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Is	
  Relocation	
  Assistance	
  Still	
  on	
  
the	
  Negotiating	
  Table?	
  	
  	
  	
  	
  	
  	
  	
  	
  
ome	
  of	
  life’s	
  happiest	
  events,	
  like	
  moving,	
  buying	
  a	
  new	
  house	
  and	
  accepting	
  a	
  new	
  job,	
  can	
  also	
  be	
  among	
  the	
  most	
  
stressful	
  in	
  a	
  person’s	
  life.	
  Combine	
  these	
  into	
  one	
  scenario	
  -­‐	
  relocating	
  for	
  a	
  new	
  career	
  opportunity	
  -­‐	
  and	
  you	
  could	
  be	
  
looking	
  at	
  a	
  very	
  taxing	
  experience.
To	
  lessen	
  this	
  burden	
  on	
  new	
  employees	
  or	
  those	
  who	
  are	
  being	
  transferred,	
  some	
  companies	
  have	
  historically	
  included	
  
relocation	
  assistance	
  as	
  part	
  of	
  job	
  offers.	
  These	
  benefits	
  typically	
  come	
  with	
  the	
  caveat	
  that	
  the	
  employee	
  has	
  to	
  stay	
  for	
  a	
  
certain	
  period	
  of	
  time	
  after	
  receiving	
  the	
  assistance.	
  Relocation	
  assistance	
  can	
  vary	
  greatly	
  among	
  firms	
  and	
  often	
  
includes:
✓ Scouting/House-­‐hunting	
  trips
✓ Storage	
  assistance
✓ Spousal	
  support
✓ Childcare	
  options
✓ Cost	
  of	
  breaking	
  a	
  lease	
  (such	
  as	
  losing	
  a	
  security	
  deposit)
✓ Expenses	
  associated	
  with	
  buying	
  a	
  new	
  house	
  and/or	
  selling	
  an	
  existing	
  one	
  (such	
  as	
  realtor	
  fees)
✓ Other	
  various	
  moving	
  expenses	
  (including	
  physical	
  moving	
  costs)
Impacting	
  Factors	
  for	
  Relocation
During	
  the	
  recession,	
  offering	
  reloca2on	
  assistance	
  was	
  a	
  challenge	
  for	
  many	
  companies	
  with	
  the	
  grim	
  economic	
  outlook,	
  
budget	
  constraints	
  and	
  a	
  challenging	
  real	
  estate	
  market.	
  But	
  all	
  of	
  these	
  have	
  eased	
  in	
  recent	
  years	
  and	
  are	
  being	
  
overshadowed	
  by	
  the	
  demand	
  for	
  a	
  strong	
  workforce.	
  According	
  to	
  the	
  Atlas	
  Van	
  Lines	
  2013	
  Corporate	
  Reloca2on	
  Survey,	
  
company	
  growth,	
  an	
  improving	
  job	
  market	
  and	
  a	
  lack	
  of	
  local	
  talent	
  are	
  leading	
  to	
  more	
  reloca2ons	
  for	
  new	
  hires	
  and	
  
transferees.	
  Therefore,	
  reloca2on	
  assistance	
  is	
  s2ll	
  playing	
  a	
  role	
  in	
  job	
  offer	
  nego2a2ons.	
  	
  
The	
  following	
  charts	
  (from	
  the	
  Atlas	
  survey)	
  show	
  the	
  key	
  internal	
  and	
  external	
  factors	
  having	
  the	
  most	
  impact	
  on	
  the	
  
number	
  of	
  employee	
  reloca2ons,	
  by	
  company	
  size/number	
  of	
  employees:
S
By	
  Caroline	
  Drazin
Trends	
  in	
  Relocation	
  Assistance
Relocations	
  have	
  been	
  on	
  the	
  rise	
  since	
  2011.	
  In	
  fact,	
  in	
  recent	
  years,	
  relocation	
  volumes	
  are	
  increasing	
  at	
  a	
  faster	
  pace	
  
than	
  relocation	
  budgets	
  (a	
  change	
  from	
  before	
  2009,	
  when	
  the	
  trend	
  was	
  reversed).	
  Atlas	
  Van	
  Lines	
  predicts	
  the	
  new	
  
corporate	
  normal	
  will	
  be	
  “doing	
  more	
  with	
  less,”	
  or	
  more	
  relocations	
  on	
  less	
  budget.	
  
