For this reason, a number of employers have begun participating in commuting reimbursement programs that are beneficial to employees and that help them save money.
This could be a great benefit to offer your employees that will result in them being more satisfied with their job and your company overall.
However, there are downsides to offering this perk, as well. We are here to explore with you these ups and downs.
The Perks of Offering Commuting Reimbursement Benefits
It makes your employees happy
It goes without saying that anything leading to saving your employees money is going to make them happy. After all, who doesn’t love to save money?!
This a great perk to offer to employees that raise job satisfaction, especially given commuting costs in cities can be quite pricey. According to Time, it costs the average American $2,600 to get to and from work all year long.
This is a large chunk of change, so cutting down on this even incrementally could be a big help financially to employees.
It could lead to healthier employees
Offering certain kinds of commuting benefits could promote further health and wellness in employees. Some employers opt to provide commuting benefits that promote riding a bicycle to work.
This is a healthier option fitness wise than driving or taking the train to work. The healthier your employees are, the happier they will be, and the less likely they will be to miss work or drive up healthcare costs. This is a perk for your business as a whole.
It could give your employees a tax break
There are certain programs that you can offer employees, such as “WageWorks”, that help your employees to receive a tax break on their paychecks.
The way this particular program works is that it deducts their commuting costs from their pre-taxed salary in order to bring the taxes deducted from their paychecks.
This is something employees will appreciate as it is another way to save them a considerable amount of money.
The Cons of Offering Commuting Reimbursement Benefits
It depends on your location
Every company is different, and depending on the location of your business, it may not make sense for you to offer commuting benefits to employees.
For instance, if the cost of commuting for workers is low, your resources may be better allocated to an alternative benefit that employees will appreciate more, causing employee satisfaction to be higher.
It could be complicated
It can be complicated to set this up as there are a vast amount of options out there for offering this benefit. Because there are so many factors to consider
– like how your employees get to work, what types of commuting benefits you want to offer, and what the goals of these are
– it can get confusing and it’s vital to consider whether it is worth the trouble.
It costs your company money
It goes without saying that this would be at a cost to your business. Again, it is vital to weigh the cost versus the benefit for your business to determine whether it’s the right decision.
The Bottom Line
The bottom line of this topic is that it may or may not be right for your organization and employees – and this is something you have to weigh the options for.
A PEO can be helpful in this process, and we have the tools and knowledge to best match you with a PEO that will effectively help you run your business and make decisions such as these.