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Employers Aren’t Changing Relocation Packages Despite the Market

by Veronica Blatt

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.

Fewer on the Move…A Trend Effecting Recruitment

by Dave Nerz

While we all sweat the latest technology introduction and the onslaught of robots that are touted to replace recruiters, a more serious threat looms. In the US and globally, fewer candidates relocate or move.

In a recent HR Magazine graphic (Spring 2019 edition), there are stats on the relocation/movement of the US population. The U.S. Census Bureau has been documenting these trends since the 1940s. In the 1940s, 50s, 60s, 70s and 80s, somewhere between 17.7% and 20.3% of the U.S. population was on the move! Since then the late 1990s the rate decreased to 16%, and in the 2000s move rates fell to just 11.9%. Read the rest of this entry »

Global Recruiters: Candidates Are Ready for Relocation

by Dave Nerz

image of moving van to represent candidate relocationGallup did a poll and asked US residents if they would move away from their states, given the chance. The results were pretty amazing. In nine US states, more than 40% of those polled were ready and willing to move.

What does that tell you? Well for one, the states were mostly cold weather states and we just had a doozy of a winter. Secondly, some of the states are states with few new jobs or an overall lack of jobs. Candidate relocation for better employment in on the rise. The states listed as “ready to leave” states were: Read the rest of this entry »

What Independent Recruiters Need to Know About Payback Agreements

by Veronica Blatt

contractToday’s installment is courtesy of guest blogger Jon Fishman. Jon is a Relocation Coach with Recruiter Relocation, a firm that provides relocation support for recruiters and their candidates domestically and internationally. Jon has over 10 years of combined service in the real estate, relocation and customer service industries.  Jon is considered a subject matter expert in relocation placement best practices. For more information, contact Jon at www.recruiterrelocation.com

Payback agreements are always recommended due to the high cost of relocation programs. In the event the employee voluntarily resigns or is terminated, the company is left footing the bill and looking for another candidate, who will incur further relocation spend. A payback agreement acts as a contract between the employer and new employee that states the employee will pay back part or all of the relocation costs if they leave the position within a specific amount of time. The payback agreement can be pursued for years after the employee terminates based on the laws within the state. Typically, a repayment agreement is included at the time the offer letter is given to the candidate. Read the rest of this entry »

Independent Recruiters, Does Relocation Have You Singing the Blues?

by Veronica Blatt

Today’s installment is courtesy of guest blogger Laurie Johnson. Laurie is Vice President of Account Management with Recruiter Relocation, a firm that provides relocation support for recruiters and their candidates domestically and internationally. Laurie has over 11 years of service with Recruiter Relocation and is considered the “go-to” person for best practices and industry resources regarding placements and relocation. For more information, contact Laurie at www.recruiterrelocation.com

For any independent recruiter involved in a search assignment, the more complicated the prerequisite skill-set, the more likely it is that the placement will involve a candidate relocation. This can certainly present a challenge – for both the candidate and the recruiter. Relocations can fail if certain details are not addressed EARLY- pre-hire/pre offer. The following song titles suggest some important points to help independent recruiters maximize successful relocation rates:

Should I Stay or Should I Go – Companies go to great lengths with their relocation partners to write policies that work both for their employees and meet their fiscal bottom lines. A cost of living adjustment is one item that is often overlooked. A salary increase may initially look good, but if it doesn’t go as far in the new location, it may spell disaster in the long term. Find out the COLA early, and immediately dialogue with the candidate on the results.

How Deep is Your Love? – You’ve found the ideal person for the position. They have accepted. And while that’s a great feeling, this positive circumstance really only represents half the battle. For a great, lasting result, they are going to have to perform in the position for a substantial amount of time. A relocation that fails to address the concerns of the new hire’s immediate family: spouse, children, or elderly parent could be destined to fall short of a company’s objectives. These familial difficulties and challenges should be identified and addressed from the very beginning. Converse with your candidate and their family on realistic relocation costs and expectations before an offer is extended.

Dancing on the Ceiling – In this market, there are few who are unaware of the equity position with their home. However, secondary and tertiary considerations such as title charges, taxes, fees, and commission expenses may factor in to a candidate’s willingness to get on board due to a small relocation allowance. Uncover early-on whether a home sale (or inability, therewith) could present a problem.

Pump Up the Volume – Often we use ourselves as an instrument by which to measure other people’s preferences. If a potential candidate is considering a move to a small New England town that we find quaint, it is easy to overlook some of the cultural or even infrastructure issues that might be less than ideal for them. It is important listen and find out what is most important to the candidate and their family – so all their needs are being adequately addressed.

While it may be painful to lose an otherwise acceptable candidate to relocation incompatibility issues, both the company and the candidate will be far better off if the considerations above are addressed from the beginning. Independent recruiters can benefit from working with a relocation partner to help resolve these concerns.

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