How would you compensate employees for commuting to work?
Suppose there are two employees: Alice and Bob, who do the same job at the same factory. Alice has a 10 minute (20RT) commute, Bob commutes 35 minutes(70RT).
If you're the owner of the factory, would you compensate them for their commutes? How would you do it?
In my opinion, I don't think employees should be compensated for their commute. How an employee chooses to arrive to work and how far they live away from a company is not a responsibility of the company. Their job is to be ready to work when their shift starts.
However, this is an X-Y question. The overwhelming majority of jobs historically required you to show up to work. We didn't consider paying for their commute unless they had to travel for work outside of commuting. This was never an issue.
You asked the "X" question, but the "Y" question (the question you're probably asking) is how the burden of commuting should be handled for employees being asked to come in when they have been working remotely.
I think that there are many more nuances to this than simply compensation. If the employee has a working agreement with the company, and they have been managing their time with full-time remote hours, then they should consider that as part of the work agreement.
If they're being asked to come in (when they would normally be WFH), that's outside of the work agreement. It's basically like being asked to get coffee for your boss or something. If it was advertised as part of the job, and you accepted it, then that's fine. If you started work, and a year later, your boss asks you for daily coffee runs under the threat of being fired, that is not acceptable.
You have to keep in mind that the recent WFH popularity has challenged a lot of companies by making their own interests difficult. A lot of it is shitty stuff that the company doesn't want to say out loud, like:
They cannot walk around and micromanage you
They cannot watch you work
They don't like the idea of taking breaks, even if you put in the same amount of work throughout the day
They don't have that corporate appearance of an office of business casual-dressed employees
They have real estate they paid for that is sitting half-empty
This kind of thing. Realistically, from an employee perspective, they're doing the same work, and they don't see any issue hanging around their house in their pajamas. From a higher-up perspective at some companies, though, they don't have the same goals.
It makes sense that a lot of employees are leaving their positions with companies forcing them to come into the office. In my opinion, they're breaking their working agreement. It may not be written down and it may not be a legal difference, but there is no doubt that they're radically changing the work requirements, which might not be what they signed up for. And what if you're in a wheelchair?
Unfortunately, if Alice and Bob live in the US, there is hardly any hope for them if the company doesn't have goodness in its heart. The workers' rights laws in the US are almost non-existent. There are even about three dozen states that can even legally fire you for being gay. It's that bad.
In my opinion, workers' rights should be highlighted, and side effects like working agreements and compensation for commuting should be solved problems by proxy.
Yeah why not. That shit is normal in my country. People get paid per kilometer or they get a transit pass. Of course the amount is capped and it’s a tax write off for the company anyway. Not sure why some of the comments here are against it. I guess they are all Americans
I would make sure they are both payed well enough that they can afford to live close to the factory. If they chose to live far away anyway, that is not my problem.
What do you mean compensate employees for their commutes? If I were a self-respecting factory owner, I would figure out how to get the municipality to scale back any public transit options so I could lease vehicles to my employees. They should be paying me to get to work, ha!
It's none of the company's business how an employee gets to work. It's just not.
The company should compensate the employee fairly or well for the COL in the area the job is. That's it. It's not their job to worry about how the employee gets to work.
Other than allowing/encouraging WFH where it makes sense the company shouldn't try to tell the employees how to live.
In the U.S., employers can subsidize bus passes, van pools, and bicycling to work (I guess provide bikes?) as a tax-free benefit. I'd certainly offer that.
I would not provide more $ to the employee who took a job further from home, unless I was doing on-site jobs on various job sites, work that moved around. Events, construction, etc. My employer pays for airfare or mileage for event work, that is not taxable to the employees.
Even when I did temp work I wouldn't take jobs far from my house, or any that were not one bus away, even though I have a car because cars break sometimes.
I DO think of commute time in a car as unpaid work but manage that in my life by working near home, or living near work.
Any compensation for commuting to your regular work place is considered taxable income.
The government allows for a tax deduction if commuting costs exceed a certain amount.
I would not do anything about it as is the custom in Sweden. If they want to change it their union can negotiate it, but they are generally more interested a bigger raise than misc benefits.
Anything short of my commuting time being considered part of my working hours is a non-starter for me. I value the time I gain by not commuting a lot more than most employers do. If my day starts the moment I close my front door, then we can start talking about additional concessions.
