Motivating employees to move: effective relocation options.

Downsizing isn't the only trend resulting from today's economic climate. In fact, for many U.S. companies -- especially many smaller organizations in Southern California -- the time is right for expanding and relocating. While many large companies divest operations not related to their core businesses, many small organizations are capitalizing on new market opportunities.

Maintaining profitability in this time of change, however, often means ensuring that your most qualified employees move with their jobs. Although many small companies don't have the resources to offer formal relocation policies, they can still provide incentives that motivate first-choice job candidates to accept relocation assignments.

A significant objective is to pay attention to changing demographic and real estate conditions. While fewer employees may be relocating today, those who do face situations virtually unknown 10 or 15 years ago. For example, because of an increase in two-income families, many employees will base decisions to move on whether their spouses will find career opportunities in the new locations. To overcome this challenge, you may want to offer career assistance programs to spouses of transferring employees.

SPOUSE CAREER ASSISTANCE

In evaluating spouse career assistance programs, consider the needs of a wide range of employees. For example, programs designed to support only executive-level partners may not adequately address the needs of a lower-level relocating spouse. Look for a program that offers a variety of options to meet the full range of employment needs: a self-help workbook and video program for entry-level professionals; a program that provides one-to-one counseling for a spouse considering a career change; a combination of the self-help and one-to-one counseling programs; and executive search assistance programs for the highly-placed partner.

HOMEFINDING ASSISTANCE

Also significant in moving employees quickly and cost-effectively is homefinding assistance. Homefinding programs help the relocating employee and his or her family pinpoint key life-style needs, financial capabilities, and long-range housing objectives before they begin the search for a new home. A professional homefinding program also may help reduce or even eliminate your temporary living expenses by expediting the employee's resettlement -- you get your employees settled and back on the job more quickly.

RENTAL ASSISTANCE

An alternate option to homefinding assistance is rental assistance. Of all relocating employees today, 35 percent are renters. This number is expected to increase in future years as buying a house in most real estate markets today means having two incomes. As a result, rental assistance will play a more significant role in smoothing an employee's relocation.

Rental assistance programs help employees to: analyze their rental home needs; avoid paying above-market prices; reduce the number and duration of homefinding trips; and become knowledgeable enough about local real estate rental practices to make an appropriate rental decision.

MORTGAGE ASSISTANCE

Another cost-effective option for motivating your first-choice transfer candidate is mortgage assistance. Mortgage assistance can provide critical support and information at a time when your employees need it most. Mortgage companies that have experience working with relocating employees will have such program features as: one-day loan decisions, credit for working spouse income; competitive fixed- and adjustable-rate mortgages and refinancing options; flexible underwriting guidelines; and counselors to work with employees until the sale closes.

In addition to supporting relocating employees, employers that offer mortgage

assistance often find additional benefits through decreased paperwork and documentation and reduced temporary living costs. Mortgage assistance subsidy programs also can help you address such issues as moving employees to high-cost areas or in uncertain real estate environments. Another consideration is to implement a mortgage payoff program. In some cases, having a relocation management firm pay off the mortgage on an relocating employee's home, rather than make repeat payments on the property, allows both you and your transferring employees to benefit. If the cost of funds for mortgage payoffs is less than a property's mortgage interest costs, a mortgage payoff program can significantly benefit your bottom line. In addition, such a program helps ensure that relocating employees face no negative credit record impact.

SETTLING-IN SERVICES

Settling-in assistance services also are developing as a popular relocation-related option. In such programs, counselors usually spend several days with relocating families in the new location. Services typically include an introduction to the new area by: providing area overviews and tours; and assisting in -- school enrollment and providing preschool information, utility connections and furniture purchase, opening bank accounts, obtaining a driver's license, registering an automobile, postal services, repair services, domestic help and recreation, and health care information (e.g., doctors, dentists, hospitals) Child/Elder Care Referral Programs

The aging work force is another demographic trend that may affect your success in motivating your first-choice candidates to relocate. Many employees today are faced with responsibility for not only their children -- but also elderly parents. As a result, these employees may be reluctant to uproot their families and abandon their carefully constructed support networks. A child/elder care resource referral network can make the difference in this situation.

Referral programs are particularly cost-effective and easy for businesses to implement. Such programs usually require no additional staffing or office space, and the referral service provider typically produces informational brochures and pamphlets.

Homemarketing Assistance Industry statistics show that average homeselling costs are more than 60 percent of the total relocation outlay for a transferring employee. Companies tend to incur the highest of these expenses when they have to maintain and resell the homes purchased from their employees. Thus an obvious way to lower relocation costs is to avoid buying these properties. Implementing an aggressive early marketing program that helps drive employee-generated sales is one way to accomplish this goal. In fact, with a marketing assistance program, your company could save almost $21,000 in resale costs on a property with an average appraised value of $160,000.

Marketing assistance programs integrated as part of a homeselling process usually yield the best results, if the following occurs:

1) Your relocation management firm begins working with your employees as soon as they accept a transfer. The ability to properly market the property from day one of the homesale process, as well as to recommend the right broker and get the most out of broker securities, often makes a significant difference in the success of selling a home.

2) In those cases where a house doesn't sell during the premarketing period, the marketing strategy is revised and modified if necessary. This is especially easy in an integrated program because your relocation management firm already worked with your employees during marketing assistance and is aware of the property's key features and past strategies.

This eliminates down time and maintenance costs associated with starting the sales process over again with a new service provider.

CONCLUSION

Motivating first-choice job candidates to relocate doesn't always require large-scale resources -- especially in an economic environment where cost control is key. In fact, the array of available products means even the smallest of companies can develop customized high-quality and cost-effective programs to best meet their relocation needs.

Kim E. Raymond is regional vice president, Prudential Relocation Management. Working from the company's Houston branch office, Raymond has responsibility for new accounts development in Southern California.