It also means HR departments have an idea of their future outgoings. But with the move towards providing a housing allowance rather than company abode, many employees are opting to spend less on accommodation in order to save money. The suburban bliss of a beach villa is traded for the hustle and bustle of the inner city, but the employee is a few thousand dollars a year richer. However, whether a company provides a housing allowance or the real thing depends on a number of factors. For these types of companies there is not a lot of cost difference between rent and cash.
Large companies have synergies of scale.
The general consensus is that the provision and level of housing is a factor of supply and demand in the labour market as well as the bargaining position of the employee. Another factor in determining the extent of additional benefits for employees is how and from where they are recruited. However, the increasing availability of highly qualified and experienced professionals already in the region is enhancing the bargaining power of this cadre. There is a marked increase in the compensation and benefits awarded to locally engaged international staff resulting in 'hybrid' packages where the structure of the package approximates that of internationally engaged employees, but the administration of the package, often wieghted towards cash benefits, promotes flexibility both for employer and employee. The employee has a chance to decide what they spend their salary on, and employers cut down on administration costs.