The rising cost of fuel has hit all of us hard recently. I think we’re slowly realising that things aren’t going to get any easier. Just the opposite in fact.
Because our economies are so inter-dependent, when the cost of fuel rises, the price of everything else increases too. Fuel is used, obviously, in the production of the ‘things’ that we make and do but also to transport those ‘things’ for people to consume. Thus, when fuel prices go up, so does everything else.
This is not a blog about economics
As I understand it, the increase in fuel consumption from countries such as India and China is partly to blame for rising fuel prices. But I’m not going to try and explain all of the reasons because I don’t understand them 
What I’m interested in is whether recruitment and employment will change as as a result of these increases.
Travel for employment is becoming too expensive
For example, I wonder if candidates will refuse to travel to interviews that are too far away? Conversely, recruiters may refuse to pay the interview expenses (which is rare anyway) of candidates who live far away.
I guess it depends on your conception of ‘far’.
I also wonder if fewer people in the recruitment industry will attend exhibitions and events. Will these events struggle to attract delegates unless they reduce entry prices? Or could they negotiate special rates with partner organisations such as coach and train companies?
The impact at organisational level
Because of the need to reduce ‘organisational footprints’, will HR departments insist that only people within a certain radius should be employed? Or will candidates need to prove that they use only ‘green transport’ to get to work?
The choice of personal transport may even become a selection criteria that employers use to choose between candidates.
I can see the headlines now, “Woman with 4×4 refused job”. Sounds like a legal minefield if you ask me.
I also wonder if people who commute long distances will start – if they haven’t already – to look for more local jobs. Maybe regional economies will benefit from workers choosing to stay in their locality rather than working away in the ‘big city’.
Will this then force organisations to relocate to be geographically nearer talent pools? Or will they be forced to rely upon their local workforce?
The impact on recruitment globally
Could it be that the threat of globalisation recedes as products become too expensive to ship from overseas? We might see the return of heavy industries to previously devastated industrial areas so that production is closer to the customer. This in turn would change job markets on local, regional and national levels.
My head hurts thinking about all of this.
Maybe nothing will change. Maybe we’ll all just get used to ever higher fuel prices and carry on as before.
I don’t think so.
For example, US drivers – long-used to cheap petrol prices – have already started changing their driving habits.
But I wonder if you have any examples of how the rising cost of fuel is affecting your job or travel to work? Do you recognise any of the scenarios I’ve painted above? How have you been affected by the rising cost of fuel?
I’d love to hear from you.
Hi Andrew – an excellent post. I put together a not dissimilar post a few days later. I think considering the cost of fuel on a global scale is a really good point to make. This could seriously affect certain companies with the wrong type of geographic spread.
Plus – a good petrol shortage (well strike anyway) goes some way to remind me people about how often they fill their car up…
Hi Andrew – based on my own situation I think this issue will affect recruitment decisions. A year ago I thought nothing of commuting an hour each way to work each day by car, now I am not sure I would be as quick to take on that sort of time and expense.
Hi Andrew. Quite rightly a rise in travel costs will inevitably impact on salaries and candidates’ willingness to travel for work. I suspect that it will speed up the inevitable move towards mass home working. I viewed Mike McClelland’s ‘distance/cost’ table with interest. Personally, I choose to work from home and would rather put those travel costs to better use – paying off my rising mortgage!
I am sure that we’ll see a lot more ads with “opportunity to work from home” listed as a benefit in future…
Hi Andrew
I proposed that we change the working hours of a part-time member of staff from 5 half days to the same hours over 4 to help reduce her travel to work costs – which of course are a higher percentage of her wages than full time employees.
The member of staff was thrilled with the suggestion (and offered to be more flexible if required). My proposal was approved and has recently been implemented.
best wishes
Tina
ps although how often do we reflect on longer travel journey’s for work (when we aren’t picking up the bill)?
Hello Andrew,
Excellent article, thank you.
For me, the thought of a resurgence of manufacturing in the West is very exciting. I believe that many of the social problems encountered today in our streets are due to the lack of employment for ‘non-intellectuals’. Afterall, miners, shipbuilders, car builders, factory workers held themselves – quite rightly – in high regard and passed this self-esteem on to their children. May it all come back.
It’s very interesting, Andrew. I believe mankind always find a way to compensate one shortage with another and move our history forward –
I totally agree with you that the increase of the cost of fuel of course impacts on our travel to work, organisational level and global recruitment. But on the other hand, we have technology available. Working from home, online conference/interviews, and of course online jobs boards like jobs.ac.uk are not new. Therefore, I think the rising cost of fuel will further push recruitment switch to online.
I believe in globalisation. I think the impact will definitely not change job markets on local, regional and national levels. Thanks to the internet, recruitment will go more global but act more local. So, I see in the not far away future, jobseekers will attend virtual careers fairs (maybe on Second Life:)?), recruiters host online video interviews (as it was discussed in our UK Immigration and International Recruitment Event).