Increasing housing costs have prompted many employees to relocate away from capital cities. As a response, numerous employers are now offering enhanced staff housing benefits to attract and retain talent.
Currently, the surge in living expenses across various regions has catalyzed a sharp rise in housing prices. This trend has made it increasingly challenging for employees to afford living in capital cities like London, Dublin, and Amsterdam, all of which are grappling with housing crises.
The situation has created significant hurdles for companies aiming to attract skilled professionals, especially without raising wages dramatically. This is particularly impactful for foreign workers, who are often hesitant to leave their current jobs and countries unless offered attractive perks, such as paid housing.
Employers in Ireland Investing in Staff Housing
The housing crisis in Ireland has escalated in recent months, with worker numbers in Dublin faltering as employees are compelled to leave due to soaring costs.
In the second quarter of 2024, Statista reported an average monthly rent of approximately €2,377 in Dublin’s city center. Simultaneously, the number of homes available for sale in Ireland dropped from 63,000 in 2022 to around 51,000 in 2024.
Consequently, companies like Ryanair, Supermacs, Killarney Hotels, and Musgrave have begun to invest more heavily in staff housing benefits to attract and keep employees. For instance, Ryanair announced plans in early 2024 to purchase 40 houses near Dublin Airport to rent to its new cabin crew members as part of their effort to alleviate the housing crisis.
This move faced notable backlash, particularly from politicians who argued that Ryanair was monopolizing newly-built housing, thereby limiting options for individual buyers. Nonetheless, Ryanair’s CEO, Michael O’Leary, defended the company’s intentions, emphasizing their commitment to employee welfare and assuring that plenty of other recently constructed homes remain for other residents.
In its statement, as reported by Business Insider, Ryanair highlighted, “The lack of affordable rental accommodation has hindered our ability to recruit and train new Irish and European cabin crew members.” They elaborated that “this accommodation, located just a bus stop away from Dublin Airport, will be rented at affordable rates to our cabin crew during their first year.”
Additionally, Musgrave has about 50 rental properties for staff, with Windmill Healthcare also maintaining 28 rental units and planning future acquisitions. Killarney Hotels Collection has provided subsidized staff housing since 2019. However, the cost burden has been substantial, with Supermacs reportedly spending between €6 million to €7 million on housing benefits, as stated by The Irish Times.
The root of Ireland’s housing crisis largely stems from years of underinvestment in affordable and social housing, particularly since the property and banking crises in 2008.
London’s Public Sector Faces Recruitment Challenges
London has grappled with a public sector recruitment crisis over recent years, notably affecting sectors like healthcare, policing, and education. This situation is primarily driven by escalating rents that have outpaced wage increases in these fields.
As of November 2024, HomeLet Rental Index recorded the average monthly rent in London at about £2,151 (€2,569.46). Moreover, Zoopla indicated that average property prices reached £267,500 (€319,534.10), a 1.9% increase from the same period the previous year.
Additionally, the police sector has struggled with a shortage of available housing for younger officers following the Metropolitan Police’s prior sale of section housing units. City Hall data reveals that public sector pay in London has lagged behind the UK average, increasing just 14.9% since 2016, in contrast to a 17.4% rise in private sector salaries.
According to Sam Gurney, the Trades Union Congress (TUC) regional secretary for London, as reported by Morning Star, “Our key workers should not be priced out of the capital and forced to seek homes and jobs elsewhere.” He emphasized the urgency of addressing the recruitment and retention crisis in essential services such as education and healthcare, stating, “Everyone deserves a decent standard of living and public access to affordable housing.”
This recruitment issue isn’t limited to the public sector alone; many private companies in London are also losing potential hires to smaller cities with more affordable living conditions.
Heather Powell, head of property at tax and accounting firm Blick Rothenberg, noted in August that major employers in London, particularly in the South East, have observed that graduates who initially accepted training contracts are opting for jobs in other cities instead, citing the high cost of renting a home as a primary factor. Even higher earners are considering relocation due to the significantly better living space available outside London.
Photo credit & article inspired by: Euronews
