Relocation doesn't always make sense.

We continue to hear about the Future of Work, where automation may take over certain segments of the workforce. In the meantime, companies are still searching for human beings composed of varying degrees of skill & years of experience. When the unemployment rate in the US is below 4% (and for technical/specialist/executive roles, closer to 2%), companies can & should be looking at any alternative to acquiring & retaining talent.

So why do we still ask candidates to relocate for new roles? It’s mind boggling that many companies still need to see your shining face in the office on a daily basis. Isn’t that what video is for? I’ve always said that “no matter where I am in the world, someone still needs to see me.” 

For those companies that are just too sticky and need your employees to always relocate, please take the following into consideration:

1. The housing market is still tight nationwide and interest rates are rising. Example: my current mortgage interest rate is 3.5%. A new mortgage according to Bankrate.com is currently at 4.7%. That means I have to go through the pressure of selling & buying, while my mortgage payment increases. How is this a win for the new hire?
2. Housing isn’t easily affordable, so many families have turned to dual-incomes in order to make housing a reality (especially in high-cost areas like San Francisco, Seattle, Chicago, Austin, New York, Boston, etc). I have yet to work for a company where we also found the spouse a job as well (to be fair, we did network heavily in the local market). I’ve seen couples get upset on “win for you, lose for me.” 
3. White glove service is a rare thing when it comes to corporate moves. I can remember the good old days when large employers would buy your house from you, set up an amazing experience with a local bank, have movers pack everything and set you up in corporate housing while looking for a place to live. For most companies, those days are gone. Relocation hits the bottom line, especially with the Tax Cuts & Jobs Act signed by President Trump on December 22, 2017. You will see more & more companies handing “lump sum” bonuses out and telling people to be at the new site on a certain date. It’s just as easy to say “no” and not take on the headache.
4. Kids & extended family are a huge consideration. When we were fresh in our careers with no kids, my wife & I were highly mobile. However, once the kids hit middle or high school, many families are grounded, mine included. It’s just too disruptive to move the kids, not to mention the stress this places on parents to find schools, church, events, make new friends, etc.

The flip side of the coin is as we age, our parents & extended family get older as well. Many of us will be taking care of older parents as our kids transition into college. According the Pew Research Center, adults aged 45-64 are most likely to be taking care of an older relative. That age range falls right between kids transitioning to college & your career earning potential reaching its peak. Relocation may not be viable at the point.

How can companies look at changing their approach to always relocating talent? It’s going to take a mixture of changing your thinking & approaching different avenues for getting work done. For example:

• Video is a cost-effective way to manage remote relationships. 1:1’s, team meetings, etc can all be done on video. Remote doesn't always mean removed!
• Travel make sense. If you plan to spend $100,000 on a relocation, that could work out to two years (depending on the market) of airfare & a local apartment. I’ve done this in the past and made it work and know many execs who are doing this now. It’s the best of both worlds: you are visible when needed and home to see your family. I learned a lot about being a better dad & husband when my time at home was short. Companies tell you that they want executives local to be “committed”, but it just doesn’t hold water.
• Collaboration tools like Slack & Skype are changing how we share thoughts, documents, presentations and knowledge inside organizations. Embrace the technology and you embrace the future of work!
• Companies should consider experimenting with shared workspaces. I just recommended that a company may want to consider a WeWork space to see if this accelerated their ability to hire from a group of competitors 20 minutes from their main office. 

I’m not the only one calling this out. If you need more information in this area, please check out articles from Axios, USA Today and even ABC News Australia.

In the end, HR should be advising their hiring managers to get creative about where they place talent. A relocation isn’t always the right thing for the talent you seek, but could your team find a way to help bridge the gap for the right person? 

I’m open to hearing great examples where your company has found ways to flex for the right people. Please post your comments so we keep the conversation going.

John Termotto is a global HR executive that helps companies scale their talent with innovative solutions.