Work Force Watch: Relocation Is Not Just a Strategic Move

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Work Force Watch: Relocation Is Not Just a Strategic Move

For decades, companies relied on vast numbers of highly educated and competitive baby boomers to fill their management ranks. To advance, these baby boomers would move — without a lot of fanfare.


	[ 7/18/2004 ] By: Debbie Romanski
	[ 0 Talkbacks / Add Talkback ]

But the number of people in their executive development years, ages 35 to 44, is declining. Those on deck, ages 25 to 34, are increasing only at a 7 percent to 8 percent rate.

And the exodus of boomers will escalate in the next decade as more than one-fourth of the U.S. population reaches age 60. The Labor Department estimates that there will be a shortfall of 10 million workers by 2010.

According to a survey by the Society for Human Resource Management, 60 percent of CEOs said their companies don’t consider the aging of the work force in their long-range business plans.

Companies may find that experience and talent are on the endangered species list, which makes the successful relocation of valued employees even more critical to a company’s growth strategy.

Leadership development and successful corporate relocation are inextricably linked.

Companies usually expect those on the executive track to hold a series of roles, each increasing in responsibility. This usually involves a tour of duty in several locations that provide challenging professional growth opportunities.

A successful relocation increases the value of the employee and the company. When employees and their families are unhappy after a relocation, it isn’t long before they begin to search for a new position.

Put the Focus on Retention

Too many companies look at relocation as a snapshot or isolated event. The goal most often communicated to a corporate relocation specialist is “move by a certain date.”

The focus should be on assuring a smooth transition to a new community for an employee and his or her family.

Having to buy less of a house in a more expensive market, taxes, community amenities, children, aging parents and misperceptions about areas are much easier to overcome when the emotional aspects of relocation are continuously considered and addressed during the process.

Some companies retain a relocation counselor who approaches relocation from the emotional side.

A needs assessment is conducted during an interview. The counselor/relocation director pairs the agent best qualified to work with each transferee based on personal and professional experience.

These are usually certified relocation agents — specialized individuals whose knowledge base surpasses real estate, with experience in the corporate world and relationship management.

A successful relocation can produce the best investment a company can make: loyal, productive, talented employees who want to stay with the company no matter where the next move takes them.

Some companies, however, persist in ignoring the importance of the emotional aspects of relocation. They save money by not electing to take advantage of services available that deal with the personal considerations of employees.

The average cost of a relocation is $60,000. The average cost of losing a key employee is immeasurable.

Debbie Romanski is director of Corporate Relocation Services and broker/owner of Prudential Clark & Holm Real Estate LLC in Downers Grove, Ill. She can be reached at (630) 963-4400 or via e-mail at deb4relo@aol.com.

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