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For right hire, companies will pull out all stops to finance move
By Dana Knight
Phil Gootee was a wanted man captured by an irresistible -- and moving -- offer.
The company recruiting Gootee offered to move him, his wife Fran, their New York household goods, their dog and cat and two automobiles from upstate Albany to Carmel.
The company, in addition, would pack up an entire second home -- a bed-and-breakfast the couple owned in New York state -- and ship those belongings to Carmel as well.
There were precious antiques to transport gently. A lonely heart to pamper with visits from his wife -- while Gootee was put up in a posh furnished apartment for five months until the two were ready to move into a home.
They went out of their way," said Gootee, the new director of credit and risk management for Carmel-based Midwest ISO, an independent transmission system operator that helps meet the electrical needs of much of the Midwest. "They did everything they could to make this easy."
As the economy picks up, companies are moving everything from farm animals to boats to elderly parents for their new hires. They also are helping spouses find jobs, scout churches and interview nannies.
A third of U.S. companies say corporate relocation budgets will increase this year, according to a Corporate Relocation Survey released last month by Evansville, Ind.-based Atlas World Group Inc., a national relocation and transportation company.
Fifty-five percent said the reason for the jump was growth in business and the need to hire and move in -- if necessary -- qualified workers.
But more companies also are picking up the full tab for moving expenses, with 56 percent of companies giving full reimbursement in 2004 compared with 46 percent in 1997.
"We're seeing corporations spending a lot of money on relocations," said Greg Hoover, senior vice president and chief marketing officer at Atlas. "That indicates to me that times are pretty good."
Good times mean opportunities for work and opportunities for employees to be selective. That means a push for employers to go all out.
Hoover has seen a company pay $3,000 for a custom crate to move an Irish wolfhound to California, then pay for a month of quarantine at a vet. He has seen companies pay to move stables of horses. One executive got his new company to pay for the disassembly of a 2-seater Piper Cub, an antique aircraft that was shipped in its own tractor-trailer.
"People can get what they want if they know how to ask for it," said Hoover.
The survey showed that once the employee is taken care of, employers also are helping family members.
Forty-one percent of companies said they assisted the spouse in finding employment outside the company in 2004, compared with just 5 percent in 1997.
In-house hires
Another 27 percent actually were luring the employee with an offer to help the spouse find a job inside the company. In 1997, just 1 percent of companies said that was a relocation perk.
Elderly parents are being moved by 5 percent of companies, compared with 1 percent eight years ago.
"Employers are getting a little nervous about the talent pool out there," said Mellissa Boggs, vice president of human resource services for Professional Staff Management in Carmel, a human resources consulting firm. "They recognize if they're going to uproot a family, they're going to have to make it worthwhile."
More companies are formalizing relocation policies, with 76 percent now noting they have official rules in place.
"Before, it was done by the seat of your pants," said Boggs.
Still, most formal policies leave room for negotiation, especially if an employer really wants the hire, Boggs said.
Some companies will buy a house from a new hire just so that employee doesn't have to worry about selling, Boggs said. Others are agreeing to allow telecommuting and pay for trips back and forth for years, or until the hire is ready to relocate.
"There are these extreme things like that happening," said Boggs.
The tab adds up
The extremes come at a cost. According to the Employee Relocation Council, companies can spend as much as $65,000 to transfer a homeowner. Shipping goods cost on average about $10,000; temporary living, $4,000; and home-finding trips, $1,800. If the company pays for closing costs and taxes or takes a loss on a home sale, costs skyrocket.
Gootee was heavily recruited by Midwest ISO. His new employer said its relocation costs vary depending on the employee, but said it's critical to make sure transitions go smoothly.
"When employees join our company, the last thing we want them to be worried about is life outside of work," said Amanda Rhoads, compensation and benefits administrator for Midwest ISO, with 540 employees. "The less they have to worry about, the more they can focus on the job."
Employers also know that offering just the right relocation perks can make or break a deal.
Jonah Pritchett, a Fishers contract manager, recently turned down a job when the prospective employer declined his request to pay for a rental car for a couple of months until his wife joined him in Dallas. The two have just one car and work close enough to one another they can car-pool each day.
