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PUBLICATION

Title:	Thinking Creatively Turns Problems into Solutions
Source:	Chicago Hospital News
Publish Date:	03/01/2008
Author:	Russ Jones

We’ve been studying economic and employment predictions for 2008, and are finding the landscape somewhat blurry. At press time, it was anyone’s guess whether the long expansion will end and the U.S. will slip into a recession due to the upheaval in the mortgage industry, slowdown in housing and high fuel costs. But even if the economy doesn’t slide dramatically, each of these negative trends causes direct and indirect problems for American workers. Fortunately, behind every dark cloud is a silver lining. Employers and job hunters who can see the upside of even the most distressing trends can take advantage of them to create a profitable 2008.

As an example, let’s look at how a perfect storm of three current problems can turn into a day at the beach for innovative companies seeking to maintain top performing workforces. The three problems: high gasoline prices, which are taking an unprecedented bite out of everyone’s disposable income; low participation in car and van pool programs designed to ease congestion and pollution; and the need to find low-cost ways to attract and keep a pool of high-quality, motivated employees.

Even as fuel costs have steadily increased in the past decade, U.S. employees are firmly attached to their cars. In 2005, the Census Bureau found that almost 90% of employees drove to work alone, despite rising fuel costs. But current per-gallon gas prices are so much higher than two years ago that the cost of driving is having a more noticeable financial impact. To minimize the pain, more employees likely will be receptive to using public transportation or sharing rides to work, especially if their companies offer them money to do so. Employers that can quickly incorporate a transportation subsidy into their hiring incentives and current benefits plans may see a jump in job acceptances and existing employee satisfaction as well.

The beauty of this solution is that there’s already an IRS program that makes it attractive for companies to offer this benefit. The Transit/Vanpool Benefit Program allows employers to provide up to $100 per month, or $1,200 a year, to workers who commute via mass transit or van pool. Employers can deduct these costs as business expenses, and employees don’t need to report it as income on their taxes. Not only do employers get a tax deduction under IRS Code Section 132(F), but they can save on payroll taxes, FICA and other payroll costs. In New York, surveyed employers reported saving 30% to 40% this way over providing the same dollar benefit in the form of salaries.

That’s not all. Clearly current ride-share and van pooling programs aren’t matching employee needs, otherwise participation would be greater. The technology exists to quickly determine what types of ride-share options employees would use and apply those findings to the creation of new plans -- perhaps in partnership with other companies. Since employees would pay to participate, the transportation subsidies they receive by ride-sharing could help offset the cost of such programs.

When life gives you lemons, the solution is to make lemonade. In surveys, employees repeatedly say that salaries aren’t the main reason they leave or join companies. What concerns affect your workforce? Instead of offering more money to attract or retain workers, think creatively about solving employees’ problems.

Russ Jones is a Partner at First Transitions, Inc., a corporate-sponsored career transition and executive coaching firm specializing in the healthcare field. He can be reached at 630/571-3311, 312/541-0294 or at rjones@firsttransitions.com. You can also visit the website at www.firsttransitions.com.