A person’s location is essential for jobs and economic prospects. According to studies, when employees are forced to live further away from their place of work, their productivity suffers, causing dozens of new problems for business owners. According to Maxwell Drever, workforce housing facilities and schemes help employees satisfy their housing needs while helping employers achieve their goals.
Workforce housing is low-cost housing that is close to a worker’s workplace. It includes both owning and renting housing that a worker can affordably fund with a moderate to middle income located near workplaces.
Why Should Employers Focus on Workforce Housing Facilities?
Here are some reasons why Maxwell Drever thinks a workforce housing facility is essential, and employers should concern themselves with it to make sure that the workers are at ease and productive:
Higher Living Costs Negate Higher Salaries
When analyzing the quality of life, housing availability and costs are two essential elements companies examine when relocating to a metropolitan location. What makes them so vital? When workers cannot afford to live near their businesses, employers must spend more money on wages or turnover expenses.
The inability of working-class employees and service-class employees to afford housing in economically vibrant cities is detrimental to both workers and cities as well.
According to Maxwell Drever, either the workers are denied the option to live in cities where their skills would allow them to earn more money, or higher living costs negate higher salaries. When people choose to live elsewhere, cities lose productivity due to unfilled jobs. Hence, employers need to consider workforce housing facilities for better employee service.
Increase in Productivity
A lack of affordable housing might hinder employee productivity. According to a study by several UK professionals, individuals who commute for less than 30 minutes each day gain seven days of productive time per year over those who commute for more than an hour. People who commute for long periods are more likely to experience depression, financial concern, and stress.
Low-wage workers, who often have limited work hours and leave options, require the most reliable and affordable accommodation. They may face high housing and transportation costs, and due to the added stress of dealing with such difficulties and finding a new house, their work performance may suffer.
So, if a company wants maximum productivity from its employees, it should consider workplace housing facilities.
Workforce housing is usually believed to refer to low-cost housing for families whose earned income is insufficient to afford reasonable accommodation close to their place of work. Employers can create workforce housing schemes with a small amount of money and creativity. It has the potential to boost economic development and enhance smart growth.
According to Maxwell Drever, the benefits of greater employee loyalty, stability, and success far surpass the costs incurred by a corporation investing in workforce housing. Employers should be aware of how housing affects their employees and advocate for and invest in affordable housing to help their employees and the local economy.
Hence, it is of utmost importance that employers care about workforce housing facilities to ensure better working conditions altogether.