#Commuter Benefits

The Ultimate Guide to Commuter Benefits: A Success Story for HR Managers

May 23, 2023

Picture this: An HR manager, let’s call her Jane, is tasked with choosing the perfect commuter benefits plan for her company. Like many HR professionals, Jane faces the challenge of aligning the company’s budget with employee needs and ensuring compliance with regulations. If this scenario looks familiar, you’re in the right place. This ultimate guide will help HR managers like Jane turn the commuter benefits challenge into a success story.

Commuter Benefits Plans: Exploring the Different Types

HR managers like Jane often face the challenge of choosing a commuter benefits plan that aligns with employee needs and company budgets. Let’s explore three popular options.

  1. Pre-tax Deductions: Employees can allocate pre-tax dollars to cover commuting expenses, saving money on taxes. This option is easy to manage and provides tax savings for employers.
  2. Transit Cards: These cards loaded with pre-tax funds simplify expense tracking for employers while providing employees with the flexibility to use them for public transportation.
  3. Employer Subsidies: Direct contributions to employees’ commuting costs can be an attractive perk that helps attract and retain top talent.

Why Commuter Benefits Matter More Than You Think

HR managers face many challenges, but commuter benefits can be a cost-effective solution for attracting and retaining top talent. Here’s why they matter.

  • Tax Savings: Commuter benefits are tax-free transportation fringe benefits, resulting in significant savings for both employers and employees. Employees can save up to $2,640 annually on commuting expenses, while employers save up to 7.65% on payroll taxes.
  • Cost Savings: Choosing the right commuter benefits plan can be a smart financial decision for your company. By providing your employees with incentives to choose more sustainable modes of transportation, you can reduce healthcare costs and absenteeism.
  • Talent Retention: Commuter benefits will give you an edge in a competitive job market, plus they show your employees that you care about their well-being, which will make them more loyal and engaged.
  • Environmental Impact: Encouraging the use of public transportation and other sustainable commuting options reduces carbon emissions and supports a greener environment.

Choosing the Right Plan for Your Company: A Step-by-Step Guide

Now that we’ve established why commuter benefits matter, it’s time to choose the right plan for your company. Follow these steps to ensure success:

  1. Assess Employee Demographics: Take a closer look at your employees’ commuting habits, including preferred modes of transportation and typical commuting distances. This data can help you tailor your benefits program to meet their specific needs.
  1. Establish a Budget: Determine how much your company can afford to contribute to commuter benefits, while taking into account potential tax savings and employee satisfaction.
  1. Research Local Ordinances: Some regions have mandatory commuter benefits ordinances that require employers to offer specific programs. Make sure that the plan you choose complies with local regulations.
  1. Compare Service Providers: Evaluate the offerings of different commuter benefits providers, such as Edenred, to find a partner that meets your company’s needs and budget.
Edenred Commuter Benefits Program Overview

Implementation and Administration: Streamlining the Process with Edenred

A commuter benefits program can be simpler to implement and manage when you partner with a provider like Edenred. Here you can have a look:

  • Program Setup: Edenred can help you establish your commuter benefits program, simplifying the process and ensuring that it runs smoothly.
  • Compliance Assistance: Partnering with Edenred ensures that your program adheres to local ordinances and other regulations.
  • Tracking and Reporting: Edenred makes it easy to monitor usage and measure the effectiveness of your commuter benefits program.
  • Employee Education and Communication: Ensure your employees understand the benefits and savings they can enjoy through the program. Promote the program internally to maximize participation and benefits for both employees and the company.

Measuring the Success of Your Commuter Benefits Program

To evaluate the effectiveness of your commuter benefits program, it’s essential to track key performance indicators (KPIs) that align with your company’s goals. As an HR manager, you should consider monitoring the following KPIs:

  • Participation Rate: Keep an eye on the percentage of employees actively engaging in the commuter benefits program. A higher participation rate indicates your program is resonating with employees and delivering desired outcomes.
  • Employee Satisfaction: Conducting surveys to measure employee satisfaction with the commuter benefits program can provide valuable insights. This feedback helps you identify areas for improvement and assess the program’s impact on overall employee contentment.
  • Tax Savings: Determining the tax savings for both employees and the company showcases the financial impact of the program. These savings serve as a compelling metric to demonstrate the program’s worth.
  • Environmental Impact: Quantify the reduction in carbon emissions resulting from increased use of public transportation and other sustainable commuting options. This metric underscores your company’s commitment to environmental responsibility.

Adapting Your Commuter Benefits Program Over Time

As your company evolves, your commuter benefits program should adapt accordingly. Regularly review and update your program to ensure continued relevance and effectiveness. Consider these strategies for ongoing improvement:

  1. Monitor Trends: Staying informed about emerging trends in commuter benefits and transportation options equips you to adjust your program to better serve your employees and support company goals.
  1. Encourage Feedback: Welcome employee feedback on the program and leverage this information to make data-driven enhancements.
  1. Collaborate with Your Provider: Maintain open communication with your commuter benefits provider, such as Edenred. Their expert guidance can inform program updates and improvements.


Just like Jane, many HR managers face the challenge of selecting the perfect commuter benefits plan for their company. By following the steps outlined in this comprehensive guide, you can transform this challenge into a success story.

When you partner with a provider such as Edenred, the process is streamlined, resulting in a program that is well-implemented and effective for both your company and its employees. This approach contributes to employee loyalty through savings and fosters , making your company a more appealing workplace.

To learn more about Edenred’s customized commuter benefits solutions and how they can help your company create a successful program tailored to your specific needs, just click the banner below .

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