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Blog Post: What Do I Ask For----What Do I Offer?


posted Friday, October 3, 2008 12:37 PM

Depending on who you are talking with, the marketplace is in the beginning throws of a talent crunch. Dr. John Sullivan from the San Francisco State University (Referred to as the Guru of Talent) has professed " We are in a war for Talent....And Guess Who Won?" If you accept the premise that for certain career fields we are in a talent war, then the question becomes what tools can we use to fight the war. Over the past 40 years, one of those tools has been the use of relocation benefits as a carrot to attract exceptional talent. Relocation benefits could become the one item that could make or break a new hire offer. If this is true what should relocation packages look like? The answer to the question begins with the identification of the corporate culture of your organization or perspective employer. This cultural environment can be classified in three areas:
  • Womb to Tomb - While not totally gone, this cultural view says that what is important is getting the employee to the job and productive and the corporation will do whatever it takes to do so. The sky is literally the limit.
  • Cost Conscious - Similar to the Womb to Tomb, it offers to employees a package of relocation benefits which stays within a set boundary of cost parameters.
  • Rough Justice - This is the bare bones policy structure. In example, we talked with the CPA firm whose relocation package was here is $2500 and welcome to the Florida sunshine.

Having laid out this scenario we can move to answer the question from the title of this blog. Listed below is a review of what the industry as a whole is offering various types of employees in the way of relocation benefits. The information shown below is based on surveys of the industries conducted by Worldwide ERC, the Corporate relocation trade association:

New Hires - Usually they receive the least amount of relocation benefits, however they all receive the following basic package (percentages refer to prevalence based on the level of new hire-entry level,experienced and executive):

  • Preview of new location (most likely for experienced or executive level)
  • En-route expenses (Fully tax deductible, offered at all levels)
  • Shipment of Household Goods (All levels)
  • Temporary Living (most likely at experienced or executive levels)
  • Homefinding Trips (Most likely at experienced or executive levels)
  • Miscellaneous Expense Allowance (Most likely at experienced or executive levels)
  • Childcare Assistance (Executive level)
  • Elder Care Assistance (Executive level)
  • Employment Assistance for Spouse/Partner (Experienced or executive level)
  • Homesale Assistance (Experienced or executive level)
  • Home Marketing Assistance (Experienced or Executive level)
  • Home Sale Bonus (Executive level)
  • Purchase Closing Costs (Executive Level)
  • Federal Tax Liability Protection (Across the board)
Current Employees - They traditionally get the widest variety of relocation benefits and their packages typically include the following components:
  • Temporary Living
  • Househunting trips
  • Purchase Closing costs
  • Miscellaneous Expense Allowances
  • Cost of living Assistance
  • Home Purchase options
  • Home Marketing Assistance
  • Loss on Sale Assistance
  • Spouse Employment Assistance
  • Shipment of Household Goods
  • En route expenses for final trip
  • Federal and State Tax Liability Assistance
  • Child Care Assistance
  • Elder Care Assistance
  • School Finding Assistance
In coming blog entries we will look at each of these policy components more in detail.
 
Dan Bloom
 

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