Monday, September 14, 2015

What is Employer Assisted Housing (EAH) benefits plan? How does it help employers?

What is an Employer Assisted Housing (EAH) Plan?

In today’s time when “war for talent” is getting fiercer by the day, employee retention has become the buzz word among various HR leaders across different industry sectors. Rising attrition rates and high turnover costs creates a negative impact on companies’ bottom-line. In such a scenario, Employee benefits plans play a critical role in employee retention.

One such employee retention tool that is gaining popularity worldwide is Employer Assisted Housing (EAH). Research across the world has shown that Employer Assisted Housing (EAH) helps in overcoming the challenges of rising attrition rate and high turnover costs. EAH Plans are gaining in popularity worldwide because they make an employer stand out from the crowd, enhance recruitment efforts, reduce turnover costs, improve employee loyalty towards the employer, and can have a positive impact on the bottom-line.

Typical functions within an HR department of a company and need for focus on benefits program:

Organizational & employee development, business leadership, consulting, compensation are the priority issues in an organization. However, at the same time employee benefits program with regards to employee relocation, work life balance, family issues, and expatriate management are gaining importance in most successful companies worldwide. And fulfilling housing requirements of employees goes a long way in handling these issues.

Losing key employees to completion can be disastrous for a company. With an EAH service, employers can realize a financial gain for their company by retaining valuable employees. At the same time, employers help their employees achieve the dream of home-ownership. EAH services are simple to administer, and can help an employer recruit and retain valuable employees, thus creating a positive impact on the company’s bottom-line.

Why Employer Assisted Housing (EAH), what are the benefits?

A. For Employers

  1. Recruitment – sets your company apart in attracting the best talent
  2. Retention – Motivates employees to stay
  3. Reduced time for commuting – employees can be encouraged to live closer to work place
  4. Relationships – stronger customer relationships with highly motivated employees
  5. Return – company’s financial statements can be strengthened
  6. Recognition – enhances company’s reputation as the employer to work for
  7. Reduced Cost of homes – employees gets homes at comparatively lower costs
  8. Revitalization – more disposable income of employees help revitalize the economy and neighborhoods 

B. For Employees

  1. Realization of dream of home-ownership
  2. Enhanced lifestyle associated with home-ownership, such as greater community, recreational, and school involvement and quality of life
  3. Less time spent in traffic
  4. Investment in a property with potential for appreciation
  5. Reduced cost of homes
  6. Security of availing home with predefined quality standards and on time delivery

How much does it actually cost to offer and administer an EAH service?

EAH creates a win/win/win situation among employees, employers, and the economy as a whole. A typical EAH service requires employers to identify the target segment of employees from the ranks of executive, middle management, entry level, and skilled workers. While there can be in-numerous benefits of EAH service as explained earlier, there are no direct costs to employers for arranging for an EAH service. However HR department need to collect all the relevant data such as targeted employees, size, budget, location preferences, etc.

Typical Employer Assisted Housing (EAH) Benefits that can be offered to employees:

Detailed Presentation:
For implementing Employer Assisted Housing Plans in your organization contact us at:
Phone: +91 9971889899, 9971884499


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