According to a new poll, 60% of US experts cite commuting costs as the most important expense for subsidizing employers.
As businesses call to get workers back to their offices, a new survey found that commuting costs are the biggest obstacle to achieving that goal.
“A significant number of employees have moved to more affordable homes in the suburbs during the pandemic,” California career coach Kyle Elliott told the Epoch Times. “With the order (returning to the office), they are now asking themselves whether they want to go back to the city and create something long and costly.”
With the pandemic coming to an end, companies like Amazon, AT&T and Dell require employees to return to offices five days a week, while other companies like IBM and Salesforce have introduced a return to office policies that require three to four days in the field per week.
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According to Sean Pudl, Robert Walters’ North American Managing Director, pre-pandemic commuting costs account for around 16% of total costs, accounting for an average annual average of $10,742 per household. This averages $13,174 per household, compared to 17% in 2023.
“Hybrid and remote jobs have reduced commutes for some, but those who still commute regularly are paying significantly more than before the pandemic due to factors like gas prices, vehicle costs and public transport costs,” Puddle told the Epoch Times.
According to Puddle, the number of “super commuters” was also known as experts who travel to get at least 90 minutes of work, but before the pandemic it was around 4.6 million, representing only 3.1% of the US workforce. But as that number rose shortly after the pandemic, hybrid labor agreements allowed experts to escape from major cities.
“Super commuters believed that hybrid and remote work was permanent due to corporate policy, productivity research and key investments in remote technology,” Puddle said. “Many have moved based on changing employer guarantees and workforce preferences.”
North Carolina career consultant Matthew Wasel told the Epoch Times that increased commuting costs “understand the reluctance of workers to make such a move.”
Hayden Cohen, CEO of the Houston-based HR company, said he was employed nearby, and that the more companies have hired since being remote, the more difficult it will be to carry out missions to the office.
“Lesser people will remember the culture of your office, and more people will live well from offices where commuting is a serious burden,” Cohen told The Epoch Times.
“One approach worth considering is relocation scholarships,” Cohen said. “Paying people for the commute is a free commitment, but one-time payments to help them get closer to the office are much easier to swallow.”
Warzel believes the cost of commuting is one of the factors that companies are beginning to weigh, along with the cost of maintaining office space, its impact on employee morale, and the long-term impact on recruitment and retention.
“Each company’s approach depends on its own business model and workforce needs,” he said. “Commuting scholarships or grants that either provide the set amounts by the employer or cover certain costs can be very effective.”
Other incentives include tax credits on transportation costs to reduce the financial burden experienced by public transport commuters and transportation vouchers and scholarships.
“They can also explore partnerships with transport providers to provide flexible working options to earn discounted employees fees and reduce the number of days employees need to commute,” Warzel says.
Meanwhile, the survey shows that only 6% of companies expect it to remain completely distant throughout 2025, when employees remain options throughout 2025.
“Date and cancellation add hours to commute, and sometimes a few hours to commute, those who first move out of the city may come to regret their decisions. Now they have to seek new positions close to their home or spend time spending time on the increasing number of days each week,” Paddle said.
