How commuter benefits help retain frontline hourly workers

A pretax commuter benefit helps retention modestly. It keeps roughly $600 to $700 a year in an hourly worker's pocket and signals that the employer is investing in them.

Hourly turnover in restaurants, retail, and hospitality often runs over 75% annually, and turnover is expensive. Replacement costs (recruiting, onboarding, training, lost productivity) typically run 15% to 20% of an hourly worker's annual wages. Anything that nudges retention by even a few percentage points pays for itself.

Why a commuter benefit matters

For an hourly worker earning $35,000/year, a $200/month commuter election keeps roughly $600 to $700/year at typical tax rates. That's not life-changing, but it's a tangible signal that the employer is investing in the worker. Combined with predictable scheduling, sick pay, and decent management, real benefits help retention modestly.

The math employers should run

1. Take your annual hourly turnover rate.
2. Multiply by your hourly headcount.
3. Multiply by the replacement cost per worker (typically 15% to 20% of annual comp).

That's your annual turnover cost. If a commuter benefit, plus other retention investments, reduces turnover by even 3 to 5 percentage points, the savings can be material.

The employer-side FICA stack

On top of the retention impact, the employer captures roughly 7.65% in FICA on every pretax commuter dollar elected. For a 200-worker hourly team where most enroll at $150/month, the payroll-tax savings cover Alice's fee, so the program has no out-of-pocket cost.

Why Alice fits the retention conversation

Alice is built for hourly and frontline workers, the exact workforce where retention pressure is highest. There is no up-front employer cost and no manual open enrollment to manage. Employees don't pre-fund. The employer keeps a reserve amount in its Alice plan account; it belongs to the employer and is not a fee. Setup starts with one call.

The employee story

Employees keep more of the money they earn on every eligible purchase. Enrollment takes minutes on a phone, and Alice Card looks and works like any other Visa.

Talk to sales

sales@thisisalice.com or (929) 552-4625.

Savings shown or implied — including any reference to "cash back" or take-home pay — are illustrative. Actual savings depend on your tax rate, benefit elections, and eligible spending each pay period. "Cash back" in Alice's materials refers to the federal, state, and FICA payroll taxes you don't pay on eligible commuter spending. It is income tax you keep, not a cash payment from Alice, your employer, or any third party. Alice does not provide cash back, rebates, or any direct financial benefit in connection with the Program. Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.

Specific benefits, election rules, and run-out periods depend on your employer's plan design. Check with your HR team or plan administrator for details.

Pretax Hero Visa Commercial Card is powered by Stripe and issued by Celtic Bank. Program funds held at Fifth Third Bank, N.A. (Member FDIC). Use of card and program is subject to the cardholder terms and related agreements presented at issuance.

Trademarks, brands, and product names referenced in this article are the property of their respective owners. References are for descriptive purposes only and do not imply endorsement. For definitive information about a third party's products or services, contact that party directly.