the 2007 commuter impact survey - transitchek.com summary in 2006,amid ... implications and best...

TRANSITCHEK®

The 2007 Commuter Impact Survey

Executive SummaryIn 2006, amid unprecedented increases in gasoline prices and the resulting costs to employers and commuters,TransitCenter, Inc.inaugurated the annual Commuter Impact Survey.The findings of the Survey are made available to employers, human resourceprofessionals and their organizations, policy makers at the federal,state and local levels, transportation organizations and the mediain support of TransitCenter’s mission to encourage greater use of mass transit to reduce traffic congestion, decrease air pollution,and lower greenhouse gas emissions.The Survey is designed toidentify the factors that have the greatest impact on commuteruse of mass transit and that are influencing human resourcestrategies pertaining to supporting employees’ commuting needsand the use of mass transit.

The 2006 Survey included questions concerning the impact on employers and employees resulting from higher commutingcosts caused by the rapid increase in gas prices.The 2007 Surveyincluded these questions again and also expanded the scope toassess the impact of growing concern about climate changecaused by global warming.

As concern over globalwarming heats up,companies and employees are seeking ways to make a difference.

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Executive Summary

Detailed Findings

Composition of Sample

About TransitCenter®

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MethodologyIn June 2007, a quantitative Survey was conducted to determine perceptions,attitudes and intended actions with regard to high fuel and commuting costs,concerns about global warming and corporate sustainability, and employer “best practices” with regard to these issues.The Survey was independentlyfielded among 245 human resource professionals who attended the Society for Human Resource Management (SHRM) Annual Conference and Exposition,held June 24-27 in Las Vegas, or who took the survey online. Respondents wereable to complete survey questionnaires in print or online. At the 90% confidencelevel, the data is reliable +/-5.2%.

Composition of SampleRespondents to The 2007 Commuter Impact Survey represent a diverse mix of industries. Over 60% of the respondents are mid- and senior-level humanresource professionals, with 34% holding managerial positions and 23% holdingdirector-level titles.

Small, mid-sized and large organizations are all well-represented in the Survey:30% of respondents are from companies with more than 2,500 employees;21% are from companies with 500 to 2,499 employees; and 49% are fromcompanies with 500 or fewer employees. Most respondents’ organizationshave more than one location.

Survey respondents are nationally dispersed, coming from the nation’s majormetropolitan markets, including New York, Chicago, Los Angeles,Washington,D.C., San Francisco,Atlanta, Dallas, Philadelphia, Houston and Seattle,among others.

Of note, more than 90% of respondents acknowledge that at least somepercentage of their companies’ employees currently use mass transit, carpools or vanpools to commute to/from work.

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Key FindingsTax-free commuter benefits rise to #1 among all benefits programsemployers are planning to addIn The 2006 Commuter Impact Survey, 5% of respondents indicated that they were planning to add a pretax transit commuter benefits program to theiremployee benefits packages in the coming year. In the 2007 Survey, this percentage increased more than three-fold to 17%. This extraordinary increase has made transit commuter benefits the #1 benefit that employers plan to add in the coming year.This gain appears to reflect the high level of concern that is demonstrated in other questions in the Survey with the continued high fuel prices and global warming (of which emissions from car exhaust are a cause).

Awareness and adoption of commuter benefits also on the riseWith the surge in the number of companies that plan to add commuter benefits,there is significantly higher awareness in the 2007 Survey compared to 2006. In2007, 53% of respondents said they are aware of tax-free commuter benefits – a 26% increase over 2006.There has also been a commensurate increase in thedeployment of commuter benefits programs from 19% in 2006 to 31% in 2007.

Continued concern over rising fuel and commuting costsThe concerns over high fuel and commuting costs that were among the keyfindings from The 2006 Commuter Impact Survey are evident in this year’s Surveyas well.These concerns are an ongoing contributing factor in employers’ decisionsto add pretax commuter benefits in order to reduce the financial pressures theiremployees face.

While the intensity of concern has diminished somewhat compared to last year,seven out of ten respondents say their employees are either “extremely” or “very”concerned about high fuel and commuting costs. And, nearly 60% of respondentsclaim that their companies are either “extremely” or “very” concerned about theimpact of rising fuel and commuting costs on their employees.


Nearly 60%of respondentsclaim that theircompanies areeither "extremely"or "very"concernedabout rising fuel andcommuting costs.

