Price of Gas Takes Toll on Employee Loyalty, Finds TransitCenter Study

NEW YORK--(BUSINESS WIRE)--Rising fuel prices and worsening traffic are driving 26 percent of employees to consider changing jobs to improve their commutes, reports a study conducted by BusinessWeek Research Services (BWRS) and commissioned by TransitCenter, Inc., a nonprofit organization that provides tax-free transit benefits as a means to promote mass transit use. The survey, entitled, “The Impact of Commuting on Employees,” finds that 48 percent of employees say their commute is getting worse. The increased frustration is building a bigger appetite for commute-focused relief in the workforce. Indeed, 65 percent of employees say they expect their companies to step up and take the lead in easing their commuting difficulties.

“Three years ago the price of gas wasn’t considered an HR issue”

“Three years ago the price of gas wasn’t considered an HR issue,” said Larry Filler, president and CEO of TransitCenter. “Today, it’s starting to take its toll on employee loyalty and becoming a serious concern.” The study also found that nearly a quarter, or 24 percent of employees, say they’re late to work at least three times a month because of traffic, a drain on workplace productivity.

Geography is now a critical factor in the level of employee willingness to change jobs, according to the TransitCenter survey findings. Nearly one of three (31 percent) people who live in the suburbs or rural areas and travel to jobs in the city say they’re willing to consider taking another job to improve their commute. And nearly one in two employees (46 percent) who live in the city and reverse-commute, would also consider a new job for a better commute. When asked what commuter-related benefits would be most attractive in their new jobs, employees cite flextime (79 percent), telecommuting (72 percent), pre-tax commuter benefits (54 percent), and subsidies for their pre-tax commuter benefits (47 percent).

The study polled 1,048 respondents in Chicago, New York and San Francisco in October 2007. These cities were chosen due to their geographically dispersed markets and high concentration of commuters as identified by the U.S. Census’ 2005 American Community Survey. The survey has a 95 percent confidence level with a margin of error of +/- 3 percent.

A copy of the TransitCenter and BusinessWeek Research Services survey report is available by contacting Charles Kim at ckim@transitcenter.com.

About Tax-Free Commuter Benefits

Since 1993, employers have been able to offer employees a tax-free benefit for commuting by transit and eligible vanpools or to pay for commuter parking primarily at transit or ridesharing locations under IRS tax code section 132(f). Tax-free commuter benefits can be structured as an employee-funded tax-free payroll deduction; as an employer-funded benefit; or the costs can be shared by employer and employee. The benefit can be delivered in the form of transit provider-specific passes, universally accepted vouchers and terminal–restricted debit cards, or through a reimbursement model under specific conditions defined by the IRS. Current IRS limits allow for participants to set aside up to $115 a month tax-free to pay for transit and vanpool commuting costs, and up to $220 for commuter parking.

About TransitCenter

A nonprofit corporation, TransitCenter specializes in tax-free commuter benefits, transit information and assistance for employers and commuters nationwide. TransitCenter introduced the nation’s first tax-free commuter benefits program in 1987 to encourage more people to use mass transit to protect the environment, preserve natural resources and improve the quality of life where people work and live. Today, more than 11,000 employers and 500,000 employees participate in TransitCenter’s TransitChek commuter benefits programs as a convenient, money-saving way to pay for commuting.

For 20 years, TransitCenter has worked hand-in-hand with transit providers, communities and employers to make mass transit more accessible. Independent since 2001, TransitCenter was founded in 1986 as a joint alliance of leading public transit providers. A deep heritage in transit drives TransitCenter’s continued commitment to bringing new innovations to employers and transit riders that participate in TransitChek tax-free commuter benefits programs. Learn more by visiting www.transitcenter.com.