Good news in corporate relocation?
Yes, yes, yes. Between 2006 and 2009 corporate sponsored relocation has been on the decline, with 2008 and 2009 experiencing double digits declines. The good news was that 2010 saw a 15% increase in transfer volume. 2011 looks promising with many corporations projecting another 10% increase in transfer volume which includes current employees as well as new hires.Relocation is all about employee mobility. For much of the country, the real estate market has been challenging. Many homeowner employees were unable to relocate because they were upside down on their mortgages or lost considerable equity in their homes making it difficult to move to a new location. In response to this many corporations now assess home value as part of their pre-decision programs so employees have a clearer understanding of their financial picture. Some employers have added a “loss on sale” policy or increased the cap of their existing policy to enable their employee to make the move.
In the past, according to Worldwide ERC there was an equal division of homeowner and renters being relocated from their old location. In 2010, 62% of those employees being relocated were renters while only 38% were homeowners. In response to this, many employers have either extended their homeowner benefits or modified their current renter policy. Again, the good news is corporations are willing to modify their policies to meet the needs of their employees.
Here are some interesting facts and statistics on US Domestic transfers provided by Worldwide ERC:
- $10 Billion: amount spent annually in U.S. on corporate relocation by Worldwide ERC member corporations
- $15,110,135: average annual amount each company spends to transfer its employees
- 216,143: annual number of U.S. domestic transfers from Worldwide ERC member companies
- $90,081: average cost to relocate current employee homeowner
- $23,497: average cost to relocate current employee renter