A Data-Driven Way to Assess Commuter Needs

Good Shepherd, a Philadelphia-based nonprofit, wanted to understand which commuters would most likely use a transit benefit vs. parking. Using home ZIP codes for nearly 1,000 employees, they compared driving and travel times during a typical weekday morning rush hour commute.

Here’s what they found:

Working together at Emory University: A mini case study

We spoke with Walter Kolis, Assistant Director of Parking & Transportation Services at Emory University, to understand how stakeholders at organizations can (and should!) work together to improve their commuter program.

The challenge

Walter’s team needs to advocate for the commuter populations he works with—including employees, undergrad students, and grad students—while working within the constraints of university budgets, local transit options, and the goals of leadership.

The approach

For Walter, Transportation Demand Management (TDM) is about much more than planning bus routes and fare passes. It’s about helping decision makers understand the benefit of each transportation option and using language that resonates with them the most.

“We can talk about financial well-being and how you could potentially save money. We could talk about physical well-being, because you’re biking to work or walking to work. Or social well-being: when you’re part of a vanpool or carpool and you get to talk to people, it can help with mental well-being, because you’re not stressed driving in a vehicle.”

When making the case for improved commuter benefits to HR, Walter has emphasized the impact on the bottom line. “When HR sees that the bottom line is impacted, that gets more buy-in. We can speak the language that they’re trying to speak with their leadership: [that] it all comes down to funding. The more we can get connected, the more we can be a partner with HR in the language that they’re thinking, the better we’re going to be.”

What is a TMA?

TMAs (also called Transportation Management Organizations or TMOs) often offer free or low-cost support to employers looking to improve commuting. The names and acronyms may vary, but their mission is the same: help employers create and maintain strong, cost-effective commuter programs.

If you have limited resources but want to support better commutes, look for organizations in your area that already have tools and funding ready to go.

Every TMA is unique and focused on its own community, but here are examples of what your TMA may be able to do for you:

The impact of employer subsidies

A modest monthly subsidy can turn commuter benefits from an overlooked perk into something that drives retention and satisfaction.

Here are just three examples of how you can offer custom subsidies based on your workforce's location and needs.

What do we mean when we say commuter benefits?

Let’s be honest—the term “benefit” can be confusing. In the eyes of the IRS, “benefits” refers only to privileges or rewards offered by an employer that affect an employee’s tax liability. In practice, “benefits” may also refer to other services, arrangements, privileges or rewards offered by an employer that make working easier or more pleasant, whether they affect taxes or not (think hybrid work arrangements or commute planning services).

Pre-tax commuter benefits let employees set aside money from their paycheck (up to a monthly cap set by the IRS) to pay for eligible transit, vanpool, and commuter parking expenses. Because the money is set aside before federal taxes are applied, they’re taxed on a smaller portion of their income and can take home more of the money they earn. (It’s a good deal for employers too, who reduce their payroll tax.)

Post-tax commuter benefits are any other program or service with monetary value that help employees get to work. These are considered income by the IRS and thus add to an employee’s taxable income. For instance, if an employer pays for something like a bikeshare membership, employees pay tax on its value but still get a good deal on the service.