Homeownership is a key component of the American Dream, and Americans undoubtedly feel a sense of pride when they buy their first home. But there’s more to it than that. Homeownership can lead to higher educational achievement, improved health and wellbeing, and even greater civic participation.1 But why should employers care?
Increasingly, employers are beginning to offer homebuying benefits to help workers achieve the American Dream. In this blog post, we examine some of the underlying reasons motivating this move by employers.
There are several ways in which homeownership has been shown to strengthen employee productivity and engagement. First and foremost, homeownership improves wellness.1 And studies have shown that improved employee wellness directly increases employee productivity and engagement.2
There is also the issue of commute times. Many employers choosing to offer home buying benefits do so because it enables employees to live closer to the office. The Urban Institute reports that employees who commute fewer than 30 minutes per day gain seven days’ worth of productive time annually compared with those who commute over an hour per day.3
And lastly, buying a home is time-consuming. Employers that offer home buying benefits often simplify the process for employees, which saves them time and frees them up to focus on work.4Buying a home is an emotional process. By being a part of this deeply personal and emotional journey, employers can naturally increase employee satisfaction and loyalty. There are multiple studies that support this claim and show the psychological impact of homeownership.4
The Society for Human Resource Management also indicates homeowners are less likely to job hop, call in sick or miss work for unexplained reasons.5 Especially in the years of the Great Resignation, employers are increasingly recognizing the value of benefits that can improve retention.
Homeownership benefits can also help attract a talented and diverse workforce.
Increasingly, workers are seeking out jobs that support their health and wellbeing. Millennial and Gen Z workers in particular are looking for organizations that support improve their quality of life. Many Millennials even report being willing to make small salary sacrifices for the right benefits that positively impact their quality of life and career prospects.4 Homeownership benefits are one way that employers can show that they are investing in and care about the talent they hire.
Furthermore, homeownership benefits can expand and organization’s potential talent pool. In today’s market, high housing costs can limit job access and dissuade talented workers from even considering jobs in certain regions. By offering homeownership benefits, employers can incentivize top talent to move to a region and settle down.
It is for all these reasons – improved worker productivity & engagement, satisfaction & retention, and recruitment efforts – that Forbes is calling homeownership ‘the ultimate employee benefit.’
Interested in partnering with us? Reach out to Allie O’Shea (allie@ownify.com).
Sources: 1 NAR, 2 Wellable, 3 Urban Institute, 4 Forbes, 5 LinkedIn