Workforce accommodation challenges

With more and more employers providing staff accommodation that includes free wifi and en-suite bathrooms, can owners reap the benefits from looking after their teams to increase loyalty and productivity.

And what are the financial benefits for the employers.  When it comes to rent, many hotels run a neutral-cost policy. Legally, if they provide staff accommodation, some of its value can count towards minimum wage.  In some cases, employers are exempt from tax and national insurance; for instance, when providing accommodation for pub managers who need to live at their place of work in order to deliver at their very best.

However, do the benefits outweigh the daily investment required from a hotelier, restaurant and pub operators.  It can be an expensive and timely overhead to provide staff accommodation with the legal regulations, administrative and welfare obligations to adhere too.  It’s a never ending task, maintaining the property and its facilities.   And could this bedroom, building, plot of land be utilised more effectively for paying guests?

The latest figures reveal there are currently an average of 10,000 migrants working in Cumbria.  Rob Johnston, Chief Executive of Cumbria Chamber of Commerce has recently raised his concerns about affordable housing being unattainable.  “Affordable housing for working-age families is at the heart of this. Lack of it is a major issue in South Lakeland, in particular, and it’s no coincidence that these areas have the most severe labour shortages.”

The British Chambers of Commerce’s Quarterly Economic Survey of 7,000 businesses highlights exactly how big a problem this is across the whole of the UK. Their latest survey, published in January 2018, found that 71% of service businesses that were trying to recruit struggled to find the staff with the right skills. In the North West the proportion was 77%.

With the Catering and Hospitality trade consistently looking for industry talent, providing accommodation is certainly an appealing pull to attract and retain a workforce.

For employers, providing accommodation if often a necessity, particularly in the Lake District with hotels and restaurant removed from towns and cities requiring shift work.

Avoiding costs and practicalities for employees to travel to and from locations outside of the social hour would not be viable.  And in severe weather (which we are prone too!), when roads are closed and public transport is not running, employers have the reassurance their staff can always get to work and home again which is crucial in a 24/7 business.

From an employees point of view, accommodation provided can be an attracting offer, even on a short-term basis.  This is a huge help when relocating, either from the UK or abroad, to have the time to explore and get to know the area before renting long-term or buying.

With a high proportion of British vacancies listed in Eastern European job sites, staff accommodation is a unique selling point for overseas workers providing a home for them to settle quicker.

Although the cost implications to provide sufficient accommodation to your workforce can be high, the rewards for a loyal, professional and a committed team serving your customers is well worth the investment.