Archive for the ‘Relocation’ Category
Written by Liesl Batz, Executive Recruiter.
Recruiting for the Twin Cities Asset Management community: Flyover country or diamond in the rough?
As an executive recruiter focused on senior investment and distribution placements for Asset Management firms, one might think that I would naturally call one of the coasts home. Actually, I am happily established in Minneapolis and not looking to move anytime soon. I have had the privilege of recruiting for companies based around the country as well as in the Twin Cities and consider myself well-versed in the special skill and finesse required to recruit to our fair city.
Aligning Relocation and Talent Management Programs
Posted by JasonA Paradigm Shift for the Effective Alignment of Relocation and Talent Management Programs
Are discussions underway, or being considered, for your company’s relocation policies and programs? If so, you may find the white paper, titled the State of the Relocation Industry and Introducing a Paradigm Shift for The Effective Alignment of Relocation and Talent Management Programs, of interest.
Here, you will find:
- The history of relocation programs and the relevance of history to making informed policy decisions today
- Why Talent Management and Relocation programs are closely related, but far apart in practice, and why many relocation polices today are not supportive of business strategies with talent management
- What companies are doing and have been doing in down markets for decades with the challenging question of “Are we helping or hurting the situation?”
- With the current industry situation defined, a creative solution is presented as a “paradigm shift” to current thinking, offering a new model in relocation policy and practice. This proactive and expedited relocation model addresses ongoing issues with program costs, transferee reluctance to relocate, productivity and talent management strategies.
Click here for a free copy of the white paper today.
2008 Relocation Trends: Part 2
Posted by JasonIn part 1 of 2008 Relocation Trends, several trends were highlighted relating to relocation overall and the impact on recruiting with the real estate and employment conditions.
Consider some additional facts:
The Top Three Reasons for Reluctance to Relocate in 2008:
- 71% - Slowed appreciation/depressed housing market at departure
- 66% - High housing costs at destination
- 63% - Employee/family resistance to move
Many organizations have responded with changes to their relocation packages:
Home Sale Program:
- Keeping Homes From Entering Inventory and Cost Containment
- Employee Bonus Program
- Delayed Appraisal Programs
- Guaranteed Buyout vs. Buyer Value Option (BVO)
- Pre-Acquisition Fix-up Allowances for Home Sale Program
Changes in Relocation Benefits:
Companies who made changes to their policies centered their decision on the current real estate market and the negative impact on program costs and/or transferee satisfaction.
Financial Programs:
- Mortgage Subsidy Program
- Guaranteed Second Mortgages
- Cost of Living Adjustments
- Loss on Sale Protection
Fewer companies are also leaving real estate marketing decisions up to relocating employees. A recent study shows that more than 60 percent of companies provide employees with a list of brokers to choose from when listing their property, and nearly 60 percent also require employees to follow restrictions on listing prices.
More than likely small to mid sized companies will be affected most with their ability to recruit talent out of higher-priced markets.
2008 Relocation Trends: Part 1
Posted by JasonThis is a 2 part blog post series on 2008 relocation trends.
In last week’s recruiting blog poll, the results showed based on the current employment market and economy 52% of organizations have increased their relocation benefits offered to new hires and transferees while 41% cited they have not changed their relocation benefits this year.
With over $32 billion spent annually, relocation is big business. Based on research, here is a summary of several current trends:
- Remember the stimulus rebates? The fact that the rebates phase out at these income levels has caused some companies to wonder whether, if taxable relocation benefits put the transferee into or above the phase-out income level, the company should consider compensating the transferee for the loss of the benefit of the rebate. According to the ERC, in general, companies should not do so.
- “Short sale,” “foreclosure,” “negative equity,” and “loss on sale” are benefits that employers are now generally including in their relocation program, when assessing their competitiveness. These benefits have varying degrees of tax consequences. In depth research is recommended to make a sound decision in developing and implementing policies for dealing with these issues in a real estate market like 2008.
- Even if home prices decline as expected, the volume of relocations in North America will rise in 2008. Experts cite corporate growth as the main reason for the increase.
- The top 5 foreclosure states last year included California, Florida, Texas, Ohio, and Michigan. These 5 accounted for more than 50% of the nations foreclosure filings.
- Fewer companies are leaving real estate marketing decisions up to relocating employees. A recent study shows that more than 60 percent of companies provide employees with a list of brokers to choose from when listing their property, and nearly 60 percent also require employees to follow restrictions on listing prices.
- Loss-on-sale assistance is provided by about 70 percent of companies, and their caps range from $10,000 to $275,000. Although the real estate losses have been costly, companies are not likely to scale back employee relocations.
- The trend of relocation payback agreements continues to increase, with the agreement period ranging from 12-24 months.
Relocation is an important consideration for both organizations and new hires and as competition to recruit talent increases, especially for specialized or niche roles, you may need to address your current offering. The economy and real estate market almost demand it.
Recruiting Blog Poll: The Economy, Jobs, and Relocation Benefits
Posted by JasonThe weekly recruiting blog poll results are in from last week.
The question: How has the overall economy and job market impacted the relocation benefits you provide?
The results:
- Increased relocation benefits (52%)
- No change in relocation benefits (41%)
- Decreased relocation benefits (7%)
Check back tomorrow or subscribe to the recruiting blog feed for 2008 relocation trends in employment.
The new poll this week: How would you rate the overall effectiveness of your career site?
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