If you are an employer or managing your company’s staff accommodation, cutting cost on this overhead must be one of your key area of concern. As Dubai offers a high cost of living, it is logical that your expenses might go out of your control. However, there are several strategies that can be practiced to reduce your organization’s spending on staff accommodation. This simple guide will highlight the key challenges faced by Dubai employers due to staff accommodation. Further, it will help you learn few effective tips and practical ways that can save your costs on staff accommodation in Dubai.
Key Challenges Faced by Dubai Employers for Staff Accommodation
- High Demand and Limited Supply: The booming economy of Dubai has led to increase in demand for housing. This has resulted in limited availability and high rental prices that makes it difficult for Dubai employers to secure a suitable accommodation for their employees at reasonable rents.
- Government Regulations: Dubai has established strict regulations that govern labor accommodation which has set limited standards for workers’ living conditions. Every employer must comply well with these rules to avoid penalties.
- Increased Living Costs: The high costs of living of Dubai has directly impacted the costs related to staff accommodation, which has made it a significant expense for Dubai employers.
- Security and Safety: Ensuring security and safety of workers who are living in a company-managed housing is one of the top concern. This may involve that every employer is responsible to implement proper security measures and must conduct regular inspections to address the security concerns of their employees.
- Culturally Diverse Workforce: Dubai enjoys a diverse culture with diverse workforce. One of the key challenge that Dubai employers face is they have to effectively accommodate the cultural preferences of their employees belonging to different nations.
- Management and Maintenance: Managing the labor accommodation might be an expensive and time-taking task. Dubai Employers have to dedicate time and resources to manage and address maintenance issues and their disputes to ensure their overall wellbeing.
6 Practical Ways to Save Costs on Staff Accommodation in Dubai
- Consider Shared Accommodation: To cut expenses, encourage your employees to go for shared accommodation option like shared rooms in a labor camp. This may significantly impact on the overall costs on the company accommodation overhead. Shared living also promotes a sense of community among your workers.
- Choose Location Strategically: While choosing a company accommodation or a labor camp, choose a location that offers strategic benefits to your workers and business. Select a labor camp which is located close your workstation and offers an easy accessibility to public transportation, worksite and essential living facilities. When you minimize your workers commuting time, it leads save on transportation costs and you can negotiate for low rental rates.
- Effectively Negotiation: Never hesitate to negotiate your terms with your landlord for a better deal. Ensure the owner to build a long-term commitment to secure a reasonable rental price. Negotiate effectively if the labor camp is offering some additional services or facilities for your teams.
- Avoid Unnecessary Costs: Assess your lease agreement carefully. Do not pay for unnecessary services. Also consider to negotiate short lase terms or for a flexible rental option to get well adapted to your company’s changing needs and projects.
- Utilize Company-Owned Properties: If your budget allows, navigate options to freehold a labor camp or lease a property to for staff accommodation in Dubai. This can benefit you by cutting your long-term costs and a greater control over the accommodation’s overall living conditions.
- Employees’ Benefits: Provide your workers a great benefit package that may include offering them house allowance or subsidized accommodation. This can also help you attract talented employees and reduce extra expenses for your workers.
A Pro-Tip for Managers
Consider to partner with a well-reputed labor accommodation management company that only specializes in offering corporate staff accommodation solutions. Such companies can effectively handle every aspect of your employees accommodation needs from helping you find suitable properties to negotiate lease and also offer complete management and maintenance services.
Use Benefits for Accommodation: Save Money
Offering you employees’ competitive benefits can be a powerful tool to attract and retain employees. It can also help you reduce your organization’s accommodation expenses. You can offer your employees these benefits:
- Affordable Accommodation: Offer your employees with subsidized accommodation in an affordable labor camp. This can help employees avail affordable and budget-friendly accommodation.
- House Allowance: Offer your employees a fixed house allowance on the monthly basis to contribute towards their accommodation. This can also allow them select the accommodation of their own choice.
- Flexible Work Arrangements: Consider to execute flexible working hours like offering them the flexibility to work from home. This will help to cut down the need for your employees to commute to their office. This will help you to reduce you transportation costs and will also reduce the need to provide them accommodation in a specific area.
Conclusion
The employers and their managers in Dubai generally struggle with facing multiple challenges related to staff accommodation quite frequently. That is mostly due to the increased demand for labor accommodation needs and government’s strict rules and regulations to ensure that employers of Dubai offer proper accommodation to their employees if they have 50 or more workers. However, there are few helpful tips and practical business strategies that can help them reduce their staff accommodation costs in an effective way.
Careful planning for staff accommodation can play a key role in cutting down accommodation costs. This planning includes, choosing a strategic location that offers an easy access to public transportation and essential facilities. Choosing the option of shared accommodation, optimizing your lease terms, negotiation with the labor camp landlords effectively may significantly reduce your overall costs on staff accommodation in Dubai. Remember strategic planning, negotiation and offering your employees benefits can help you achieve long term savings.
