Dr John Sullivan Talent Management Thought Leadership
Long commutes cause turnover, but expensive commutes create a deluge of quitting!
Note: This article is in bullet point format in order to allow a fast scan.
Realize That Commuters That Drive Now Face Three Major Burdens
Baseline data reveal that the burden of long commutes has been straining commuting employees for years, to the point that they have much higher turnover rates (which can reach 92%).
However, today, when you add the relatively new burden of record-high gas prices to their long commute, it makes sense to expect your commuters’ turnover rate to go even higher. Unfortunately, those commuters face an additional burden today. A household budget that’s in the red (as a result of two years of major affordability issues) struggles to pay for a long and much more expensive commute.
The Time To Act Is Now
In my view, everyone should take this alert as a warning that the turnover among commuting employees is about to explode. Unfortunately, I have found that most managers and talent professionals don’t act. Instead, they choose to ignore or delay any action on this commuter turnover problem. It’s strange because I estimate this turnover problem will inevitably generate millions of dollars in avoidable costs in turnover and productivity.
So I recommend a superior option, which is to begin acting now by proactively implementing a few of the no-cost or low-cost, proven retention-building actions that are listed in this article. And incidentally, for recruiters, it’s also important to realize that this mass departure is also a major recruiting opportunity. To “poach” the best commuters (from your talent competitors) who are suddenly looking for a job with a better and cheaper commute.
5 Additional Factors That Will Further Increase Commuter Turnover
As I mentioned previously, over the years, many have established the strong connection between commuting distance and employee retention (including Gate Gourmet, Evolv, and Xerox). However, today, in addition to high gas prices and strained household budgets, managers must realize that there are several additional factors that will bump turnover rates up even higher. Those additional turnover boosters include:
- Return to the office orders mean that more employees will be commuting – because numerous remote workers are being forced to come into the office. The percentage of RTO employees looking for relief from their new high commute costs will continue to rise.
- Most employees now live paycheck to paycheck – research shows that a whopping two-thirds of American employees do. And for those employees who are in a bind. Even a small increase in their living expenses may make them anxious enough to consider a new job with better pay and/or better commuter support.
- The affordability crisis is likely to continue into next year – the budgets of paycheck-to-paycheck employees have been strained for at least two years as a result of inflation in housing, groceries, and health insurance. And because of their already strained budgets, the fact that gas prices will likely remain high into next year will continue to put pressure on your commuting employees well into next year.
- Federal EV subsidies are gone – the fact that federal government’s phase-out of electric vehicle subsidies will make gas-free driving less affordable.
- Other workplace issues will add to turnover – unfortunately, there are a number of other workplace issues that will force commuting employees to begin looking. Those factors include employee fears of no salary raises as a result of massive AI spending. And/or the real fear of being laid off, also as a result of cost-cutting or AI replacing employees. It’s also important to note that even if your stressed commuters don’t leave right away, this long list of new burdens will likely prevent them from being fully engaged and productive.
No Cost Actions That Have Been Proven To Make Employee Commutes Easier And Cheaper
Fortunately, there are numerous no-cost tools that companies and individual managers can use to reduce commuter turnover. Those recommended actions include:
- Company actions that will effectively increase a commuting employee’s income – it’s unrealistic to give every commuting employee a raise in order to offset their higher living and commuting costs. Fortunately, there are several ways that a company can increase a commuting employee’s income (without giving them a raise). For example, you can bump up a commuter’s income by giving them the first priority for working any available overtime hours. And in cases where some of your work shifts offer premium pay (i.e., nights, weekends, and holidays), giving your commuters first choice for those better-paying shifts will allow them to bump up their income. Finally, your company should adopt the IRS’s program that allows commuters to pay their commute costs with non-tax dollars (effectively boosting their net pay).
- Actions that will reduce the number of times an employee must drive – you can cut down on the number of days that an employee must commute by offering those who drive to work a four-day work week and/or a remote work option. Also, have your company institute and support a ridesharing program so that your commuting employees may only have to drive and pay for gas and insurance one day a week. Make it easy for your commuters to use mass transit by subsidizing transit passes and/or providing shuttle buses to nearby transit stations. Finally, support bike-to-work programs, so participating employees don’t have to drive at all.
- Actions that will reduce the distance that an employee must drive – you can reduce the number of miles that a commuting employee must drive if you allow them to occasionally work at one of your company’s satellite offices. Or you can support an internal movement program that strives to move long-commute employees to a closer company facility permanently.
- Actions that will reduce their commuting time – you can also help commuting employees reduce their commute time by giving them flexible work hours. So that they can shorten their commute times by starting and ending their work outside of peak drive times (which will shorten their commute time, while saving gas/idling time, and also helping the environment). Another action to consider is allowing your commuting employees to work on the night or early-morning shift permanently. This will shorten their commute because they will be driving during periods of low traffic. Some companies have even shortened their employees’ commute time. By permanently shifting the daytime schedule to 7 AM–4 PM, all employees on that shift can avoid the peak 8 AM and 5 PM commute hours.
- No-cost actions that will make your employees’ commute cheaper – start making your employees’ commute cheaper by helping them find the cheapest gas at nearby gas stations. Also, shorten the portion of their commute spent looking for parking by offering your commuters free, reserved parking. Finally, if your company buys gas at a lower corporate rate, allow your commuting employees to take advantage of your corporate discount.
