5 Types of Commuter Benefits That Can Boost Your Bottom Line
So, What’s the Advantage of Offering Commuter Benefits?
It’s no secret to HR professionals that finding and retaining employees can be a challenge. These difficulties may become more prevalent if your company is in a rural area, or you operate seasonally or through shift work. Hiring and keeping employees who lack reliable transportation options available can put a major stress on your your bottom line as well as on your employees—and stressed-out employees don’t tend to stick around for long. If you’re looking to retain happy employees and bolster profits, then offering commuter benefits may be a great solution. Let's explore five commuter benefits that can help make life better for your team—and boost your company’s performance.
5 Commuter Benefits to Boost Your Bottom Line
1. Bike-to-Work Initiative
A bike-to-work initiative can be a game-changer for both employers and employees. Originally made popular in European countries like Belgium, where as of 2022 nearly 1 in 3 employers provided a bike allowance to their workforce, the idea has now started to catch on in the U.S., too.
Companies can take this benefit a step further by providing bike storage areas or even free on-site bike repair and maintenance. Not only can your company benefit financially from offering a bike-to-work initiative, but your employees can benefit, too. How? Biking to work promotes a healthier lifestyle for your employees—meaning fewer sick days and health care expenses eroding your profit margins.
Currently, the IRS allows employers to write off certain "fringe benefits." A fringe benefit is "a form of pay (including property services, cash or cash equivalent) in addition to stated pay for performance services." In certain situations, qualified bicycle commuting benefits may qualify as a covered fringe benefit under section IRC Section 132 (f)(1).
2. Public Transit Passes
Public transit passes are another great way to help your employees. Offering monthly transit passes or pre-tax subsidies for public transportation can ease the burden of commuting. This benefit is especially appealing in urban areas where parking can be a nightmare. Not only does giving your employees the gift of free public transit save your employees time, stress and car maintenance expenses, but it also cuts down on congestion in company parking lots.
Another benefit to offering public transit passes is how cost-effective this option is to you as the company. Many large metropolitan transportation systems will partner with businesses in urban areas to offer monthly or yearly passes at a very low rate. When compared to the costs of other employee benefits like health care, including public transit passes as a perk is a no-brainer. Plus, supporting public transit is great for the environment and boosts your company’s eco-friendly credentials.
3. Hybrid or Remote Roles
If you work in an industry where offering hybrid or remote roles makes sense, making this option more widely available to both current and future work candidates may be a big benefit to your company. Many people discovered the ease and flexibility of working from home during the 2020 pandemic and have never looked back. Recent studies found that 60% of job seekers would prefer a job that offers them a hybrid role to split time between working from home and in the office, while 37% of job seekers are interested in a completely remote position.
One major benefit of working hybrid or remotely is the reduction or elimination of the need to travel back and forth to work. In fact, recent studies found that remote workers save an average of 72 minutes in commute time a day. This equates to huge time and money savings for employees.
Offering this type of flexibility also appeals to a broader range of potential hires, expanding your potential hiring pool. And employees with flexible work options are generally happier. They’re also less likely to leave their jobs, which means better retention rates for your company. Making hybrid or remote roles available is a modern approach that shows you care about the well-being of your employees.
4. Parking Benefits
If many of your employees drive to work, parking benefits may make a big difference. Providing paid parking stipends or vouchers, or negotiating bulk rates with nearby lots, can ease daily commute stress. Ensuring that parking facilities are secure also adds convenience and peace of mind. This benefit is particularly attractive in areas where parking is scarce or expensive, like large metropolitan downtown areas. By addressing parking stressors, you can enhance employee satisfaction—plus, you’ll have less tardiness from employees struggling to find parking every morning.
5. A Dedicated Work Shuttle
Have you considered the far-reaching benefits of offering a dedicated work shuttle? Partnering with a local fleet service to create a custom route to and from your workplace can be a game-changer, especially in rural areas where public transit options are limited, or for companies that rely on shift schedules that operate outside typical transit hours. Recent studies show that an estimated 23% of workers have quit their jobs due to community difficulties. This means providing a dedicated work shuttle service can be a significant factor in attracting and retaining top talent.
By offering built-in transportation, you also widen your talent pool by making the job more accessible to candidates who might otherwise be deterred by transportation concerns. Overall, integrating a dedicated work shuttle into your company's benefit package can improve punctuality, reduce absenteeism, and foster a more cohesive work environment. This is a win-win for both your company and your employees.
Experience the Benefit of SHARE Mobility
Commuter benefits are more than just perks. They’re essential for creating a happier, healthier, and more productive workplace. All of these benefits help bolster your bottom line, too. By implementing any of these five key benefits—bike-to-work initiatives, public transit passes, dedicated work shuttles, hybrid or remote roles, and parking benefits—you can see improvements in employee retention, recruitment, and your company's overall financial performance.
At SHARE Mobility, we’re here to help you integrate dedicated work shuttle benefits seamlessly into your workplace. Curious about how we’ve helped other businesses? Take a look at our case study on a rural food producer who filled 92 jobs, or see how we mobilized a top manufacturing company.
Ready to explore the full potential benefits of commuter benefits? Contact us today, and let SHARE Mobility guide you in enhancing employee satisfaction and boosting your bottom line.
