Businesses and their employees are feeling the effects of inflation. Is yours one of the many organizations considering travel stipends to attract and retain top talent to combat this?
Here's what you need to know about providing transportation stipends for employees during unprecedented inflation
- Offering a transportation stipend can help businesses as much as employees.
- Inflation is a real problem. It can make it difficult for employees to make ends meet.
- With the current rate of inflation, the cost of transportation is increasing and can be a deterrent to potential employees.
Inflation is an unavoidable reality in most countries around the world. Many US businesses began feeling the effects of inflation in the middle of 2021. For them, this was evident from higher prices for goods and services, making it difficult to offer competitive wages to employees. As a result, even amid a crisis pandemic, more and more employees resigned from their jobs.
As businesses regain their footing, they’re beginning to reassess their spending. The labor market is full of competition, all marketing toward the best candidates. They’re finding the best strategies to attract and maintain top talent. To be competitive, companies are offering:
- Better compensation
- Fancy benefits
- Financial stipends
Job seekers are trying to conquer inflation just as businesses are. They’re no longer settling for uncaring, unreasonable companies. Transportation stipends are a unique way to help employees through these unprecedented times.
How inflation impacted businesses and employees
Inflation is a measure of the changing prices of goods and services, usually due to currency devaluation. Economists take the Consumer Price Index (CPI) and measure its purchasing power based on the costs of various items. This includes essential goods like food and medicine.
Inflation is a real problem. It can make it difficult for employees to make ends meet. At the same time, inflation has been a challenge for employers that wish to fairly reward their employees.
Usually, businesses feel the effects of inflation first. They must maintain supply and demand for their customers and plan around rising prices.
Since recruiting can be costly, businesses are trying to keep their employees now more than ever.
Considering their tighter budgets, companies have cut unnecessary expenses. Since recruiting can be costly, businesses are trying to keep their employees now more than ever.
These employees have:
They have to manage an increase in grocery expenses and hope they’ll get paid enough to compensate.
Employees and employers need each other. Without dedicated workers, businesses can’t scale properly. Without work, employees can’t afford the cost of living. To make their relationship mutually beneficial, companies are taking action first. They’re finding ways to best retain and attract their workers, including raising compensation levels.
Exploring transportation stipends as a solution
As it pertains to intensified costs, gas prices have substantially increased. By November 2022, the average price of gas in the US was 68.3% higher than it was in 2020. With so many employees going to work on-site, this causes a few problems. Not only do they have to readjust to on-site work again, but they’re paying more for it now.
Transportation stipends can help employees get to work and back home without breaking the budget. A transportation stipend is a defined amount of money paid to support employees with work-related traveling costs. It’s typically a fixed allocation of funds available throughout the year.
Creating a policy and budgeting for transportation stipends can be pretty straightforward. This can be a flexible offer for employees to use at their discretion. On the other hand, this perk can include specified travel costs. This could be all or partial payment toward:
- Commuting expenses
- Hotel room allowances
- Meal expenses
- Mileage reimbursements
- Parking fees
- Rental expenses
Many businesses require receipts to validate expenses. There aren’t any federal laws related to this type of policy. As such, they can be amended to suit the needs of a business. It should be affordable and easily implementable. Employees should clearly understand new policies like these so they can get the most out of their new opportunities.
Transportation stipends let everyone know that a company is willing to help offset the costs of getting to and from work.
This has the potential to alleviate the costs associated with company travel. This may especially be beneficial to employees with longer commutes. Employees who need to attend events and meetings typically receive help with the costs of necessities along the way.
The benefits of offering a transportation stipend
Offering a transportation stipend can help businesses as much as employees. In-person employers can significantly benefit from contributing to travel costs. With the current rate of inflation, the cost of transportation is increasing and can be a deterrent to potential employees.
Speaking of potential employees, a travel stipend could help attract top talent to an organization. Transportation stipends let everyone know that a company is willing to help offset the costs of getting to and from work. In these times, being repaid for coming to work can be a significant bonus for team members.
Flexibility is essential for a win-win relationship between businesses and employees. Travel stipends offer reasonable accommodation for those with travel troubles. Companies should consider implementing travel reimbursement policies in travel-focused industries. This could include employees such as:
- Civil servants
- Event planners
- Flight attendants
- Sales representatives
- Travel nurses
Being forward-thinking is a staple of competition. Therefore, it helps if companies are socially aware. 74% of employees in a study found that their jobs were more satisfying if they positively impacted this issue. Transportation stipends assist employees in traveling to fulfill their social or environmental responsibilities.
A transportation stipend can be a great way to demonstrate a commitment to helping employees save money and make the most of their time. Providing a transportation stipend helps employees save money on their commutes. From this, employers can positively impact their employees’ ability to manage their finances and make ends meet. This can be a welcomed source of financial relief for many employees.
A transportation stipend is an easy way for employers to make employees feel valued. Their appreciation of employees doesn’t go unnoticed. Ultimately, this is a great solution to inflation that shows genuine care for employees.
Contributing to a transportation stipend is an excellent way to show appreciation. It also demonstrates a company’s dignity when providing employees with financial security and protection from inflation. It is a win-win situation for both employers and employees.
Employees are taking to the internet to talk about their experiences at work. Potential talent will likely look at these reviews before deciding to work for a business. If these testimonials convey a business’s flexibility and support, customers and potential new hires will take notice.
Companies are working to increase top talent retention and overall revenue. Current and potential employees appreciate a reliable source of income to cover rising travel costs. Sometimes remote work isn’t possible, which is why travel stipends show a company’s attention to the needs of its people.
So, introducing a transportation stipend is an effective way to improve employee well-being. With its many benefits, it is clear why more companies are choosing to offer this incredible benefit to their employees.