The daily commute to work can significantly affect our well-being in the hustle and bustle of our busy lives. On average, Americans spend 27 minutes commuting to work, which costs them approximately $8,466 per year (or 19% of their total income). Commuting experiences vary depending on many factors, such as location, distance, mode of transportation, and more. Nevertheless, your employees must get to work one way or another, and how they do it can significantly impact their health and your bottom line.
A recent study found that the longer employees commute, the less satisfied they are with work and their lives. Long commutes can also negatively impact their physical health. Before you can offer employees benefits to relieve their stressful commutes, it's important to have a clear understanding of the following:
- What are commuter benefits?
- What is a commuter benefits program?
- How do commuter benefits work?
- Tips for offering commuter benefits to employees
What are commuter benefits and how can they help employees?
Commuter benefits are an employee perk that aims to reduce the financial burden and stress associated with commuting to and from work. Employers often offer these benefits as part of their compensation package to make commuting more convenient, affordable, and environmentally friendly for their employees.
Where employees live in relation to work is not the employer's business or responsibility. However, employers who understand their employees' general circumstances can provide commuter benefits and relief that positively impact the well-being of their workforce.
What is a commuter benefits program?
A commuter benefits program is a workplace initiative that an employer implements to provide and manage commuter benefits for their employees. The program outlines the administration of commuter benefits, the benefits offered, and the rules and policies governing their use. These programs encourage employees to use alternative commuting options like public transportation, ride-sharing, or biking. Additionally, they can improve employee well-being, help attract and retain talent, save employees money, and reduce traffic congestion and carbon emissions.
Employers often offer commuter benefits voluntarily. However, in some cities, they are required by law. For instance, in Los Angeles, companies with 50 or more employees must provide commuter benefits. Similarly, businesses with at least 20 employees in Washington, DC, must offer these benefits to those working at least 20 hours per week. Other cities with mandatory commuter benefits include Philadelphia, Seattle, and Richmond, CA.
How do commuter benefits work?
The ins and outs of commuter benefits can vary, but the underlying principle is to provide employees with financial incentives and resources to make their commutes more manageable. Commuter benefits come in many forms, including:
- Pre-tax deductions: This arrangement allows employees to set aside a portion of their salary before taxes to cover qualified commuting expenses, leading to tax savings for employees and employers.
- Parking reimbursements: Some employers reimburse parking expenses incurred by employees who drive to work. This can include costs related to parking lots or garages near the workplace.
- Transit passes: Employees may receive transit passes for buses, trains, or other public transportation. The employer often subsidizes these passes, making commuting more affordable for the employee. An alternative for public transit subsidies is for employers to reimburse these expenses on a predetermined basis (e.g., monthly or quarterly).
- Bicycle commuting: Employers may offer bicycle commuting benefits to employees who regularly bike to work. They may also be used as an incentive to encourage employees to use the more eco-friendly and physically active mode of transportation. Employees may receive a stipend or a reimbursement for bike-related expenses dependent on their bike use through this benefit.
- Ride-share: Employers may offer commuter benefits, such as subsidies, reimbursements, allowances, or access to corporate accounts to offset ride-sharing costs for employees who choose this transportation option.
- Company cars: Company cars may be provided to certain employees as a part of their overall compensation package, especially for those requiring regular travel for work purposes. In addition to vehicle access, employees with company cars may have certain commuting costs covered by the employer, such as fuel, maintenance, and insurance.
Tips for offering commuter benefits to employees
Implementing a commuter benefits program requires careful planning and execution. Here are some key tips:
Understand employee needs
When you understand what commutes and options your employees are up against, it's easier to recognize their needs. You should conduct surveys or engage in conversations to understand their challenges and preferences. Maybe an interstate is always backed up for a few hours around the typical start time. Or mass transit times don't coincide well with employees' hours.
Whatever the circumstance, simply being aware of your workforce's circumstances can go a long way toward understanding the stresses, situations, and decisions that employees are making to get to work. Drawing out where your workforce lives on a map, considering commute times and transit options, provides a visual understanding of their commuting realities.
Offer a variety of options
Recognizing the diversity of commuting preferences, employers should provide various commuting options within their benefits program. This may include public transportation subsidies, parking reimbursements, bike-sharing programs, carpools, and company cars for specific roles. Awareness of your employees' commuting situations can open new ideas for transportation.
Implement user-friendly systems
You should consider investing in methods to manage commuter benefits. This includes implementing online platforms for easy enrollment, tracking, and reimbursement processes. An accessible system enhances the employee experience.
Communicate commuter benefits clearly
Clear and consistent communication helps ensure that employees know about and take full advantage of commuter benefits. This includes providing commuter program details in employee benefit materials, regularly communicating incentives to them, and sending reminders to submit any reimbursement-related information.
How your employees arrive at work matters –– it impacts their physical and mental health and productivity. As an employer, you can alleviate some of the stress from getting to work; consider how to make it easier and more manageable for your workforce with commuter, financial, wellness and other employee benefits. ClassPass can help promote employee well-being — learn more here.
