Using Domestic COLA To Support A Talent Acquisition Strategy

    Apr 29, 2021 @ 07:32 AM / by Christopher Bloedel

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    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

    Learn more


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    About AIRINC

    Listen | Partner | Deliver.  For over 60 years, AIRINC has helped clients with the right data, cutting-edge technology, and thought-leading advice needed to effectively deploy talent worldwide. Our industry expertise, solutions, and service enable us to effectively partner with clients to navigate the complexity of today’s global mobility programs. As the market continues to evolve, AIRINC seeks innovative ways to help clients address new workforce globalization challenges, including mobility program assessment metrics and cross-border talent mobility strategy. Our approach is designed with your success in mind. With an understanding of your goals and objectives, we ensure you achieve them. Headquartered in Cambridge, MA, USA, AIRINC has full-service offices in Brussels, London, and Hong Kong. Learn more by clicking here.

     


    2020 Global Mobility Playbook [Download]

    Mobility Playbook Main

    Topics: Housing, Expatriate Housing, Insights and Experience, Salary Evaluation Tool, International Housing Guide, Domestic Mobility Programs, Site Summaries, Domestic Moves

    Christopher Bloedel

    Written by Christopher Bloedel

    Christopher rejoined AIRINC in June 2019 (he previously was with the company from 2011 to 2014) as a Relationship Manager and is responsible for engaging and consulting with clients regarding global compensation issues. Prior to AIRINC, he worked for over 20 years in the mobility industry with consulting and relocation management companies in various research, account management, and business development roles. His experience includes mobility policy review and consultation for various Fortune 500 companies as well as active roles in national and regional mobility groups such as Worldwide ERC and the Midwest Relocation Council. He has a Bachelor's Degree in Economics from the University of Wisconsin, Parkside and works out of his home office in Wisconsin.