"Granted, I don't work for any white-collar industry, but to me that was common courtesy," said Pritchett. "If you want me to come to work for you, make it easy on me."
Relocation negotiations in 2005 often turn out to be a critical factor in hiring, said Mark Haering, a senior partner with Princeton Search Group, an Indianapolis recruiter.
Three years ago, employees couldn't be so picky.
"Relocation assistance, benefits, those are the line items or expense categories that when things got tough were the first to get trimmed," he said. But when business is good and companies desperately need good help, relocation benefits are the first to get beefed up. They want to attract the best.
Executive-level candidates may be given weeklong home-finding trips with paid day care for the kids while mom and dad house-hunt.
"Most good-sized companies, if they're going for someone director-level on up, they are going to do everything in their power to get the person, including making sure they don't have an economic hit when it comes to the move," he said.
Eli Lilly and Co. dedicates an entire team to relocations. "Suffice it to say, we've got some very dedicated professionals and this is all they do (relocations)," said Joan Todd, spokeswoman for Lilly. "We want to make this as painless as possible."
No task too small
If an employee needs a good stable to keep a horse, Lilly's team finds it. If the employee's family is Armenian and wants to know about cultural events in the city, the team researches.
Some employees are treated to meals on moving day. Sometimes both spouses are hired.
"We do what it takes to get them there," said Todd. "This is a business tool. First, it is the right thing to do. But we know if the family is stressed and upset, the employee isn't going to be as effective."
Bryan Norman agrees with that, but said his company, Berry Plastics Corp., does draw the line at some requests, such as moving a pile of firewood.
But relocation is a big part of the initial interview process, which shows just how important it can be, said Norman, corporate manager of compensation and benefits at the Evansville-based manufacturer of plastic packaging. "It's a priority for us in the transition state that everything goes as smooth as possible," he said. "Who wants the move to be what costs you a good employee?"
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Copyright © 2010 PrincetonOne
Relocation packages making a comeback
May 15 2005
For right hire, companies will pull out all stops to finance move
By Dana Knight
Phil Gootee was a wanted man captured by an irresistible -- and moving -- offer.
The company recruiting Gootee offered to move him, his wife Fran, their New York household goods, their dog and cat and two automobiles from upstate Albany to Carmel.
The company, in addition, would pack up an entire second home -- a bed-and-breakfast the couple owned in New York state -- and ship those belongings to Carmel as well.
There were precious antiques to transport gently. A lonely heart to pamper with visits from his wife -- while Gootee was put up in a posh furnished apartment for five months until the two were ready to move into a home.
They went out of their way," said Gootee, the new director of credit and risk management for Carmel-based Midwest ISO, an independent transmission system operator that helps meet the electrical needs of much of the Midwest. "They did everything they could to make this easy."
As the economy picks up, companies are moving everything from farm animals to boats to elderly parents for their new hires. They also are helping spouses find jobs, scout churches and interview nannies.
A third of U.S. companies say corporate relocation budgets will increase this year, according to a Corporate Relocation Survey released last month by Evansville, Ind.-based Atlas World Group Inc., a national relocation and transportation company.
Fifty-five percent said the reason for the jump was growth in business and the need to hire and move in -- if necessary -- qualified workers.
But more companies also are picking up the full tab for moving expenses, with 56 percent of companies giving full reimbursement in 2004 compared with 46 percent in 1997.
"We're seeing corporations spending a lot of money on relocations," said Greg Hoover, senior vice president and chief marketing officer at Atlas. "That indicates to me that times are pretty good."
Good times mean opportunities for work and opportunities for employees to be selective. That means a push for employers to go all out.
Hoover has seen a company pay $3,000 for a custom crate to move an Irish wolfhound to California, then pay for a month of quarantine at a vet. He has seen companies pay to move stables of horses. One executive got his new company to pay for the disassembly of a 2-seater Piper Cub, an antique aircraft that was shipped in its own tractor-trailer.
"People can get what they want if they know how to ask for it," said Hoover.
The survey showed that once the employee is taken care of, employers also are helping family members.
