Revival of the Employee Housing (2024)

Juli 2024 | Revival of the employee housing including services such as a shared laundry room: Response to an acute housing market and shortage of skilled workers

In Germany’s major cities, living and working conditions are generally good: diverse job opportunities, short distances, cultural events and shopping opportunities. Around 90% of working people feel comfortable where they live. However, the acute situation on the housing market is leading to considerable frustration: High rent has led to one in three people already thinking about changing jobs. This makes it increasingly difficult for employers in urban areas to find and retain skilled workers. These are the results of the PwC survey on “Housing shortage in German cities and the consequences for the labour market”. The survey was carried out on 4,200 working people between the ages of 18 and 65 in twelve German cities with more than 500,000 inhabitants.

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About two-thirds of employed people complain about high rent, the costs of home ownership and the lack of free rentable apartments. Young people in particular often consider changing jobs: 17% of 18- to 34-year-olds have already changed jobs because of high rent, and 41% in this age group have considered doing so. Housing-related issues and questions are the most important factor when employees consider a job-related move.

One way companies can counteract this and stand out from the competition is through employee housing. Nowadays, providing housing for employees also contributes to the future viability of a company.

Best Practices Rediscovered

The idea of employee housing, i.e. the provision of housing by companies for their employees, has its roots in the 19th century. During the Industrial Revolution, the need for labour grew rapidly, and at the same time, urbanization led to housing shortages in rapidly growing industrial cities. Companies realized that providing housing was a way to attract skilled workers and ensure their loyalty. After the Second World War, this trend initially continued. During the period of reconstruction and the economic miracle in the 1950s and 1960s, many large companies in Germany offered their employees housing.

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However, from the 1970s onwards, the importance of employee housing declined. The welfare state expanded its range of social housing programs, and growing prosperity enabled many workers to acquire their own property. In addition, the labour markets changed: Flexibility and globalization led to higher fluctuation and mobility, which made the concept of long-term employee housing less attractive.

In recent years, however, the concept of employee housing has regained importance, partly due to the housing market crisis in large cities and the shortage of skilled workers in many industries.

Benefits and Services

Various companies already offer their employees the option of employee housing. These include local utility and service companies such as the municipal utility agencies of various cities, hospitals or large stock corporations such as Volkswagen AG with Volkswagen Immobilien. The latter has been relying on WeWash for even more service and convenience since 2019 as a partner for laundry room management. 50 machines are distributed across various laundry rooms in the residential complexes. In so doing, VW Immobilien relies on the WeWash Care model. This means VW Immobilien doesn’t have to worry about the laundry room at all – because WeWash provides both the machines and the digital billing system and takes care of the laundry room management and any repairs. At the same time, they can offer residents a modern additional service. Using the WeWash App, they can wash and dry laundry easily and save time and effort thanks to the digital booking process and simple digital payment.

“The WeWash service is used in various forms of residential facilities owned by Volkswagen Immobilien with shared laundry rooms. It is used, for example, in shared apartments, but also in our SPLACE serviced apartments. Thanks to the convenient booking via App, it is a popular and cost-effective solution compared to conventional cleaning.”

Ulrich Sörgel, Head of Residential Properties

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Conclusion: Employee housing = Traditional concept with modern meaning as a solution to the housing market and shortage of skilled workers

The concept of employee housing has a long history and is currently experiencing a renaissance. Given the challenges of the modern housing market and increasing competition for skilled workers, it is becoming more attractive for companies to invest in housing for their employees. This is not only about economic advantages, but also about social responsibility and sustainable corporate strategies. Employee housing can therefore be a key to solving some of the most pressing problems of the modern working world.

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About WeWash

WeWash offers you a convenient service tailored to your needs. We can either equip your shared laundry room free of charge with commercially approved washing machines and dryers. Or we can retrofit your existing equipment with our WeWash Box. The result is the same for you: cost and time savings. The professional machines are manufactured by Bosch exclusively for WeWash and ensure excellent washing and drying results. However, if you have existing machines that are in a good working condition, we can easily retrofit them to modern, cashless operation – regardless of brand or type. Users of your laundry room will benefit from an easy-to-use, digital service and will be able to book machines, check the status of their laundry and pay digitally via the WeWash App.

Revival of the Employee Housing (2024)

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