This is one of the most powerful tools available if there is a parking shortage. By charging for parking based on vehicle occupancy, employees are much more likely to share the ride and free up spaces. In addition, this saves your company money on parking expenses by not fully subsidizing employee parking. Proceeds from parking fees may be used to fund bus passes, rideshare incentives or a variety of other elements. Another alternative to free, or subsidized, employee parking, is to provide employees with monthly allowances to pay for their commutes.
Employees pocket any remaining money left over from their commutes.
In many cases parking is more expensive than other commute modes. Because of this, the transportation allowance should be equal to or less than the cost of paying for parking. This way, employees who choose the parking option do not pocket any additional money. Employees are given the freedom to choose any commute method they want, as long as they pay for all associated costs. By offering employees a choice about how to spend their travel allowance, you are giving employees a financial incentive to choose something other than driving alone and paying for parking.