No because that opens the door for more complicated situations. Alice is late one day due to traffic or a road closure, does she get more compensation? What if Bob can't drive so his commute takes longer? What if he can drive, but chooses not to?
My employer gives us a commuting payment based on the distance from home to work (paid per km) on days we go to the office. We get an additional €60 a month to cover our working from home costs.
It's dependent on how competitive the job market is. You either pay the person more to get them to do it or you don't. You set a value on their relative skills. Everything else comes out in the wash.
Some countries actually pay your commute fees or part of them. In Argentina it's called viático. It can be advertised as part of the job payment or discussed upon closing the agreement, regardless of whether the job is legal (by the books, officially taxable) or otherwise.
First: a company should pay at a minimum a wage that can afford housing nearby (probably within 15 minutes' drive). The company should pay everyone for work hours + that round trip nearby commute time
If the company is paying that wage, then employees who live farther away are making a free choice to do so. They still get that round trip nearby commute time paid, but time beyond that is not paid. Or paid at some diminishing rate.
Companies should recognize a worker's time list for the company's benefit. But there has to be a balance because of the temptation to game the system.
If they can take public transit I'd pay for it. I'd give them up to $2,000 hiring bonus to buy an electric bike (maybe find a good company and get a discount) and offer relocation fees to get within range of either. If you're driving, use park and ride and I'll pay for it.
The easiest two ways are to either pay per mile, or just add the round trip time to whatever their pay is. There might be some small complaints and attempts to abuse. But the complaining is easy to deal with and I think the abuse would be small and could be dealt with in similar ways as other time theft is dealt with.
Let's make generalizations to answer the bigger problem here.
Most jobs that people are talking about are in cities.
Some people choose to not live right in the middle of a city for various reasons, but still want that job. They may live in a nearby community, the edge of the city, a county or two over, etc.
Predatory companies like Amazon resolve this by telling someone like Ryan homes to build a few 300 house communities right next to their new warehouse, resolving the issue and making their own non-city town. Normal companies do not have this ability.
There has to be a balance.
Businesses need to not be involved in commute repayment. They should instead invest into their local communities to make them more desirable to live in.
Revitalize public transportation, adjust timetables to usual starts\ends of shifts;
Make dumb paycards to pay-per-ride, consequential rides counting as one (if one needs to jump them);
Public sector employees, essential ones first, get 2 rides per working day monthly, to go there and back;
After getting some stats, make it equal to N litres of gasoline in $, tax-free, promote paying with it on gas stations and for government's services. No easy conversion to cash tho, not at the start at least, so it won't be seen as free money, worthy a fraud.
As a public test, it'd show if it works. Then, it can be pushed onto students, then on other spheres.
Then, as a large amount of workers has this benefit, it's not a wet dream but a real thing to consider and demand. One that private businesses would see.
I do find that not paying for commute has a good competitive value. It means I start to earn money right from the time I clock in, not spending my first minutes to compensate getting there – and that's a bitch for low-paid workers. Compared to those working from home, I still wake up earlier and am trapped on company's ground, but it's a first step to bridge and accept this difference.
In some cities I visited (ex-socblock) some big factories provide their own transport to take workers from their district and then bring them back. Since they are based way out of cities' limits due to health concerns, it's an obvious solution to that. By managing the commute of workers, factory may also be sure everyone in production line gets there at the same time, reaching full efficiency.
If I am travelling to a location purely to do my job at that location, then travelling to that location is part of my job. I must be reasonably compensated for it either as part of my salary or as an extra (tax adjusted) payment.
Switch the pronouns and such to apply for Bob and Alice both.
If I were to do it, I'd take the mileage of the drive as the most important factor, as companies in the US know the addresses of employees. Then I'd assume a gas price of $4.5/gallon at all times (Midwest prices aren't like the coasts) and assume a gas mileage of 25mpg. The person is paid this every day of the year without exception
No, the one with the longer commute should be taxed extra to account for all the damage caused to the environment, increased traffic, road wear and tear, etc.
Commuting should never be encouraged. Live where you work.
If it were me I'd just get an average commute, provide a stipend of gas or transport costs within your city, e.g. 15km distance, or a monthly pass for local area transit. If I'd want to relocate someone I may offer a signing bonus to help with moving and settling costs.
It's a reasonable expectation that if your job is at a workplace in Toronto, being within city limits is not an unreasonable expectation.
Offering to finance all or part of the tickets is a good option IMO. My company offers the German "job ticket" or whatever it was called again to a percentage.