Commuter Challenge
October 29, 2008
By Margery Weinstein
They're already overworked and under-paid. Now add mounting commuter expenses to their woes. Commuting always has come with a cost, but even the most optimistic workforce manager has to concede it’s getting pretty bad. Many of you are starting to worry the burden of commuting is adversely affecting employee retention, according to the 2008 TransitCenter Commuter Impact Survey, sponsored by nonprofit organization TransitCenter, Inc. Here are some of the report's key findings:
• Two-thirds of employers feel they should be leading the effort to help ease employees' commute cost burden. However, a majority (62 percent) of employers are concerned that by doing so, they’ll need to boost their employees' salaries to make up for increasing commute costs. A significant number (43 percent) of employers directly link rising commuter costs to employee retention issues.
• "Employees everywhere are feeling the financial pinch from high fuel prices, prompting corporate America to act," says Larry Filler, president and CEO of TransitCenter. "The good news is pre-tax commuter benefits can save each employee hundreds of dollars a year, lowering the amount employers would have to pay to offset higher gas—and transit—prices."
• The bad news? Barely a majority of employers (53 percent) are aware of tax-free commuter benefits, and of those aware only 46 percent offer the benefit to their employees, with 14 percent planning to add it to their overall benefits packages.
• In addition to the rising economic costs of commuting, the survey affirms a growing corporate concern about climate change. Nearly 90 percent of employers are either somewhat or very concerned about global warming and the environment, and seven in 10 believe they should take the lead in encouraging employees to embrace greener commute options.
• Some 40 percent of companies offer a commuter benefit program, including subsidized carpool/vanpool, flextime, subsidized or pre-tax transit/parking program, and telecommuting. Top commute-related benefits offered by employers include flextime (49 percent) and telecommuting (42 percent). Just 8 percent offer vanpooling, followed by 6 percent that offer carpooling.
• Twenty-four percent offer tax-free commuter benefits for employees to use for commuting expenses. Employers cite "cost savings," "enhancing overall benefits," and "attracting/retaining employees" as the top three reasons for offering tax-free commuter benefits.
• Separate from commute-related eco-friendly practices, employers currently or plan to support or partner with "green" organizations (47 percent), run an energy conservation program (44 percent), and provide employee education on how to use less energy (22 percent).
• Almost half of companies (46 percent) in New York City offer a commuter benefits program versus only 35 percent in San Francisco, and 30 percent in Chicago.
Editor's Note: For more on transportation incentives, read "Perk Transports Employees" at Trainingmag.com.
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