Most companies expect their employees to be punctual. Even these people go out of their way to ensure they reach their office premises on time. However, commuting from their residences to such destinations and back can sometimes be a tall order for them. This is because of the increase in traffic congestion in many metropolitan cities around the world. Moreover, most public transport systems in such places in also becoming very unreliable. This is the reason why the people operating such organizations have come up with a viable solution to this problem. They are now offering corporate shuttle services to their staff members.
Corporate Shuttle Services – Is it worthwhile for companies to be offering such facilities?
Experts says companies around the world are beginning to realize important benefits of providing corporate shuttle services. It allows their employees to travel from their home to their offices at ease. This has a positive effect on their general well-being. Its also acts a catalyst in boosting their productivity in the workplace. This goes a long way in ensuring their loyalty to the organizations they work for. From the point of view of the environment, it also means there is less vehicles on the roads. This helps to reduce atmospheric pollution resulting from traffic congestion. Such professionals further point out the following 3 important reasons why companies are offering such facilities to their staff members:
- Cost savings
Most employees spend a significant amount of their salaries on commuting from their residence to their office and back. Research shows that many of them have to chalk out as much as 20% of their income. On top of this, they have to pay fringe tax if they bring their own motor vehicles to work. This is the reason why they don’t hesitate to ask for reimbursements from their employers. Even these organizations have to pay a considerable amount on parking space rent. Offering a suitable corporate shuttle service to their workforce can help these establishments reduce such costs. This keep everyone happy.It also ensures the loyalty of the people working for them.
- Fringe Tax benefits
Many countries offer companies certain tax concessions and exemptions for offering such facilities to their employees. In America, such organizations can claim tax-free fringe benefits to the extent of $ 130 per employee. This is possible under Section 132(f) of the IRS Federal Tax Code. It helps such establishments reduce their overall tax liability they have pay to such regulatory authorities.
- Incentive for recruiting new talents and retaining loyal employees
Labor turnover is generally a major concern for most companies around the world. Such organizations go to great lengths in retaining their present workforce. After all, the cost of recruiting and training new employees is generally very high. Moreover, they need time to adjust to such office surroundings. Offering such transport facilities can help these establishments to achieve their objective. At the same time, it acts as an incentive to attract new talents.
The above 3 reasons go to proves that corporate shuttle services can benefit companies in many ways. They are able to reduce their tax liabilities while retaining the loyalty of their workforce. In some cases, they are also in a position to attract new talents. From the environmental point of view, such organization will be doing their bit to minimize atmospheric pollution.