In general, getting an employee to accept a domestic relocation can be difficult. It is not easy to uproot a family, logistically manage a move, and establish oneself in a new city. However, it can be even more challenging when the new location is considerably more expensive.
Talent Acquisition Managers and Recruiters are experts at selling the prospect of working at their company. There are issues that candidates consider that these companies can’t control…cost-of-living being one of them.
1. How has COVID-19 impacted buying and selling real estate in the United States and Canada? Typically, the hope is for a linear path for the homebuying and home selling process. Most of the time, there will be at least slight deviance from the path during the process. Currently, there’s more deviation than is standard, but the real estate market is resilient and somewhat surprisingly resilient in the current times.
1. What is the most common question you are facing with home sales/purchases and how are you addressing it? Are things still closing? The resounding answer is ”yes, they are, but…” We’ve seen some declines and many delays year-over-year in home sales and home purchases, but closings are happening and prices remain steady because of the historically tight inventory availability.
I relocated to San Francisco in 2013. As someone who lives here and works in the cost-of-living industry, I can confirm that SF is one of the most costly places in the world. But, I'm also here to tell you that living here is worth the cost. The Bay Area is a truly wonderful place to live. But organizations often have a hard time relocating talent here due to the cost. But even when we do convince people to move, relocations often fail because organizations don't help relocating employees understand the nuances of the Bay Area and find the right housing fit for them.
What is the best solution for your company: full-service relocation, lump sum amount, or a hybrid approach? It’s a hotly debated topic within corporate relocation programs and is discussed at almost every industry event. Companies must weigh their budget against the level of support they are willing to provide transferees. There’s no easy answer, no one-size-fits-all.
My first domestic relocation happened on Valentine’s Day 2010, a few months after my college graduation. At the time, I was living at home with my parents in Central Mass when I accepted a job offer in Minneapolis. Although I did not know anything about the Midwest, I was beyond excited for my first real (i.e. salaried) job and the adventure that awaited living in a new state.
Worldwide ERC has consistently cited high cost-of-living as one of the main reasons why employees are reluctant to relocate. This issue can have real consequences on your company’s ability to recruit and retain talent in a highly competitive labor market. You may be addressing cost differences in your global assignments, but what about in your domestic relocation program?
The Stockholm housing rental market has been mostly stable over the last several months, despite a steady increase in demand. Rental units are challenging to find in this near-zero vacancy market and houses are especially limited. For new assignees, there has been an increase in demand for employer-backed leases and this trend is expected to grow.
During a recent survey quarter, I had the pleasure of surveying Athens, Greece. While I was on-site, I encountered several protests and demonstrations, which allowed me to really feel like an assignee, navigating the change of social disruption.