Corporate relocation seems to change its paths and models as global circumstances change. This is especially the case with the housing issue and recent recession which has had a great impact on corporate relocation matters.

Some years ago, before the recession hit at the beginning of this millennium, companies would go as far as to offer to buy a house from the relocating employee , in case he or she is unable to sell it within some period of time.

The recession seemed to have a huge impact on corporate relocation, as more employees simply could not afford to move. This new trend called “job candidate reluctance” is reflected in an increased amount of candidates declining job offers which would require them to relocate. Many employees would be willing to accept an offer to relocate; however many can’t deal with the financial burden of their existing home which they were not able to sell at a reasonable price to cover the mortgage.

As circumstances change, companies had to take a different course. More companies are now looking for employees in the talent pool in new or other areas, instead of relocating their existing staff. This trend has resulted in increased number of employees willing to relocate themselves, at their own cost, just to keep the job. Some companies have, thus, started to offer “loss on sale” benefits again, covering the difference if the employee has to sell his home at a loss in order to take the transfer.

Also, some companies, especially those who base their business and success on long term investment in their management and executive staff, offer something called “candidate assistance”. It represents a part of the decision making practice, prior to employee decision to relocate for the job. The company gets appraisals on the employee’s home, and may even offer broker marketing assistance. They might sometimes involve a mortgage person to help them decide if they can qualify for a mortgage.

Another option which is more and more popular among employees, who wish to adapt to corporate relocation plans, is renting instead of buying their homes. Many companies which relocate employees around the world strongly encourage their staff to rent accommodation instead of buying it. Apart from saving money, this option also increases productivity, as it results in higher mobility of employees.

Reference:

Chicago Tribune

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