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Retaining Skilled Employees

Commuting conditions strongly affect job satisfaction, and long, grueling commutes can cause people to quit jobs. This means hard dollar impacts to your organization. It costs approximately 1.5 times the annual salary to replace an employee. Therefore, losing a $30,000 employee can cost up to $45,000 due to advertising and recruitment expenses, productivity lost during position vacancy, and new employee training. Replacing employees is expensive!

Woman holding newspaper waiting for trainRetaining skilled employees can save your company both time and money, and offering commuter benefits as part of an employee's total benefits package encourages employee retention by helping your employees commute further with less stress and lower cost. Saving just one employee at a $45,000 savings can pay for your whole commuter benefits program.

Check out the following success stories to see how companies used commuter benefits such as tax-free transit benefits, Guaranteed Ride Home, vanpool and carpool programs, and teleworking to overcome commuting issues and retain skilled employees.


Quotes
Case Studies
Summaries


Quotes

    "Metro expands our labor market. We have valuable people who simply couldn't work here without it."

    "Our principal library researcher has a vision problem and cannot drive. Without Metro we couldn't hire her. She is one of the best in the business; it's a great equal employment opportunity for us. We also have people who prefer not to own a car. This is where services like Metrochek and Guaranteed Ride Home are critical factors. The cost of Metrochek is insignificant compared to the benefits."

    -PricewaterhouseCoopers



    The Marasco Newton Group started a telework pilot project to help retain quality employees, improve employee morale, and work toward development of a formal telework program. After a year, the results have been positive.

    "Telework has been good for our business and good for our clients. It also helps us maintain our environmental focus."

    -The Marasco Newton Group (also see case study below)
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Case Studies

Calvert Group

Calvert Group established its Employee Transportation Benefit Program in 1987. Initially it provided employee subsidies for transportation, adding subsidies for walkers in 1989 and for cyclists in 1993.

Today, Calvert participates in a tax-free transit benefit program and reimburses each employee's total public transportation costs for Metro, MARC, and VRE ? with no cap. Fifty-five (or 32.4%) of their 170 employees take advantage of this generous benefit. The remaining employees drive single-occupancy vehicles. For walkers, they reimburse the cost of one pair of walking shoes per year, up to $120. For bicyclists, they reimburse up to $350 for a bicycle.

Calvert believes that its generous and flexible transportation benefit program contributes significantly to its high employee morale, low turnover rate, enhanced recruitment, and improved public image. Calvert Group is an EPA Commuter Choice Leader, and a previous winner for the Incentives Category of the Commuter Connections Employer Recognition Awards. In 1998, when they won the award, 25 percent of their 160 employees participated in the tax-free transit benefit program. They have experienced a nine percent increase in this benefit since 1998.

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Suburban Hospital:

Situation: Suburban Hospital is located just inside the Beltway on Old Georgetown Road in Bethesda, Maryland. The hospital has over 2,000 employees, each coming from different locations in the Washington area. The hospital works a three-shift work day and has parking issues for visitors and staff.

The Programs: Through its Fare Share Program, Suburban is striving to motivate as many people as possible to use public transit. The hospital aggressively advertises Fare Share through its newsletter, on memos, on employee pay stubs, and during orientation sessions. Suburban's alternative commute incentives include:

  • Paying 50 percent of an employee's costs to commute to work using public transportation
  • Shuttle service to the Medical Center and Bethesda Metro stations
  • Carpoolers have reserved garage parking
  • Bike racks/lockers/showers
  • Ridematching
  • Guaranteed Ride Home
  • Flextime

Fare Share participation increased 10 percent in 1999 to 110 employees and then increased to over 13 percent at the end of 2000.

The Benefits: Suburban Hospital has successfully implemented alternative commuting options for its employees. As an effect of these commuting alternatives,over 50 cars have been removed from the road, carpooling has increased, absenteeism has been reduced, and parking issues have been relieved.

Looking Ahead: The hospital hopes to be able to increase its employee participation in the alternative modes offered by another four percent over the next year. Thanks to the Montgomery County Fare Share and Super Fare Share programs, Suburban has a comfortable option in offering different means of commuting for its workforce.

Case study based on March 2000 interview with Ms. Adele Draiman, Benefits & Compensation Manager.



GEICO DIRECT:

Situation: GEICO Direct is the largest direct marketer, and fifth-largest private-passenger auto insurance company in the U.S. Its location in Friendship Heights guarantees a difficult commute for its employees. GEICO implemented the Transit Incentive Program to address reducing traffic congestion and air pollution at their worksite in Friendship Heights.

The Programs: GEICO's Transit Incentive Program has over 26 percent employee participation. The incentive program includes the promotion of alternative commuting programs such as:

  • Carpooling/vanpooling with reduced fee parking for both
  • Walking
  • Bicycling
  • Public Transportation
  • Flextime
  • Formal Telework
  • Guaranteed Ride Home

GEICO provides discounted public transportation fare media on site. Each card, token, or pass sold by GEICO to the employees is discounted $7. Employees can mix and match Metrorail farecards, Metrobus tokens, and RideOn bus passes. Carpoolers receive free parking in preferred spaces closer to the building. The company also owns and operates nine vanpools, which took 78 cars off the road.

The Benefits: GEICO's workforce has saved more time and money in using the alternatives offered. As a direct result of the Transit Incentive Program, over 14 percent of employees have changed their commuting modes.

Looking Ahead: GEICO looks to expand its current offerings of alternative commuting modes and has shared such means with its satellite offices through transportation fairs and broadcast e-mails.

Case study based on March 2000 interview with Marge Robertson, Professional Recruiting Specialist.


The Marasco Newton Group:

The Marasco Newton Group faced space shortages and complaints from commuting employees.

  • Through teleworking, the company retained 10 employees they would have lost - for a savings of $396,000.
  • Two work cubicles used on a shared basis for 22 employees: dramatic cost savings on 20 cubicles
  • Improved recruiting, morale, and productivity
  • Reduced communications expense
  • Reduced travel: average of 18 fewer miles per day for each telecommuter = less stress, traffic, and air pollution.


U.S. Department of Labor

The U.S. Department of Labor is a prime example of how an employer can create an optimal work environment for its employees through implementing a telework program.

The Department believes its Flexiplace Program contributes to cost savings due to the retention of skilled employees, and contributes to a better quality of life. The elements that make this program a success include:
  • formal arrangements, with written agreements, and
  • informal arrangements decided between manager and employee.
Approximately 225 Labor Department employees in the Washington area participate under formal arrangements, with an equal or greater number participating in informal arrangements.

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Summaries

Company/Location/Size:Asher's Chocolate
Sounderon, PA
150 employees
Firm Type:Candy production
Site Location:Suburban area
Services Offered:Vanpool - company paid
Benefits Realized:Retention - reduced attrition by 15 employees (estimated) of 120 possible


Company/Location/Size:Sears
Hoffman Estates, IL
4,000 employees
Firm Type:Retail Company
Headquarters site
Site Location:Suburban area
Services Offered:Transit and vanpool service, Guaranteed Ride Home, on-site services
Benefits Realized:Retention after relocation


Company/Location/Size:Baylor College of Medicine
Houston, TX
7,000 employees
Firm Type:Teaching hospital
Site Location:Downtown fringe
Services Offered:Rideshare subsidy, Guaranteed Ride Home, compressed work schedule
Benefits Realized:Recruitment and retention, parking cost saving


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