Everyone benefits at a bike-friendly workplace
Bike parkingPhotograph by
When Keith Walker started commuting to Vancity by bike, he was the only person there who rode a bike to work. He used to take a quick sponge bath in the bathroom sink and stick his head under the tap to wash his hair.
Today, Vancity’s head office at Main and Terminal has showers, lockers, and a secure bike storage room (that had to be expanded a few years ago), and dozens of employees commute by bike. Vancity is one local employer that has decided to support employees who choose an active commute. While others also exist, there are very few tangible incentives for employers to support their employees’ green commuting habits. But should employers be the only ones responsible for accommodating and supporting cycle commuting? What about tax incentives for “green commuting?”
“Green commuter” benefits
While transit riders were recently acknowledged by the federal government in the form of a tax break for the purchase of monthly transit passes, no such benefits are offered to those who cycle to work. This isn’t the case everywhere. Significant tax incentives exist in other jurisdictions aimed at encouraging healthy and green commuting. In the UK, for example, workers can obtain a new bike and related equipment at half the normal price.
Under the plan, the employer buys the bike, related gear, and safety equipment, in effect leasing it to the employee. At the end of the lease period (typically 12 to 18 months), the employee can buy the bike and equipment outright, with the cost generally totalling about half the retail price. I
n Oregon, the Department of Energy offers the Business Energy Tax Credit to sustainable transportation initiatives. Along with bicycles, the program includes initiatives such as transit passes, commuter pool vehicles, car sharing, financial incentives, alternative fuel projects, and teleworking. As a result of the credit, many businesses in Oregon offer incentive programs to encourage their employees to travel sustainably.
These range from gift certificates to daily cash payments for each day of “green” commuting and hourly wage increases for participating employees. At the federal level in the United States, a bill entitled the Bicycle Commuters Benefits Act was introduced to the US Senate in April 2006. If passed, it will give employers the option of reimbursing employees who commute by bike $40 to $100 per month tax free, allowing them to recoup costs such as lights, maintenance, rain gear, locker rental, and changing facilities, and offering them a transportation benefit similar to that already enjoyed by transit riders and carpoolers. This would be a business expense for the employer, while for the employee it would be a tax-free reimbursement – an incentive to commute by bicycle.
The boss benefits too
Some companies see their support of sustainable commuting as offering a benefit to their employees, while others regard it as a demonstration of good corporate citizenship. But there is – or there could be – an element of self-interest as well. As it turns out, it’s possible to be a generous employer and a good corporate citizen while still maintaining a focus on the bottom line. You need only look at the heated public debate around TransLink’s decision in April of this year to implement a parking site tax to see the pragmatic value in requiring less employee parking.
In San Francisco, where parking is also hard to come by, some employers offer incentives to their employees to cycle to work. One employer, BabyCentre.com, gives every employee a $70 per month transportation subsidy. Employees can choose to put it toward parking (almost $200 per month in nearby lots) or transit, or they can pocket the cash and cycle to work. Other employers have found a parking “cash out” effective in allocating scarce parking resources or in managing demand for more parking. Under such a scheme, employees can choose to “cash out” the value of employer-provided parking by foregoing parking and receiving the taxable cash value in return.
Cashing out has proven effective because it doesn’t force anyone to stop driving or to give up free parking, but financially rewards those who do. With the cost of a stall in a parking garage at upward of $30,000, there’s a significant saving to be had. A Swiss chemical company, Ciba-Geigy, took this initiative a step further: they avoided building a new parking garage by encouraging their employees to cycle to work. Any worker willing to give up his or her parking space was given a new bicycle, and with 230 employees choosing this option, it was far less costly for the company than building a new parking structure.
Apart from the financial benefits, employers also benefit from healthier, happier employees. According to Rob Wickson, a partner at Discovery Economic Consulting and a bike-friendly employer in Victoria, the number of days lost due to illness is negligible among their employees, most of whom cycle to work. Wickson notes that “productivity is solid and stress levels are low.”
Walking the talk
Jennifer Mayberry-Stewart describes the firm she works for, Pottinger Gaherty Environmental Consultants in Vancouver, as very bike friendly, and says that as a result many of its employees are bike commuters. Mayberry-Stewart notes that two of the three principals in the downtown firm are committed year-round bike commuters, as are about 10 of its 55 employees, with that number doubling in good weather.
Pottinger Gaherty has all of the basics: a secure bike storage room in the building and a shower room for employees. Employees are also eligible for a monthly allowance of $40 for fitness, bike purchase or maintenance, or public transit. But it takes more than cash payments to encourage sustainable transportation choices. Pottinger Gaherty chose to locate their offices downtown rather than in a less expensive suburban business park so that employees could make use of accessible transit.
They also ensure that vehicle ownership doesn’t become a prerequisite for employment. Junior employees in many comparable companies are required to have their own cars to do field work, but Pottinger Gaherty maintains a company vehicle in case employees need it during the day, and rents a car if they need more than one on a given day. They’re also looking into joining the Co-operative Auto Network – a local member-based car-sharing organization – making use of CAN’s fleet of vehicles at times when demand from other members is lowest. The results for Pottinger Gaherty? There’s a low employee turnover rate and people enjoy working there.
Becoming a bike-friendly employer
While relocating your office may not be practical in the short term, there are steps you can take to make your workplace friendlier to current and potential bike commuters. Melbourne, Australia-based Bicycle Victoria has developed a handbook for employers entitled The Cycle-Friendly Workplace. In it they describe a simple five-step process toward bike friendliness that includes:
- Discovering the benefits.
- Improving facilities.
- Creating a cycle-friendly culture.
- Providing incentives.
- Celebrating and planning further activities.
A testimonial in the handbook by the Chief Executive Officer of The Royal Women’s Hospital and Royal Children’s Hospital in Melbourne, states that, “The benefits of a productive and healthy workforce all come back to the organization and the people we serve. From a financial point of view it has helped ease our car parking problem in a cost-effective way. The contribution to the community of quiet, efficient and non-polluting transport is another bonus.”
Such testimonials are indicative of the reason more and more major employers are jumping on the commuter-friendly bandwagon. They recognize that providing commuter benefits helps address parking issues, reduce traffic congestion, improve employee recruiting and retention, and minimize the environmental impacts associated with solo car commuting.
In the U.S., the Department of Transportation, together with the Environmental Protection Agency have established a program called Best Workplaces for Commuters (BWC) that helps employers evaluate their level of “commuter-friendliness.” While it addresses more than just cycling issues, bikes are one of the areas covered in their survey (along with parking cash outs, transit subsidies, etc.).
The voluntary program promotes employer-provided commuter benefits and recognizes innovative solutions to commuting challenges. BWC has also established a National Standard of Excellence for which employers are publicly recognized. The designation of “Best Workplaces for Commuters” is considered a mark of excellence for environmentally and employee-friendly organizations. Among others, more than 60 Fortune 500 companies have been recognized to date. Although it’s not stated explicitly, requiring employees to sponge bathe in the bathroom sink and stick their heads under the tap to wash their hair would likely be early disqualifiers.
Being self-employed and working from home, Bonnie Fenton has an exceptionally supportive workplace for cycling that includes all the amenities. These days, she rides everywhere except to work.
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