This downward trend in relocation was expected to change with the recent recession.  Finally, the economy seemed bad enough that more people would be inclined to consider relocation than before, since there were more good executives chasing fewer good opportunities.

But there has been one major catch:  Real estate issues have prevented the anticipated rise in relocation rates.  The very recession that seemed to encourage executives to relocate also closed doors on many of those same executives, as they found themselves unable to sell their homes. 

Facing the Dilemma

Instead of a boost in relocation rates, we are seeing quite the opposite, with the decline in the housing market.  The American Society of Employees (ASE) explains, "In a 2009 survey by relocation outsourcer Cartus, 79% of 179 companies polled said employees' resistance to moving increased either somewhat or a great deal over the past year.  Another 94% of those said that worries over selling an existing home were the main reason."[1] 

John Challenger, Chief Executive Officer of Challenger, Gray & Christmas, confirms that sentiment:  "The percentage of unemployed managers and executives relocating for a new position fell to a record low in the third quarter of 2010, as a slightly improved job market and greatly depreciated home values combined to eliminate this option for most job seekers."[2] 

Many relocation candidates find themselves stuck between real estate and unemployment issues--"I can't take this job because of my declining home value," versus "I have to take this job, or I won't have a job."  Their dilemma is a very real hindrance to the possibility of relocation, and it's continuing to prevent some companies from acquiring the exceptional talent they're looking for--whether from within or from outside their company.

Developing Your Strategy

What are companies doing to address the challenges of relocation and get the right people in the right places?  Throughout the recession and ongoing recovery, some have increased their relocation budgets and helped offset the difference between home value and selling price.  ASE says some companies are trying to do more to assist relocating employees, citing a Weichert survey that showed 40% of companies surveyed adding or increasing loss-on-sale assistance last year, and another 34% increasing the temporary housing allowance they offered to a transferee.[3] 

Companies are working hard to find creative solutions to relocation issues, often becoming more flexible in their administration of relocation packages as they strive to manage costs effectively, says Connie Skinner, relocation manager for a Fortune 100 financial institution.  "Even in cases where the relocation budget will not increase, the relocation package itself may be adjusted, as companies move away from a traditional, itemized relocation package, for example, to a one-time lump sum to be used as needed," Connie explains.  "Other optional provisions include mortgage or rent subsidies, transfer bonuses, and special programs for high cost areas, to name a few."[4] 

Playing Smart

In today's difficult economy, companies are closely examining their entire cost structure, including relocation expenses.  It's important, however, to balance fiscal needs with the need for talent.  Finding innovative ways to overcome candidates' financial hurdles while sticking to your relocation budget will help your company land the best talent.

One of our clients, in a recent internal move, chose to offer their top candidate a significantly reduced package of relocation benefits.  That decision led the candidate to turn down the job, a competitor snatched him up, and this particular client will literally lose millions of dollars of revenue from lost clients as a result.  The moral of this story is painfully clear:  don't be "penny wise but pound foolish" when it comes to relocation. 

And, when your company's relocation package isn't everything you might want it to be, it becomes that much more important to frame the entire employment decision in the best possible light.  What makes this timing and this job such a great opportunity for this particular candidate?  Think through the sort of mental checklist that a candidate considers, and build your story around those key thoughts.  Will the new hire have room to grow?  Is there a competitive, compelling compensation package?  Can your candidate afford to move?  Is it worth it for him or her?  Be  prepared to help your candidate navigate these tough questions.

Looking Ahead

These executive relocation issues aren't going to disappear anytime soon.  When the housing market finally does turn a corner, and real estate issues are no longer a major obstacle to relocation, we'll be right back where we started, with decreased motivation to relocate as opportunities begin to multiply once more. 

There is no easy answer to these tough issues.  Companies will need to be increasingly attentive to this changing dynamic going forward.  Relocation for key executives will always be important.  Yes, it's hard, and, yes, it can be expensive, but companies need to weigh the opportunity cost of NOT having the right executive in the right place at the right time, and do their very best to create a relocation package that works for both the company and the candidate.

Dean Hoppe 

So you've just hired a new executive?  Congratulations!  To help the new executive hit the ground running, here are five key discussion areas for the hiring manager to engage the new hire upon his or her arrival.  These discussions will pay dividends by accelerating the new hire's learning and assimilation into the organization.

