Bus

Investing in bus systems may yield return for workforce and employers

Posted on May 14, 2015

A quality public bus system may help manufacturers and retailers to retain employees, says a new study from Ball State University.

“The impact of bus transit on employee turnover: Evidence from quasi-experimental samples,” an article by Ball State researchers Dagney Faulk, Center for Business and Economic Research’s (CBER) research director, and Michael Hicks, CBER director and the George and Frances Ball Distinguished Professor of Economics, recently published in the journal Urban Studies, found that counties with fixed-route bus transit systems have lower employee turnover rates.

The researchers found an increase in bus systems’ per capita operating expenditures is associated with a decrease in employee turnover. In turn, businesses save money by not having to train new workers or rebuild institutional knowledge within the firm.

These results suggest that access to fixed-route bus transit should be a component of the economic development strategy for communities not only for the access to jobs that it provides low-income workers but also for the benefit provided to businesses that hire these workers, the study said.

The study analyzed employee turnover rates between 1998 and 2010 in Illinois, Indiana, Michigan, Ohio, Pennsylvania and Wisconsin counties. The research compared counties with between 50,000 to 125,000 people with and without bus transit systems.

Researchers used publicly available federal data. They found that a fixed-route bus system in a community reduced annual manufacturing turnover by 1,100 to 1,200 jobs and annual turnover costs by $5.3 million to $6.1 million. In retailing, the turnover of employees was reduced by 900 to 1,000 jobs annually while yearly turnover costs were cut by $1.7 to $1.9 million.

Previous research determined that turnover costs cut an estimated 16% to 20% of a company’s earnings.

“The suburbanization of manufacturing and retail employment has had a dramatic impact on low-income individuals,” Faulk said. “For low-income workers, limited access to transportation may hinder the type and number of jobs available to them. This would ultimately influence income levels and the duration of employment.”

View comments or post a comment on this story. (0 Comments)

More News

Registration extended for relationship-building event, TBX 2019

Senior-level transit and paratransit employees who qualify will receive a full grant to attend that includes travel and education.

California's SamTrans to study express bus service feasibility

Service aims to improve mobility options and ease freeway congestion in San Mateo County and launch as a pilot in mid-2019.

New Flyer to provide 10 60-foot buses for ABQ Ride

The city issued a recommendation of award for 60-foot, articulated, five-door clean diesel buses to New Flyer under a 2016 solicitation.

ARBOC's Spirit of Equess passes Altoona Testing

Currently available in diesel or compressed natural gas propulsions, the vehicle offers many of the capabilities of a heavy-duty bus, but retains all the benefits of a mid-level vehicle.

First Transit awarded California operations, maintenance contract

Will provide the City of Visalia with day-to-day operations and oversight for 87 vehicles, employing 130. 

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation