The conversation about return-to-office, its benefits and drawbacks, is still a hot topic for organizations and their employees. Half of employees who were recently surveyed said they’d leave their company to avoid going into the office five days a week. Meanwhile, 41% of American workers have settled into a hybrid work schedule, and companies like JP Morgan, as well as many federal government agencies, are preparing to bring all of their employees back to the office full time. 

No matter what a company’s work from home policies are, understanding how employees feel about coming back to the office, and why, can allow HR leaders to craft a strategy for bringing employees back to the office while preserving company culture and employee goodwill.

In this post, we’ll discuss the real reasons behind employees’ resistance to returning to the office and the benefits that can make coming back to the office more attractive. 

Why employees hate their commute

It turns out that employees don’t actually hate the office. They just hate the commute. There are many reasons for this:

Many cities and suburbs around the country are experiencing high levels of congestion despite more people working from home. For example, Oxnard and Thousand Oaks, California, in the greater Los Angeles area, have experienced a 56% increase in traffic congestion since the pandemic. Other cities like Phoenix, AZ, Milwaukee, WI and Boston, MA have also experienced large increases in congestion levels since the pandemic. The more time an employee has to sit in traffic, the less time they have to take care of their own physical and mental health, the more they must pay for child care, and the more they must pay for gas. With more employees being required to go back to the office for more days, this congestion could get worse.

Commuting is expensive. The average American worker spends almost $8,500 a year on their commute. That includes gas, maintenance on their personal vehicle, car insurance, etc. In addition to the money workers spend on car-related expenses, they might also need to buy lunch at a restaurant instead of making it at home. They might not make it home in time to make dinner for their family and so might need to buy dinner out. Eating at restaurants costs approximately five times what it costs to make a meal at home.

Commuting is bad for workers’ health. It can lead to inactivity and poor physical health because employees spend more time sitting and less time moving their bodies. They also have less time for fitness activities and to make healthy meals. Eating out is not only typically more expensive than making a meal at home, it can be less healthy than a home cooked meal.   

Commuting can create logistical challenges for employees that are also caretakers. An estimated 73% of employees spend 20–30 hours a week as a caregiver to family members. When employees commute to work, they need to account for additional care for their children or dependent adult family members. 

Why companies should worry about employees’ responses to their commutes

Employees are currently experiencing high levels of stress. They are financially stressed: non-housing household debt is up, employees are taking out loans against their 401(k)s, and defaults on all types of loans other than student debt are up. Caregiving employees are stressed due to lack of time and stretched finances. And it’s all leading to lower productivity. 

If companies want their team members to spend more days in the office, they may inspire a better reaction and higher quality work from employees if they address the commuting challenges head-on. Providing the right benefits helps employers do this.

How the right benefits can counteract the drawbacks of commuting for employees

Employers have many tools available to them to support employees in overcoming the challenges a daily commute presents. These tools are divided into two categories: benefits and company policies. 

Company policies that can lessen the burden for employees is giving them flexibility over when they come into the office. Allowing them to commute to and from the office at times when traffic is lighter can help alleviate some of the adverse effects of commuting. Another company policy that can help employees better handle their commutes is allowing them to choose the days they come into the office. This can help them meet caretaking needs within their family system without arranging for expensive extra care or taking on other costs.

The following are benefits that help counteract commuting challenges for employees:

Commuter benefits

Commuter benefits are benefit plans that help employees pay for the costs directly related to their getting to and from work. Pre-tax commuter benefits are accounts into which employees can deposit money pre-tax to pay for either parking near their office or a mass transit center, or for mass transit itself. Eligible mass transit expenses include fares and tickets for public transit such as bus, ferry, light rail, train, and subway. Post-tax commuter benefits are employer-funded accounts through which employees can reimburse for additional commuting related expenses like bike repair, gas, bridge tolls, and more. Employees must pay income taxes on the amounts for which they reimburse through post-tax accounts.

These benefits help employees by:

• Helping employees save money on their commuting costs. Since employee deposits to pre tax accounts are not subject to income taxes, they can save up to 37% on these expenses, depending on their tax bracket. Post-tax benefits allow employers to provide direct financial support for employees’ commuting costs.

• Encouraging the use of mass transit. Pre-tax commuting benefits can pay for parking or mass transit expenses. Use of mass transit not only lowers congestion but it can help shorten employees’ commutes and improve their mental and physical health because they can stand, read, engage with other passengers, etc. 

Dependent Care Flexible Spending Accounts (DCFSA) 

This type of FSA is an account into which employees deposit money pre-tax to pay for child and dependent adult day care expenses that allow them to work. Eligible expenses include: preschool, before and after school care, babysitters, daycare, summer day camps, and more. 

This benefit helps employees by:

• Helping employees to save money on caregiving costs while they work. Since employees’ deposits are made pre tax, they can save up to 37% on caregiving costs while they are at work and commuting (depending on their tax bracket). 

• Employers can provide direct financial support to employees by contributing to employees’ accounts.

Lifestyle Spending Accounts (LSAs)

LSAs are employer-funded accounts that allow employees to reimburse for eligible lifestyle expenses. Employers can offer one general catch-all LSA or several targeted LSAs in order to support specific challenges employees are having. Lively offers several LSAs that can help ease employee stress around commuting and return to the office: 

• Reconnect LSA that enables employers to reimburse employees for expenses related to returning to the office like gas, dry cleaning, meal reimbursement, bike rentals, and more. 

• Best Self LSA that reimburses employees for health and wellness expenses. 

• Extra Care LSA provides coverage for caregiving expenses such as extended child or dependent care, after school programs, or emergency care.  

Since these accounts are employer-funded, employees must pay income taxes on the amounts for which they reimburse.

These benefits help employees by:

• Helping them save money on expenses they already have to pay for. As stated above, commuting to the office comes with additional expenses that employees might not spend on if they were working from home. The ‘Reconnect LSA’ gives employers a way to financially support employees for these added costs.

• Helping encourage them to be healthier. The ‘Best Self LSA’ encourages employees to maintain their physical and mental health by giving them a way to pay for fitness and wellness-related expenses. Offering these types of benefits also signals to employees that the company values their health and values them. When employees feel valued, they feel healthier and work harder. 

No matter where you fall on the back to the office debate, there is a clear way to improve employees’ responses to their commute. By supporting employees through flexible company policies and the right mix of benefits, employers can alleviate some of the added strain placed on employees by bringing them back to the office. And thus bring them back with less resistance and more enthusiasm. If you’re looking for a flexible, easy-to-use suite of benefits, including commuter benefits that include mobile wallet and tap-to-pay, reach out to Lively today.