In	
  2013,	
  the	
  Society	
  for	
  Human	
  Resource	
  Management	
  (SHRM)	
  conducted	
  their	
  annual	
  survey	
  to	
  determine	
  what	
  benefits	
  
employers	
  are	
  offering	
  their	
  employees.	
  The	
  table	
  below	
  displays	
  results	
  regarding	
  Home	
  Relocation	
  and	
  Benefits:
Spring 2014 NavigatorIs Relocation Assistance Still on the Negotiating Table?
Spring 2014 NavigatorIs Relocation Assistance Still on the Negotiating Table?
A	
  few	
  highlights	
  from	
  SHRM’s	
  results	
  are:	
  
• The	
  most	
  common	
  form	
  of	
  relocation	
  assistance	
  in	
  2013	
  (32%	
  of	
  companies	
  surveyed	
  offered	
  this)	
  was	
  a	
  one-­‐time,	
  
lump	
  sum	
  payment.	
  SHRM	
  cited	
  a	
  desire	
  to	
  avoid	
  copious	
  amounts	
  of	
  paperwork	
  and	
  administrative	
  hassle	
  as	
  the	
  
reason	
  for	
  preferring	
  the	
  single	
  payment.	
  
• A	
  lower	
  percentage	
  of	
  companies	
  provide	
  employee	
  home	
  buying	
  assistance.	
  The	
  results	
  revealed	
  that	
  the	
  
companies	
  who	
  offer	
  this	
  benefit	
  may	
  do	
  so	
  in	
  the	
  hope	
  “that	
  homeowners	
  may	
  feel	
  more	
  rooted	
  in	
  the	
  
community	
  and	
  therefore	
  less	
  likely	
  to	
  leave,”	
  according	
  to	
  SHRM.	
  Only	
  3%	
  of	
  companies	
  surveyed	
  provide	
  
mortgage	
  assistance	
  and	
  down	
  payment	
  assistance,	
  respectively.
• The	
  percentage	
  of	
  companies	
  offering	
  rental	
  assistance	
  declined	
  50%.
• Location	
  visit	
  assistance	
  (helping	
  to	
  pay	
  for	
  the	
  employee’s	
  house-­‐hunting	
  expenses	
  when	
  relocating)	
  and	
  
temporary	
  relocation	
  benefits	
  (applies	
  to	
  employees	
  maintaining	
  two	
  households,	
  one	
  permanent	
  and	
  one	
  
temporary)	
  declined	
  over	
  10%	
  between	
  2009	
  and	
  2013.	
  
The	
  Atlas	
  Van	
  Lines	
  survey	
  reported	
  that	
  the	
  kind	
  of	
  reimbursement	
  a	
  candidate	
  will	
  receive	
  (full	
  reimbursement,	
  partial	
  
reimbursement	
  or	
  lump	
  sum	
  payment)	
  varies	
  based	
  on	
  the	
  size	
  of	
  the	
  company.	
  Mid-­‐size	
  and	
  large	
  firms	
  indicated	
  that	
  
more	
  than	
  half	
  of	
  their	
  candidates	
  were	
  fully	
  reimbursed,	
  compared	
  to	
  small	
  firms	
  that	
  lean	
  towards	
  lump	
  sum	
  payments.	
  
Regardless	
  of	
  size,	
  all	
  firms	
  used	
  partial	
  reimbursement	
  for	
  one-­‐fifth	
  or	
  less	
  of	
  their	
  candidates.	
  
