Helping employees with housing can give your company a recruiting edge. With rising housing costs and long commutes affecting workers, offering relocation support shows you care about their well-being while boosting retention and productivity. Companies like JBS USA and Cleveland Clinic have already seen success with housing programs, from affordable housing investments to forgivable loans.
Here’s what works:
- Apartment Locating Services: Free, stress-free housing search help through local experts.
- Relocation Bonuses: Financial aid to cover moving expenses, tailored to market conditions.
- Housing Guides: Local insights to help employees make smarter housing decisions.
Ways to Build a Relocation-Friendly Employer Brand
Creating a relocation-friendly employer brand means addressing the real challenges employees face when moving for work. The best strategies combine tailored support, financial aid, and local expertise, turning what could be a stressful process into an advantage for both the employee and the company. By doing so, you can transform housing obstacles into recruitment opportunities.
Work with Local Apartment Locating Services
Finding a new place to live is often one of the most stressful parts of relocating. Partnering with local apartment locating services can take the weight off employees’ shoulders by turning the search process into a guided experience. These services not only save time but also money for employees making the move. For example, Taco Street Locating offers free apartment locating services in cities like Austin, Dallas, and Houston. They provide personalized recommendations, conduct market research, arrange tours, and even assist with leases.
Apartment locators take the time to understand employees’ needs and lifestyles, creating tailored lists of properties that match their preferences. They also join employees on tours to provide guidance and make the process smoother.
For employers, the best part is that these services are typically free. Locators earn their commission from the properties when leases are signed, so companies can offer this valuable support without adding to their expenses. Plus, when employees settle into their new homes quickly, it minimizes downtime, helping them get up to speed at work faster. With 4 out of 10 organizations expecting more relocations in the near future, this type of support not only shows you care but also strengthens your employer brand.
Provide Relocation Money or Financial Help
Relocating isn’t just logistically challenging – it’s expensive. Offering financial assistance can help ease the burden of upfront costs, which are often a major hurdle. Many companies offer relocation bonuses, which typically range from a few thousand dollars to 15–25% of the employee’s salary. These bonuses can be adjusted based on the role, the distance of the move, or local market conditions.
Tailoring financial help to the individual’s situation is crucial. For instance, moving to Austin, where housing prices have surged by 68% since 2019 and professional moving costs can run between $2,500 and $7,500, may require a more generous package. Adding a tax gross-up to cover any liabilities can also show employees you’re thinking about their financial well-being.
Here are some common relocation package options:
- Lump Sum: A fixed amount paid upfront, giving employees flexibility in how they use it.
- Reimbursement: Employees pay first and are reimbursed after submitting receipts, ensuring transparency.
- Direct Bill: The company pays vendors directly, ideal for high-value relocations that need oversight.
- Third-Party Services: A professional relocation company handles the entire process, perfect for executive-level moves or more complex relocations.
In a competitive market like Austin, where tech salaries average $137,000 annually and the tech workforce has grown by 42% in the past five years, offering financial help can make all the difference. It not only helps attract top talent but also shows your commitment to supporting employees during major life changes.
Create Housing Guides for New Employees
Beyond financial support and apartment locating services, a well-thought-out housing guide can be a game-changer for new hires. These guides provide essential local insights, empowering employees to make informed decisions about where to live.
For example, in Austin, employees should know that the city experiences over 90°F temperatures for about 116 days a year and that property taxes hover around 2% of assessed value. A housing guide can include advice like searching for homes within a 5-mile radius of work or in quieter neighborhoods, along with tips on navigating the fast-paced real estate market, where properties often receive multiple offers within days.
To make the guide truly helpful, include practical details:
- Neighborhood comparisons (e.g., downtown vs. North Austin)
- Information on public transportation, school ratings, and local amenities
- Recommendations for realtors with at least five years of experience in the area
You can also highlight what makes the city special. In Austin, for instance, emphasize its love for originality – whether it’s food trucks, live music, or outdoor recreation. Mention the city’s focus on environmental awareness and its vibrant community spirit. These details help employees find neighborhoods that align with their values and lifestyles.
A comprehensive housing guide not only reduces the stress of relocation but also shows that you’re invested in your employees’ well-being. This kind of support can go a long way in building a reputation as a company that truly cares about its people. By making relocation easier, you’re not just helping employees – you’re strengthening your brand as an employer of choice.
Benefits and Problems of Employer Housing Programs
Employer-sponsored housing programs can reshape how companies attract and retain talent. While these initiatives bring plenty of advantages, they also come with challenges. Knowing the pros and cons helps you design a program that fits your business and supports your workforce.
Main Benefits for Employers
Housing assistance programs can give your recruitment efforts a serious boost. For instance, over 25% of workers say they’d consider switching jobs for employer-sponsored housing benefits. And when you factor in that replacing an employee can cost anywhere from 6 to 9 months of their salary, the financial upside of offering housing support becomes clear.
