One-third of employers offer incentives to encourage alternative forms of transportation, IFEBP says

One-third of employers offer incentives to employees who bike, walk, use mass transportation or carpool to work, according to results from the International Foundation of Employee Benefit Plans’ Transportation Benefits and Incentives: 2017 Survey Results. Survey responses were received from 289 U.S. members of the International Foundation and the International Society of Certified Employee Benefit Specialists (ISCEBS). Employers reported the most common ways their employees travel to the workplace, and when asked to choose the top three from a list of options, organizations selected:

  • Car with single occupant — 90%
  • Rapid transit — 44%
  • City bus — 41%
  • Carpool — 22%
  • Bicycle — 15%
  • Walk — 10%
  • Motorcycle/moped — 10%
  • Ride share (Uber, Lyft, etc.) — 5%

With the majority of employees driving their own vehicle to work, parking benefits and incentives are a major perk. More than four in five (83%) organizations offer some type of on-site parking. Forty-three percent of organizations provide free parking to employees.
Among employers offering mass transportation incentives, nearly one-third of their employees use mass transit incentives when offered. More than one-half of employers that offer transportation incentives have a pretax benefit program in place, enabling their workers to exclude mass transit and/or carpool costs from their gross taxable income.
Of employers offering biking/walking transportation incentives, 44% provide on-site bicycle storage, 39% provide locker rooms and showers, and 19% offer bike-to-work subsidies, allowances or reimbursements.
Attracting and retaining talented workers is the main reason organizations offer transportation incentives. The second most common reason is response to worker requests. Organizations said their workers choose their specific mode of transportation based on convenience, commute length and cost.

SOURCE: IFEBP press release,
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