There's 1 benefit that would entice people to sacrifice remote work, a survey found

Some companies may need to get more creative to entice employees back to the office. Getty

• Housing benefits can lure employees back to the office and attract new talent.
• This comes as many employers are trying to bring workers back to the office after the pandemic. 
• Tesla and Oracle have hatched plans to ease the cost of living for some workers.

Housing affordability is a problem in the US, and helping with those costs could be the carrot companies need to get employees back to the office.

According to a survey of 1,020 employers and workers about office perks, performed by the bonding and insurance company JW Surety Bonds and published in January, 47% of respondents said they would be willing to return to the office in exchange for housing benefits. Additionally, 69% said they would be willing to change their job or career for employer-based housing benefits.

This comes as more companies institute return to office mandates, pitting employers and workers against each other. In fact, some employees quit instead of going back to the office. Now, some behemoth businesses, like Tesla and Oracle, are trying to use housing benefits to their advantage.

In a sign that housing assistance could be a stronger perk than more traditional offerings, 43% said they would take less vacation time in exchange for help with housing costs, and 30% said they would prefer housing assistance over a pay raise.

Ricardo Rodriguez, a creative team member at JW Surety Bonds, believes housing assistance will become a major force in the job market in the next decade.

“As housing costs soar, these findings clearly indicate a trend of employer-based housing benefits gaining momentum,” Rodriguez told Business Insider. “A strong interest in employer-based housing benefits could potentially redefine employee expectations of traditional compensation packages in the next 5-10 years.”

Help with rent can be one way to entice workers back to the office. Busà Photography/Getty Images

Housing assistance may produce other benefits for companies

Harvard economist Edward L. Glaeser and Atta Tarki, the founder of ECA Partners, an executive-search and project-based staffing firm, wrote for Harvard Business Review in 2023 that companies looking to reduce the number of remote workers should consider housing assistance.

They pointed out that the cost of living in an area already impacts wages and argued that more companies should get directly involved in those expenses for their employees by offering assistance in rental or mortgage subsidies, providing housing, or working with communities to build more affordable housing.

In the JW Surety Bonds survey, 25% of employers who responded said they are considering adding employee housing benefits in 2024 with an average assistance of $6,200 per employee. Additionally, about 70% of those planning to add a housing benefit said it would be used to entice workers back to the office.

However, getting more bodies in the office may not be the only benefit to the company.

The survey found that 77% of those already receiving employer-based housing benefits reported high job satisfaction, compared to 60% for those without the assistance.

“It’s crucial for companies to recognize that offering housing assistance is becoming a competitive necessity to attract and retain talent, as well as to maximize their employees’ potential,” Rodriguez said.

Some large companies are already adding housing assistance as an incentive

A February report from the real estate firm Redfin found that homebuyers must make at least $106,000 to afford a house in the current housing market. In January 2020, people needed to earn about $59,000.

According to a report from Zillow published in February, home prices rose 42% during that month, while median income rose 23%.

With many Americans struggling to afford housing, assistance with rent or mortgages from employers could be more attractive than some traditional incentives.

Elon Musk’s tunneling company, Boring, revealed plans in 2023 to build a 110-home subdivision for employees near the Austin suburb of Bastrop. The homes are expected to be offered as lease-to-own, with prices below market rate and close to facilities for Boring and other Musk-led businesses, Tesla and SpaceX.

Elon Musk during the grand opening of the Tesla factory near Austin. SUZANNE CORDEIRO/Getty Images

One company that is already offering assistance is JBS Foods, a food-processing company.

JBS is spending more than $20 million to assist with housing expenses in eight cities across the US. The company owns apartment buildings for workers to rent in some communities. In others, they negotiate better housing prices or lending terms on behalf of employees.

Some companies are getting creative with housing assistance

A Washington Post-Ipsos poll of 1,148 full- and part-time workers published in May 2023 found that the biggest reason people want to work from home is avoiding commuting, with 48% of respondents naming that as the top factor.

Software company Oracle is one company looking for ways to ease the commute of their employees. It is opening a new $1.2 billion riverfront campus in Nashville which could be completed by 2026 and pledged $175 million for city infrastructure improvements. Part of that money is going to a new pedestrian bridge that will connect the campus to a suburb on the other side.

Oracle’s new hub in Nashville will include a new pedestrian bridge to help cut down on commute times to work for their employees. Sean Pavone/Getty Images

Bobby Rolfe, the former Tennessee Department of Economic and Community Development who oversaw the negotiations with Oracle, told CNBC’s “Cities of Success” in December that Oracle wanted their employees within 15 minutes of the office.

“Oracle’s idea is, ‘We want our employers to bike to work, hike to work, kayak to work, pick however you get to work, but be within a very tight 15-minute radius,” Rolfe said.

While Oracle’s plan doesn’t directly assist with housing costs, it could help employees save money on gas, free up their personal time, and potentially decrease the need to own a vehicle.

Have you taken a job that offered housing benefits and are willing to discuss how it changed your situation? Contact this reporter at [email protected].

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