It’s still early in the year, but employee transportation has already come into sharp focus as a key talent retention strategy in 2019. The U.S. Bureau of Labor Statistics (BLS) reports that 2.4 percent of American workers quit their jobs in September 2018, with a further 2.3 percent saying goodbye to their bosses in October 2018. Those are enormous turnover rates, and forward-thinking companies are looking into new ways to position themselves as employers of choice and avoid the costs and competitive disadvantages that come with losing talent.
A recent CNBC article explained the results of a telling poll that queried 2,800 members of the American labor force in 28 major cities across the country. The survey, conducted by HR consulting firm Robert Half, found that 23% of American workers have quit a job they would otherwise have kept because the commute was unsustainable. Another key finding: more than one-third of employees in the 18 to 34 age range left a position because the commute was killing them.
The changing workforce
Members of the so-called millennial generation have entered the workforce in large numbers, and they’re having a major impact on talent retention and employee transportation policies. To become an employer of choice in this day and age, companies have to do more than offer competitive salary and benefits packages. They also need to implement policies that support a positive work-life balance, and employer rideshare and commuter programs do just that.
Millennials, and their younger counterparts in Generation Z, also prioritize working for organizations that have a meaningful mission and share their values. According to the Pew Research Center, these young workers now make up more than 40% of the labor force. They look for different kinds of benefits than the traditional offerings – and that is an important opportunity for employers.
More than a free parking space
The Society for Human Resource Management (SHRM), a major human resources professional organization, emphasizes that employee transportation and parking benefits vastly increase worker engagement. This, in turn, leads to deeper levels of employee loyalty and boosts talent retention initiatives. Some particularly effective strategies include commuter rewards programs, along with company rideshare and carpooling networks, perks like subsidized transit passes, and guaranteed ride home programs for carpoolers and active commuters.
Leading companies are also making sustainability a key pillar of their employer brand. Businesses like Google and LinkedIn offer commuters a variety of options to get to and around their campuses, and they incentivize employees to use alternative modes. For many workers, the freedom to choose a sustainable commute and the ability to track their own positive impact take higher priority than free parking and routinely driving alone. Fortunately this can also mean a double win for your business when you cut parking costs and reduce the output of greenhouse gasses from cars.
Making commuter benefits work
Engaging commuters starts with understanding their preferences and offering the maximum number of options. If you’re looking for more employee transportation solutions to give your company an edge in talent recruitment and retention, we’re here to help. Talk to one of our experts to learn more.