Alternatives	
  to	
  Offering	
  Relocation	
  Assistance
When	
  a	
  company	
  simply	
  cannot	
  assist	
  with	
  the	
  full	
  cost	
  of	
  relocation,	
  there	
  are	
  creative	
  alternatives	
  that	
  can	
  suit	
  both	
  the	
  
organization	
  and	
  the	
  candidate.	
  A	
  few	
  options	
  include:
✓ Telecommuting
✓ Sign-­‐on	
  bonuses
✓ Ongoing	
  housing	
  assistance	
  programs
✓ Realtor	
  expenses	
  and	
  closing	
  costs
✓ Pre-­‐move	
  counseling
✓ Tax	
  Gross-­‐Up	
  Assistance	
  and	
  guidance	
  on	
  deductions	
  and	
  other	
  tax	
  implications	
  (see	
  Publication	
  521	
  at	
  the	
  IRS	
  
website)
Spring 2014 NavigatorIs Relocation Assistance Still on the Negotiating Table?
Caroline	
  Drazin	
  is	
  Marketing	
  Coordinator	
  with	
  Helbling	
  &	
  Associates.	
  She	
  works	
  closely	
  with	
  our	
  search	
  consultants	
  in	
  
developing	
  articles	
  and	
  blogs	
  about	
  talent	
  management,	
  career	
  development	
  and	
  executive	
  search.	
  She	
  may	
  be	
  reached	
  at	
  
carolined@helblingsearch.com.
To	
  subscribe	
  to	
  Helbling’s	
  quarterly	
  e-­‐Newsletter	
  and	
  New	
  Search	
  Alerts,	
  visit	
  our	
  home	
  page	
  at	
  
www.helblingsearch.com.
Social	
  Media:
Blog:	
  	
  blog.helblingsearch.com
Twitter:	
  	
  @helblingsearch
RESPONSIVE
Motivation	
  and	
  urgency	
  to	
  fulfill	
  your	
  needs
RESOURCEFUL
Extensive	
  network	
  of	
  contacts	
  in	
  your	
  industry
RELIABLE
Comprehensive	
  and	
  accurate	
  market	
  intelligence
RESULTS
Performance	
  that	
  exceeds	
  your	
  expectations
H E L B L I N G & A S S O C I A T E S , I N C . R E T A I N E D E X E C U T I V E S E A R C H
www.helblingsearch.com 724.935.7500Pittsburgh
RELATIONSHIPS
Consulting	
  based	
  upon	
  trust	
  and	
  commitment
Conclusion
Should	
  new	
  employees	
  and	
  transferees	
  expect	
  relocation	
  assistance	
  to	
  be	
  part	
  of	
  their	
  negotiations?	
  The	
  answer	
  is	
  yes.	
  
Over	
  the	
  past	
  ten	
  years,	
  nine	
  out	
  of	
  ten	
  companies	
  reimbursed	
  or	
  paid	
  some	
  relocation	
  costs	
  for	
  new	
  hires	
  and	
  transferees.	
  
And,	
  while	
  in	
  the	
  latest	
  Atlas	
  Van	
  Lines	
  survey	
  the	
  number	
  dropped	
  to	
  approximately	
  eight	
  of	
  ten,	
  Atlas	
  states	
  that	
  the	
  
main	
  reason	
  behind	
  this	
  decrease	
  is	
  that	
  more	
  small	
  firms	
  are	
  opting	
  either	
  to	
  not	
  cover	
  costs	
  or	
  to	
  offer	
  lump	
  sums	
  
instead.	
  Full	
  reimbursement	
  or	
  lump	
  sum	
  payments	
  are	
  still	
  the	
  most	
  popular	
  methods	
  for	
  new	
  hires,	
  with	
  full	
  
reimbursement	
  narrowly	
  in	
  the	
  lead.	
  Also,	
  most	
  firms	
  of	
  all	
  sizes	
  saw	
  stability	
  or	
  increases	
  in	
  budgets	
  for	
  relocation,	
  
although	
  many	
  companies	
  will	
  be	
  aiming	
  to	
  do	
  more	
  with	
  less.	
  
