Coverage for commuting costs major consideration among Canadian job seekers: report

'RTO mandates are leaving many professionals with longer, more expensive journeys into the office'

Coverage for commuting costs major consideration among Canadian job seekers: report

As organizations continue to implement return-to-office (RTO) mandates, most workers are looking for financial support from their employers to make it happen.

Overall, 60% of Canadian professionals think commuting expenses are the most crucial cost to have subsidized by employers.

That weighs heavier for workers compared with the costs of tech equipment, food and health or wellness options.

“Calls for a return to office have only gotten louder this year, as leaders increasingly view them as being key to enhancing productivity and workplace culture,” says Martin Fox, director of Robert Walters Canada.

“However, as the pandemic gave rise to hybrid working as a standard and prompted some professionals to switch city life for more rural surroundings – RTO mandates are leaving many professionals with longer, more expensive journeys into the office.” 

Employers should be shouldering office return-related expenses if they want employees to come back on-site. That’s because more than half of employees want their employers to cover their expenses related to parking (72%), uniform (67%), and toll roads (51%), according to a previous Capterra report.

Commuting costs and new employment

And nearly three-quarters (74%) of professionals consider commuting costs a major factor when considering new job opportunities, finds Robert Walters.

This comes as the number of “super commuters” – professionals travelling at least 90 minutes to get to work – rose during and in the immediate aftermath of the pandemic as hybrid working arrangements meant professionals could move out of major cities.

However, Robert Walters's data shows that just 13% of professionals are now willing to spend up to 2 hours travelling into the office.

In fact, 29% state they’d commute for up to an hour, while the majority (56%) wouldn’t travel for any longer than 45 minutes or less.

“With delays and cancellations adding extra minutes and sometimes hours onto commutes, those who moved out of cities initially may be coming to regret their decisions – now faced with either having to seek new positions closer to home or take longer journeys to work for an increasing number of days each week,” says Martin.

Previously, the International Workplace Group reported that working closer to home for four days a week is delivering significant financial benefits for employees amid the high costs of working at the head office.

Commuting costs add up for workers

Currently, 88% of professionals say they don’t receive any support from their current employer when it comes to commuting costs, according to the Robert Walters report.

Commuting costs are also hurting Canadians’ pockets. In the fourth quarter of 2019, Canadian households spent approximately 13.6% of their total consumption expenditures on transportation, according to Robert Walters.

With this becoming a crucial issue, 35% of professionals say they are willing to stick to a lower-paying job if it offers greater flexibility, rather than switching jobs solely for better pay.

And 40% of Canadian managers admit they’ll look at implementing “hushed hybrid” – allowing their staff to quietly work from home, to still allow flexibility.

In January, several unions representing more than 330,000 workers launched a national campaign promoting remote work as the future of work.

“Employers will no doubt need to reevaluate their attraction and retention strategies – figuring out what a ‘good employment offer’ means this year – especially to meet professionals’ increasingly diverse needs,” says Fox.

Should employers cover workers’ commuting costs?

Commuting to work, for the majority of employees, involves more than just walking a few blocks, according to the US Chamber of Commerce.

“Most employees either drive or take public transportation to the office, and given inflation and the recent rise in gas prices, the cost to commute is hitting harder than ever,” it says. 

”Businesses can relieve some of this burden by offering to cover some or all of their employees’ travel expenses through a travel reimbursement plan or commuter stipend.”

Kalpi Desai, HealthEquity commuter product general manager, adds: “Commuting can be the biggest hurdle in any return-to-office or existing work-from-office experience. Offering commuter benefits, from pre-tax options to parking discounts, can make a big difference in making individuals’ workdays more manageable and cost-efficient."