#HR Trends and Insights

Is Commuting the Next Health Care?

April 10, 2019

Employees and businesses focus on health care as the No. 1 benefit in any benefits package. But a new trend is making people rethink a lot of things about jobs and benefits: Longer commutes. It’s making some people wonder if commuting is the next health care in terms of how it impacts the job market.

LinkedIn reports that 85 percent of people would take a pay cut to shorten their commutes.

That startling statistic makes sense when you consider the average American commute time is now 26.9 minutes, up from 21 minutes in 1980, according to the Census Bureau.

One solution: Carpooling

The HR website TLNT featured a guest column from Gina Lau, where she argued what’s happening with commuting is similar to when businesses started offering subsidized health care packages in the 1940s.

Lau, the Director of People Operation at Scoop, the largest solution in the country, suggests businesses re-thinking how commutes are impacting workers’ lives and the effect on business.

She advocated a push for more which is a great idea. Along with commuter benefits an excellent way to help subsidize the emotional and monetary cost of commuting for employees.

Commuter benefits

Commuter benefits allow employees to save up to 40 percent in transportation costs.

The benefit can be applied to public transit, rideshares (Uber and Lyft), and qualified paid parking. If you’re a commuter, you can see how much you can save our commuter calculator.

Business owners also save by offering employee benefits. Since employees save money tax-free in their paychecks, business owners see reduced payroll taxes.

The maximum reduction is 7.65 percent. If you’re a business owner, you can see what you’d save by offering commuter benefits by visiting our employer calculator.

Commuting may be the new health care as our average commute continues to rise. Commuter benefits a great way to make it easier for employees and save everyone money. 

If you want to learn more about commuter benefits, download the 101 Guide below:

Join our community!

Get HR insights and tips to improve your employee's commutes and attract, engage and retain the best workforce for your organization.

Are you interested in our Solutions?

Related Post

On-demand pay benefits employers
On-demand pay benefits employers

5 Ways On-demand pay benefits employers On-demand pay has become a popular payment option for employees. Employees like how they can immediately access their wages rather than wait for a two-week payroll period. But there are significant benefits for employers too....

Do employees like wellness programs?
Do employees like wellness programs?

Lifestyle Spending Accounts improve your employees’ lives Before you invest in a wellness program for your business, have you thought about if your employees would enjoy this kind of benefit? There’s a lot of data out there that shows employees do like wellness...