Why Company Staff House is a Bad Idea for Business

It is a natural instinct for companies to build staff houses for their employees so that it has inexpensive accommodation for their people who are based in other locations or offices when they ask for them to report to their head offices. At first glance, it is indeed cheaper to lump them in one building and cramp in one room. However, there are some things that you just cannot quantify as a result of making your employees and manager live in company staff houses instead of in furnished suites or apartments.

It Is Not About a Day or Two

In many cases, some branch employees report to their head offices by more than months or even a full quarter. Thus, when people stay this long, you need to hire people to attend to concerns of your employees during their stay at your company staff house. This is an additional expense; you will not only pay basic salaries but also other perks mandated by laws and overtime fees. And there are cases that you need to hire more than one staff house employee to attend to housekeeping, supplies inventory, and supervision. The more people you ask to report to your head office, the more people you will hire for staff house services.

It Is Not About Providing Temporary Stay

You have a reputation to keep up and you need to maintain employees’ enthusiasm. Thus, even if they are staying in staff houses, you need to make them feel like they are staying in a hotel. Of course, you have to provide them personal care products like soap and shampoo, toiletries, bed linens and towels, drinking water, and others. The more people that you ask to report to your head office, the greater the cost you will spend to provide your people with hotel experience in your staff house.

It Is Not Only About Comfort and Convenience

Staff house might be ideal for small businesses but not with large corporations. It might be alright for employees and supervisors but not with people holding managerial and executive positions. There is such a thing as image and perception. While these managers might not be mindful with impressions but clients and customers are. At times, it is important that we project a certain image and impression so that clients and customers will feel comfortable and confident to do business with us. How do you think people react when they learn that your managers are accommodated in a staff house while working on a multi-billion project?

It Is Not About Owning a Property

Real estate properties are attractive with taxmen and staff houses is one vulnerable aspect of your business that might pose issues when it comes to paying taxes. If you want tax deductible expenses, having your people accommodated in one of serviced apartments in the area is indeed ideal. In addition to paying taxes, you have to deal with renovations and upkeep as staff houses are exposed to wear and tear especially if you keep on ordering people to report to your head office. You do not need maintenance issues when you rent furnished apartments to your people when they are around from time to time.

These are the reasons why furnished suites or apartments are better instead of staff houses especially among big corporations.

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