Glance through the news and you can’t avoid the issue of (un)affordable housing.
In London, the average renter spends around 60% of their income on accommodation. A typical New York household spends 2/3 of its income on rent; in San Francisco the figure has been put at 54% of income.
There are many problems associated with unaffordable housing: the instability and uncertainty it can create for people; accusations of ‘social cleansing’ in districts; and increases in the cost of living for already stretched wallets to name but three.
The challenges seem insurmountable for housing associations and property developers, let alone other employers. Organisations are looking to governments for (often severely lacking) bold leadership to alleviate housing crises.
Unaffordable housing creates a number of issues for businesses. Increased rents lead to increased demands for wage increases. Employers are finding housing costs to be a barrier to recruitment. Longer commutes for those pushed further out impact productivity.
Whilst no organisation alone can solve these problems, employers can take small measures to ease the burden of housing difficulties. These make them more attractive long-term employers. It also helps them to deliver their commitments to recruit people from diverse backgrounds, rather than only those who can afford exorbitant housing costs.
Starbucks’ Home Sweet Loan initiative provides a year-long interest free loan to cover the up-front deposit required when renting accommodation. Deloitte waives credit checks and fees for incoming graduates who are moving into accommodation set up by the firm. Facebook offers subsidies to enable employees to live closer to its headquarters.
These schemes are by no means perfect. But they offer a glimpse of what companies can do to make the lives of their employees that little bit easier. This in turn can make them more attractive as an employer.