Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of WERC.
Relocation can be one of the most exciting—and stressful—experiences an employee faces. For companies, the stakes are equally high. Successful relocations can result in happier employees, smoother transitions, and increased productivity. On the flip side, a poorly managed move can lead to frustration, decreased morale, and even the loss of talent. Corporate housing has emerged as a game-changing solution for organizations looking to simplify relocations while delivering a comfortable, welcoming experience for their employees.
But what exactly is corporate housing, and how does it play into a company’s mobility strategy? For relocation managers, travel managers, and relocation management companies (RMCs), it’s worth taking a closer look at how corporate housing enhances the employee experience while supporting business goals.
What Is Corporate Housing?
Think of corporate housing as the perfect middle ground between a hotel stay and a long-term apartment lease. The industry is known by many names, including corporate housing, serviced apartments, executive suites, or furnished apartments. These fully furnished accommodations are designed for stays of 30 days or longer, though shorter stays are often an option. Corporate housing goes beyond providing a roof over employees’ heads. It’s about creating a home away from home with all the amenities employees need to thrive during their transition.
Whether it's a one-bedroom unit in the heart of a bustling city or a family-friendly home in the suburbs, corporate housing can be tailored to meet a wide range of needs.
Why Corporate Housing Works: A Win-Win for Employees and Employers
1. A Comfortable Start
When employees move for work, they don’t just leave behind their old jobs; they leave behind their routines, comforts, and sense of normalcy. Corporate housing provides a soft landing, offering spaces that feel more like home than a sterile hotel room ever could.
Picture this: Instead of eating takeout every night in a hotel, employees can cook a homemade meal in their own fully equipped kitchen. They can spread out in a spacious living room, do laundry without leaving their building, and enjoy a sense of normalcy and privacy that’s hard to find in traditional short-term accommodations.
2. Cost-Effective for Companies
Hotels are expensive—especially for long stays—and they come with hidden costs. Dining out every day, paying for laundry services, and dealing with additional fees can make the price tag skyrocket. Corporate housing, on the other hand, is designed with cost efficiency in mind.
Companies often find that the per-night cost of corporate housing is significantly lower than hotel rates, and the included amenities mean fewer out-of-pocket expenses for employees. Additionally, the cost per square foot is also lower for corporate housing. RentCafe noted the average size of a one-bedroom apartment is 733 square feet, while the average hotel room is 325 square feet. With ADR for corporate housing of $183 and ADR for hotels of $152, the cost per square foot of a hotel is 91% higher than corporate housing. This approach not only saves money but also provides a more comprehensive solution for long-term needs.
3. Flexible Lease Terms
Flexibility is the name of the game when it comes to employee relocations. Corporate housing providers understand this and offer lease terms that can adapt to the employee's situation. Whether it’s a short-term assignment or an extended stay due to unexpected project delays, these flexible terms ensure there’s no wasted time or money.
4. Accommodations Where You Need to Be
Relocating employees often need to hit the ground running, and location plays a critical role in making that possible. Corporate housing providers typically offer accommodations in prime areas—close to business hubs, public transportation, and local attractions.
Employees save time commuting and can focus on getting familiar with their new surroundings, whether that means exploring local restaurants or finding the nearest grocery store.
5. Support Every Step of the Way
Corporate housing providers don’t just hand over the keys and disappear. Many offer concierge-style support, from helping employees navigate their new city, and assisting with documents for a new country or school to addressing any issues with their accommodations. This added layer of care can make all the difference, especially for employees adjusting to an unfamiliar environment.
6. Leveraging Data and Forecasting for Smarter Decisions
Corporate housing providers are more than just accommodation experts; they’re valuable partners in strategic planning. Many leading providers offer detailed data and forecasting tools to help HR and mobility professionals make informed business decisions. These insights can include trends in housing demand, average stay durations, regional pricing fluctuations, and upcoming market developments. By analyzing this data, companies can forecast housing needs, budget more effectively, and optimize relocation policies.
