#Commuter Benefits

Commuter benefits help attract, engage, and retain talent

April 06, 2023

The last few years have been challenging in the job and labor market. The labor force is still at least 2 million below expected and hiring talented people will remain a challenge for several years to come.

So, what can you do as an employer to attract new talent and retain the team you’ve already built? Using benefits that meet the most pressing needs of your workforce, such as commuter benefits, is one way to attract and keep the very best people.

The basics of commuter benefits

An employer-sponsored commuter benefits account allows employees to set aside money from their monthly paychecks for commuting costs like public transit, rideshares, and qualified parking expenses. These funds employees spend are tax-free and can reduce their federal taxable income. Currently, the IRS allows employees to set aside up to $300 monthly for commuter benefits.

The benefits of using commuter benefits

Using a commuter benefits plan has advantages for both employers and employees. Employees can lower their taxable income and save money. They’ll also have the advantage of not needing to drive their vehicle to work. Using alternative methods to commute saves money on fuel and car repairs and has a positive impact on the environment as well.

On the other side, employers benefit financially when their workers have access to commuter benefits. A company offering commuter benefits can reduce its payroll taxes when employees lower their taxable income.

Using commuter benefits to attract new talent

Leveraging commuter benefits in your benefits package will help you stand out. Highlight that employees can reduce their taxable income while adding new commuting options. If you’re in an urban area, point out which methods of mass transit will benefit them. For all areas, highlight rideshare programs, micromobility options, and parking programs.

Using commuter benefits to retain top talent

Employee engagement has a direct impact on the bottom line of your business.

Having a high level of employee engagement can significantly impact your business. When employees are engaged, they’re more productive and have less turnover and absenteeism.

While creating truly engaged employees takes more than offering great benefits, providing access to commuter benefits programs is a great way to meet your employees’ needs and build a culture of trust and respect.


A commuter benefits package is a great place to start if you want to increase job satisfaction among your current employees and attract new talent.

Employees will be happy with the financial and environmental benefits while appreciating less commuting stress. You will be satisfied seeing that commuter benefits save your company money while promoting high employee engagement.

How Edenred can help

In today’s challenging job market, one way to stand out is to offer a commuter benefits program that helps make commuting for your employees easier and safer. Schedule a meeting today, and we’ll be happy to review all your options with you.

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