Coverage of relocation costs has become an oddly contentious issue in today’s job market. Job seekers who have struggled to find appealing vacancies and suffered through extended unemployment are more willing to move across the country for the right position, making relocation costs a major consideration. At the same time, employers that are trying to manage the costs of rapidly inflating IT compensation packages are increasingly limiting or eliminating relocation compensation. When trying to determine what works best for your organization, it can be helpful to ask the following questions:
Would You Be Satisfied With Local Talent Pool?
Rather than offering to cover relocation costs, some companies are now exclusively recruiting local candidates. This strategy can have mixed results. While the companies are able to rein in costs, they are forced to recruit from a smaller candidate pool, leading to a protracted hiring process and possibly settling on a new employee. This strategy typically works better for employers located in large cities or tech hubs due to the larger candidate pool.
Are You Competing for Top Talent?
If you are recruiting for a position that is essential to your company or involves skills which are particularly in demand, expect competition for those candidates to be fierce. Choosing to forgo paying relocation costs could be what drives these candidates to your competition. If the position is that central to your mission, making the right hire is more important than eliminating one-time expenses.
Can Your Relocation Coverage be Revised?
Rather than cutting out relocation costs entirely, you may be able to reduce your offer and split the difference. Consider offering a fixed level of reimbursement, placing caps on the number of house-hunting visits you will pay for, and eliminating minor expenses like paying for a new driver’s license. You might also consider recruiting from bordering states or regions to eliminate the expense of a cross-country move.
Is Remote Employment a Possibility?
Working remotely is now easier than ever and a viable option even for managerial positions. Putting this option on the table and offering to pay for occasional travel rather than relocation is worth considering. For some candidates, this may even be a selling point. However, if it’s essential for a new hire to be on-site, don’t encourage remote employment just to save on relocation costs.
Before making any final decisions about the compensation package you attach to your job offer, it’s important to survey the candidate pool and evaluate the level of talent available to you. If you would like to learn more about how Resolute can help you attract the best candidates, please contact us today.