Attracting and retaining top talent at a company has become increasingly challenging in recent years. Talent shortages around the world are at a 15-year high. According to a ManpowerGroup survey, 69 percent of businesses are reporting struggles with finding top talent, with 32 percent of employers in the United States having difficulty filling open positions.
These difficulties in hiring and retaining talented employees have encouraged many employers to get creative with their employee benefits and offerings. Providing better benefits became increasingly important during the pandemic. The traditional benefits like health insurance remain important, but other benefits now make more sense as the world changes.
One benefit gaining popularity among businesses and employers is micromobility. The rise of micromobility in recent years has generated interest among many workers, and employers are now willing to offer alternative transportation to employees.
What is Micromobility?
Micromobility is an alternative method of transportation that can be rented, leased, or purchased. It usually involves a self-service rental program, though purchases are on the rise, and is most often used to travel short distances within a city. Most vehicles have a small motor and weigh less than 1,100 pounds. That includes electric scooters and electric bicycles. But non-electric bicycles are also considered micromobility transportation by many people.
Micromobility presents a unique and efficient way for employees to commute to work instead of driving. Global transportation experts are continuing to examine and promote the benefits of micromobility. Experts predict that it may be the future of commuting in high-density urban areas.
Micromobility is growing. One market research firm projects that the industry will grow to $255 billion by 2027. McKinsey & Company predicts the industry will grow between $300 billion and $500 billion by 2030. In fact, micromobility has continued to grow from the pandemic to the recent months of high gas prices. Micromobility manufacturers told The Wall Street Journal that demand for e-scooters and e-bikes increased in the past year, with one manufacturer reporting that sales increased 70 percent higher in March 2022 than March 2021. Another manufacturer saw a 60 percent increase in sales in March.
Micromobility Benefits for Companies and Employees
There are many benefits for employees using micromobility vehicles to commute to work. Today’s employees are much more conscious about their individual environmental impact, and batteries from e-scooters are shown to reduce greenhouse gas emissions by 51 percent.
Micromobility vehicles also do not cause congestion on roadways, particularly during rush hour, so there’s no getting stuck in traffic when you are heading to work or coming home. In the age of COVID-19, micromobility offers some commuters a preferable way to get to work without having to deal with mass transit. Micromobility transportation options are also surprisingly affordable when compared to other ways of transportation.
Micromobility vehicles offer several benefits to employers. Since micromobility has increased in popularity, it’s become important for companies to gauge whether it is a good benefit to offer employees. When recruiting top talent, employers can differentiate themselves from the competition when they offer micromobility transportation options for their employees.
Riding to work on an e-scooter or e-bike can have a positive impact on someone’s mood, rather than traditional commuter routes like buses, subways, or long car commutes.
How Do Micromobility Vehicles Help Companies Create an Engaged Workforce?
It’s no secret that providing innovative benefits like micromobility is a surefire way to increase employee engagement. Engaged employees show more passion for their work, are more committed to organizational goals, and are more likely to buy into the company mission. All these factors improve office morale, increase the accuracy and efficiency of work, and reduce turnover rates.
Employees want meaningful benefits, and micromobility is one option that will impress many of them. By lowering their commuting costs, reducing the stress involved in commuting, and providing a more environmentally friendly way for them to get to and from work, they will likely appreciate the opportunity.
As companies head back to the office, micromobility will continue to increase in popularity, especially as commuters remain skeptical of public transportation.
Edenred has several options for businesses to offer micromobility benefits to employees. While micromobility is not eligible for commuter benefits, businesses can still take advantage of our prepaid card programs that are used for micromobility transportation. We also have several exclusive programs and discounts from our partners.
Would you like to learn more about what micromobility options are available for your business? Schedule a meeting with us so you can learn more about what programs will work best for your business.