With the holiday season in full effect, people are on the move. Whether going to see family or friends, Thanksgiving and Christmas are some of the busiest travel times of the year. We are also seeing high levels of mobility in William Raveis’ Relocation division. As you’ll read in this post, over the past 3 years we have experienced high levels of relocation activity in our foothold, the northeast. And as the housing market continues to stabilize, the outlook for the relocation industry is positive. This is good news for transferees!As the Director of Relocation Services I frequently attend relocation related conferences, workshops and networking events. Most of my peers and colleagues in most parts of the country are much more optimistic in regards to corporate relocation activity. Many of us have experienced higher relocation activity in our markets over the last 3 years, including in our footprint of Connecticut, Massachusetts, New York and Rhode Island. Some of our markets may have more employees being moved out of the area while others have experienced an influx on incoming transferees.
Who’s on the move these days? In the 2012 U.S. Transfer & Cost Survey published by Worldwide ERC, The Workforce Mobility Association, which compares components of corporate relocation activity year over year, overall there was a decline in current employee transfers (8%) however new hire activity increased by 13% compared to 2010. Most organizations who participated in this survey are expecting an overall increase in transfer volume of 6% in 2012. These statistics will vary market by market and regionally across the country.
Did you ever wonder which kinds of dollars are associated with employee mobility? Check out some of these figures:
For 2011 –
- $9.3 billion – amount spent annually in the U.S. on corporate relocation by Worldwide ERC member corporations
- $16,229,124 – average annual amount each company spends to transfer their employees
- Cost to transfer a current employee homeowner $97,166 (+8% over 2010)
- Cost to transfer a current employee renter $24,216 (+3% over 2010)
- $12,652* cost of shipping household goods *varies by family size & homeowner status
Some locations in the U.S. are still experiencing a depressed market or old location home is in a negative equity situation. Three quarters of the companies surveyed have reported a significant increase in the last 3 years of home owning transferees choosing to rent in the new location rather than purchasing a home. In our area, we have seen a bit of a lessening of this as home prices have stabilized, mortgage rates have remained at an all-time low and inventory slowly declines.