Corporate United - Fourth Quarter 2007

Current economic uncertainties spurred by record foreclosures and the credit crunch are a constant concern for HR and corporate relocation professionals. But how, and to what degree, have companies changed their relocation policies in response to these factors? And how does your policy compare?

In an effort to gauge the impact of current market conditions on corporate mobility, detect trends and identify best practices, Weichert Relocation Resources Inc. (WRRI), a leader in global relocation and Corporate United’s sector partner, has conducted a series of

benchmarking surveys, developing one of the industry’s largest policy benchmarking databases in the process. The results will help reveal how your program stacks up, while providing timely, authoritative and comprehensive information that represents just one of the many value-added benefits WRRI brings to the table.

WRRI’s first survey measured the current real estate market’s impact on corporate mobility, polling 106 US and Canadian companies on how they were combating market uncertainties. Key findings indicate that today’s companies may not be doing enough to control employee home marketing efforts:

• Almost a third – 29% – of respondents require that the list price be no greater than 105% of the broker’s price opinion or appraised value – which, in today’s market, may not be aggressive enough.

•Further, while 57% of respondents “encourage” employees to reduce their asking price if a home does not sell during the employee marketing period, only 6% actually require it.

•Only 16% of respondents offer buyer incentives during the employee marketing period to help their employees’ homes stand apart from competing properties. Half, 48% use buyer incentives only after the home comes into inventory, which could be too late.

WRRI’s next survey polled corporate relocation and HR professionals from 93 U.S. and Canadian companies to gauge renter activity and assess the greatest challenges they face in relocating employees who rent. Among the key findings:

• Across all respondents, 95% expect their renter activity to increase or remain the same over the next year. However, survey results indicate today’s companies still are not ready to give relocating renters benefits that compare to those given to home owners.

• Although 87% of respondents offer lease break assistance to their relocating renters, the number of companies providing such benefits as cost-of-living differentials (39%), duplicate rent coverage (24%), repayment of lost security deposits (9%) and advancing funds to cover security deposits (2%) was considerably lower.

•When asked for the greatest challenges they face in relocating renters, 22% of respondents cited the lack of dependable and affordable apartment search services, while 18% cited expensive rents. As for improvements they would like to make to their renter policies, 53% wish to incorporate more robust online rental search capabilities, while 23% want to add escorted tours of available properties.

•Only 20% of companies currently offer any sort of benefit to help their renting employees become homeowners in their new locations, even though such benefits can help overcome employee reluctance to relocate.

Early returns on WRRI’s current benchmark survey, which focuses on relocating new hires, also reveal some thought-provoking statistics as to how companies are using their corporate mobility programs to deliver a recruitment edge. Although the survey has recently closed and final results are still being tabulated, key findings to date include:

• Getting first choice candidates to accept a relocation ranks as the single greatest challenge among respondents.

•Most popular benefits that respondents are considering adding to their policies include home sale incentives, temporary living and a lump sum.

•Loss on value, housing cost in the new location and concerns over accompanying family members’ transition to the new location were among the biggest concerns of top recruits.

To receive the complete results of WRRI’s benchmark studies, e-mail Nicole Finefrock at nfinefrock@corporateunited.com.