1.  Situation diagnosis.  Begin by apprising the new hire of the organization's performance, major challenges facing the organization, and key stakeholders and partners in the organization.  Describe the performances and capabilities of the new hire's direct reports, and share the problems and barriers that could turn into potential landmines for the new hire.  Help the new hire identify opportunities for early wins, right from the start. 

2.  Expectations.  Next, be sure to communicate your view of top priorities for the new hire.  Be specific.  Outline expected deliverables and outcomes of the next 30-60 days, and identify keys to achieving results, as well as expected behaviors along the way.  If you and the new executive share a common vision of what constitutes success on the job, there will be fewer false starts and missed opportunities.

3.  Working relationship.  It often takes months for new working relationships to solidify, but you can accelerate that process by discussing how and when you want to be kept informed and updated, how often you would like to meet with the new manager and the overall content of those meetings.  Identify key decisions for which you would like to offer input.  Explain how you plan to give and would like to receive feedback, how you prefer to deal with conflict, and your approach to handling tough issues and sensitive or confidential information.

4.  Resources.  Discuss with the new executive what he or she will need to get the job done, areas they may need your support, and the support or assistance they will need from other parts of the organization.  Make these resources available right away, as the new executive steps into his or her new role.

5.  Development.  Finally, take some time to define areas in which the new executive needs to grow or develop in order to master the job.  Identify his or her strengths that should be leveraged, as well as what you can do to help facilitate his or her development.

As you embark on this transition together, these valuable discussions will set the tone for effective future communication.  Whether they occur during one or multiple conversations, discussions of these topics will help ensure that the new executive gets off to a great start.

Editor's note: This article was written by Dean Hoppe, Senior Consultant/Executive Coach. Through a variety of proven and practical coaching tools and processes, Dean works with new hires to ensure and accelerate the  assimilation of a new hire.

Your Next Move:  The Leader's Guide to Navigating Major Career Transitions  by Michael D. Watkins

A better office, a fatter paycheck--the perks of a career change are easy to visualize.  But what of the challenges that come with any career move?  How will you navigate them?  That picture is fuzzier, to be sure.  Michael D. Watkins brings these challenges and their solutions into clear focus in his book Your Next Move:  The Leader's Guide to Navigating Major Career Transitions. 

In The First 90 Days, Watkins identified principles that leaders can apply in any transition.  This sequel is his answer to questions about how to apply those principles in diverse transition situations.  Each chapter begins with a story of a leader in transition and provides detailed advice for meeting the challenge.  The book "flows from a fundamental observation:  the way you go about making your next move will vary dramatically depending on the type of move you are making," Watkins explains. 

Transitions into new roles are the defining factors in professional careers today, yet often leaders are unable to transition effectively.  Watkins explains how to adjust your approach to delegation, reengineer existing relationships, build strong alliances, focus your efforts on the right initiatives, tailor your leadership style to match the situation, and assess the health of multiple units and strategize accordingly.  He also points out that most leaders experience multiple shifts in parallel--such as getting promoted and moving to a new location.  So readers will find chapters that are immediately applicable to one part of their situation and other chapters that contain ideas for navigating the rest of the equation. 

Watkins' research explores eight classic transitions people face during their careers: 

• Promotion
• Leading former peers
• Corporate diplomacy
• Onboarding into a new company
• Making an international move
• Turning around a business in crisis
• Realigning an organization
• Leading an organization in which different parts are at different levels of growth  

A big part of Watkins' strategy derives from his STARS model, an acronym for five situations that leaders face in an organization:  start-up, turnaround, accelerated growth, realignment, and sustaining success.  It's a mouthful, but straightforward, and he uses this model to show leaders how to assess their own strengths and size up their company's unique situation to devise an effective transition plan. 

This book is both broadly useful and individually specialized, so that, whether you are anticipating or currently involved in a transition, you can use these principles to develop your own plan to tackle the challenges unique to your situation and ultimately succeed in your new transition.

"Whether you're going for that promotion, looking to jump ship, or change careers entirely, Michael Watkins' Your Next Move is a book you'll want to read." So starts the positive review of Your Next Move on the influential 800 CEO Read website. It's true that all leaders - no matter how seasoned - need guidance through the professional changes that define a career. In fact, transitions into new roles are the crucibles in which leaders get their toughest tests, and they're the defining factor ... Read More »