TOP 5 IN REAL ESTATE, June 2010 – Corporations are becoming increasingly strategic in managing their workforce mobility programs, using innovative measures to keep employees mobile despite a challenging economy, according to a new survey from Weichert Relocation Resources Inc. (WRRI), one of the world’s leading relocation and assignment management companies.
Now in its fourth year, WRRI’s Mobility and the Current Real Estate Market survey has become a definitive guide to corporate relocation trends and best practices. Results of the 2010 edition capture input from close to 200 relocation and HR professionals responsible for over 26,000 annual moves, and reveal that companies are updating their relocation policies with greater regularity to overcome mounting obstacles to employee mobility—particularly employees who can’t afford to sell their homes or have difficulty securing mortgages. Ninety percent of the organizations surveyed made changes to their policies within the past year.
“Our survey results show a continuing shift in attitude regarding relocation policies,” said Ellie Sullivan, WRRI’s Director of Consulting. “Six to ten years ago, policies were implemented and then remained virtually untouched because there was little reason to adjust them, since markets were stable and employees were typically ready and willing to move. Today, there are more challenges to contend with, including a recession, the velocity of business change, shifting workforce demographics and
“The fact that the vast majority of our survey respondents changed their policies over the past year to control costs and motivate employees indicates that despite the current economic picture, companies still realize the importance of maintaining a mobile workforce.”
Among the strategies being used to help employees overcome real estate-related difficulties, 75 percent of respondents provide alternatives to traditional homeowner benefits, either formally or on a case-by-case basis. Some of these include offering delayed home sale benefits or delayed home purchase or allowing homeowners to become renters. Additionally, 33 percent added or increased loss-on-sale assistance, with the most common maximum dollar cap rising to $50,000.
The study also found that pre-decision programs—seen as an emerging trend in WRRI’s 2008 survey—are gaining in popularity, with 65 percent of companies currently offering pre-decision and 11 percent planning to offer it this year. This shows a more proactive approach on the part of companies, as pre-decision programs can help gauge the probable success of a relocation before any significant financial investment is made.
Other noteworthy findings of WRRI’s survey included:
“Despite slowed markets and economic hurdles, employee mobility remains a critical part of most companies’ growth and talent management strategies,” said Sullivan. “The difference today, according to our survey results, is that companies are being more strategic in managing their programs. Rather than casting a wide net of similar benefits for all mobile employees, they’re taking a more targeted approach, offering specific packages to specific employees and new hires to convince them to accept moves.”
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