The Importance of Supplemental Benefits for Employees

Everyone misses a day of work now and then—maybe due to a minor illness, a family emergency, or an unexpected car breakdown. But when those occasional absences become frequent, they turn into a larger issue: absenteeism. This growing problem costs employers not only in lost productivity but also in low morale, strained resources, and added financial burden.

One of the most common and disruptive causes of absenteeism? Car trouble.

For many employees, reliable transportation is essential to maintaining steady employment. A sudden breakdown can mean days or even weeks without a way to get to work, leading to missed shifts, lost wages, and extra stress for both the employee and their employer. Addressing these challenges proactively can make all the difference.

To help employees get back to work quickly, FIMC’s Commute Guard supplemental benefit plan provides a flexible and practical solution for handling transportation-related disruptions. By implementing Commute Guard, employers and Professional Employer Organizations (PEOs) can tackle absenteeism head on, enhancing productivity and supporting their workforce’s overall well-being.

The Direct and Indirect Costs of Absenteeism

As reported by CIRCADIAN, on average, unscheduled absenteeism costs businesses $3,600 per year for each hourly worker and $2,650 annually for salaried employees. Additionally, the Centers for Disease Control and Prevention Foundation reports that absenteeism results in $225.8 billion in lost productivity each year.

These costs go beyond financial losses, impacting overall team performance, delaying work, and increasing stress for remaining employees. They can be broken down into two types of costs:

• Direct Costs: Wages paid to absent employees, overtime for covering workers, and expenses related to temporary replacements or new hires.
• Indirect Costs: Reduced productivity, missed deadlines, decreased work quality, low team morale, and increased burnout among employees who must compensate for absent colleagues.

The Impact of Vehicle-Related Absenteeism

One of the ways to combat absenteeism and mitigate these costs (while fostering a more engaged and productive workforce) is assisting with automotive disruptions.

When a car breaks down, it can take one to two days for minor repairs and more than two weeks for major mechanical issues. This can result in lost income for employees and reduced productivity for employers.

Research shows that the average vehicle owned by households earning less than $75,000 is 13 years old, and a 10-year-old car typically requires a major repair every 18 months. For employees without sufficient savings—approximately 63% of Americans do not have $500 available for unexpected expenses—this can create a significant financial burden, delaying necessary repairs and prolonging absenteeism.

How Commute Guard Helps

Commute Guard offers comprehensive support to help get employees back to work through:

1. Towing & Roadside Assistance – When unexpected car trouble occurs, Commute Guard is there with 24/7 roadside assistance to help including towing to the nearest repair facility.
2. Rental Car or Rideshare Coverage – While an employee’s car is in the shop, Commute Guard provides reimbursement of rental car or rideshare expenses to and from work for a week (up to $250). This ensures that employees can continue working without transportation-related disruptions.
3. Repair Cost Reimbursement – The plan helps to alleviate the financial strain associated with unexpected car troubles, providing reimbursement of up to $500 for vehicle repair expenses.

Addressing Caregiving Disruptions

Workplace absenteeism isn’t always caused by car trouble. Employees who are caregivers for children, elderly parents, or even pets often face unexpected disruptions that keep them from work. In fact, 87% of employees miss work when their usual care arrangements fall through.

It’s also worth noting that, in a study conducted by the National Library of Medicine, nearly one in four (23.3%) of the estimated 8.8 million employed family caregivers reported absenteeism over a one-month period due to caregiving. In the same study, caregiving reduced work productivity for those affected by one-third on average, which amounts to an estimated $5,600 per employee when annualized across all employed caregivers.

How Commute Guard Supports Caregivers

Commute Guard provides employees with a premium membership to Care.com, granting year-round access to vetted caregivers. This benefit ensures that employees can secure last-minute childcare, elder care, or pet care, allowing them to focus on work instead of scrambling for alternatives.

A Smart Investment for Employers and PEOs

Life has plenty of surprises, which can be especially true for employers if the vast majority of your employees drive their cars to work every day.

That’s why it’s so beneficial to provide Commute Guard, a practical and cost-effective solution that benefits both employers and employees. By offering transportation support, cost assistance, and reliable caregiving resources, employers can improve retention, reduce financial stress for employees, and ensure business continuity.