Employee Retention and Commuting
Why Your Transportation Policy Matters
The job market is sooo versatile! In today’s time, when people can work from anywhere and easily switch between jobs and employers, HRs need to get really creative when it comes to designing the perfect retention strategy. With remote and hybrid work options gaining more traction each year, things get even harder in traditional corporate and industrial environments, where employee presence at company premises is mandatory.
Personal Tops Professional
Reasons why employees leave
The work-life balance and overall well-being are at the core of every resignation. A recent research showed that a staggering 48% of people would leave a job if it prevented them from enjoying their life, while 67% of them say work-life balance improved once they began working remotely. It seems that employees around the world have put a stomp on it: work should serve life – not the other way around. Here are some of the common reasons employees list as deal breakers when deciding to leave their jobs:
1. Better compensation
With increased transparency in salary information, workers are more aware of market rates and are increasingly willing to switch jobs for better financial rewards. As a result, a significant number of companies have experienced employee turnover due to these salary-driven departures.
2. Lack of growth opportunities
Employees are more likely to be committed to their roles and stay with a company if they see opportunities for professional growth. When employees feel stagnant or limited in their current positions, they may seek new jobs.
3. The work environment
The work environment encompasses the physical surroundings, social interactions, and overall atmosphere where employees perform their jobs. It plays a critical role in influencing employee morale, relationships, productivity, satisfaction, and well-being. By understanding the importance of a positive work environment and aligning it with company goals, organisations can reduce employee turnover caused by negative factors like poor management, lack of support, and a toxic culture.
The worse the commute - the higher the turnover
Employees with painful commutes are more likely to quit
While all of the above reasons can be resolved internally, commuting is an “external” threat to your retention rate. One of the many “job quitting” threads on Quora relates to commuting. “Is it frowned upon to quit your job due to lack of transportation?”, one user asked. The answer this question got, as well as similar ones, is, speaking colloquially: “Hell NO”!
If your company is poorly connected via public transport or is located in city cores where traffic jams occur during rush hours, your turnover rates are most probably rising because of commuting.
An American study showed that 23% of workers quit their job because of a bad commute.
A study from the UK went even further, and examined the influence commuting has over men and women. Researchers found that, while longer commutes increased the likelihood of both men and women quitting their jobs, the “effect is larger for women than for men.”
“Women who have an hour-long commute are 29.1% more likely to leave their current job than if they had a 10-minute commute, compared with 23.9% for men facing the same scenario”, according to the study.
While you may not have the power or the resources to relocate your company premises, what you can do is streamline your employees’ commutes with a proper transportation policy.
Streamlining Commutes
How does a transportation policy boost retention
Employee transportation policies are essential guidelines that outline how employees commute to and from work. These policies ensure safety, reliability, and efficiency in employee transportation. They cover important areas like safety measures, vehicle standards, and route optimisation to create a secure and efficient transportation network.
Additionally, these policies address compliance by defining scheduling, legal requirements, and risk management strategies. Overall, employee transportation policies contribute to workplace safety, employee satisfaction, and organisational efficiency.
Most importantly, a carefully designed employee transportation policy is your secret weapon against high turnover rates! With it, you show that your company is a “people first” one because you are solving a pain spot everyone experiences.
A good transportation policy can mitigate the negative effects of commuting. Long and stressful commutes lead to increased stress, reduced job satisfaction, and lower productivity. By providing options like company shuttles, flexible work arrangements, reimbursement for public transportation, or even corporate carpooling, companies can alleviate commuting burdens for employees.
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FREE TEMPLATE PROVIDED
What is an example of a good employee transportation policy?
First all, you need to gather commuting data. How long is the commute, what commuting modes are in use? And then, after analysing the data, you can come up with a solution that fits your company best and streamline your employee transportation policy.
1. Gather Data and Assess Needs
- Survey Employees: Conduct a survey to understand employee commuting preferences, challenges, and expectations.
- Analyse Existing Transportation Infrastructure: Assess the availability of public transportation, road conditions, and potential for carpooling or ride-sharing.
- Identify Company Goals: Determine the company’s objectives regarding employee satisfaction, sustainability, and cost-effectiveness.
2. Define the Policy's Scope
- Outline Purpose: Clearly state the goals of the policy, such as improving employee satisfaction, reducing costs, or promoting sustainability.
- Determine Applicability: Specify which employees and situations the policy will cover (e.g., full-time employees, business travel).
3. Establish Core Principles
- Safety First: Prioritise employee safety and compliance with traffic regulations.
- Efficiency: Aim to optimize transportation options for time and cost-effectiveness.
- Sustainability: Consider environmentally friendly options like public transportation or carpooling.
- Equity: Ensure fair treatment and equal access to transportation benefits for all employees.
4. Address Specific Transportation Modes
- Company-Provided Vehicles: Define eligibility, usage guidelines, maintenance, and insurance requirements.
- Public Transportation: Outline reimbursement policies, preferred routes, and any partnerships with transit agencies.
- Employee-Owned Vehicles: Establish reimbursement rates, mileage tracking, and insurance requirements.
- Carpooling and Ride-Sharing: Encourage these options and provide incentives or support services.
5. Define Reimbursement Guidelines
- Eligibility: Specify which expenses are eligible for reimbursement (e.g., fuel, tolls, parking).
- Documentation: Require employees to submit necessary documentation (e.g., receipts, mileage logs).
- Reimbursement Rates: Determine reimbursement rates based on factors like distance, mode of transportation, and company policy.
6. Implement Safety Measures
- Driver Training: Consider requiring driver training for employees using company vehicles or their own vehicles for business purposes.
- Vehicle Inspections: Implement regular vehicle inspections to ensure safety and maintenance.
- Substance Abuse Policy: Prohibit substance abuse while operating a vehicle and outline consequences.
7. Address Emergency Procedures
- Emergency Contacts: Collect emergency contact information from employees.
- Emergency Transportation Plan: Develop a plan for handling emergencies, such as accidents or natural disasters.
8. Consider Sustainability Initiatives
- Carbon Footprint Reduction: Explore options for reducing the environmental impact of employee transportation, such as promoting public transportation or carpooling.
- Sustainability Incentives: Offer incentives or rewards for employees who choose sustainable transportation options.
9. Obtain Legal Review
- Compliance: Ensure the policy complies with local labor laws, traffic regulations, and any industry-specific requirements.
- Consult with Legal Counsel: Seek advice from an attorney to avoid legal issues and protect the company’s interests.
10. Communicate and Implement
- Employee Training: Educate employees about the policy, its benefits, and their responsibilities.
- Ongoing Evaluation: Regularly review and update the policy to address changing needs and regulations.
HERE IS A FREE TEMPLATE for you to customise when you finish gathering employee mobility data and needs. We are sure you’ll put it to good use.
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Employee Transportation Policy
Hand in Hand for the Win
Employee Transportation and Retention
There are always going to be employees who want something more out of their work life. However, commuting challenges shouldn’t be the reason why they are leaving you.
A well-structured employee transportation policy can significantly impact employee retention and satisfaction. By addressing commuting challenges, improving work-life balance, and demonstrating a commitment to employee well-being, companies can create a more positive and supportive work environment.
Employee transportation policies should be tailored to the specific needs of the organisation and its employees. Gathering data on commuting patterns and preferences is essential for developing an effective policy.
By investing in employee transportation, companies can create a more attractive and supportive workplace, leading to increased employee retention and overall organisational success.