Temporary Housing Solution in Zürich, Switzerland | Case Study

Objective

Find Temporary Furnished Housing Solutions for Clients’ Employees in Zürich’s Tight Housing Market.

Challenge

Due to an extremely competitive & stretched Zürich (Switzerland) housing market, WHR Global (WHR) was having difficulties finding temporary housing solutions for its clients’ employees. Two multi-national WHR clients – a 44-billion-dollar pharmaceutical company & an 86-billion-dollar food manufacturing company – provide temporary housing benefits (30–90-day stays) to their relocating employees while looking for permanent or long-term housing.

Since both clients’ offices are 30 minutes outside the Zürich city center – a 45-minute tram ride – it was challenging finding short-term, 2+ bedroom, pet-friendly units for employees close to their offices. The standard short-term housing vacancy rate in Zürich is approximately 0.8%, but the 2021-2022 vacancy rate is at an extremely competitive 0.15%.

 

“The global competition for short-term and permanent housing has been unprecedented. It has thrown assignees into disarray, and if they are slow to act during a home search, the issues can compound.

Employees can’t register with local authorities, shipments can’t clear customs, and expensive temporary housing is extended again at a great cost to our clients.”

Sean Thrun

Strategic Initiatives Manager, WHR Global

Ratio of Housing Prices to Income Since 2015

According to 2021 data from the Organisation for Economic Co-operation and Development (OECD), the ratio of housing price to income has risen 18% in Switzerland since 2015. This ratio can be seen as a measure of affordability, with the base year 2015 (100).

 

OECD (2022), Housing prices (indicator).

Solution

WHR proactively partnered with a regional destination services provider and formulated a plan. The partner procured long-term, unfurnished housing and converted each unit to furnished temporary housing. Then, WHR brokered an agreement with its two clients to share costs and reduce overall risk. Each client would have the right of first refusal to a dedicated number of temporary housing units, and if the units were not reserved in time, they would be available to lease on the open market.

When combining both clients, approximately 50 employees needed temporary housing solutions annually in Zürich. WHR’s provider partner procured a mass quantity of unfurnished units upfront. As part of a comprehensive service offering, the partner also offered to provide furnishings, property management, local residency registration, unit cleaning, lease coordination, cable TV and internet registration, liability insurance coverage, and parking.

Benefits

#1 Lower Assignee Stress & Higher Productivity

The dedicated pool of apartments brings shorter commutes, nicer accommodations, and guaranteed housing at an impactful moment during the employee’s relocation. Guaranteed temporary accommodations allow employees to focus more energy on their home search, shipment, local registration, and new organizational roles. This also translates into higher employee engagement and more productive employees.

#2 Improved Recruitment & Retention

The war for talent is fierce, and companies struggle to fill open positions, particularly in highly specialized positions with limited talent pools. Additionally, retaining good talent has become a great challenge for organizations as worker demand outweighs supply. Making an employee’s life simpler by letting someone else handle all the details and providing employees with attractive accommodations in a desirable location is improving client recruitment and retention initiatives.

#3 Clients’ Cost Savings

According to market research on Zürich, temporary housing, 2 and 3-bedroom furnished apartments commonly range from 5,000 to 7,250 CHF (approximately $5,150 to $7,470 USD). With a dedicated pool of apartments, WHR expects its clients to save up to 26% per apartment booking. When extrapolated to 50 relocating employees, WHR expects to save approximately 108,000 CHF annually (equivalent to $111,000 USD) for its clients. In addition, the dedicated apartments and the right of first refusal ensure that WHR’s clients have guaranteed corporate housing from a trusted source instead of employees sourcing options on Airbnb or another financially risky website.

 

According to global organizational consulting firm Korn Ferry, by 2030, “more than 85 million jobs could go unfilled because there aren’t enough skilled people to take them.”

whitepaper icon

Case Study – APAC Immigration Challenges

whitepaper icon

Case Study – Fortune 500 Workday Interface

5 Steps to Improve Employee Satisfaction with Corporate Housing

We have yet to relocate an employee who is excited about moving into temporary housing. Let’s face it, they want to be in their own homes, in their own beds, surrounded by their own belongings. Unfortunately, it doesn’t always work out that way. Things come up throughout the relocation – closings get delayed or employees can’t find new homes in the allotted timeframes. And in many cases, you need your employee to start in the new location as soon as possible.