Forty-one percent of companies said they assisted the spouse in finding employment outside the company in 2004, compared with just 5 percent in 1997.
In-house hires
Another 27 percent actually were luring the employee with an offer to help the spouse find a job inside the company. In 1997, just 1 percent of companies said that was a relocation perk.
Elderly parents are being moved by 5 percent of companies, compared with 1 percent eight years ago.
"Employers are getting a little nervous about the talent pool out there," said Mellissa Boggs, vice president of human resource services for Professional Staff Management in Carmel, a human resources consulting firm. "They recognize if they're going to uproot a family, they're going to have to make it worthwhile."
More companies are formalizing relocation policies, with 76 percent now noting they have official rules in place.
"Before, it was done by the seat of your pants," said Boggs.
Still, most formal policies leave room for negotiation, especially if an employer really wants the hire, Boggs said.
Some companies will buy a house from a new hire just so that employee doesn't have to worry about selling, Boggs said. Others are agreeing to allow telecommuting and pay for trips back and forth for years, or until the hire is ready to relocate.
"There are these extreme things like that happening," said Boggs.
The tab adds up
The extremes come at a cost. According to the Employee Relocation Council, companies can spend as much as $65,000 to transfer a homeowner. Shipping goods cost on average about $10,000; temporary living, $4,000; and home-finding trips, $1,800. If the company pays for closing costs and taxes or takes a loss on a home sale, costs skyrocket.
Gootee was heavily recruited by Midwest ISO. His new employer said its relocation costs vary depending on the employee, but said it's critical to make sure transitions go smoothly.
"When employees join our company, the last thing we want them to be worried about is life outside of work," said Amanda Rhoads, compensation and benefits administrator for Midwest ISO, with 540 employees. "The less they have to worry about, the more they can focus on the job."
Employers also know that offering just the right relocation perks can make or break a deal.
Jonah Pritchett, a Fishers contract manager, recently turned down a job when the prospective employer declined his request to pay for a rental car for a couple of months until his wife joined him in Dallas. The two have just one car and work close enough to one another they can car-pool each day.
"Granted, I don't work for any white-collar industry, but to me that was common courtesy," said Pritchett. "If you want me to come to work for you, make it easy on me."
Relocation negotiations in 2005 often turn out to be a critical factor in hiring, said Mark Haering, a senior partner with Princeton Search Group, an Indianapolis recruiter.
Three years ago, employees couldn't be so picky.
"Relocation assistance, benefits, those are the line items or expense categories that when things got tough were the first to get trimmed," he said. But when business is good and companies desperately need good help, relocation benefits are the first to get beefed up. They want to attract the best.
Executive-level candidates may be given weeklong home-finding trips with paid day care for the kids while mom and dad house-hunt.
"Most good-sized companies, if they're going for someone director-level on up, they are going to do everything in their power to get the person, including making sure they don't have an economic hit when it comes to the move," he said.
Eli Lilly and Co. dedicates an entire team to relocations. "Suffice it to say, we've got some very dedicated professionals and this is all they do (relocations)," said Joan Todd, spokeswoman for Lilly. "We want to make this as painless as possible."
No task too small
If an employee needs a good stable to keep a horse, Lilly's team finds it. If the employee's family is Armenian and wants to know about cultural events in the city, the team researches.
Some employees are treated to meals on moving day. Sometimes both spouses are hired.
"We do what it takes to get them there," said Todd. "This is a business tool. First, it is the right thing to do. But we know if the family is stressed and upset, the employee isn't going to be as effective."
Bryan Norman agrees with that, but said his company, Berry Plastics Corp., does draw the line at some requests, such as moving a pile of firewood.
But relocation is a big part of the initial interview process, which shows just how important it can be, said Norman, corporate manager of compensation and benefits at the Evansville-based manufacturer of plastic packaging. "It's a priority for us in the transition state that everything goes as smooth as possible," he said. "Who wants the move to be what costs you a good employee?"
Executive Search | Recruitment Process Outsourcing | Contract Staffing | College Recruiting | Site Map
This site is optimized for 1024x768 resolution and Internet Explorer.
Copyright © 2010 PrincetonOne