In 2022, remote and hybrid work is now commonplace in the United States — a sudden, paradigmatic shift, some might say, that occurred as a result of the ongoing, devastating effects of the COVID-19 pandemic and this VUCA world. According to a Gallup poll, 48% of U.S. employees were actively job searching or watching for job opportunities in the summer of 2021. Industry leaders have welcomed working from home as “the new norm,” a beleaguered term, now used to describe our sudden thrust into this neo-technological, autodidactic era.
There are more than 120 million full-time jobs in the U.S., and Gallup polls have shown that about half of them can be done remotely. Of those who can work off-site, 30% of workers want to be fully remote, while 60% want to be remote some of the time. Why? Findings have shown that not only are remote workers highly engaged and present, but that remote work eliminates the stressful commute, improves overall wellbeing, and offers flexibility for family needs and other obligations.[1]
Not only are remote workers highly engaged and present, but that remote work eliminates the stressful commute, improves overall wellbeing, and offers flexibility for family needs and other obligations. Share on XHigh-powered business leaders looking to improve their leadership skills can enroll in virtual executive education courses offered by Stanford University, Wharton School of Business (UPenn), and Harvard University. For example, HarvardX’s Leading in a Remote Environment catalog includes a course, “Remote Work Revolution for Everyone,” taught by none other than virtual learning expert Dr. Tsedal Neeley, the Naylor Fitzhugh Professor of Business Administration and Senior Associate Dean of Faculty Development and Research Strategy at the Harvard Business School. While some courses require a significant financial investment, other longstanding platforms such as Coursera, LinkedIn Learning, and Open Research Library, continue to offer free educational resources to individuals who have access to a reliable, fast internet connection.
When it comes to the topic of remote and hybrid work, most of us would readily agree that a movement toward accessibility is burgeoning among employers. However, rarely has the argument for greater remote and hybrid work opportunities intersected with the controversial issue of housing inequities in the United States. Prior to and during the early stages of the pandemic, a few innovative companies modeled going above and beyond, assisting employees with burdensome housing costs. However, there is little data to support that this has become a widespread practice among employers, despite the fact that of those who were employed pre-pandemic, more than 50% are now working from home[2]. Without a hefty workplace value proposition, it is likely that the default expectation for the workforce will shift toward remote work. As such, it might be helpful if employers also gave greater thought toward the inclusion of housing benefits with employment offers.
It is likely that the default expectation for the workforce will shift toward remote work. As such, employers should give greater thought toward the inclusion of housing benefits with employment offers. Share on XWhile some might argue that public policy is the solution to the ongoing, complicated housing crisis in the United States, others contend that employers can and should do more to make a positive difference. For decades, some might have worked under the bootstrap-laden assumption that owning a home was simply a part of the “American dream,” but scholarly studies and popular articles have proved otherwise — housing inequality continues to disproportionately impact Black and Indigenous communities, and the problem has only gotten worse during the COVID-19 pandemic. This is a crucial element in terms of today’s concern over mental health in the workplace.
Here’s a quick privilege check:
- Raise your hand if you’ve ever been denied rental housing due to your credit score.
- Raise your hand if you’ve ever been told you weren’t a great fit for a place you wanted to rent.
- Raise your hand if you’ve ever had to apply to housing assistance programs to keep from being evicted or defaulting on your bill payments.
The question I ask is this: How can any worker survive, and then, thrive, in a remote work environment if they are worried about how they are going to pay their rent?
How can any worker survive, and then, thrive, in a remote work environment if they are worried about how they are going to pay their rent? Share on XThere are many innovative solutions that employers can offer in the midst of high costs of living adjustments and demands for better living wages for workers. Here’s a round-up of preexisting programmatic solutions recommended by the National Housing Conference (and a few new ones to spark some ideas) that companies are offering in light of today’s housing crisis:
1.) Offer housing benefit programs to new applicants in order to improve recruitment.
Communities facing employee shortages in specified occupations might see greater benefits by creating entry-level and mid-level roles that are tied to assisted housing programs. Localities may also benefit from extending assisted housing programs to all public workers who are likely to have challenges finding an affordable home. Some programs have rent and utilities deducted from employee pay, while others allow employees to pay their bills at their own discretion.
Communities facing employee shortages in specified occupations might see greater benefits by creating entry-level and mid-level roles that are tied to assisted housing programs. Share on XThrough Maryland’s House Keys 4 Employees (HK4E) program, state government employees can receive down payment assistance through the Maryland Mortgage Program. The HK4E program provides up to an additional $2,500 in down payment and closing cost assistance from the state in the form of a zero-interest deferred loan.
2.) Design benefit packages to include matching funds for housing costs — rental and/or purchase.
Matching funds tend to be relatively modest and are generally used for down payment or closing cost assistance, although they may also be structured to allow use of funds for renter security deposits and other purposes.
In New York City, the Housing Support Program incentivizes experienced math, science and special education teachers to work in one of the city’s middle or high schools. Teachers that make a three-year commitment to working for the Department of Education are eligible to receive up to $14,600 in housing subsidies over a two-year period.
3.) Employers need to be cognizant of the local communities, taking care to avoid causing further displacement and gentrification when offering housing benefit programs.
To help ensure that displacement does not occur, the NHC recommends that programs consider offering assistance to existing non-employee residents who would be threatened by displacement. Additionally, employers could also limit employee assistance to lower-income employees, rather than extending housing benefits to C-suite employees.
The Wyoming Community Development Authority (WCDA) offers mortgage loan financing through the Spirit! of Wyoming Homeownership Initiative to help recruit and retain workers in the social services, education, healthcare and protective service sectors. In 2010, due to limited funding, WCDA limited the program so that only low- and moderate-income veterans and active military are eligible.
4.) For low-income workers, rental assistance is far more realistic, immediate, and impactful.
Employers could consider renovating unused properties into congregate, accessible housing for employees whose needs require them to be located closer to the worksite.
The San Mateo County Community College District built 44 affordable rental units for employees on a former parking lot. Monthly rents in the residential development, called College Vista, are about half the cost of market-rate housing in the area.
These are just a few of the examples of creative solutions to the housing crisis that exist in the U.S. Employer-assisted housing is a “double bottom line” strategy that can be used to attract talented, effective workers to a community and to help working families secure affordable housing near their workplaces. As the physical lines between “work” and “home” blur over the next few years, employer-assisted housing should become an expectation, not just a fringe benefit.
[1] https://www.gallup.com/workplace/358346/gallup-workplace-insights-learned-2021.aspx
[2] https://www.nber.org/system/files/working_papers/w27344/w27344.pdf