Either way, temporary or short-term housing is often necessary for relocating employees. Moving into corporate housing is not an ideal situation; however, this benefit can greatly affect the overall satisfaction and happiness of your relocating employees. Just knowing the benefit is available should significantly reduce employee stress levels.

Ideally, we’d be able to time the relocation perfectly without the need to use temporary housing. And even though this doesn’t happen every time, it’s important to have a plan in place so we can make your employees’ relocations as smooth and stress-free as possible.

Step 1: Make temporary housing part of your relocation policy

Temporary housing comprised 67% of all exceptions reported in our 2018 Mobility + Culture Benchmark Report. That’s a lot of employees requiring temporary lodging or extending stays due to unforeseen circumstances. This tells us that it’s a benefit not to be excluded lightly, especially if employee satisfaction is one of your top priorities.

Adding this benefit to your relocation policy offers you and the employee numerous benefits. The employee can use their time in temporary housing to become acquainted with their new location and avoid the pitfalls of moving into an area they don’t like. Your employee also benefits from not having to worry about any home-selling or purchasing delays, as they will have somewhere to go if something should temporarily fall through.

Your company will also reap the rewards of including temporary housing in your policies. Exception reviews and management take a lot of time – time that you could spend doing more important things. Additionally, you’ll be able to control cost by capping the temporary housing benefit and/or limiting timeframes based on your relocating employee’s needs.

Step 2: Learn about your employee’s needs

Speaking of employee needs, it’s important to remember that every relocation is different. Employees may have families, pets, disabilities, and/or lifestyles that require the use of specific corporate housing units. Before choosing a unit on your employee’s behalf, it’s imperative that their needs are learned. This process should be managed by your Relocation Management Company (RMC) through the employees’ dedicated Relocation Counselor. Part of the Counselors’ job is to learn what the relocating employee will need out of their corporate housing.

Do they have children?

Does the employee need to live within a certain school district for their children?

How many bedrooms are required for the family?

Do they have pets? If so, how many?

How many cars will need parking permits?

Does the unit need to be handicap accessible?

There is no one-size-fits-all solution when drilling down into what your employees need. At a bare minimum, the needs assessments ought to include considerations for reliable transportation, differences in family dynamics (for example, a two-child household versus a five-child household), and distance from the office. Accounting for these three basic needs goes a long way to ensure that employees are happier and more successful in their new roles.

Step 3: Location, location, location

Location is another huge consideration when selecting temporary housing options for your employees. No one wants to commute an hour and a half to work every day. Most employees like to live as close to their new office location as possible; however, the reality is that there are plenty of situations when it’s too expensive or just doesn’t align with their lifestyle.

The cost of housing is most problematic when deciding which location works best. It is best practice to cap temporary housing benefits, so a prime housing location close to the office may not suffice. It’s important to make sure your employees understand how close their temporary home will be to the office. If being closer to the office is important to them, explain that they may have to forgo included amenities.

Step 4: Don’t forget the amenities!

You want your employees to feel as much at home as possible while in temporary housing. After all, the less stress they experience at home, the less stress they’ll carry with them to work.

While learning about your employee’s needs, your RMC should also learn about your employee’s goals and aspirations. What will make them feel most at home?

Do they want an on-site gym?

How about a dog park within walking distance?

Should the unit be close to available public transportation?

Learning just a few of the little details about the relocating employee will greatly impact their satisfaction with their corporate housing.

And it’s not just amenities for the actual relocating employee that we discuss. The needs and desires of their family must be considered as well.

Do they need to be close to a daycare center?

Would they like to live close to a public park?

What are the area schools like?

Step 5: Make use of your RMC’s network

After learning the full picture of your employee’s needs and wants, it’s time to select a temporary housing provider. If your RMC doesn’t offer a vast network of suppliers, they probably won’t be able to meet all of your employees’ desires when it comes to temporary housing.

An RMC should fully vet and offer multiple choices for your relocating employees. That’s why we focus heavily on vetting local corporate housing options. We want to help your employees and their families feel at home in their new location. By offering more options, we are also able to provide more cost-effective solutions. At the end of the day, your employees should be able to choose the temporary housing unit that best matches their budget with their needs and desires.

U.S. Domestic Policy Designer

For companies who are looking to revamp their current policies, or build a new one, this designer builds a custom policy with answering just a handful of questions.