Tuesday, March 1, 2016

Companies Pay Workers to Live Close to the Office

What do Addepar Inc. Companies, Facebook Inc., and Zappos.com Inc. all have in common? Each company offer rent stipends, house-hunting services and down-payment help for employees willing to live closer to the office.  These services attract workers to move to high rent areas and live in neighborhoods that lack in traffic. Allowing workers to live closer to home offers the opportunity for healthier meals, healthier work environments, healthier lifestyles, and more environmentally friendly ways of transportation to work.

Addepar Inc. Companies offer a $300 monthly housing striped for employees to live less than a mile from the company and $150 monthly stipend for employees that live further away. After noticing many workers were tired coming into work from the commute, Lissa Minkin, the leader in charge of human resources, introduced the idea of paying employees to live closer to work with the idea “the less time you’re spending on commuting, the more time you can spend focusing on work or focusing on your friends and family”. Although this money is taxed, it allows employees the opportunity to pay for their home without it taking a toll on their families. Facebook is also known for paying their employees several thousand dollars a year to live within 10 miles of its Menlo Park campus in California. Facebook also offers their workers the help of apartment-hunting. Loren Becker, from Zappos.com Inc. states that “workers who spend their free time together exhibit more trust, productivity, and creativity on the job. If you want to spend time with people, you’re more apt to work harder.” Unlike Addepar Inc., Facebook, and Zappos.com, Yelp does not offer this service causing their employees many struggles with paying rent and other bills.
Even though many companies are starting to offer this stipend, there is much debate on the employers providing money to their employees for their housing. The CEO of Gusto, Joshua Reeves, believes this stipend takes back employees to their college days. Segmentors prefer to separate their professional and personal lives, but with this action of stipends or house-hunters, employees are offering to null that line.
Not having to travel too far for work with your employer’s paycheck or traveling to work but having more privacy: what would you do?

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“Companies Pay Workers to Live Close to the Office”
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February 23, 2016 11:09 AM

3 comments:

  1. Living close to one's work can provide flexibility that has the potential to increase both work satisfaction and productivity. When companies choose to lease or buy space in expensive areas they are disincentivizing workers who value their personal time, which also may be the most dynamic and well rounded applicants. By providing a stipend these companies are correcting that error.

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  2. I think that the view of being given more money to live closer to work as detrimental is pretty false, as it still allows other employees to live far away if they wish to and it only benefits the employees. This is a great way to incentivize them to try and live closer to work without penalizing them if they choose not to as they are still getting a bonus to their salary. As for their private life being impeded upon, you really shouldn't be doing anything that you wouldn't want others at your workplace to know about anyway. You aren't being watched over by the workplace if you choose to have a home closer, so it's not like they are intruding on your personal life.

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  3. If companies want to offer this to employees it is their prerogative. If it really increases productivity, retainability, and makes for a better work environment then maybe this will be something other companies will get on board with. It definitely will not entice all though, because it would not personally entice me. It will only really work for certain companies that are centrally located in larger cities.

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