Want to attract top talent? Consider their housing needs

The talent war is fiercer than it’s ever been. The Great Resignation saw a record 4.3 million Americans leave their jobs in August 2021, which was 242,000 more than July. That’s 3% of the country’s workforce. A large number of those aren’t merely quitting, but looking for employers that offer more of what they’re seeking at this moment in their lives – work/life balance, more flexibility and better pay and benefits.

Benefits such as health savings accounts, flexible spending accounts, 401(k) plans and even office stipends are no longer enough to reel in top candidates and retain quality employees. They are merely table stakes. Forward-thinking benefits that surpass employees’ expectations are what will give a company an edge. Here’s where housing support – a newer benefit – can come into play.

America is in a housing crisis that pre-dates the pandemic. The latest study from the Joint Center for Housing Studies at Harvard University found 46% of renters and 21% of homeowners are cost-burdened, meaning they spend over one-third of their income on housing. These numbers skyrocket for lower-income households, although suffice to say that housing insecurity is a monumental problem right now.

Housing support is a forward-thinking benefit that employees aren’t accustomed to seeing in their packages, and one of the smartest and most supportive offerings an employer can offer right now.

A case for moving housing assistance beyond tech

Of course, employer-funded or sponsored housing is not wholly new — the federal government and the military have a long history of building housing to support their workforces. And tech giants such as Apple and Google have been tackling the housing shortages near their headquarters for years now, although they arguably had hands in creating that deficit. But what happens when employees who work for employers offering critical community services can’t afford to live anywhere near where they work? Or there simply isn’t any housing available?

Employers such as health systems, hospitals, emergency response employers and public sector entities are in a crunch to address the housing needs of their current and prospective employees. The payoffs of doing that are far and wide, including reducing turnover, tardiness and absenteeism, and contributing to the financial stability of their employees. As an added benefit, the employer’s image gets a boost in the eyes of the community.

Amid stagnant wages, rising housing costs and the lack of housing available across the country, there is more pressure being put on employers to help people get into situations where the bulk of their paychecks aren’t being funneled to rent. This only diminishes their quality of life at a time when most are looking to improve it.

In terms of benefits options for housing support, much depends on the location and operation of the employer. Are they in a rural area? Are the employees performing shift work or overnight services? Is there reliable public transportation? What housing constraints may prevent a high-performing employee from taking the job, or keeping the job?

A few of the housing assistance options employers can consider include:

Subsidize housing costs

If an employer is in a place where they’re unable to attract and retain high-performing employees due to lack of affordable housing, one of the easiest and most attractive solutions is to subsidize through rental assistance programs, housing stipends or even offering down payment assistance – all of which can further housing stabilization for years to come. This can incentivize employees to put down roots and make the community their own, which could reduce attrition rates.

Build new housing

The federal government, the military, school districts, hospital systems and large tech employers like Facebook have built housing for their employees. The primary goals of this strategy are to reduce housing costs, cut commute times and the environmental impact of those commutes, as well as to foster a sense of community among employees. In more rural areas, this could be a viable option for many employers who want to hang on to and attract new talent.

Encourage shared housing

Often hidden within current existing housing in each community is a large inventory of empty bedrooms. An analysis of U.S. Census data suggests there are 33.6 million spare rooms across the country. Many homeowners – particularly empty nesters and retirees – are not using all the space in their homes, and it could be mutually beneficial to the homeowner and the local employee to consider sharing that space.

Even if the arrangement is just for a designated period of time, a shared housing arrangement provides a more affordable rental for someone and enables that homeowner to generate extra income. It can also lend itself to shared experiences, and is much more cost effective to support than subsidies or building housing.

Ultimately, employees are demanding more control of their work lives, what they want out of their experience and an increase in work/life balance. Where and how they live is a huge component of that consideration. Employers can quickly endear themselves to current and prospective employees by adding this dimension to their benefit packages and create more choice and flexibility, which can lead to a happier, more productive and stable employee roster.

Amy Ford is the vice president of strategic partnerships and business development for Silvernest, an online roommate-matching service that pairs empty nesters, retirees and other aging adults with long-term housemates. In her role, Amy is focused on generating a vision and roadmap for Silvernest’s growth with current and future partners.