Employees that are candidates for Relocating to other locations for employment are balking in greater numbers. Why, because the cost of living in the some of the major cities has been skyrocketing over the years, especially housing. Even with the declines in the market of housing prices, they are still out of reach for many of the transferees. Another reason is the hesitation to uproot the family and leave their comfort zone, their families and friends.
In a recent survey:
- 65% believed that leaving their current home towns, family and friends was the main reason
- 61% their top concern was the cost of living in the new location
- 22% the main concern was selling their current home.
With fewer buyers buying and prices flat or declining, these concerns will likely only increase.
The survey qualified the results by saying that the trend effect varied from market to market.
Last year many relocation companies were suggesting that a "loss on sale" program be set set to help offset some of the heavier losses of selling existing employees' home. This kind of program allows the employee to accept the move and what it entails without the stressful financial repercussions of a soft market.
Buyers meantime are driving harder bargains and often leave the table if their terms are not met in the initial negotiations. Major companies that recruit from across the country are having a big negative effect on the hiring of recruits, especially from some of the more affected markets. Having a housing market that is losing value is forcing these companies to come up bigger programs with higher costs for relocating.
The biggest shortages are showing up in baby boomer markets with an expected wave of retirees and the need to fill the spaces vacated by the Boomers. These issues have manifested themselves into more aggressive and lucrative incentive packages as the companies compete for the next round of personnel that will carry their respective companies into the next decade.
Of the smaller companies that don't have the extra needed assets, many will be losing out to there corporate giant brothers. It will not be unusual in the very near future for some of the top executive jobs seeing relocation and incentive packages in the 6 figures. At the mid range, the employees are resisting the move all together.
Corporations will need to come to the plate with wads of money knowing that these new job hurdles are going to be coming at a very bad time.
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