There's no inherent reason commute costs are usually borne by employees, it's just tradition--and perhaps what is/isn't an appealing alternate-compensation expense under tax-code.
There's no inherent reason commute costs are usually borne by employees, it's just tradition--and perhaps what is/isn't an appealing alternate-compensation expense under tax-code.
Companies are already indirectly paying via increased wages due to a smaller supply of possible hires, the difference is that it's harder for them to see and agree when an office+commute is inefficient. (Or at least, inefficient when ignoring hard-to-measure things like executive prestige or investor-relations or local tax breaks.)
In comparison, lets imagine someone already making $80k/yr, a 40-mile heavy-traffic roundtrip commute taking 2 hours (1.25x time) and adds $10 in daily gas... That's about +22.5k in costs.
So yes, in direct math it's probably not as big, but having a physical office probably satisfies other hard-to-quantify priorities of corporate executives, such as personal prestige, sense of control, and how things look to investors.
[0] https://blog.naiop.org/2018/05/top-trends-and-metrics-to-wat...
[1] https://www.commercialcafe.com/office-market-trends/us/wa/se...
If employees are happier and more efficient working from home, it satisfies the priorities of all the above parties. If RTO makes people unhappy and either less productive OR makes them not want to work for that employer, it goes against the incentives and priorities of all the above parties.
I agree, I added a correction because I think it's off by a factor of 12 due to month-vs-year price quotes.
That also means the office-rent cost is significantly less than if the employer began paying for employee commutes.
[3] https://www.squarefoot.com/leasopedia/dollars-cents-much-cos...
All CRE listed as price per square foot are per year prices.
A significant number of employers do allocate budget and incur expenses for employee commuter benefits. And unclaimed commuter benefits results in cost savings for the employer, I'm not really sure I understand the point being made here.