Relocating	
  for	
  a	
  new	
  job	
  can	
  be	
  expensive,	
  psychologically	
  draining,	
  and	
  time-­‐consuming.	
  Luckily,	
  many	
  companies	
  still	
  
alleviate	
  this	
  burden	
  by	
  offering	
  some	
  kind	
  of	
  relocation	
  assistance	
  to	
  those	
  professionals	
  they	
  really	
  want	
  to	
  have	
  on	
  their	
  
team.
Sources:	
  Atlas	
  Van	
  Lines,	
  Society	
  for	
  Human	
  Resource	
  Management	
  (SHRM)

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Is Relocation Assistance Still on the Negotiating Table

  • 1. Is  Relocation  Assistance  Still  on   the  Negotiating  Table?                   ome  of  life’s  happiest  events,  like  moving,  buying  a  new  house  and  accepting  a  new  job,  can  also  be  among  the  most   stressful  in  a  person’s  life.  Combine  these  into  one  scenario  -­‐  relocating  for  a  new  career  opportunity  -­‐  and  you  could  be   looking  at  a  very  taxing  experience. To  lessen  this  burden  on  new  employees  or  those  who  are  being  transferred,  some  companies  have  historically  included   relocation  assistance  as  part  of  job  offers.  These  benefits  typically  come  with  the  caveat  that  the  employee  has  to  stay  for  a   certain  period  of  time  after  receiving  the  assistance.  Relocation  assistance  can  vary  greatly  among  firms  and  often   includes: ✓ Scouting/House-­‐hunting  trips ✓ Storage  assistance ✓ Spousal  support ✓ Childcare  options ✓ Cost  of  breaking  a  lease  (such  as  losing  a  security  deposit) ✓ Expenses  associated  with  buying  a  new  house  and/or  selling  an  existing  one  (such  as  realtor  fees) ✓ Other  various  moving  expenses  (including  physical  moving  costs) Impacting  Factors  for  Relocation During  the  recession,  offering  reloca2on  assistance  was  a  challenge  for  many  companies  with  the  grim  economic  outlook,   budget  constraints  and  a  challenging  real  estate  market.  But  all  of  these  have  eased  in  recent  years  and  are  being   overshadowed  by  the  demand  for  a  strong  workforce.  According  to  the  Atlas  Van  Lines  2013  Corporate  Reloca2on  Survey,   company  growth,  an  improving  job  market  and  a  lack  of  local  talent  are  leading  to  more  reloca2ons  for  new  hires  and   transferees.  Therefore,  reloca2on  assistance  is  s2ll  playing  a  role  in  job  offer  nego2a2ons.     The  following  charts  (from  the  Atlas  survey)  show  the  key  internal  and  external  factors  having  the  most  impact  on  the   number  of  employee  reloca2ons,  by  company  size/number  of  employees: S By  Caroline  Drazin
  • 2. Trends  in  Relocation  Assistance Relocations  have  been  on  the  rise  since  2011.  In  fact,  in  recent  years,  relocation  volumes  are  increasing  at  a  faster  pace   than  relocation  budgets  (a  change  from  before  2009,  when  the  trend  was  reversed).  Atlas  Van  Lines  predicts  the  new   corporate  normal  will  be  “doing  more  with  less,”  or  more  relocations  on  less  budget.   In  2013,  the  Society  for  Human  Resource  Management  (SHRM)  conducted  their  annual  survey  to  determine  what  benefits   employers  are  offering  their  employees.  The  table  below  displays  results  regarding  Home  Relocation  and  Benefits: Spring 2014 NavigatorIs Relocation Assistance Still on the Negotiating Table?
