Labor Housing Development

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Table of Contents

Introduction
Vision for Labor Housing Development
Strategic Issues
Three Strategies to Address the Strategic Issues
Project Components
References

Introduction

Most employers worry about the nature of housing that their employees use. If it is not the actual type of the house, then it is usually about the cost of decent housing or the distance from home to work. Each of these factors plays an important role in determining the amount of housing allowances employees receive.

A labor housing development project gives an employer the capacity to assure the living conditions of employees and to reduce the size of the wage bill because it helps to eliminate the time and money employees spend accessing the place of work. This project plan raises the key issues for consideration when planning to commission a labor housing project.

Vision for Labor Housing Development

The vision for the labor housing development project is to create decent, affordable, and conveniently located houses for company employees. Decency comes from the need to ensure the employees feel confident about their housing based on their income so that they opt to use the company’s houses instead of renting their own.

The need for affordability comes from the restricted budget lines available for the project. Convenient location means easy access to the offices, social amenities such as malls, places of worship, educational facilities, health facilities, recreational facilities and entertainment spots.

Strategic Issues

Identification of a Suitable Location for the Development

The need to identify a suitable location stems from the desire to achieve a suitable balance between the necessary issues that will make the project successfully. One of the cardinal values of the company is for employees to attain a healthy work life balance.

This means that it is necessary to find a separate piece of land to construct the housing units in order to provide a clear line between home and work. The location must be near enough to the existing premises to reduce commuting time, and must be within reasonable distance from social amenities.

Project Financing

Raising the finances for the project is a key issue because of the unavailability of the funds to develop the units. In this sense, there is need to consider different funding mechanisms to settle on a viable financial strategy to guarantee the success of the project.

Options include a corporate loan, using a Build-Operate-Transfer (BOT) model from investors in the building and construction industry, or internal financing by selling equity to the housing project to the existing employees.

Design and Construction of Housing Units

The design and construction technologies used in the development of the housing project will determine their attractiveness to the existing employees hence there will be need to find a way of involving them in the design process. If the houses do not meet the expectations of the employees in terms of design and construction, the project will fail. This comes from the fact that the employees have alternatives at their disposal.

Three Strategies to Address the Strategic Issues

Appointment of Executive Project Management Committee with Employee Representatives

There is an advantage in including at least one of the employees from senior management and from the lower cadres to participate in the executive functions of the project management committee. This will give the employees a sense of ownership for the project. These members do not need executive power, but must have the opportunity to participate in the decision making process of the project committee.

Appointment of a Project Advisory Committee Composed of Employees

The appointment of several employees as members of a project advisory committee can help to clarify the aspirations of the employees at a macro level, and it can help to ensure that the project committee keeps the actual needs and desires of the employees in mind as they work on the project.

Selling Equity in the Project to Existing Employees

In order to finance the project, it is viable to sell some stake in the project to the employees as part of a joint ownership plan. When the employees move in to the houses, those with equity can receive a return from the rental income. If they live in the houses, then they can live at a subsidized rate.

Project Components

The housing development project will have three components

Land Acquisition Component

This includes the formation of a search committee to clarify on the best available location based on the values of the company and the practical needs of the organization.

Housing Design and Construction

The design and construction phase will focus on the actual design of the houses, land use and construction technologies required to meet the needs of the employees. The development of the specifications and supervision of the contractors will form part of this component.

Business Development Component

The financing of this project will require the use of sound business practices, which will call for the signing of contracts and development of the occupation rules that will govern the housing project. Issues of transferability of equity will also come into play. The business development component will also address dispute resolution and the management model of the completed project.

References

Cullen, J. (2011). Multinational Management: A Strategic Approach (5th ed ed.). Mason, OH: Cengage Learning.

Flannes, S., & Levin, G. (2005). Essential People Skills for Project Managers. Vienna, VA: Management Concepts.

Froeb, L., & McCann, B. T. (2009). Managerial Economics: A Problem Solving Approach. Mason, OH: Cengage Learning.

Project Management Institute. (2003). A Guide To The Project Management Body Of Knowledge. San Diego: Project Management Institute.

Young, S. T. (2009). Essentials of Operations Management. London: Sage Publications Inc.

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