Nurturing a diversified and productive workforce requires state-of-the-art accommodation facilities that cater to the needs and requirements of workers. However, high housing costs can restrict employees from living near their workplaces and place pressure on the regional economy by limiting employment development. Employers should be mindful of how accommodation impacts their workforce. Therefore, they should invest in modern accommodation facilities as a way to assist their employees as well as the regional economy. Here are four reasons explaining the necessity of labor accommodation and camps in Dubai.
1. Employers Can Attract And Retain Workforce Diversity At All Levels
Lack of labor accommodation restricts who can afford to live in a given place, resulting in a labor scarcity in lower-wage jobs. Potential employees are deterred from migrating to the region, with the exception of those who earn extremely high earnings, while existing workers are driven to less expensive markets. This makes it difficult to recruit and retain employees at all levels. Nearly 75% of companies in Dubai, for instance, say it’s exceedingly harder to hire or retain employees, with two-thirds citing a lack of labor camp in Dubai as a key stumbling block. Low-wage workers are particularly vulnerable to lack of accommodation, which can lead to job loss. Unacceptably high rents can result in evictions and compelled moves, and low-income workers are much more likely to be unemployed after being evicted from their rental accommodation.
2. It Has The Potential To Increase Employee Productivity
Employee productivity might be hampered by a lack of staff accommodations. According to a study of 34,000 professionals in Dubai, individuals who commute for less than thirty minutes each day gain six days of productive time every year compared to those who commute for more than an hour. Longer commuters are more prone to suffer from anxiety, financial distress, and despair. Another study found that drivers spend 168 hours per year stuck in traffic, equating to a $3.1 billion productivity loss. Instability in the economy and a shortage of suitable accommodation for workers are linked. Low-wage workers, who often have irregular work hours and leave availability, need access to reliable accommodation facilities even more. If individuals have substantial housing and transportation expenditures, they are more prone to incur financial instability if they are forced to leave work due to connected crises, such as an unexpected emergency or an uncertain and harsh commute. Furthermore, due to the added stress associated with an eviction and seeking a suitable place to reside, their work productivity may deteriorate.
3. It Expands Work Opportunities
Job seekers are frequently pushed to the outskirts and beyond due to a scarcity of labor camp in Dubai close to urban job centers. Some people may seek career options closer to their new place if they have a daily drive into the city. In fact, 64% of employees making less than $10,000 stated they would pursue a lateral job move if it would cut their travel, compared to 60% of those making more than $10,000. This spatial misalignment between regional employment hubs and potential employee populations restricts job availability. This mismatch can add to traffic congestion on highways since these distant areas are not as approachable by public transportation. Employee retention is hampered by long commutes. Employees identify long transit times as a cause for leaving big corporations that lack close labor accommodation and camps in Dubai.
4. Companies Can Benefit During Relocation Or Expansion
When it comes to assessing the quality of life for employees, availability of accommodation and expenditures are two of the most essential criteria that organizations consider when relocating to a metropolitan area. Why are they so important? Businesses must invest heavily in wages or turnover costs when workers cannot afford to reside near their workplaces. Working-class and service-class workers’ inability to afford housing in economically advanced cities harms both employees and cities. Workers are either denied the opportunity to live in cities where their abilities may attract greater pay, or their better salaries are offset by higher living expenditures. Cities lose output as a result of unfilled jobs when employees choose to move elsewhere.
Final Thoughts
Employers frequently just consider employees’ housing costs when considering a relocation or expansion. Rather, employers should enlighten themselves on the impact of a lack of stable staff accommodations on their employees. Employers should understand the measures that can enhance accommodation for people of all income levels in order to better recruit and retain employees. Employers in higher-cost locations should blend engagement with direct investment in stable accommodation for their workers, which is an investment in their workforce’s productivity. This investment can help their profit margins, and also their workers and the regional economy.
