Flexwork (telework and flexible work scheduling) offers a practical proven way to reduce costs for both employers and employees.
When implemented thoughtfully, these programs can improve productivity, lower overhead, and ease the financial and time burdens associated with daily commuting.
These programs are not a panacea, nor are they magical in and of themselves. Success depends on intentional design, clear expectations, and ongoing accountability.
Key components include:
- Strong management support
- Clear rules of engagement (from policy to agreements)
- Training for both employees and managers
- Reliable IT and communication systems, and spatial infrastructure
- Defined accountability and measurement
Employers looking to build or refine a Flexwork program can access implementation tools and resources here: https://gacommuteoptions.com/employers/
Commuting and transportation costs are only one element of the benefits of Flexwork. Let’s review how these programs can be cost effective.
For Employers
Increased productivity
Research from Standford economist, Nicholas Bloom, shows that Flexwork can increase productivity by up to 12%.
Employees working remotely often experience:
-Fewer interruptions
-More focused work time
-Greater control over their work environment
If productivity declines, management should revisit accountability and measurement practices or adjust in-office requirements as needed.
Reduced Costs
Flexwork can reduce overhead costs if the plan includes space sharing and recreating the layout of the traditional office. Many employers have added meeting spaces and casual team building settings with couches and gathering nooks. As employers renew leases, they have managed to reduce their overhead.
For example, if your warehouse has $5,000 in monthly rent (fixed), $1,200 in utilities (variable), and $3,800 in indirect labor (semi-variable), your total monthly overhead would be $10,000. To a small business, these costs can add up quickly. Office utilization rates hover around 50% to 60% based on data compiled by Kastle on a bi-monthly basis. Some of this real estate has been changed to accommodate adaptive uses such as changing commercial use to residential or educational.
These programs usually develop higher morale for employees. According to SHRM 2024-25 data, the cost of a new hire is $4700 to $5000, however total expense reaches three to four times of the position’s salary when factoring in soft costs like productivity and profitability.
Key Cost Components and Factors include
- Direct Costs: Advertising, agency fees (15–25% of first-year salary), background checks, and referral bonuses.
- Soft Costs: Hiring managers’ time spent interviewing and onboarding, which can account for 60% of the total expense.
- Time to Fill: The average role takes 44 days to fill, with top talent leaving the market in as little as 10 days.
- High-Cost Areas: Specialized roles in IT and healthcare range from $6,000 to $12,000.
- Impact of Turnover: A bad hire can cost upwards of $14,900 or more depending on the position.
The cost of skilled workers is also 77% higher than less skilled.
Parking costs for employers can also be reduced if the developer or building owner charges such costs separately. According to the UCLA Center for Parking Policy in 2026, building structured parking cost $50,000 and underground parking $73,000.
For Employees
Transportation costs are escalating and these impact both employees and employers. According to the AAA 2026 data, cost of crude oil is now $100 a barrel and can go up to $200 a barrel. Both businesses and employees have transportation costs.
Flexwork enables employees to save up to one hour on their daily commute and reduce round-trip travel by 37 miles within Metro Atlanta. (Source ARC Regional Commuter Survey 2026). Commuting expenses can accumulate rapidly. Long lines are coming back to gas stations all over the country.
Food costs have been increasing and transportation costs for delivery of food have increased. For an employee, it can cost around $250 a month to eat at home versus $400 at the office.
This is a good time to reflect upon the costs of commuting and make some changes to your Flexwork program.