Business Case for Mobility

The Business Case for Mobility

Does mobility really matter for your company’s bottom line?

Without a doubt.

At The Thrival Company, we’ve worked to develop and advance mobility programs for companies across industries—financial, technology, real estate, media and entertainment, retail, insurance, as well as higher education and governmental agencies.

What have we found? Although each organization has a unique culture and business approach that affects their mobility initiatives, each client recognizes the clear value of mobility and commuter benefits to their organization.

Are you familiar with the business case for mobility? If not, read on for more reasons why mobility matters for your business.

Reduction in Parking Demand

Businesses that reduce their employees need for parking can turn a cost into a savings or better yet, a revenue stream.

  • Cost savings are realized when you eliminate the cost of paying for parking to an outside company. Either the employee saves (if they are paying) or you save (if you are paying)
  • A new revenue stream can be created when you lease parking places to other people and organizations in high demand parking locations
  • Mobility options increase available parking for clients

Workman’s Compensation

Although concern over workmen’s compensation was high when telework was instituted, data on workmen’s compensation so far shows that claims decrease for companies who offer telework.


It is important to note that you should always have clear criteria and instructions for employees who telework to reduce your risk and liabilities.

Tax Savings Benefits for You and Your Employees

25 years ago, a simple yet ingenious idea took root: By allowing workers to defray public transportation costs through their employers’ benefits packages, we could reduce traffic congestion and improve air quality.

In 1998, Congress amended the tax code to allow employees to take advantage of commuter benefit using their own pre-tax dollars. Today, commuter benefits have joined health, retirement and disability at the top of the list of voluntary benefits offered to employees by their employers.

Federal law allows employers three ways to reduce the cost of commuting via public transportation (bus, vanpool, train or ferry) for employees. Companies can offer employees:

  • A tax-free employer-paid benefit
  • A pre-tax employee-paid payroll deduction, or
  • A combination of the above

Employee Attraction and Retention

Business Case for Telework Infographic: Download it Now!Mobility programs can be marketed as part of employee benefits packages. Ride-sharing, transit/rail passes, telework, parking payback, etc. are all listed by employees as benefits that attract them to an organization.

In addition, companies that offer these options to their employees boast better retention numbers and higher rankings on employee satisfaction.

  • Employees report taking alternative transportation is more relaxing, allows them to catch up on critical home and work responsibilities, and improves their quality of life.
  • Two-thirds of employees would take another job to ease their commute results as surveyed by Global Workplace Analytics.
  • Over four in five (83%) agree that the option of working from home is a significant job perk, and three in five (61%) agree that the option to telecommute has or would have an impact on their decision to take or stay at a job.
  • Millennials and Generation Y will make up 75% of the worldwide workforce within five years.

Real Estate Savings

On the average workday, most offices are only occupied 30-40% of the day meaning they are sitting empty 60-70% of the day. Individual office space costs companies between $5,000 and $20,000 per person per year depending on where you are located in Central Texas.

The more employees telework, work flex time, etc. the more people can work in an office area, share office space, or work in neighborhoods or shared-sites instead of having individual office assignments.

  • Average real estate savings with full-time telework is $10,000 per employee per year. Cube sharing, hoteling, and other options can be used to realize additional savings from flextime.
  • Sun Microsystems saves $68 million a year in real estate costs
  • IBM cut real estate costs by $50 million a year (Source: Global Workplace Analytics)


Long hours of commuting, especially if you’re driving, is associated with (from Gallup Polls):

  • High blood pressure
  • Musculoskeletal disorders
  • Increased anger and resentment at work
  • Absenteeism
  • Lateness
  • Increased risk of heart attacks, flu, depression, etc.

From an HR/retention standpoint, in urban areas with increasing congestion, employees will seek jobs closer to home.

Cost of Replacing Employees

A study by the Centre for American Progress found that the average cost of replacing a mid-range employee after they leave is 20% of their annual salary.

Effects of Long Commutes

The biggest effects of long commutes to work tend to relate to:

  • Stress-related health issues
  • The impact upon personal relationships
  • Performance at work

The Toll of Long Commutes

Recent research from the UK’s Office of National Statistics found that those with a commute higher than 45 minutes are:

  • “Less satisfied with their lives”
  • “Rated their daily activities as less worthwhile”
  • “Reported higher anxiety” … than those who don’t have a long commute to make each morning

UMEA University research of 2MM people found those with long commutes were 40% more likely to separate from their marital partners.

So, Now What?

Download your copy of the Business Case for Telework and Commuter Programs infographic to share with your company. If you have any questions, please don't hesitate to contact us!

Would you like a free program assessment survey to assess where you are at your company today? Want to stay up on the latest developments? Follow us on Twitter @mobilityworker or request your free assessment from info@thrivalcompany.com.

Interested in receiving professional development credits for your HR personnel and learning how to implement a program? Email info@thrivalcompany.com for our next online and face-to-face Mobility Program HR Benefit courses.

Business Case for Telework Infographic: Download it Now!

Contact us