Psychological and economic effects too!
60 percent of respondents have to rethink the way they spend money.
41 percent have paid off debt more slowly.
43 percent have cut back on recreational activities.
25 percent have gone without basic necessities (food, heat, etc.).
44 percent are worried about how they are going to make ends meet.
Thu 03-Aug-2006
Professor Documents How Rising Gas Prices Affect Wallets, Psyches
http://www.newswise.com/articles/view/522490/?sc=dwhn
Newswise — The price of gas has doubled over the past three years,
hovering around $3 a gallon nationally. Wayne Hochwarter, an associate
professor of management in the College of Business at Florida State
University in Tallahassee, Fla., recently conducted research to
determine how increased gas prices have affected personal finance, as
well as behavior at work. More than 300 employees across a wide range of
occupations were surveyed.
“I was surprised to see how strongly gas prices affected personal
finances,” Hochwarter said. “We casually talk about the effects of gas
prices but we really haven’t gotten a handle on how it affects every
spending. We also haven’t determined what role employers have in terms
of helping employees manage the stress that comes with spiraling gas
prices.”
Findings from Hochwarter’s study indicated that most people have had to
make drastic changes in the way they spend money. For example:
• 60 percent of respondents have to rethink the way they spend money.
• 41 percent have paid off debt more slowly.
• 43 percent have cut back on recreational activities.
• 25 percent have gone without basic necessities (food, heat, etc.).
• 44 percent are worried about how they are going to make ends meet.
“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.
“It is clear that the price of gas has caused significantly more stress
at home which is carried over to opinions of work,” Hochwarter said.
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.”
Finally, Hochwarter found that employees who were affected the most were
more likely to report that their company was unsympathetic to the problem.
“Acknowledging the difficulties associated with high gas prices is
important,” he said. “So is communicating how gas prices affect the
company’s bottom line.”