Cash Outlays That Will Make Employee Commutes Easier And Cheaper
Realize that there are a few effective commuting-related actions that you should consider, despite the fact that they require a corporate outlay. Those “some cost” actions include:
- Purchase the vans used in your company’s vanpool – when a company buys the vans used in your company-sponsored vanpool. It reduces the cost for those employees who ride in them. And vanpools reduce commuter strain by allowing your employees to commute more cheaply without the stress of driving every day. Also, realize that companies like Google have found that putting so many employees in one vehicle yields the added benefit of increased employee engagement and collaboration.
- Provide EV charging and/or subsidize EV purchases – placing electric vehicle charging stations at your facility will boost the number of employees who use electric vehicles (saving the environment). However, a significant number of companies have chosen to go further and subsidize the employee purchase of EV vehicles. And that program can add to employee retention, provided that the company only subsidizes the employee’s EV monthly car payment as long as they continue working at your company.
- Provide a temporary gas price subsidy – this is the most expensive of all commute options, providing employees with a per-mile gas subsidy. This subsidy can be made more palatable if it only lasts until gas prices return to normal.
- Do your part in helping increase the family income of your commuters – increasing the total family income can indirectly help to offset the commuters’ high cost of living. So, if you have been reluctant to hire family members because of a nepotism policy, consider relaxing it during this economic downturn. Also, consider instituting an internal process that prioritizes hiring close family members for your open positions. Alternatively, help with the job search for your employee’s family members. By making one of your recruiters available to provide family members with advice on how they can increase their chances of getting a well-paying job.
Final Thoughts
Corporations have been acting on community issues for years. In fact, in its early days, Facebook (Meta) offered a $10,000 yearly bonus for employees who lived within a mile of its headquarters. And today, I find that even though everyone in corporate is well aware of the high cost of living and gas prices. Yet despite that awareness, few seem to be taking the necessary actions to reduce turnover among commuting employees. Perhaps that is because many managers assume fixing the problem will be both difficult and expensive. Where, instead, I have found the opposite to be true. Because today, there are many no-cost and low-cost ways to make your employees’ commute easier and cheaper.
IMPLEMENTATION APPENDIX
For those who are interested in implementing a “commuter help program,” this appendix covers the four major implementation steps.
Implementation Step I – Identifying the employees with a long or expensive commute – in order to focus your assistance on the commuting employees who need the most help. You will need an internal process for identifying which of your employees are suffering from long or expensive commutes. The best way to build your list of these commuting employees is to create an internal “commuter help” website. Where any employee can sign up to receive commuting information and support. Of course, the company should also use the site to capture the names of its commuting employees. And the site’s application form will also allow the company to learn their commuting distance, commute time, and any problems that they are encountering. Alternatively, you can simply ask your managers, HR generalists, and informal team leaders to identify employees with frustrating commutes. This is usually easy because most employees with commute problems continually complain about them.
Implementation Step II – Prioritize your high-impact commuting employees – it’s unnecessary and expensive to apply your commuter help equally across all employees who commute. So after you have identified all of your employees with commuting issues. It makes sense to prioritize those on the list who stand out as high-value employees or hold key roles. The best approach is to have a senior HR professional and a senior manager collaborate on those priority designations. And once you have identified these high-value targets, it makes sense to sculpt your entire “commuter help program” around their needs.
Implementation Step III – Identify the prioritized employees that are most likely to leave – because not every high-priority employee has a high risk of leaving in the next few months. It makes sense to focus your retention efforts on the high-priority employees who are most likely to leave. The best way to identify which commuters have the highest “flight risk” is to hold one-on-one “stay interviews” with them, where you ask them to help you understand both the factors that cause them to stay and the factors that might cause them to quit.
In addition, based on established research. You can assume that those employees are most likely to quit. Include those with the longest commute times, as well as those who have been commuting for less than one year or more than five years. And finally, the data reveal that your hourly workers and those in lower-level jobs are the commuters most likely to quit because these employees are often the ones most likely to be living paycheck to paycheck.
Implementation Step IV – Also apply individual retention tools to your prioritized employees who are at high flight risk – if you’re really serious about retaining your targeted priority employees in addition to the broad commuting-related actions that I have already highlighted in this article. It’s also important for the employee’s manager to apply several individual “retention tools” from your recruiting toolkit. In order to further decrease the chances that a targeted commuting employee will quit, the most effective individual retention tools you should apply include:
- The stay interview – this is the cheapest and most effective retention tool, focusing on identifying and building on the reasons why this employee stays with the company.
- Develop a “more of / less of” list – this effective tool makes the employee’s current job more like their dream job. By sculpting their job so the employee spends more of their time doing what they are good at and less doing what they dread.
- Develop a personalized learning plan – a key factor of employee retention is the fact that the employee is continuously learning and growing. So have their manager work with them on developing a personalized learning plan. One that will accelerate their learning, while at the same time, giving the employee some control over what and how they learn.
- Post-exit interviews reveal the real turnover causes – standard exit interviews generally produce less accurate answers because the departing employee hopes to get a strong reference. And that means that during exit interviews, “the commute” is often falsely cited as a primary cause of turnover. However, if instead you wait a few months and then conduct a post-exit telephone interview. You will be much more likely to learn the real causes of turnover.
Notes for the reader
This is the latest article from Dr. Sullivan, who was called “the Michael Jordan of Hiring” by Fast Company.
You can subscribe to his Aggressive Talent Management newsletter (which focuses on recruiting tools, current recruiting opportunities, and recruiting trends). Either here or by following him on LinkedIn.
