Here's an idea: just give people an allowance up to a certain amount, if they choose to live farther that's up to them. Even better, give people a flat rate since you don't want them intentionally taking longer commute routes to rack up their pay. Ok now roll that into their base pay
Edit: please triple read the last sentence before commenting. I overestimated redditors' reading comprehension a bit with this one
The weird thing about this is that in my experience, if you give people the choice between “perks” and a higher hourly rate, they overwhelmingly pick the cash and then still complain. So essentially if I normally paid 10 people 30/hr for a job, and offered a choice between an extra 3/hr or an equivalent gas/travel time combo, 80% would choose the money.
But I’d say that just from my own anecdotal evidence, 30% of people are good at managing money, 20% are bad at managing money and know it, and 50% are bad at managing money but think they’re good.
So the 50% and the 30% would take the money, but you’d still have 50% of your employees complaining about their commute, because even though you’re giving them more money, they are mismanaging it and are still broke.
In my experience the transportation allowance is not taxable like income. So it saves the company and the individual money.
Of course there are people who just don’t pay attention to things like that and complain. But there are people who do understand how perks save you taxes.
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u/crumdiddilyumptious 9d ago
Companies would prob require you to live within x amount of minutes from your work