—the costs of heating and cooling buildings will likely increase. This is true both for older buildings that use heating oil and newer structures that use electricity. “This impacts everyone,” says Dan Pulver, a Korn Ferry senior client partner in the firm’s Global Infrastructure and Real Estate practices. Firms will likely reconsider office layouts by shrinking common spaces and overall footprints. “Companies will pay less because they have less square footage,” Pulver adds. In turn, landlords will likely focus on installing more efficient or renewable energy options.

Experts say that executives need to balance the costs to the firm with borne by its employees, but that there is some space for schedule flexibility, especially if workers are already hybrid. Managers may reconsider which days are critical for in-office work, such as meeting days and client lunches, and plan around them. But employees must be told clearly that they are expected to return to normal schedules once prices go down. “This is a matter of being really practical in today’s environment, but setting long-term expectations,” says Deans. It’s also critical that the same rules apply to everyone, he notes.

Experts advise managers to get ahead of this by reminding employees of the commute-related benefits available to them. At the end of the day, “a flexible hybrid policy is what’s most desired by employees around the world,” says Amato.

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