As if the job market weren’t challenging enough, the housing crisis is complicating the hiring process for many job seekers and employers.
About a year ago, Gys Greeff was offered a position of supply quality manager by the Coca-Cola Co. “I’ve been with the company nine years and came to Atlanta for a six-month temporary project when a good permanent opportunity opened up,” Greeff said. “We knew that selling our home in Johannesburg, South Africa, would be a challenge."
It took more than a year and some corporate assistance to complete the relocation.
“Our house would sell, but then the buyer’s mortgage wouldn’t go through. That happened four or five times because the housing market in South Africa has similar problems to the market here,” said Sanchia Greeff, his wife. “We had to rely on agents and family to look after the house there, while we rented here. It was a very stressful time.”
Last March, their home finally sold, and they were able to buy a house in Atlanta. Their relocation benefits included help with closing costs, commissions and temporary housing, as well as assistance in the legal, tax and financial aspects of a global move. “The company made it as painless as possible, and we consider ourselves lucky to have had so much help,” she said.
Before the recession, Atlanta was a great relocation market, said Dana Eskridge, relocation director for Better Homes and Gardens Metro Brokers in Atlanta. She remembers helping companies relocate as many as 100 employees at a time. Now, they’re more likely to hire locally, especially at the entry and manager levels. “Companies still move people, but only when they have to, and they’re offering fewer relocation benefits.” Paying for moving household goods and a temporary housing stipend are the most common, she said.
Due to reduced housing values and underwater mortgages, job seekers can’t always afford to relocate for a new job. For their careers, some decide to rent their original homes, move and rent in the new location. “About 50 percent of our relocation clients start out renting now. Our agents now help people with rentals and charge fees for those tours. We’ve had to get more creative to capture our share of a smaller market,” she said.
Americans have become less mobile. The percentage of people who moved between 2010 and 2011 was 11.6 percent, the lowest recorded rate since the U.S. Census Bureau began collecting U.S. moving data in 1948.
Corporations and search firms looking to place top executives have a new question for job candidates these days, said Andrew Chastain, senior vice president and regional director for Witt/Kieffer’s Atlanta office. His retained search firm specializes in health care and higher education.
“We ask job seekers who would need to relocate to tell us about their housing situation,” he said. With housing values and markets depressed, it’s more expensive for employers to move internal or external candidates -- and they’re doing it less.
“We’ve seen both companies and candidates walk away from opportunities due to housing issues,” he said.
Because finding the right executive talent can have a considerable impact on an organization, Chastain said that companies were finding creative ways to help desirable candidates move. “Companies used to purchase the homes when transferring employees, but few do that these days due to the liability,” Chastain said.
Instead, corporations might offer low-interest bridge loans to help candidates buy new homes. In some cases, a portion of the loan is forgiven over time of employment. “Another option is to offer a large sign-on bonus that could help mitigate the money a candidate will lose by selling his home,” Chastain said.
“Other companies are giving a temporary housing allowance of three to six months, which helps with the cash flow of new hires until their homes sell,” he said.
Executive job seekers should be prepared for the housing question. “They should know the current value of their home and how long it is taking for homes to sell in their market,” he said. “A pre-emptive discussion with a Realtor can save everyone time and money.”
Chastain said, "With relocation costing our corporate and nonprofit clients more, it's more critical than ever for them to make the right hire and reduce turnover at the top levels."
