In the relocation management universe, temporary housing is one of those benefits that doesn’t get nearly the attention it should. Which, frankly, is pretty ironic, considering how pivotal it is to the recruiting and relocation processes—both for employers and employees.
For employers, a competitive relocation package is a critical recruiting tool, and temporary housing accommodations are a key component of any such plan. Beyond recruiting, once long-distance candidates have signed on, short-term housing is the most foolproof way to bring them on board as quickly and smoothly as possible.
On the flip side of the equation, savvy job seekers will short-list employers that offer impressive relocation benefits, and few things deliver peace of mind like the security of having a nice place to live until one’s housing arrangements are finalized. Because more often than not, sorting out housing—out with the old, in with the new!—is the hardest piece of the relocation puzzle.
But here’s the thing. While short-term housing is a highly-prized benefit that may tilt the scales in a prospective employer’s favor, it’s also a hefty financial lift—perhaps the very reason some employers tend to give it short shrift.
And so, the question becomes: how can employers make their temporary relocation housing benefits as awesome and yet affordable as possible, pleasing both their new hires and CFO?
Typically, temporary housing benefits are offered in 30-day increments: 30 days, 60 days, etc. Nationally, the average cost is $4,200 for each 30-day period.
For employees who rent, 30 days may be a pretty doable timeframe. But for those who are buying and selling a home, they’ll likely need more time. After all, residential homes are currently on the market for a median of 25 days per Redfin, and the average it takes to close on one is 49 days, per the latest Ellie Mae Origination Insight Report.
That adds up to an average of 74 days to complete a home-buying/selling transaction. No wonder one of the most common relocation exception requests involved extended temporary housing and storage!