Source: Employers Also RemainConcerned About High Fuel andCommuting Costs. (Chart 6)


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Taking center stage: the environment and global warmingPerhaps the most noteworthy findings from The 2007 Commuter Impact Surveyare related to the environment and global warming. Nearly 90% of respondentsbelieve their employees are concerned about the effects of global warming.And this intensity of concern carries over to employers, as well: over 80% of respondents state that their organizations are concerned about the effects of global warming – with nearly 50% indicating they are “extremely” or “very” concerned.

In response to the growing concern about the effects of global warming on theenvironment, respondents say that their companies are “going green” in a varietyof ways with respect to their employees, deploying initiatives that include teachingemployees how to use less energy, offering ridesharing or vanpooling, and providingpreferred parking for carpools. But, the #1 strategy respondents say they havedeployed to curb their impact on global warming is offering a commuter benefitsprogram to their employees to encourage them to use mass transit instead of driving to work.

What’s more, among respondents planning other initiatives to help support theenvironment, 35% say they intend to offer tax-free commuter benefits over thenext several months.This suggests that employers view tax-free commuter benefitsas something tangible and immediate they can do to help the environment andaddress global warming – while also enabling employees to cope with rising fuel costs.

Implications and best practicesThe 2007 Commuter Impact Survey provides a number of key insights. Specifically,the Survey indicates an overall increase in benefits being added to companies’packages – and a particularly significant increase in the planned adoption of pretax commuter benefits.The fact that pretax commuter benefits programs have emerged as the #1 benefit companies plan to add in the coming year is part and parcel of continued concern over high gas prices – and rapidly growingconcern with regard to environmental issues and global warming.

The Survey finds that a high-percentage of companies have started — or are in the process of starting – to “go green.” Importantly, almost two-thirds of companieshave “green” initiatives in place today. Providing benefits that encourage the use ofmass transit is identified by HR decision-makers as a primary solution for employeesto curb global warming.

Benefits programs that support commuters have moved up in the hierarchy ofhuman resources and corporate “best practices.” Given the growing financial payoffof tax-free commuter benefits in mitigating high commuting costs – and the addedbenefit of reducing carbon emissions that cause global warming, these programsprovide an increasingly attractive and relevant solution for human resourcepractitioners and their organizations.

The fact that pretax commuterbenefits programshave emerged as the #1 benefitcompanies planto add in thecoming year ispart and parcel of continuingconcern over high gas prices – andrapidly growingconcern withregard toenvironmentalissues and global warming.

Source:Tax-Free Commuter Benefitsthe #1 Strategy Employers Are Usingto "Go Green." (Chart 11)

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31%

19%

2007

Total Respondents

2006

44%

28%

2007

Major Metropolitan Areas

2006

Pretax transit commuter benefit

Gym benefits

Employee Assistance Program

Education and training reimbursement

401K

Family friendly benefits

Life insurance

Short-term disability

Dental insurance

Flexible spending accounts

Health insurance

Vision insurance

Long-term disability

Pretax parking commuter benefit

Referral program

Subsidized transit commuter benefit

Subsidized parking commuter benefit

Profit sharing plan

Pension plan

Sabbaticals

Benefits 2006 2007

17%5%

11%11%

10%5%

9%4%

9%1%

9%13%

7%1%

7%3%

7%2%

7%3%

7%1%

7%6%

6%3%

6%2%

6%2%

6%3%

5%1%

4%1%

2%1%

2%2%

20% Net

Adoption of Commuter Benefits is on the RiseThere has been a significant increase in the deployment of commuter benefits programsover the past year.

Pretax Commuter Benefits Leap to Top of List of Benefits Employers Plan to Add

In fact, 17% of respondents plan to add pretax transit commuter benefits – a 340% increase since 2006.

Detailed Findings


In majormetropolitan areas,there has been a 132% increasein deployment of tax-free commuterbenefits programs.

Question: Are you currently offering a tax-free commuter benefits program?

Question: What benefits, if any, are you planning to add in the coming year?

Chart 1

Chart 2

132%


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53%of respondents citedthat they are awareof tax-free commuterbenefits – a 26%increase over 2007.

2006 2007

58%No

42%Yes 53%

Yes47%No

Significantly More Companies Are Now Aware of Tax-Free Commuter BenefitsConsistent with responses to questions on actual and planned growth in adoption ofcommuter benefits, awareness of commuter benefits among HR professionals and benefitdecision-makers has increased significantly.

According to Respondents, Employees Remain ExtremelyConcerned About High Fuel and Commuting CostsWhile concern remains high, the intensity of concern has diminished somewhat compared to last year.

