Our guest blogger is Roman Duty of Recruiting Services International / RSI in Rushville, Indiana. RSI is a boutique executive search firm that celebrated 50 consecutive years of business in 2020. The firm provides highly individualized recruiting services to clients on a local, regional, and international basis. RSI’s recruiting activities are focused on high-level technical search and managerial placement in many manufacturing arenas. Read his post below about relocation packages.
As I finish my four-year tenure as a Board Director with NPAworldwide, I asked network members to comment on the current state of their clients’ commitment to relocating talent for their open positions. More specifically, I was most interested in learning if their clients had recently or EVER amended relocation packages. As recruiters, we know the recruiting market can change dramatically but I was amazed to discover that of the 25-30 recruiting firm owners who responded, not a single one disclosed a client having changed their relocation policy in at least five years. Isn’t this bad for business?
For middle-management or high-end individual contributor roles (up to $125K), the relocation packages were all strikingly similar, $5,000-$15,000 lump sum. That’s it. Take it or leave it. Relo packages offered between these roles and upper management/directors, C-suite is often incredibly dramatic. The vast majority of employees for a company are not in upper management, but they are overwhelmingly the engine that powers company profitability. Factor in new market trends such as sky-high interest rates and candidates are more reluctant than ever to move. When asked if they were relocating more or less candidates, a single firm owner said it was more in 2023.
A few years ago, companies began to get creative with how they attract and retain talent. Unlimited vacation, hybrid-remote options, higher salaries, cafeterias with more food options than Mall of America, etc.… In shifting markets, I would think companies would be more strategic and innovative with relocation offerings. For instance, many of us have clients with multiple sites but the relocation packages never deviate regardless of cost-of-living in certain areas? Painting with a broad brush, wouldn’t you say?
In the ever-competitive landscape of attracting the best talent, it behooves companies to pivot and take a closer look at relocation packages across all levels of employment. At some point, we’ve all coached clients in one way or another on their recruiting strategy, but relo packages remain outside of our touch points. Despite shifting sands, it appears that companies are unable to move quickly enough in this area to keep up with market changes.
Interest rates have a big impact on how much housing will cost.
It is very hard to justify leaving a house with an interest rate below 4% for one close to 8%