For example, knowing peak times for housing availability in key markets can help organizations plan relocations to avoid unnecessary costs or delays. Additionally, real-time reporting on employee housing usage and satisfaction allows businesses to adjust their strategies proactively. In a world where agility is essential, these data-driven insights empower companies to stay ahead of the curve and ensure their mobility programs are not only efficient but also aligned with overall business objectives.
Putting Employees First: The Experience Matters
Relocating is hard. Employees might be juggling new job responsibilities, adapting to a new city, and, in some cases, managing the needs of their families. A positive relocation experience can set the tone for their entire assignment—or even their tenure with the company. It is estimated that 94% of relocation managers view the success of relocation based on the experience of an employee during the relocation and housing is one of the primary components of the relocation.
Here’s how corporate housing helps:
- Smooth Transitions: Moving into corporate housing often feels seamless compared to navigating the challenges of finding and furnishing a rental property. Employees can focus on their work and settle into their new role instead of dealing with housing headaches.
- Family-Friendly Options: Relocations aren’t just about the employee; they’re about their families, too. Corporate housing providers often offer accommodations with multiple bedrooms, play areas for kids, and proximity to schools and parks, making the transition easier for everyone.
- Cultural Integration: Some providers go the extra mile by offering resources to help employees feel at home, whether it’s a list of local hotspots, language classes, or neighborhood events.
A Strategic Advantage for Businesses
While corporate housing is a great perk for employees, it’s also a smart move for companies. Here’s why:
1. Attracting and Retaining Talent
In today’s competitive job market, the ability to offer seamless relocation support can be a major differentiator. Employees are more likely to join—and stay with—companies that prioritize their well-being during such a significant life event.
2. Streamlined Operations
Managing the logistics of employee relocations can be overwhelming for HR and mobility managers. Partnering with a corporate housing provider simplifies the process, offering a centralized solution that reduces administrative burdens.
3. Duty of Care
Employers have a responsibility to ensure their employees’ safety and well-being, especially when they’re far from home. Corporate housing providers adhere to strict safety standards, ensuring that employees have secure, reliable accommodations. While often employees may initially flock to short-term rental options when exploring outside of the traditional hotel stay, corporate housing provides HR and mobility managers with confidence by working with professional companies. These companies prepare and review extensive health, safety, security and environment compliance, protection of personal identification data and financial transactions, 24-hour emergency and service lines, a standardized product regardless of location, background checks, insurance from professional providers and compliance with federal, state and local regulations.
4. Global Consistency
For multinational companies, consistency is key. Working with corporate housing providers that have a global presence ensures employees receive the same high-quality experience no matter where their career takes them.
The Rise of Flexible Work and Its Impact on Corporate Housing
As hybrid and remote work models become more common, the demand for flexible housing options has skyrocketed. Employees might not relocate permanently but may need temporary accommodations for extended work trips or project-based assignments. Corporate housing fits this need perfectly, offering a level of comfort and functionality that traditional hotels can’t match.
For the growing population of digital nomads, corporate housing is an even more attractive solution. These professionals need more than just a place to sleep; they need spaces that allow them to thrive both personally and professionally. Corporate housing often includes thoughtfully designed workspaces, such as real desks and ergonomic chairs, ensuring that employees can remain productive without sacrificing comfort. High-speed Wi-Fi is a standard feature, keeping employees connected and ready to collaborate.
What sets corporate housing apart is its ability to create an environment that blurs the lines between home and work-life balance. Unlike a desk tucked into the corner of a hotel room, corporate housing offers separate living areas, allowing employees to mentally “clock out” at the end of the day. This balance helps prevent burnout and promotes overall well-being, making it an invaluable asset for remote workers and digital nomads alike
Corporate Housing as a Competitive Edge
Relocations are about more than just moving people; they’re about creating an experience that sets employees up for success in their new roles. Corporate housing plays a pivotal role in this process, offering the comfort, convenience, and support that employees need during a major life transition.
For companies, investing in corporate housing isn’t just about reducing costs or streamlining logistics, it’s about sending a message: “We value you, and we want you to succeed.”
As the workplace continues to evolve, corporate housing will remain a cornerstone of effective mobility strategies. By embracing this solution, companies can enhance employee satisfaction, strengthen their relocation programs, and ultimately gain a competitive edge in today’s fast-paced business world.