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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'relocation'

Jeff's On Call!

Jeff’s On Call!: Relocation Reimbursements



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This week’s inquiry comes from Marc Stevens:

Hi Jeff,

I’ve been recruiting now for about 11 years and as you would imagine, I’ve seen a lot of different things happen in this sometimes crazy but very rewarding business. I’ve attended the Fordyce meetings and really have benefited from your presence there. In your articles, you always share unique solutions we can’t get anywhere else…thanks!

Recently, I’ve been exposed to a situation that one of my candidates is facing and because of it seems a bit unfair, I wanted to share it with you to see what ideas or thoughts you have.

I have a candidate who has accepted an offer from our client and learned on his exit interview from his current company they wanted him to reimburse ½ of his relocation costs. Apparently the agreement is that 100% of the relocation costs are refundable to the company if the candidate leaves in the first year and 50% if within the second year. To me this seems a bit harsh — think of it this way:

Let’s say the candidate left on the 23rd month, well technically the company is looking for 50% of the relocation costs reimbursed? Huh?! I know I’m going to be biased about this but I can’t see why the company wouldn’t be amenable to at least working out a prorated schedule, which brings me to my question.

Is this typically something a company will enforce? Have you found that they would be willing to work something out, i.e. prorated schedule &/or does the candidate need to get an attorney involved?

Thanks,

Marc

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Tactical Approaches to Close More Relocation Deals, Part 2



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Yesterday’s article shared how relocation has become something of a nightmare for many recruiters. Countless recruiters are having fall-offs very late in the placement due to relocation issues that they thought were already addressed. In fact, several recruiters and clients are swearing off relocation altogether. Today, in part 2, we’ll discuss more ways to handle common relocation objections.

The telephone interview went well and your candidate is preparing for their face-to-face interview. Now is the time that most objections not previously rearing their ugly head come up out of nowhere.

If you have not given them information about the area, do it now! If you have not talked with the spouse, do it now! If you have not set the appropriate relocation expectations with your candidate, do it now! If you have a relocation professional helping, get them involved to help with these steps. Remain in as much control of the process as possible.

If your candidate will have to sell a home, find out what the market is like in their area. Don’t let them rely on the neighbor-down-the-street scenario; the real estate market is changing so fast that appraisals are being thrown out after two months. There are free tools on the Internet to help in determining your candidates housing situation simply from an address. Do it yourself and deliver the information to them if you are concerned about them getting this done on their own. This gives you one more reason to contact them and keeps you in control of process flow.

Giving your candidate homework like talking to a real estate agent about selling their house without you can backfire. They may procrastinate or just not do it at all and tell you they have. It is better to find out that they cannot sell now then when you are sitting on an offer and you have just wasted your time and your client’s money.

Look for common relocation objections that can and very often will cause a deal to fall apart. Selling their home, finding a new one in a “good” neighborhood, schools for the children, and leaving family or friends.

The Employee Relocation Council recently released a survey showing that 41% of relocating employees are reluctant to relocate due to family resistance to the relocation. Dig deeper and find out if there are special family circumstances such as a high school football star who needs a special program, home-schooled children, a stay-at-home mother. These types of objections do not always hinder a relocation, but if the perception is that they cannot live in the new area in the same way they are accustomed to, they will get in the way. This can cause extended offer acceptance periods, and even worse, a kill the deal.

If your client has not determined the exact relocation benefits for the position, start addressing what the candidate may need to help them with. Find out what your candidate will need and start formatting amounts for the negotiation. Get a quick quote on the move. Find out the costs of temporary living, get trend information on what should be covered for that particular level of hire.

If you are requesting $30,000, show line-by-line what it will be covering and how much each line item will cost. This way you have the data, you aren’t scrambling for it, and can justify your request when your client is ready to write the offer.

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Tactical Approaches to Close More Relocation Deals, Part 1



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Relocation has become something of a nightmare for many recruiters.

The details, the whining, the demands, the questions, and the art of the negotiations can be overwhelming. Countless recruiters are having fall-offs very late in the placement due to relocation issues that they thought were already addressed. In fact, several recruiters and clients are swearing off relocation altogether.

But is that the best approach?

In this menacing economy, it is critical for your clients to attract top talent to achieve growth. Clients who once considered dropping relocation are now leaning on recruiters to take care of the leg-work involved in getting a candidate to sign on the relocation dotted line.

So where do you start? How do you proceed? Where can you get information?

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Korn/Ferry: 55% of Execs Ponder Global Relocation



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The majority of executives around the world say they are willing to relocate internationally for job opportunities in today’s tumultuous economy.

According to Korn/Ferry’s latest “executive quiz,”  85% expect more job losses in the global labor market in 2009, and 78% expect unemployment to rise in Q4 2008. Given the perceived volatility in the labor market, executives report an extreme willingness to chase job opportunities around the world; 84% say they are willing to consider relocating, with 55% willing to move internationally for their next position.

The Business of Recruiting

Home Is Where the Job Is



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Consider the following two quotes.

First:

“You have a superb client company, it’s a step up in his career, more responsibility, more money, more vacation, and part ownership…what kind of candidate would not go for a pot of gold like that?”

And second:

“You will never find anyone in the local market who fits this opportunity…we know everyone, and nobody around here has what we want. That’s why we need you to conduct a nationwide search. We’ll gladly pay your fee…but we want a national effort.”

I believed the above statements only once, back in the mid 1980s. That’s because I don’t make the same mistake twice. The mistake? Performing placements where relocations are necessary.

I have filled every position I have ever filled from the local market of the client company, or I placed the candidate I was working in his/her local area, unless he/she had a special place they wanted to go, and a compelling reason to get there. That includes positions that were very unique and specialized, and very unique and specialized candidates.

Isn’t that a rather limited way to do this business? I prefer to think of it as a smarter way of doing this business.

I have always believed that within 30 miles of any point on the map every kind of candidate exists, and a good opportunity exists within 30 miles for anyone open to pursuing a new job. Relocation is rarely, if ever, necessary for any candidate or any company, even when convinced their “uniquely qualified candidate” cannot possibly be a local candidate.