Insight Blog

In a recent article, we asked if job candidates should still expect relocation assistance from new employers. The answer is yes, but with modifications. The results of corporate relocation surveys produced by Atlas Van Lines revealed that over the past ten years, nine out of ten companies reimbursed or paid some relocation costs for transferees or new hires. While the latest survey showed that number dropping to approximately eight of ten, Atlas states that the main reason behind this decrease is that more small firms are opting either to not cover costs or to offer lump sums instead. It seems that overall, the type of relocation assistance a candidate can expect may depend on the size of the company.

Helbling & Associates is a retained executive search firm specializing exclusively within the construction, facilities management, real estate, and engineering industries, so the topic of relocation is one we contend with frequently. As far as the trends Helbling is seeing day-to-day in these areas… Well, it depends, our recruiters say. The popular perception seems to be that higher-level positions get more assistance, and lower-level positions get less, but this isn’t always the case. For instance, when considering construction or contracting firms, the candidate receiving more compensation doesn’t always receive the larger relocation package. Sometimes it is completely determined by the hiring manager or other key decision-makers and the culture of that particular company.

Another element that may come into play is the type of company, such as A|E|C companies compared to owners, like higher education institutions and healthcare systems. A university, working within the parameters of a budget specifically designated for compensation, may have a more structured approach to relocation assistance than a privately-owned contracting company. Institutions may approach relocation assistance by offering a percentage of the candidate’s first-year's salary. Or, they may have a predetermined amount that is somewhat standard across the board. But again, it depends.

From our vantage point, relocation assistance has been on the rise in recent years. More and more, companies seem to be acknowledging the need to be aggressive with job offers to win over top talent. Although we may not see as many instances of a company paying for a candidate’s home outright, relocation assistance is definitely still on the table. Beyond traditional relocation assistance, we have also seen a number of creative alternatives to standard relocation assistance:

• Telecommuting
• Sign-on bonuses
• Temporary or ongoing housing assistance programs
• Realtor expenses and closing costs
• Spousal support
• Support resources (such as realtors to provide insight on different neighborhoods, school districts and housing prices)
• Tax Gross-Up Assistance and guidance on deductions and other tax implications (see Publication 521 at the IRS website)

The bottom line – for employers and new hires alike – is that when an individual is moving for a new opportunity, a discussion about relocation assistance is generally expected. However, what that assistance may entail can vary greatly among organizations. Decision-makers should know their policies and communicate them to candidates early on so there are no surprises at the final hour. By understanding what possible assistance, if any, may be provided, a potential employee can fully assess an opportunity and increase the likelihood of accepting an offer.

Sources: Atlas Van Lines Corporate Relocation Survey 2013, Internal Revenue Service, Society for Human Resource Management (SHRM) 2013 Employee Benefits Survey.