5 Ways To Negotiate Commuter Benefits Into Your Pay

Commuter benefits are a part of employee compensation that covers or subsidizes commuting expenses. One commuter benefit option is a Flexible Spending Account, where the employee contributes part of their salary pre-tax (up to $315 per month in 2024). The FSA money needs to be spent specifically on transportation expenses, only certain expenses qualify (e.g., mass transit fares, parking, ride-sharing), and the benefit is in the tax savings to the employee, not additional salary. Another form of commuter benefit is when an employer covers or subsidizes commuting expenses by offering mass transit fare cards, parking passes, gas or toll reimbursement, etc.

A recent overview by HR and payroll provider, Onpay, shows that 13% of small businesses offer some form of commuter benefit. Some cities (e.g., San Francisco, New York City, Washington DC) mandate that companies of a certain size offer commuter benefits. New Jersey mandates commuter benefits state-wide for companies with more than 20 employees.

Ways To Negotiate Commuter Benefits

Since commuter benefits aren’t mandated everywhere, you’ll have to ask for them. Don’t assume that a new job offer includes commuter benefits, even if your current employer offers them. If your current employer doesn’t offer commuter benefits, you might want to include this in your next raise request. Here are five ways to negotiate commuter benefits into your pay:

1. Identify Which Commuter Benefits You Want

If your employer offers free mass transit fare cards, but you drive to work, that commuter benefit doesn’t benefit you. Similarly, if free parking is offered but you commute by train, that’s another commuter benefit of no help to you. Think about how you commute and what would be most helpful to you, and then negotiate for that specifically.

If you want to avoid a commute altogether, negotiate for flexibility to work from home, to work fewer days per week or to start and/or end at times outside of rush hour where the commute might be cheaper. Additional salary is the most flexible item to negotiate because then you can spend it on commute and non-commute items alike! The critical point to remember is that not all benefits, including commuter benefits, are of equal value to you, so identify what you want.

2. Collect Competitor Benefits Data

Look at what commuter benefits other companies offer. Job postings might mention this information. Canvas your network to see if people will share what their employers offer. If you have friends in HR, they may have already done this research. Ideally, you can find information that other companies of similar size, industry and history to your employer (so truly their peers) already offer commuter benefits.

If others are doing it, your employer may feel obligated to follow to stay competitive. Peer pressure impacts companies too! If others are not doing it yet, it’s still good to know this since your employer might also know that their peers aren’t offering commuter benefits and use this to decline your request. By anticipating this potential argument, you’re ready to counter with other compelling reasons – e.g., offering commuter benefits could be a distinguishing recruiting and retention advantage; being the first here could signal the company is a first-mover overall.

3. Anticipate And Counter Any Potential Objections

What your employer’s peers are offering regarding commuter benefits is one example of anticipating and countering potential objections that may arise during the negotiation. Another objection could be that the benefit is too expensive. Do some research around how much it would be to add the Flexible Spending Account feature into a payroll system – if it’s typically free or low-cost, that’s your counter.

If the objection is that a new benefit would be too difficult to implement, ask for clarification on what those steps might be. This could be a cross-functional project with HR, IT, and legal that you could work on or even lead, giving you marketable skills, networking opportunities and career visibility across the company. The fact that others will receive a valuable benefit will make you a hero among your colleagues.

4. Run A Dress Rehearsal To Practice Negotiating

Words don’t come out exactly as we imagine them, and unless your day job is deal-making of some kind, it has probably been a while since your last negotiation. Enroll a friend or mentor, ideally someone who has negotiating experience, and run a dress rehearsal. You’ll practice what you’re going to say, and you’ll hear questions, push back and other reactions in real-time, allowing you to also practice your reactions and responses. The role play might uncover objections you hadn’t thought of, giving you more time to prepare.

5. Schedule An Opportune Moment For Your Request

Once you have done your preparation, you’re ready to make your request, but it still pays to wait for a good time. If you know when your employer prepares its annual budget, getting your request in before that budget is finalized is ideal to ensure there’s money available to be earmarked for this new benefit. If your employer has announced a strong quarter or is anticipating strong financial performance, that’s also a time when leadership might be more receptive to introducing new benefits. Finally, if you individually or your department has a recent win and your direct manager is flying high, they might be more open to requests, as well as in a better position to influence the decision.

Repeat Your Negotiation As Needed

If you do make your request and get declined, remember that No really means Not Now. If you ask later, you may get a Yes down the road. If your manager leaves, the next manager might be more receptive. If you frame your request in a different way, you might get a positive decision. Don’t be afraid to negotiate again and try different things (e.g., different time, different person, different approach) to generate a different result.