Question: Are you aware of tax-free commuter benefits that allow employees to use up to $110 per month/$1,320 per year for transit and $215 per month/$2,580 for parking through a salary deduction or as a tax-free subsidy from the employer for commuting expenses?

Question: Right now, how concerned are your employees about the high cost of fuel and/orcommuting costs?

Source: More Companies Now Aware ofPretax Commuter Benefits. (Chart 3)

Source: Employees Remain ConcernedAbout High Fuel and CommutingCosts. (Chart 4)

Chart 3

Chart 4

70%of respondents saytheir employees areeither “extremely”or “very” concernedabout high fuel andcommuting costs.

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70%

65%

Cost of driving to work

Traffic congestion/drive time

42%Cost of commuting by transit

Cost of parking

37%Air pollution

36%Carbon emissions and their impact onglobal warming or our environment

42%

Cost and Congestion Drive Employee ConcernConsistent with The 2006 Commuter Impact Survey, the cost of driving to work and trafficcongestion remain of paramount importance to employees.


Question: Have your employees expressed concern about any of the following commutingand environment-related matters?

Employers Also Remain Concerned About High Fuel and Commuting CostsLike their employees, employer concern remains strong – though somewhat less.

Question: How concerned is your company about the impact of high fuel costs and commutingcosts on your employees?

Chart 5

Chart 6

41%Offer flex time

Offer telecommuting

Offer pretax commuter/transportation benefit

None

Facilitate carpooling and ridesharing

Facilitate vanpooling

Offer tax-free subsidies for commuting expenses

Other

Strategy 2006 2007

43%

30%27%

26%15%

25%28%

22%16%

11%11%

8%8%

7%5%

Flex Time,Telecommuting and Commuter Benefits Top List of Strategies Employers Are Implementing to Offset High Commuting Costs

16%Extremely concerned

24%Very concerned

46%Somewhat concerned

4%Not at all concerned

10%Donít k now

Global Warming: Cause for Employee ConcernClose to 90% of respondents feel their employees are concerned about the effects of global warming, with 40% stating that employees are extremely/very concerned.


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Question: Which, if any, of the following alternatives have you deployed to help your employeescope with high commuting costs?

Question: Right now, how concerned are your employees about the effects of global warmingon the environment?

Chart 7

Chart 8

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20%Extremely concerned

28%Very concerned

36%Somewhat concerned

6%Not at all concerned

10%Don’t know

Global Warming: Cause for Employer ConcernOver 80% of employers are concerned about the environment – with 48%extremely/very concerned.

Question: How concerned is your company about the environment and global warming?

Chart 9

A solo commuter switching his commute to public transportation for a single day

can reduce his CO2 emissions by 20 pounds,or more than 4,800 pounds in a year. Those

4,800 pounds are about ten percent of a two-carfamily household’s yearly carbon footprint.

Source:American Public Transportation Association, Public Transportation'sContribution to U.S. Greenhouse Gas Reduction. Fact Sheet. September 26, 2007


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None

Support/partner with green organizations

Establish an internal policy for energy conservation

Focus on developing products and services that are not detrimental to the environment

Seek greener supply chain approach

Green initiatives targeted at your customers

Provide carbon offsets for business travel

Focused on Business Organization 2007

37%

22%

20%

20%

17%

16%

Other 3%

4%

Offer a tax-free commuter benefit to encourage use of mass transit

Teach employees how to use less energy

Offer ridesharing or vanpooling

Provide preferred parking for carpools

Other

Focused on Employees 2007

28%

19%

None 30%

18%

Introduce a telecommuting program 19%

10%

2%

Companies “Going Green” in a Variety of Ways Nearly two-thirds of respondents state that their organizations are deploying initiatives to address global warming and support the environment.

Tax-Free Commuter Benefits the #1 Strategy Employers Are Using to "Go Green" Twenty-eight percent of companies are offering tax-free commuter benefits to reduce carbon emissions caused by commuting to help support the environment and address global warming.

Question: Which, if any, of the following alternatives has your company deployed to help support the environment and address global warming?

Question: Which, if any, of the following alternatives has your company deployed to help support the environment and address global warming?

Employees can save more than ever with commuterbenefits. Starting in January 2007,the IRS increased the individual tax-free allowance for commuterbenefits to $110 per month for mass transit and an additional $215 per month for parking.

