Here’s a typical downtown Ann Arbor scenario: you are a business paying hundreds (perhaps thousands) of dollars a month for parking spaces for your employees. You are concerned that the employees who walk, bike, and bus to work think this is unfair because they aren’t getting the same benefit.
And to top it all off, you’d like to encourage more of your employees to use alternative transportation.
What do you do?
Well, Inner Circle Media (go!pass participant and Ann Arbor Chamber member) found a great solution that saves them money and encourages their employees to use alternative transportation:
They hand out a parking stipend to their employees instead of just paying for parking.
getDowntown is proud to present Inner Circle Media with a Commuter-Friendly Business Award for coming up with a creative way to encourage their employees to walk, bike, bus and carpool to work.
I asked Catherine Hayes, from Inner Circle to describe their innovative idea:
1. What did you do about parking before you created the parking stipend idea?
We paid for parking spots for 2 of our 4 employees, and we were also on the waiting list for more parking spots from the City (for over a year). This wasn’t a very equitable solution, and was also incredibly expensive at $300/mo for only 2 spots.
2. When did you come up with the parking stipend idea?
This past fall.
3. Why did you come up with this idea?
We were trying to figure out an option that could be applied equally across all employees, regardless of whether they drive (one of our employees doesn’t have a car). We also wanted to figure out a way to save money and encourage alternative modes of transportation.
4. How does the parking stipend work?
We give everyone $50 with their first paycheck of the month. They can use this to pay for their own parking spot (city lots or private spots), parking structure fees or whatever they want. The idea is to use it for parking or transportation-related costs; however, if they already use the bus or another free or low-cost mode of transportation, then they can use the $50 for whatever they want.
5. What sort of successes have you had using a parking stipend (e.g. have you saved money, gotten people to take other modes of transit to get to work, etc.)?
We’re definitely saving money (we now spend $200/mo on a stipend for 4 employees, whereas previously we spent $300/mo on only 2 parking spots used by 2 employees), but more importantly for us we’re encouraging everyone to think about alternate modes of transportation. Out of the 6 people in our company, we’re currently only bringing 2 cars downtown at any given time. One of our employees uses a combination of bus and walking. Another uses the Park and Ride at Pioneer. And the other 2 share a privately-owned parking spot about 3 blocks from the office, and then carpool to work.
Carrie and I (the co-owners) also carpool to work, and frequently Carrie walks and I take the bus. The two of us share a parking spot that comes with the office in the alley behind us.
6. What do your employees think about this program?
So far they think it’s good. We discussed it with everyone before implementing to make sure there weren’t any big issues or concerns.
Meredith Lovelace, another Inner Circle employee, has this to say:
From an employee perspective, I think the stipend is an excellent idea–it spurred me to carpool, therefore one less car downtown, and it encourages us to take the bus more frequently.
7. What recommendations to you have for other companies thinking about doing this?
I would definitely recommend discussing the idea with your employees first to make sure everyone is on board and really understands the benefits for the business, community and environment. From an administrative perspective, it’s easy to implement and saves the hassle of managing multiple parking spots.
Do you want to be recognized as a Commuter-Friendly Business? Email nancy@annarborchamber.org and tell us what you are doing to encourage employees to use alternative transportation and you just might be our next awardee. You must be a downtown Ann Arbor business to be eligible for this award.
Past Commuter-Friendly Business Award Winners
□ Pure Visibility