Low-cost solutions in an oil crisis

How do organizations manage the oil crisis that IS adversely affecting operation and leaving workers struggling with increased commuting costs? — Hidden Panther.

In its Pulse Survey 2026-01, the People Management Association of the Philippines (PMAP) suggests its member-organizations are focused on four top concerns — employee commuting, energy costs, logistics, and procurement and supply chain issues.

The survey covered 76 respondents who recommended pursuing cost efficiencies, enhancing supply chain resilience, supporting workforce productivity, and strengthening crisis planning. The number of respondents appears small but I believe they represent the majority view.

The most popular scheme is a four-day work week with PMAP members carefully assessing the scheme’s impact on productivity, customer service continuity, operational coverage, and the resulting increase in the daily workload.

Knowing that the oil crisis adversely affects both management and its workers, I’m focusing on low-cost solutions (compared to direct subsidies) which are the most practical solutions under the circumstances. This is understandable to many companies, even if they could afford it, who would hesitate before launching any cash-based solution.

PROPOSED SOLUTIONS
Rather than employee cash incentives, employers may focus on flexibility and procedural efficiency. Here are my recommended strategies that they can implement:

One, radical flexibility in work arrangements. The most direct way to mitigate high fuel prices is to reduce the need for travel. The most popular is a compressed work week scheme of four 10-hour days, eliminating 20% of the weekly commute without reducing total work hours.

Another option is remote work for jobs that allow it. It’s like increasing the number of work-from-home days, which immediately cuts employee commuting expenses and reduces the organization’s office utility load.

Also worth considering are staggered work shifts, allowing employees to start earlier or later to help them avoid peak traffic, improving fuel efficiency by reducing time spent idling in congestion. In some organizations this is called Flextime.

There’s the practice of “hot desking,” currently practiced by Nissan Philippines, which revives a system popular in Europe in the 1990s. It’s a workplace setup where employees don’t have assigned desks.

Instead, they use any available workspace when they come to the office on a first come, first served basis.

Ericson del Castillo, vice-president for human resources at Nissan, says the “hot desking” experiment runs for three times a week. Instead of occupying two floors, they’re reducing it to only one floor starting 2027. However, this scheme is best suited to sales organizations, consulting firms, and hybrid workplaces where the workers are not required to report daily.

Two, organizing and facilitating commuter networks. Using a basic app, any firm can act as a hub for commuting and logistical coordination without spending significant capital. It could be developed by a company’s IT expert who may be requested to create an employee ride-sharing or car pool app.

Related to this is giving preferred, free office parking slots for those employees who organize carpoolers. If the company already owns vans or vehicles, repurposing them for “last-mile” transport from major transit hubs to the office and vice-versa can be a high-impact, low-cost move.

Employee-passengers may contribute a certain amount that corresponds to fares they’re spending every day. They can elect someone from their group to bring the vehicle to their residence within Metro Manila.

Three, relying on kaizen and lean principles. An oil crisis often ripples into supply chain costs. Organizations can turn to kaizen and lean principles to protect their margins and reduce employee stress. This could be implemented by organizations focusing on the eight wastes, especially unnecessary transport and motion.

This ensures that every liter of fuel or kilowatt of energy used is contributing directly to value. Related to this is a preference for virtual meetings. Eliminating inter-office travel for meetings or site visits saves fuel and increases “active” work time. This includes off-site and out-of-town training programs.

Also, it’s best to localize procurement where practical. Shifting to local vendors could cut the “freight” component of supply costs, with any savings passed on to customers.

Four, adjusting policy and culture. This includes having a relaxed dress code, especially during the dry season. Allowing more casual, breathable clothing can allow the company to raise the office thermostat by a few degrees, significantly reducing cooling costs.

This could be supported by turning off the office aircon during lunch breaks and one hour before closing time. Instead, organizations can use electric fans.

Another option is to have a fuel discount partnership with selected gas stations. This could be done by negotiating “corporate rates” or group discounts. It costs nothing for the company but provides real value to employees.

FINAL THOUGHTS
In conclusion, to navigate an oil crisis, firms must prioritize radical flexibility and procedural efficiency over costly incentives which are not affordable to many organizations. By implementing compressed work weeks, “hot desking,” and lean principles, companies can reduce commuting stress and operational waste.

These low-cost, strategic adjustments foster resilience, ensuring that every liter of fuel and kilowatt of energy translates directly into sustainable value.

Consult Rey Elbo for his management insights on people management. Send your workplace questions to elbonomics@gmail.com or DM Facebook, LinkedIn, X or https://reyelbo.com.