Chart 10

Chart 11

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Offer a tax-free commuter benefit to encourage use of mass transit

Teach employees how to use less energy

Offer ridesharing or vanpooling

Introduce a telecommuting program

Provide preferred parking for carpools

None

Other

Focused on Employees 2007

35%

30%

22%

20%

20%

13%

11%

Support/partner with green organizations

Greater focus on developing products and services that are not detrimental to the environment

Green initiatives targeted at your customers

Seek greener supply chain approach

Establish an internal policy for energy conservation

Provide carbon offsets for business travel

None

Focused on Business Organization 2007

46%

37%

37%

37%

28%

17%

Other 9%

9%

Tax-Free Commuter Benefits Also Lead the Way for CompaniesPlanning Other Initiatives to Address Global WarmingAmong companies taking additional steps to address global warming, 35% plan on adding tax-free commuter benefits.

A Variety of Other Green Initiatives Also Are PlannedPartnerships with green organizations, policies to conserve energy, developing greenproducts/services, targeting green initiatives at customers and seeking greener supplychain approaches predominate.


Question: Are you planning any other initiatives over the next several months to help supportthe environment and address global warming?

Question: Are you planning any other initiatives over the next several months to help supportthe environment and address global warming?

Chart 12

Chart 13


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Composition of Sample

New York Metro

Washington, D.C.

Chicago

Los Angeles

Atlanta

Philadelphia

Dallas

Boston

San Francisco

Houston

Denver

Miami

Pittsburgh

Other (Las Vegas, Phoenix, etc.)

Seattle

34%

50%

19%

18%

15%

13%

11%

11%

11%

11%

18%

10%

9%

8%

7%

13%

Respondents by MarketMost major markets are represented in the survey.

Question: Which of the following cities do you have offices in?

Chart 14

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34%Manager of HR/Personnel/HR Generalists

Director/HR/Personnel or other Directors

Other

President/CEO/Chairman/Owner/Partner/Principal

Specialist

VP/HR/Personnel or other VP

Supervisor

Assistant or Associate Director

Administrator

23%

10%

9%

7%

6%

5%

4%

2%

Titles/FunctionMid- and senior-level HR executives constitute the majority of the sample.

Question: What is your exact title?

Chart 15

Over 80% of employers are concerned about the environment – with nearly 50%

“extremely” or “very” concerned.

Source: Global Warming:Cause for Employer Concern. (Chart 9)


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21%500 - 2,499

30%2,500 - 25,000+

49%Less than

500

Company/Organization SizeSmall, mid-sized and large companies were all well represented in the survey.

1

2 to 5

6 to 10

11 to 20

21 to 50

51 to 100

More than 100

32%

25%

8%

12%

10%

7%

5%

Number of LocationsMost respondent organizations have more than one location.

Question: Approximately how many individuals are employed by your company?

Question: How many different U.S. locations does your company have?

Chart 16

Chart 17

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None

1- 5%

6 - 10%

11 - 25%

26 - 50%

51 - 75%

76 -100%

7%

32%

15%

15%

7%

11%

13%

Companies With Employees Who Use Mass Transit,Carpools or Vanpools93% of the responding companies have employees who currently commute to work using mass transit, carpools and vanpools.

Question: Approximately what percentage of your employees commute to work using mass transit, a carpool or vanpool?

93% of the responding companies have employeeswho currently commute to work using mass

transit, carpools and vanpools.

Source: Companies with Employees Who Use Mass Transit, Carpools or Vanpools. (Chart 18)

Chart 18


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Twenty years ago,TransitCenter was created to develop innovative ways to encouragegreater use of mass transit in order to reduce traffic congestion and improve airquality. Today,TransitCenter continues to be focused on these objectives, along withhelping employers and employees manage amid rising gas and commuting costs.TransitCenter also works closely with businesses, transit operators, commutergroups, regional development agencies and government agencies to help all partiesharness the enabling power and productivity of mass transit.

As part of this mission, in1987 TransitCenter launched TransitChek®, the first commuterbenefits program in the nation, which has made commuting a more affordable optionfor hundreds of thousands of people. Since then,TransitChek programs have helpedover 500,000 employees save more than $110 million in taxes, while employers havesaved over $35 million in payroll taxes.

About TransitCenter, Inc.

TRANSITCHEK®

TransitChek is a registered trademark of TransitCenter, Inc. ©2007 TransitCenter, Inc.

1065 Avenue of the Americas, 16th FloorNew York, NY 10018

1.866.491.CHEK (2435)

www.transitcenter.com

the 2007 commuter impact survey - transitchek.com summary in 2006,amid ... implications and best...

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