Analyzing the benefits of Domestic COLA [Cost-Of-Living Allowance]
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. This issue can have real consequences on a company’s ability to recruit and retain talent in an ever-changing labor market. Are you addressing cost differences in your domestic relocation program?
High cost locations don't have to equal high stress
Do you have locations on the coasts? Are you having trouble getting talent from lower cost areas to come to headquarters? Is talent walking out the door because the financial transition during a move is difficult? If the answers to these questions are ‘yes’ then a domestic COLA program could be beneficial. A COLA payment can be an extra benefit that sells the employee on the move.
What about moves to lower cost locations?
Sun…sand…surf…San Diego. Imagine asking someone to leave that and move to Milwaukee? Midwest winters can be harsh and Lake Michigan doesn’t have the surfing that the Pacific does. Maybe it’s a great promotion, development role or the four seasons? Here’s an opportunity where you can also use the significantly lower costs in Milwaukee to ‘financially sell’ the move. Lower housing costs…check, lower overall cost-of-living…check, more money in the candidate’s pocket to save and invest…check. With a careful financial analysis you can prove these points to the employee, even if you don't use the COLA report to pay any allowance.
The Complete COLA
It’s important to look at the total cost-of-living impact between two locations. This should include an analysis of housing, taxes, goods & services, and transportation. Examining several different cost factors can help balance the impact of one or two elements.
Do you need help with domestic and cost-of-living analysis?
Reach out today to discuss how we can help design and implement a COLA approach to enhance your ability to attract and retain talent. You can reach me directly here or read more about our Domestic approach by clicking below