Green Realtech Projects Pvt. Ltd

www.nirrtigo.com | 2015 © All rights reserved

Research | Strategy | Development

Maximizing Your Potential

...Beyond the Competition

Introduction to EAH ---------------------------------------------------------- 3

Benefits to Employers ----------------------------------------------------- 4

Benefits to Employees -----------------------------------------------------5

Section 1: Typical Employer Assisted Housing (EAH) Benefits --- 6

Section 2: Structuring an EAH Plan – Four Steps

Step 1: Conducting a Needs Assessment ---------------------------- 7

Step 2: Developing the EAH Employee Benefit Plan ------------- 8

Step 3: Announcing the EAH Employee Benefit Plan ------------ 9

Step 4: Implementing the EAH Employee Benefit Plan -------- 10

Conclusion --------------------------------------------------------------------- 11

Contact Us-----------------------------------------------------------------------12

2

Employer Assisted Housing (EAH) is an employer provided benefit that helps employees with their housing needs and improve the home buying process for employees. At the same time EAH adds value to the employer.

A cost effective way to help improve employee recruitment, retention, productivity, and morale, thereby improving the employer’s bottom-line.

An EAH can be a win – win – win situation for 3 “E”s, namely Employer, Employee, and local Economy.

An EAH Plan can be customized as per the employers and employees needs.

3

Recruitment – sets a company apart in attracting the best talent.

Retention – Motivates employees to stay.

Reduced Commuting – employees can be encouraged to live closer to work.

Relationships – stronger customer relationships with highly motivated employees.

Return – company’s financial statements can be strengthened.

Recognition – enhances company’s reputation as the employer to work for.

Reduced Cost of homes – employees gets homes at comparatively lower costs.

Revitalization – more disposable income of employees help revitalize the economy and neighborhoods.

4

Hassle free home purchase process with professional advice on financing, valuation, investment, and tax issues.

Reduced cost of homes than if an employee were to buy individually.

Security of availing home with predefined quality standards and on time delivery by builders/developers.

Investment in a home with possible equity appreciation over time.

Realization of dream of homeownership.

Enhanced lifestyle associated with homeownership, such as greater community, recreational, and school involvement and quality of life.

Increased job satisfaction and loyalty to employer.

Possibility of reducing commuting time to office from home.

5

Benefit Type Benefit Description Targeted Employees Employer Cost

Just a Facilitating Service: Employees pay for the Houses

Employer facilitate the whole process of home buying for its employees in consultation with professional real estate agencies/consultants All Employees

None. However, HR Staff time is required to promote the service

Repayable Loan or Grant

Cash loan or grant that must be repaid, usually over time or at a deferred date

Employees with insufficient funds for down payment or closing costs

Small administrative expenses may be the only costs because the employer gets cash back when the grant or loan is repaid

Matched Savings Grant/Marginal Financing

Cash grant that matches employee savings, given to employees who have served the company for a certain minimum number of years

High turnover employee groups; used to help retain employees and reduce turnover costs

Usually, grant amount is less than the cost of employee leaving the company and being replaced. The net result is either no cost or a positive return

Forgivable Loan or Grant

Cash loan or grant that does not have to be repaid if the employee remains at least until the time when the loan is forgiven

High turnover employee groups; used to help retain employees and reduce turnover costs. Also helps recruits employees if offered at hiring

Usually, forgiveness is timed so that the amount forgiven is less than the cost of employee leaving the company and being replaced. The net result is either no cost or a positive return

Upfront Grant Cash gift that does not have to be repaid Hard to recruit employees

Considered to be part of the cost of recruitment, like a hiring bonus

Rent Subsidies Interest free initial deposit payment Relocated Employees

Employer gets the refund of initial deposit when an employee vacates the house. Interest component on the deposit is the only cost to employer

6

Needs assessment can be conducted by asking the following questions:

What are the employer’s recruitment and retention goals?

Are there specific recruitment or retention issues or priorities for certain

Employee groups?

Job levels?

Tenure periods?

Job locations?

What are the employees housing needs? Are most of the employees homeowners? Are employees happy with current home buying process?

Are there other goals to be addressed, such as

Reducing commuting time,

Promoting home-ownership among first time home buyers

Making homeownership more affordable, other goals. 7

Typical tasks that can be involved in developing an EAH Plan include: Discussing the EAH benefit program with the team and senior

management.

Getting approval from senior management.

Identifying staff to manage the EAH benefit program in consultation with external professional real estate consultants.

Depending on which EAH option is offered, establishing appropriate procedures, such as:

Logistics for Just a facilitating service (employees pay for the houses)

Loan origination and servicing if the benefit being offered is a loan

Accounting, payroll, and/or servicing for some financial EAH options. 8

Announcement HR department makes an announcement of the EAH Plan to all its employees (notice board, emails, etc.).

Relevant data with regard to housing preferences, budget, location, size, other information is collected from interested employees by HR department or by Green Realtech Projects Pvt. Ltd.

Requirements Analysis After complete due diligence, the best possible solution is presented along with detailed valuation, investment, financing, and tax analysis.

Discussion and counseling with targeted employees takes place to clarify any doubts.

Finalization The deal is finalized and regular updates with regards to quality and delivery of construction are provided.

9

Builders/Developers Banks, Financing

Companies

Provides due

diligence,

valuation,

investment, and

financing analysis

Employer Employees

Green Realtech Projects Pvt.

Ltd

Offer EAH Plan to

Government Bodies

Legal

10

Developing an EAH plan for employees is similar to creating other employee benefits plan. However, an employer should take notice of the following key points: There are many choices of what type of EAH benefit can be

offered. The variety ensures that, employees at different job level can be considered for EAH plan.

An EAH plan can help an employer achieve other workforce related goals such as family issues, work-life balance, relocation, expatriate management.

An employer can call on external partners to help create this benefit in a way that best achieves its objectives.

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Improving the bottom line & opening the doors to Homeownership for Employees

Contact us for EAH Plans or Rental Housing Assistance plans for your employees

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Phone: +91 9971889899, 9971884499

Web: www.nirrtigo.com

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Green Realtech Projects Pvt. Ltd

www.nirrtigo.com | 2015 © All rights reserved

Research | Strategy | Development