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The Worldwide ERC has been studying trends and benchmarking employee mobility data for years. The 2011 Transfer Volume and Cost Survey is an annual survey that offers data on relocated employees in the United States. This year, 118 companies responded to the survey, and on average, the companies relocated 331 employees in 2010. Thirty six percent of the companies reported moving fewer than 100 employees annually.
After a 22 percent drop in transfer activity between 2008 and 2009, transfer volume between 2009 and 2010 is showing an increase of more than 15 percent. A 10 percent increase in activity is projected in 2011.
In 2010, 62 percent of relocated employees were renters and 38 percent homeowners. In the past there was a more balanced split between renters and homeowners. The shift is due to homeowners finding it financially difficult to make a move due to the real estate slump.
Once again, in 2010, the top two reasons employees were reluctant to relocate were "slowed real estate appreciation/depressed housing market at the old location" and "home is in a negative equity situation".
In 2010 the average cost to relocate homeowners was stable compared to 2009, the average cost to transfer renters increased:
Average Costs to Relocate Employees in 2010:
$90,081 - Current employee homeowner
$69,020 - New hire homeowner
$23,497 - Current employee renter
$20,169 - New hire renter
Average Component Costs:
$32,600 - Loss-on-Sale Assistance
$12,854 - Federal Tax Liability
$12,230 - Shipping Household Goods
$ 7,058 - Homesale Bonuses/Incentives
$ 6,251 - Purchase Closing Costs
$ 6,235 - Miscellaneous Expense Allowance
$ 5,462 - Duplicate Housing Assistance
$ 5,321 - Temporary Living
$ 2,227 - Homefinding Trips
$ 1,519 - Final Move Travel and Lodging
$ 1,485 - Spousal Employment Assistance
Nearly 90 percent of the respondents use a home purchase program to help their employee's with the sale of their homes. The remaining 11 percent offer a direct reimbursement of selling costs. In the case of appraised value transactions the average inventory period was 118 days with an average sale price of $362,775. Fall through rates for appraised value transactions were 3.9 percent and 2.6 percent for homes in a Buyer Value Option program.
Though the housing market continues to sputter, a glimmer of encouragement can be seen as organizations are relocating increasing numbers of employees in 2011. During the first two quarters of 2011, an average of 9.4% of job seekers finding employment relocated for their new positions - up from an average relocation rate of 7.6% during the same period in 2010, according to the latest Challenger Job Market Index.
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