These programs also tackle a major source of employee stress: housing costs. Financial stress affects 86% of workers, often lowering productivity and overall well-being. Employees under financial strain are 10 times more likely to fall behind on daily tasks. By easing housing expenses, you’re not just helping your team – you’re improving overall performance.
Retention is another key advantage. Take Cleveland Clinic’s program, for example. They offer up to $20,000 in forgivable loans for employees to buy homes, provided they stay for 60 months. So far, more than 510 employees have benefited. Chase Holmes, a Program Manager at Cleveland Clinic, sums it up well:
"There’s no better feeling than living close to where you work."
The University of Pennsylvania has a similar program, offering five-year forgivable loans of up to $7,500 for property purchases or improvements. Around 1,500 employees have taken advantage of these options.
Beyond recruitment and retention, housing programs strengthen ties to the local community. Affordable housing attracts a broader, more diverse workforce. Plus, stable housing has been linked to increased employee productivity. This creates a ripple effect – your investment supports both your team and the surrounding area.
Common Problems and How to Fix Them
Despite the benefits, employer housing programs aren’t without hurdles. The biggest challenge is securing and maintaining funding. Other issues include avoiding gentrification and displacement and ensuring employees actually use the programs.
Administrative complexity is another sticking point. Designing and managing housing benefits can be overwhelming for companies without the right expertise. One solution? Partner with organizations that specialize in housing assistance. They can handle the heavy lifting while ensuring your employees receive professional support.
Another common issue is low participation, especially for programs offering housing near the workplace. To address this, start by surveying employees about their housing needs and preferences. Tailoring your program to fit these insights is crucial, as housing demands vary from one region to another.
Collaboration can also make a big difference. Partnering with nonprofits that provide services like homeownership education, down payment assistance, or rental subsidies can lighten your administrative load while enhancing program effectiveness. Geographic coordination offers additional benefits. For example, in Sonoma County, California, a coalition of 15 major employers formed the Sonoma County Employer Housing Council. Together, they work with local governments to remove barriers, share resources, and fund housing projects.
By addressing these challenges head-on, you can create a housing program that truly works for your employees and your business.
Housing Assistance Options Compared
Here’s a breakdown of some common housing assistance programs and how they stack up:
| Program Type | Cost to Employer | Employee Satisfaction | Implementation Difficulty | Best For |
|---|---|---|---|---|
| Relocation Stipends | $19,309–$24,216 for renters; $72,627–$97,116 for homeowners | High flexibility, moderate satisfaction | Low – simple lump sum payment | New hires relocating from other cities |
| Apartment Locating Services | $0 (locators are paid by properties) | High satisfaction; reduces stress | Very low – partner handles everything | Employees moving to Austin, Dallas, Houston |
| Forgivable Loans | $7,500–$20,000 per employee | Very high; builds long-term loyalty | Moderate – requires legal structure | Retention-focused programs |
Relocation packages, while costly, can be a worthwhile investment. On the other hand, apartment locating services offer a no-cost option that still delivers great value to employees. Forgivable loans, though more complex to implement, are excellent for encouraging long-term loyalty.
For example, Dallas Area Habitat for Humanity offers employees up to $13,000 in down payment and closing cost assistance through a forgivable loan. The loan is forgiven over five years, helping employees achieve homeownership while supporting retention goals. As Blaine Cowart, Vice President of Homeowner Services, explains:
"We implemented this program for many reasons, but at the core, it’s about removing barriers to support our employees in achieving their dream of homeownership, just as they do in their work for Habitat families every day."
The best approach often combines multiple types of assistance. Start with low-cost, high-impact options like apartment locating services, then layer on financial support for key employees. This strategy allows you to meet diverse needs while making the most of your investment.
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How to Start a Housing Assistance Program
If you’re considering a housing assistance program for your employees, start by understanding their unique challenges. By addressing these issues head-on, you can create a program that makes relocation smoother and more effective for new hires.
Understand Employee Housing Challenges
Before diving into program design, take the time to uncover the specific housing hurdles your employees face. These could include high living costs, long commutes, or limited transportation options. Conduct surveys and interviews to gather insights directly from your workforce. Establishing an advisory board can also provide ongoing feedback and diverse perspectives.
For a broader view, analyze commuting patterns using data from sources like the U.S. Census Bureau, and consult your local chamber of commerce to understand regional housing dynamics. A great example comes from the Housing Leadership Council of Palm Beach County, which used employer surveys to tackle an affordable housing crisis in their area.
Collaborate with Local Housing Experts
Teaming up with local housing experts can take your program to the next level. For instance, Taco Street Locating offers a free apartment locating service in Austin, Dallas, and Houston, providing personalized consultations, detailed research, apartment tours, and application support. Their expertise in local rental laws, neighborhoods, and amenities helps make relocating less stressful for employees.
Another example is Localyze, which began offering comprehensive settling-in services in March 2023 to address the varied needs of relocating workers. Clear communication with housing partners and adaptable temporary housing arrangements can make transitions much smoother for your team.
