March 25, 2010
Fewer employers are offering relocation assistance to out-of-town hires, a factor that job seekers must consider when they wish to move to an area with better job opportunities.
"A lot of people are landlocked because companies want to pay less, not more, to bring in new talent," said Nancy Keene, director at the recruiting firm Stanton Chase, who was quoted by MSNBC.com. She noted that applicants who are local definitely have an advantage over someone who lives far away.
MSNBC.com reports that according to Worldwide ERC, a typical corporate relocation can run about $60,000 for homeowners and $18,000 for renters. Because of the expense and the economic climate, many companies have cut back on relocation benefits: An October poll conducted by the Society for Human Resource Management found that 17 percent of companies eliminated corporate relocation programs entirely, 25 percent froze such programs, and 58 percent reduced the programs.
In a nod to the trend, career expert Nick Corcodilos recently acknowledged in his "Ask the Headhunter" column that employee relocation costs are not very common today. He advised new hires lucky enough to receive the benefit to first commit to the job before expressing concern about the price of moving, which can be substantial.
"It's important to work out these details now and to incorporate the solution you need into the written offer," he wrote. "The best deals are struck when both parties know exactly what they need to make the deal a good one."
Even the Internal Revenue Service has cut back on relocation costs for tax purposes. In December, it was announced that the standard mileage rates used to calculate the deductible costs of operating a vehicle for moving purposes in 2010 would be reduced to 16.5 cents per mile, down from 24 cents per mile in 2009.
Keene made several suggestions to MSNBC.com about looking for jobs out of town when relocation is an issue: She recommended targeting towns where family or friends live so it would be possible to stay with them while looking for job. She also suggested getting a local mailbox, and looking in secondary markets instead of big cities. Smaller towns, she pointed out, may be more willing to offer help bringing in new talent.
Compiled by CityTownInfo.com Staff