  • 3. Spring 2014 NavigatorIs Relocation Assistance Still on the Negotiating Table? A  few  highlights  from  SHRM’s  results  are:   • The  most  common  form  of  relocation  assistance  in  2013  (32%  of  companies  surveyed  offered  this)  was  a  one-­‐time,   lump  sum  payment.  SHRM  cited  a  desire  to  avoid  copious  amounts  of  paperwork  and  administrative  hassle  as  the   reason  for  preferring  the  single  payment.   • A  lower  percentage  of  companies  provide  employee  home  buying  assistance.  The  results  revealed  that  the   companies  who  offer  this  benefit  may  do  so  in  the  hope  “that  homeowners  may  feel  more  rooted  in  the   community  and  therefore  less  likely  to  leave,”  according  to  SHRM.  Only  3%  of  companies  surveyed  provide   mortgage  assistance  and  down  payment  assistance,  respectively. • The  percentage  of  companies  offering  rental  assistance  declined  50%. • Location  visit  assistance  (helping  to  pay  for  the  employee’s  house-­‐hunting  expenses  when  relocating)  and   temporary  relocation  benefits  (applies  to  employees  maintaining  two  households,  one  permanent  and  one   temporary)  declined  over  10%  between  2009  and  2013.   The  Atlas  Van  Lines  survey  reported  that  the  kind  of  reimbursement  a  candidate  will  receive  (full  reimbursement,  partial   reimbursement  or  lump  sum  payment)  varies  based  on  the  size  of  the  company.  Mid-­‐size  and  large  firms  indicated  that   more  than  half  of  their  candidates  were  fully  reimbursed,  compared  to  small  firms  that  lean  towards  lump  sum  payments.   Regardless  of  size,  all  firms  used  partial  reimbursement  for  one-­‐fifth  or  less  of  their  candidates.   Alternatives  to  Offering  Relocation  Assistance When  a  company  simply  cannot  assist  with  the  full  cost  of  relocation,  there  are  creative  alternatives  that  can  suit  both  the   organization  and  the  candidate.  A  few  options  include: ✓ Telecommuting ✓ Sign-­‐on  bonuses ✓ Ongoing  housing  assistance  programs ✓ Realtor  expenses  and  closing  costs ✓ Pre-­‐move  counseling ✓ Tax  Gross-­‐Up  Assistance  and  guidance  on  deductions  and  other  tax  implications  (see  Publication  521  at  the  IRS   website)
  • 4. Spring 2014 NavigatorIs Relocation Assistance Still on the Negotiating Table? Caroline  Drazin  is  Marketing  Coordinator  with  Helbling  &  Associates.  She  works  closely  with  our  search  consultants  in   developing  articles  and  blogs  about  talent  management,  career  development  and  executive  search.  She  may  be  reached  at   carolined@helblingsearch.com. To  subscribe  to  Helbling’s  quarterly  e-­‐Newsletter  and  New  Search  Alerts,  visit  our  home  page  at   www.helblingsearch.com. Social  Media: Blog:    blog.helblingsearch.com Twitter:    @helblingsearch RESPONSIVE Motivation  and  urgency  to  fulfill  your  needs RESOURCEFUL Extensive  network  of  contacts  in  your  industry RELIABLE Comprehensive  and  accurate  market  intelligence RESULTS Performance  that  exceeds  your  expectations H E L B L I N G & A S S O C I A T E S , I N C . R E T A I N E D E X E C U T I V E S E A R C H www.helblingsearch.com 724.935.7500Pittsburgh RELATIONSHIPS Consulting  based  upon  trust  and  commitment Conclusion Should  new  employees  and  transferees  expect  relocation  assistance  to  be  part  of  their  negotiations?  The  answer  is  yes.   Over  the  past  ten  years,  nine  out  of  ten  companies  reimbursed  or  paid  some  relocation  costs  for  new  hires  and  transferees.   And,  while  in  the  latest  Atlas  Van  Lines  survey  the  number  dropped  to  approximately  eight  of  ten,  Atlas  states  that  the   main  reason  behind  this  decrease  is  that  more  small  firms  are  opting  either  to  not  cover  costs  or  to  offer  lump  sums   instead.  Full  reimbursement  or  lump  sum  payments  are  still  the  most  popular  methods  for  new  hires,  with  full   reimbursement  narrowly  in  the  lead.  Also,  most  firms  of  all  sizes  saw  stability  or  increases  in  budgets  for  relocation,   although  many  companies  will  be  aiming  to  do  more  with  less.   Relocating  for  a  new  job  can  be  expensive,  psychologically  draining,  and  time-­‐consuming.  Luckily,  many  companies  still   alleviate  this  burden  by  offering  some  kind  of  relocation  assistance  to  those  professionals  they  really  want  to  have  on  their   team. Sources:  Atlas  Van  Lines,  Society  for  Human  Resource  Management  (SHRM)