Earlier this month, Amazon made waves in the business world by declaring that it would require its corporate employees return to the office (RTO) five days a week, a policy that will affect some 350,000 workers. Backlash to the announcement was swift and intense, highlighting a perspective widely-held by many employees: in-office work just isn’t worth the cost. In the minds of office workers, a big, if not the biggest, share of that cost is the time, effort, and stress of commuting. Companies with any in-office requirements should seek out new HR policies and programs to take the sting out of commuting and show their employees that they are making good-faith efforts to address their new concerns in the era of hybrid work.
The New Normal of Hybrid Work
Over a year after the official end of the covid-19 pandemic, hybrid work schedules are the new normal. A Gallup poll taken earlier this year found that more than half of American remote-capable workers have flexibility to work at home at least some of the time; a similar number of workers expect and prefer hybrid schedules. Even before the pandemic, nearly a quarter of workers reported that they had left a job due to a bad commute. And with the option to work at home now a clear expectation of most white-collar workers, that trip to the office seems more burdensome.
The Rising Importance of Commuter Benefits
Once an afterthought for human resources (HR) departments and a rarity in employee benefits packages, commuter benefits programs have become more important than ever. Like health savings account (HSA) programs, commuter benefits programs allow employees to set aside a portion of their salaries before they are taxed for public transit and/parking expenses. With commuting to an office now seen as optional or even unnecessary by so many employees, making this simple commuter benefit program available to employees is the least companies with RTO mandates or hybrid schedules can do to show their workers that they are committed to lightening the burden of commuting.
Regulatory Landscape for Commuter Programs
Regulatory requirements and incentives for commuter benefits programs are becoming more and more common. In Philadelphia, all companies with 50 or more employees must offer a commuter benefits program to their employees or face fines of up to $9,000 per month. Seattle has a similar requirement for all companies with 20 or more employees. In Colorado, employers can claim a refundable tax credit on spending to provide alternative transportation options to employees and receive credits of up to $250,000 per year.
Creative Approaches to Commuter Benefits
By building on the foundation of what is or could soon be the required minimum of commuter benefits, companies have an opportunity to give their employees new reasons to be comfortable with (or at least less resistant to) RTO policies. Creative programs that encourage workers to get to the office in other ways besides driving and public transit offer flexible, zero-emissions options. Subsidies, programs, contests, and other initiatives that get workers using bike share, scooter share, and other resources that help employees feel happy and healthy go a long way toward higher employee satisfaction. Not to mention the appeal such initiatives could present to prospective hires. Commuter benefits programs of all kinds save companies money while also improving sustainability performance through lower transportation-based emissions.
The Future of RTO and Employee Satisfaction
With one policy change, Amazon brought the debate over RTO requirements back into the mainstream and, according to some observers, could be setting a new trend. Whether they are requiring their workers to be in the office one day a week or five, companies need to recognize the new reality of commuting: employees see it as a burden and a reason to resist RTO. By embracing commuter benefits programs and implementing creative ways to make commutes easier and healthier, HR departments everywhere can ease or even get ahead of employee backlashes to RTO announcements.
