The
Employee Relocation Council (ERC), a
Washington, DC-based professional association of companies concerned
with employee mobility, notes that the critical link between human
resources and relocation that has been fored in recent years will
continue to strenghthen as a result of the challenges brought
about by a changing national economy.
In
the recently competitive labor market that was largely tied to
an upsurge in the technology sector, companies reported an increased
partnership between their recruitment and retention efforts with
regard to their relocation programs. In a tight labor market,
companies rely upon relocation programs to complement their recruiting
and retention strategies.
With
the economy experiencing a recession, the labor climate has changed.
Many companies have downsized. The relocation industry will be
affected if it tries to:
- Provide
support to companies during downsizing and reorganization
- Provide
security and travel information to help ease employee relocation
- Make
it possible to increase staff very quickly when the economy
rebounds (Historically, when extensive layoffs occur in a down
economy, hiring occurs very rapidly when the economy recovers.
Employment opportunities and corporate relocation will experience
a quick, broad increase in this environment.).
The
cost of relocating a home-owning, current employee has risen by
about $14,000 during the past 10 years. A large percentage of
relocation costs is associated with the disposition of real estate.
As the price tag of real estate has steadily increased, so have
overall relocation expenses. The increase of tax rates in 1993
created additional expense because companies often reimburse employees
for their income tax liability.
In
2001, companies relocated an average of 204 current employees
and 104 new hires. By the end of 2002, companies had indicated
that overall, both their current employee and new-hire transfer
volumes would decrease, with a 5 percent decrease in current employees
and an 8 percent decrease in new-hire transferees.
The
average cost to relocate an employee is as follows: $60,831 for
home-owning current employee; $49,469 for homw-owning new hires;
$18,564 for renting current employees; $14,001 for renting new
hires.
ERC
is a global community of professionals developing and sharing
cost-effective and innovative solutions to support the mobile
workforce. Formed in 1964, it is the membership association of
choice for more than 10,000 corporate and government relocation-managers,
real-estate companies, appraisers and service firms from industries
that address relocation-related workforce issues.
For
detailed information on what is usually included in relocation
compensation and for the latest on tax treatments of relocation
expenses, contact:
Employee
Relocation Council
1717 Pennsylvania Ave., NW, Ste. 800
Washington, DC 20006
Tel: 202-857-0857
Fax: 202-659-8631
www.erc.org
Job
Relocation
