Relocation & Recruiting: A how-to-guide for Specialized Organizations

November, 2010

Relocation and Recruiting: a how-to guide for specialized organizations

Relocation. The very word can strike fear in the hearts of business owners and hiring managers. It’s a word that inevitably triggers ‘what ifs:

• What if relocating a new employees ends up costing an arm and a leg?• What if a relocated employee decides to quit?• What if a relocated employee doesn’t work out?

What follows is a ‘how-to’ guide for specialized companies on how to make relocation an effective part of your recruitment efforts. We’ll show you how to land the best skilled trades employees, even when your local labor market is empty, and we’ll give you tips on how to protect your organization from the ‘what if’s’ listed above.

Why consider relocation?Let’s face it – the current labor shortage for qualified skilled trades professionals and engineering disciplines is not likely to change anytime soon. In fact demand for many jobs is expected to grow 24%-30% over the next 10 years!

Between increased industry demand and a decreasing supply of workers, it’s just harder to find the right people – whether you’re looking for an experienced service tech, a master electrician, a building automation expert, an environmental engineer or any of the specialties in your industry sector.

If your organization is lucky, you’ve been able to find most employees from your local labor market. But inevitably, you will have a position open up that simply cannot be filled locally. Unlike some industries, yours mostly likely must have a ‘hands-on’ labor force—no telecommuting!

So what can we do when the local labor market is tapped out? Typically, a recruiter or hiring manager will look either regionally or nationally. This type

of sourcing is usually done via an online job board or a headhunter. Either technique puts you in touch with an entirely new labor force.

Looking for your next employee outside of your local market provides distinct advantages. For example, with more candidates comes more choice. You can be much choosier about the certifications, years of experience, and so on that you require for the position. Also, you can increase your company’s competitiveness by upgrading both skills and capabilities.

Finally, make sure you ask yourself this: What is the cost of not having the right person working for you now? If the open position is left unfilled, how much lost revenue does that represent? How long can you wait for the local labor market to produce the candidate you need?

A different mindsetFor years companies in specialized industries could rely on good wages and lots of opportunity to lure employees. It can be challenging to make the mental switch of having to recruit. Instead of skilled workers and engineers lining up and waiting to join your company, you must now actively lure employees. Selling your organization as a great place to work is something you must do throughout the recruitment process—not just in a face-to-face interview.

If you’re looking outside your local market, selling your company becomes doubly important. You can’t rely on word of mouth to communicate your message to job seekers. Think about what you would want to know about your company if you’d never heard of it.

Why would a job seeker relocate?To ensure that relocation works for your company, you must first think about why a job seeker would consider relocating:

1. Family in the area: This is almost always mentioned as a key relocation reason.

2. Previous positive experience with the area: Perhaps the job seeker lived or went to school in your area.

3. Career advancement: Maybe the job seeker has stalled out in his current position and sees your company as a way to learn new skills and earn more money.

The reasons for a job seeker’s relocation will help guide you in making an appropriate and effective relocation offer. Don’t operate in the dark—ask the job seeker why he or she would like to move to your town.

The good news is that most job seekers either have or are willing to relocate for the right opportunity. In a recent survey, 55 percent of respondents said they would be willing to relocate anywhere in the U.S., and 25 percent would be willing to move inside their state. The top two items they requested from a prospective employer were assistance with moving and assistance with housing—and both items ranked higher than money.

Preparing a relocation offer Relocation breaks into two general categories: in-state and out-of-state. If you’re in a big state, such as Texas or California, these categories blur. But all relocations have a similar impact on the potential employee: disruption.

A relocation offer should do two key things: a) entice the prospective employee to join your organization, and b) soften the landing when they arrive. Remember the previous section about why a job seeker would consider relocating? The answers you receive can guide you to crafting an effective offer.

Here are a few common components of a relocation offer for specialized professionals:

• Help with moving (use of a company van, truck rental, cash for a moving service)

• Information package about your area, including material on realtors, homes, schools, etc.

• Financial help with the initial rent or down payment on a house• Assistance in obtaining local and state certifications that are required for

the job

Don’t forget – an important part of any successful relocation package is what you as an employer do once the candidate arrives. Ensure that he or she has a structured plan for learning how your company works and what is expected. Remember – relocation is stressful.

What if something goes wrong?When preparing a relocation offer, always include the rules for what happens if things don’t work out. Spell out what will happen if the employee leaves your company prematurely. Don’t forget to check references!

For example, you could specify that if the employee leaves prior to 24 months from the hire date, he or she will be responsible for paying back a pro-rated percentage of the relocation package cost. If you paid moving costs of $500 plus another $1,000 for first and last months’ apartment rent, the total package is worth $1,500. If the employee leaves after 12 months, he or she would have to pay back $750 (50 percent).

It’s advantageous to you as an employer to make the terms of the relocation offer clear. Your potential employee will also appreciate an offer that covers all outcomes. Remember, you want to ensure that the employee is around long enough to see the value of working for you and living in their new locale. The employee wants to ensure that any strings attached to the offer are clear and ‘on the table.’

Also, be sure to include what happens if you decide not to retain the employee (typically, there is no penalty).

Putting it all togetherIf your company is expanding, you’ll probably need to consider hiring from outside your local area at some point, either now or in the future. Take the time to turn relocation into an opportunity to upgrade your work force and expand your business. Remember:

1. Sell your company. A potential hire from outside of your area doesn’t know who you are. Make sure he does!

2. Take the time to discover why the job seeker wants to relocate – and then use this information to craft your offer.

3. It’s not just about the money. A good relocation offer may include a mix of financial and non-financial incentives, such as help with moving or the down payment on an apartment.

4. Be prepared. Spell out the terms of the relocation offer, including what the employee must do if he decides to quit before a certain date.

5. Finally, remember that relocating your new hire is just the first step; think retention and success!

APPENDIX ARelocation Resources and Information:This white paper has given you an overview of the issues involved in relocation, but there are many additional resources that you can access, from companies that will handle employee relocation to blogs and shipping companies:

1. FAS Relocation Network (http://www.fasrelo.com/default.asp)2. GMAC Global Relocation Services (http://www.fasrelo.com/

default.asp)3. HR.com’s Relocation Central (http://www.hr.com and search on

‘relocation’)4. National Relocation (http://www.nationalrelocation.com/)5. ReloJournal (blog) (http://www.relojournal.com/)6. RPS Relocation (http://www.rpsrelocation.com/)7. ShipSmart (http://www.shipsmart.com/services/

employeerelocation.aspx)8. U-Haul (http://www.uhaul.com/)