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For the average American employee, commuting to work takes 26.7 minutes one way, or nearly an hour round trip each day. But those numbers are conservative at best, with millions of Americans reporting they drive an hour or more each way to work.
Business leaders and HR professionals are starting to take note of the ripple effect of long commute times on their workforces. Commute stress is taking a toll on employees’ physical and mental health, which, in turn, leads to lowering productivity.
These issues are now hitting organizations where it hurts most—the bottom line. Every year, millions of dollars are lost due to decreased efficiency, increased overhead costs, and higher employee turnover.
That’s why innovative commuting solutions, such as employee carpooling programs, are getting traction among workplaces. Aside from being environmentally friendly, carpooling programs help improve employee well-being and accommodate the rise of hybrid work setups.
In this article, we’ll look into the multitude of benefits of employee carpooling programs that extend from employees to the companies they work for.
5 benefits of carpooling for businesses
1. Improves workplace retention and engagement
With US employee engagement hitting an 11-year low in 2024, it’s more important than ever for decision-makers in businesses to prioritize initiatives that foster connection, commitment, and a sense of community in the workplace.
Carpooling offers employees a chance to form a bond outside the office and build stronger interpersonal relationships. When employees commute together, they share personal stories, experiences of the daily grind, and interests that can grow a feeling of belonging to something more within their company, giving them a sense of community.
A stronger sense of community across the company means employees are more likely to be invested in their roles and loyal to their organization. This builds a positive work culture that helps with employee retention and engagement.
Commuting is one of the biggest concerns of American workers. And when employees feel supported in their commute through employee carpooling, it results in increased overall job satisfaction. When employees are satisfied, they’re more likely to stick around, which reduces turnover and saves businesses the expense of hiring and training new people.
2. Boosts employee productivity
Carpooling programs can improve employee productivity in different ways. Research shows that people who carpool arrive at their workplace with improved mood and lower stress levels. This translates into increased productivity throughout the day, with a study from Oxford University revealing that workers are 13% more productive when happy.
Another productivity-related benefit of workplace carpooling is it helps employees show up on time and reduces instances of absenteeism. When workers have a reliable way of getting to the office, it means fewer delays caused by traffic or car problems.
Carpooling also fosters a sense of shared responsibility, encouraging employees to stay on schedule so the route won’t be disrupted. When carpooling together, employees will clock in at the same time, leading to a more efficient office culture.
Your employees will also arrive at work energized and focused. This results in a higher quality of work, fewer errors, and overall higher productivity; leading to more collaboration and stronger business results.
3. Cost savings
Carpooling is a simple yet effective way for companies to lower costs. When employees carpool, there are fewer vehicles requiring parking. This allows businesses to alleviate the common issue of insufficient on-site parking availability. It also saves companies from the significant costs associated with leasing additional parking spaces or expanding parking facilities.
In areas where parking is in high demand, companies can sometimes turn unused parking spaces into extra revenue. By promoting a carpool program, freed-up parking facilities can be rented out as an additional revenue stream.
Carpooling can also drive significant cost savings by reducing or completely removing the dependency on expensive commuter benefits, such as shuttle services.
Shuttles are often costly to operate, especially if you choose to lease vehicles. Rental prices range from $425 to as much as $1,250 for just a six-hour charter. The overall cost will also depend on the type of vehicle, distance, and additional services required. If you’re operating an in-house employee shuttle service, you also have to account for ongoing costs including vehicle maintenance, fuel, and driver wages.
Meanwhile, a well-executed carpooling program can reduce or completely remove the need for these services. Shifting part or all of a transportation strategy to carpooling allows businesses to achieve significant savings while meeting employees' commuting needs in a more flexible and cost-effective manner.
Finally, carpooling offers direct financial relief to employees. Sharing rides helps employees save on gas, tolls, and parking fees—expenses that can quickly add up. For instance, a daily 20-mile commute in a vehicle that gets 25 miles per gallon could cost an individual around $100 per month in gas, assuming a current average price of $3 per gallon.
Sharing that commute with just one other person could cut that cost in half, along with sharing other expenses like tolls and parking fees. This could result in a monthly savings of around $50. Over a year, that's $600 saved. Carpooling can directly impact the bottom line by reducing employee expenses, improving job satisfaction, and lowering turnover costs.
4. Contributes to corporate sustainability efforts
Employee carpooling programs give organizations a practical way to lower their carbon footprint while making a meaningful contribution to global sustainability efforts.
Transportation accounts for 28% of all man-made carbon dioxide emissions. Encouraging carpooling helps cut down the number of single-occupancy vehicles on the road, leading to fewer greenhouse gas emissions and cleaner air. It also helps to alleviate traffic congestion that makes daily commutes so challenging.
Companies that implement carpooling programs also enhance their ESG (Environmental, Social, and Governance) profile. Carpooling initiatives demonstrate a commitment to two critical components of ESG: environmental sustainability (E) and community building and employee collaboration (S).
Adopting carpooling programs also signals to stakeholders, investors, and customers that the organization is taking tangible steps toward addressing environmental challenges and working towards a greater good.
5. Positive brand image
In today’s labor market, candidates look beyond just the numbers on their paychecks. They also gauge if the company’s culture and values are aligned with theirs.
And as social issues like climate change become a growing concern, there is a growing percentage of employees who want to work for a company that reflects their values. This is especially true for younger generations.
A Deloitte survey found that about a quarter of respondents have considered changing jobs to work for a more sustainable company. The report also revealed that when employees share the same values as their company, 90% of respondents reported feeling more motivated, engaged and satisfied in their roles.
By offering carpool initiatives and commuter benefits, companies can demonstrate their commitment to sustainability in a meaningful way. This helps to attract and retain top talent and appeal to potential employees who want their work to contribute to a greater purpose beyond profits.
Conclusion
Carpooling programs offer businesses a range of powerful benefits. From improving productivity to supporting sustainability goals, improving employee well-being and boosting brand image, the impact is undeniable. These initiatives not only align with organizational goals but also foster a more engaged, loyal, and motivated workforce.
To effectively implement a carpooling program, consider partnering with platforms like Scoop Commute. Scoop Commute connects coworkers and neighbors traveling the same route, offering safe, reliable, and convenient door-to-door carpools. Our platform features easy scheduling, automated matching, and backup commute options, ensuring a seamless experience for users.
Using platforms like Scoop can simplify the carpooling process, making it more accessible for employees and easier for the company to coordinate. Contact us to learn how carpooling solutions can transform your workplace!
