Housing, housing, housing: it’s an everybody, everywhere, all at once problem. Thanks to the accommodation and energy crisis, employees are finding the costs of living and commuting difficult. Hiring and retention is also becoming harder for companies as the decade-long housing squeeze continues, especially in high cost cities such as Dublin.
One solution is employer-provided or subsidised homes. Gardaí were traditionally housed in barracks or State-provided family homes, and bank managers were given homes in the locality. Today, employer-provided accommodation has been the norm in hospitality, farming and lower-wage jobs for many years. Hospitals sometimes provide accommodation for doctors and nurses. University provosts and the President get a place to live along with the job.
Other sectors are exploring it now too. Before Covid, Google bought Boland’s Mills, intending to convert it into staff accommodation, and Fexco Killorglin considered developing homes for staff on lands in Laharan.
Neither of these projects came to pass for various reasons – community need or objections, more staff working from home or access to more workable options – but some employers are considering it or already provide it, both in Ireland and abroad.
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In 2024, Ryanair bought 25 of 28 new homes in Fosterstown, Swords, to combat the impact of the Republic’s housing crisis and the lack of affordable accommodation on its ability to hire flight crews in the State.
“This accommodation, which is located one bus stop from Dublin Airport, will be rented at affordable rates to Ryanair cabin crew during their first year of employment,” the airline said a statement at the time.
Although it sounds attractive, the provision of employee accommodation is a bit of a headache for employers as it’s expensive, both reputationally in a housing crisis and from a financial point of view.
It’s not an easy decision for employers but what about workers? If an employer here or abroad offers you accommodation, should you take it? What are the pros and cons?
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On the face of it, subsidised housing seems like a good deal for workers. If it’s comfortable, safe and well located in a decent area, what’s not to like? You might even get to live with friends or have an opportunity to turn colleagues into friends.
Rose-tinted glasses aside, very few people think about the potential risks and costs of this option when they’re negotiating a package with a new employer. The excitement and adventure of moving to a new country or city might take over instead.
Many teachers, nurses and doctors, tech specialists and construction workers in their 20s are leaving Ireland to work abroad for a few years in Australia, the US, Canada and the United Arab Emirates or emigrating permanently. Part of their package may include a few months’ accommodation in a hotel or short-stay apartment, or a payment to cover the months until they find somewhere to live. Those who choose to work in rural locations often get free housing.
But what do you need to know before you agree to it as part of your benefits package?
Eyes wide open
If you accept employer-provided accommodation, not only are you dealing with an employee contract, you’re dealing with a landlord-tenant contract too, says Michael Taft of Siptu. If your job is terminated or you become ill and are unable to work, you and your dependents might find yourselves without accommodation.
Mobility is another issue. “If my accommodation is tied to my job, that may limit my ability and opportunity to move to a job that I may feel is a better fit. It’s not just about wages and working conditions: there might be greater career development and training opportunities in another job.”
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While company housing saves on commuting and finding accommodation in a tight market, it offers less separation between work and private life. “Let’s say it’s a building with flats and you’re living next to your line manager who you absolutely hate. But you have to smile at him every time.”
There can also be unspoken expectations around behaviour. “If my accommodation is tied to my work, I might be less likely to make a complaint at work. And that’s because of the fear that there may be a comeback. It’s bad enough if you think, ‘I might lose my job’ but it’s really bad if you think ‘I might lose my job and my place to live’.”
“It’s not only issues that you might want to raise in the workplace in terms of the employee contract but you might be hesitant to raise an issue with the landlord-tenant contract if your stove blows up,” he said.
The potential drawbacks of these arrangements notwithstanding, lower-paid workers don’t get such accommodation opportunities in Ireland.
Fionnuala Ní Bhrógáin, head of organising and campaigning at the Communications Workers’ Union (CWU), says contract tech workers coming from abroad are generally not aware of the high cost of living and housing here. Employers are doing nothing to address housing issues for lower-paid content workers, who mainly hail from South America, the Philippines and South Africa, she says.
“They’re coming from situations that are marginally worse. They think it must be better but the reality of the housing situation does not hit until they are here. Many are living eight to 10 people in the homes they’re renting.”
Local talent
Jennifer McConnell, founder of Living Legacy and a former expat manager for Digicel in the Caribbean, lived in employer-provided accommodation. It was part of the package during her stints in Jamaica and Haiti.
She lived happily in a big, four-bedroom apartment with other employees. The lease agreement was between the company and property owner, not the individual, so people from work would move in and out as needed. The company paid for it fully and met the relevant taxes in each country.
Employees coming to Jamaica generally stayed in a nice hotel for a few months, then moved into suitable accommodation, depending on the length of their stay.
Many companies in Ireland and abroad provide similar relocation packages for highly skilled, well-paid workers. Some organisations subsidise the cost of rent in higher-cost locations but finding a home and paying tax on the benefit is largely up to you.
Another thing expats might consider is how their local colleagues feel about their housing perks. Foreigners coming in can be a huge issue in some places: why are they getting housing and we’re not? Colleagues can be resentful.
In general, bringing foreign workers in, whether it’s to Ireland, Australia or elsewhere, addresses the skills gap short-term but not the long-term housing issues in that country, says McConnell.
“Ideally there should be a succession plan where you bring over people with the skills initially but then you localise the roles. If you develop the skill set locally, you can reduce the number of expat staff and the costs for housing and security.
“There’s a fine line between the skills gap need bit and being fair to staff when they come up at that skills level. You need to make it fair but sustainable for organisations to retain staff longer-term.”
Margaret E Ward is chief executive of Clear Eye, a leadership consultancy. margaret@cleareye.ie
