Dive Brief:
- Most of the more than 400 HR professionals surveyed by transit benefit vendor Jawnt said that their companies offered some form of commuter benefit — and more than one-third of respondents said that commuter benefits helped encourage employees to return to the office.
- Employers saw other perks from offering commuter benefits, per the report, from helping employees save money to meeting environmental goals to acquiring and retaining talent.
- Obstacles to implementing commuter benefits included the time it takes to answer employee questions and dealing with HR systems and information technology-related challenges, Jawnt found. The company said this may be compounded by the fact that most employees enrolled in commuter benefits use them daily, meaning the need for assistance with technical issues or other matters can be more frequent than for other benefit categories.
Dive Insight:
A confluence of events has put a spotlight on commuting in 2024, particularly the return-to-office trend. Past research by Resume Builder found that close to 90% of employers planned to implement RTO policies by the end of this year. That’s despite resistance by employees who might prefer a remote, hybrid or other flexible work arrangement — including those who would like to avoid their commute.
The push for RTO gives employers an opportunity to revisit their commuting policies more generally, sources previously told HR Dive, including the notion that commuting privately by car is the only option or the option that most employers would necessarily choose. Organizations like Seattle Children’s Hospital, aware of the problems caused by car congestion and the costs of building and maintaining on-site parking, have built commute programs that emphasize choice.
“The only way to offer a best-in-class commuter benefits experience is to genuinely understand our users — not just assume their needs,” Jeff Stade, CEO and co-founder of Jawnt, said in a press release accompanying the firm’s report.
Commuter benefit programs do come with tax-related benefits due to IRS regulations allowing for employers to deduct the cost of qualified transportation benefits from an employee’s taxable wages, specifically up to $315 per month in 2024.
But the potential for payroll tax savings “is not a strong opening move” when promoting the values of commuter benefits, according to the Jawnt report. The Philadelphia-based company found that 65% of respondents cited saving employees money as a top value proposition for commuter benefits, while 32% said the same of encouraging RTO and reducing commute times, respectively.
