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SPOTLIGHT
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Gas conundrum and innovation

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Susan Nickerson<br>

Susan Nickerson

I'm one to try to make lemonade out of my lemons. The continued increase of gas prices is a whole bowl of lemons, for sure. So, what to do?

Well, for a business, I can think of a couple of strategies to make lemonade out of the lemons: the current fuel scenario. How many people do you know who get in their cars and drive a number of miles to their workplace when there is a comparable job right in their backyard?

Some smart employers are capitalizing on this by promoting their company as a good place to work, making smart decisions to be the employer of choice and saving the employee commute money. A billboard along the interstate touts, "Pocket Your Commute Change, Good Jobs Available Here."

For those employers providing transportation, incentives for carpooling or gas bonuses, I applaud you. If you have valued employees who are commuting and are crimped by the increased gas expense, it behooves you to consider this or face the reality of the cost of turnover, which could mean much greater expense than the cost of a gas incentive.

Do that math. Because of lost productivity of the worker who left and the supervisor who has to train the new employee, new employee mistakes, etc., the cost of turnover can be huge. It's generally estimated to be 1.5 times the annual salary of the person who you're replacing.

Another money-saving technique came to light recently when I visited a local area manufacturing operation to celebrating a milestone safety award. The company has received numerous accolades for their safety programs and the great teamwork that keeps their employees engaged and involved. Among the strategic decisions they've employed was to install their own wind turbine to offset the cost of their power.

Although this is not a viable option for all businesses, energy-saving tactics are worthy of consideration in the bottom line. Politics aside, it might be a smart business decision to look at some alternatives and contact your energy provider for an energy audit. There might be some very inexpensive ways to save big dollars in this budget item.

For the manufacturer with the wind turbine, the purchase, assembly, connection and maintenance has not occurred without expense, but it quickly paid for itself. In fact, the company averages a one-third reduction in energy expenditures each month. Now, put a pencil to that. What could you do with that extra money?

Pay some gas bonuses.

Susan Nickerson is director of the Kansas Department of Commerce's western region.

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