Measure Success and Refine Your Program
To ensure your housing assistance program is effective, track both hard data and employee feedback. Key metrics like retention rates, time-to-productivity, and benefit usage can highlight areas for improvement. For example, companies with strong employee development programs have reported up to a 34% increase in retention.
Regular satisfaction surveys focused on housing assistance can reveal what’s working and where adjustments are needed. Keep an eye on productivity and engagement levels among employees benefiting from the program.
"Employee engagement metrics are crucial for understanding the pulse of your organization. They guide leaders in making informed decisions that enhance both employee satisfaction and productivity."
– Josh Bersin, Josh Bersin Academy
Conclusion: Build a Stronger Employer Brand Through Housing Support
Key Takeaways
Housing assistance has proven itself as a powerful tool for recruitment and retention. Over 25% of employees would consider switching jobs for housing benefits, and nearly 33% would choose these perks over a pay raise. Offering such support doesn’t just improve employee satisfaction – it also delivers measurable business benefits.
Companies providing housing support report that 77% of their employees feel satisfied with their jobs, compared to only 60% among those without these benefits. Employees receiving housing assistance are also 25% more likely to rate their productivity as high. Considering that replacing an employee can cost anywhere from 50% to 400% of their annual salary, investing in housing benefits is not just compassionate – it’s financially smart.
"Prioritizing affordable employee housing is not just a compassionate gesture; it is a strategic move that can have a significant positive impact on your company’s bottom line." – Home Financing Center
The impact of high housing costs is undeniable. For example, 86% of employees spend an average of 8.2 hours per week at work managing personal financial issues. By addressing housing concerns, companies can remove a major obstacle to productivity and engagement.
Major employers are already leading the way. Tech companies, for instance, have implemented assisted housing models and committed to building thousands of housing units. These initiatives show that housing support isn’t just about recruitment – it’s about creating a loyal, sustainable workforce. Beyond easing relocation challenges, this strategy strengthens employer brands in competitive markets like Austin, Dallas, and Houston.
Partner with Local Housing Experts
To maximize the benefits of housing support, working with local experts is essential. In cities like Austin, Dallas, and Houston – where housing costs are climbing – having the right connections can make all the difference.
This is where Taco Street Locating comes in. Their free apartment locating service offers personalized consultations, detailed research spreadsheets, apartment tours, and application assistance tailored to these cities. By partnering with specialists like them, you relieve your HR team of the burden while ensuring that relocating employees get expert guidance throughout the process.
The time to act is now. With 4 out of 10 organizations expecting more employee relocations in the near future and 67% of Gen Z workers open to relocating for the right opportunity, companies that establish housing support programs today will be ahead in the race to attract and retain top talent.
In 2024, the average housing assistance cost was just $6,201 per employee – a modest investment that can yield lasting improvements in retention, productivity, and overall employee satisfaction. Don’t wait to build a program that sets your company apart.
FAQs
How does offering housing assistance benefit employee retention and performance?
Providing housing assistance can make a big difference in keeping employees happy and motivated, especially for those who are relocating. Housing affordability and stability are major stress points for many workers, and when companies step in with perks like relocation stipends, housing guides, or partnerships with local rental services, it sends a clear message: "We care about you." This kind of support helps employees feel appreciated and secure, which naturally boosts their satisfaction and loyalty.
When employees have access to housing benefits, they’re more likely to stick around longer, feel more positive about their jobs, and stay focused on their tasks. For companies, this means lower turnover costs and a team that’s more engaged and productive. In the long run, these efforts not only improve employee well-being but also contribute to the organization’s overall success.
What are some affordable ways employers can assist with employee housing?
Employers have several practical ways to help with housing challenges while keeping costs manageable. One effective method is implementing Employer-Assisted Housing (EAH) programs. These programs might offer perks like down payment assistance or forgivable loans, making it easier for employees to secure permanent housing and encouraging them to stay with the company.
Another option is providing one-time subsidies to cover security deposits or offering monthly rent stipends. These solutions tackle immediate housing expenses without creating long-term financial obligations for the employer.
By offering such support, you not only help employees settle in faster but also strengthen your reputation as a company that genuinely cares about its team’s well-being during transitions.
What’s the best way for companies to evaluate the success of their housing assistance programs?
Companies can gauge the effectiveness of their housing assistance programs by focusing on a few critical metrics. Start by gathering insights into employee satisfaction through surveys and feedback forms. It’s also important to keep an eye on retention rates for employees who have relocated, as this can provide valuable information about how well the program supports them. Additionally, track how quickly relocation roles are filled and evaluate the program’s influence on employee productivity and turnover costs.
To dig deeper, calculate the return on investment (ROI) for the program. This involves comparing the costs of providing housing assistance with the benefits it brings, such as reduced recruitment expenses, better employee morale, and smoother onboarding for new hires. By analyzing these factors, companies can fine-tune their housing assistance strategies to better meet employee needs while supporting broader business objectives.
