Employee Relocation A Big Step

In a small company, every single person counts. That’s why finding the right person for the job may include hiring an out-of-towner and paying to relocate them.

Relocation involves myriad financial and emotional issues for both the employer and employee. It’s a complex and expensive process involving many people. It can easily cost $50,000 to relocate a family of four across the country, according to Molly Dick, founder of CrossRoads, a Kentfield, Calif.-based relocation consulting firm.

Dick, author of “The San Francisco Survival Guide,” works closely with local real estate brokers to help find homes for new employees. Her consulting business is soaring; last year, she earned about $100,000 in finder’s fees paid by brokers. In addition, corporate clients pay Dick a modest fee to help match their candidates with the very best broker.

She learned all about the Bay Area and wrote her self-published city guidebook after moving to San Francisco from London a few years ago. The move, prompted by her attorney husband’s new job, was “very tough.” Now that she knows the area, she’s marketing that expertise to help other newcomers.

“I’m often the first person they’ll meet when they fly out here,” said Dick.

She said schools, real estate, safety and housing top the list of candidates’ concerns. Good golf courses are also high on many lists. Her main challenge is matching people with the right real estate brokers because finding the right home often makes or breaks the deal. She said she was involved in $10 million worth of real estate deals last year involving 18 homes.

Dick advises small-business owners to spend a few thousand dollars on a couple of weekend visits for any prospective employee and their spouse.

Why? Because it’s cheaper to pay for one or two fact-finding trips than to move someone at great expense and have them quit a few months later.

Finding a comparable and comfortable place to live is important, but a positive relocation depends on many factors, according to Maryanne Rainone, vice president of Heyman Associates, a Manhattan executive search firm.

“We talk to thousands of job candidates and you get to know what kind of things are red lights for a prospective employee,” said Rainone.

It’s important to ask any job candidate if they’ve thought about relocation even before the first interview, Rainone said. If their resume shows they’ve only gone to school and worked in one state, they are probably not a good candidate for a major move.

“Make sure the candidate is open to moving before you get too interested, because sometimes companies fall in love with one person and end up comparing everyone to the candidate they can’t get,” she said.

By law, you can’t ask a job candidate if they are married or have children, but you can ask if they have any family issues affecting a relocation. At this point, most people will tell you whether they need a good nursery school or a nursing home for their mother.

“Elder care is a big issue now and one of the primary reasons people can’t leave where they are,” said Rainone.

Another red flag is if a candidate has spent their entire career at one company.

“Someone who has spent their whole life in one place is not going to be an easy person to recruit,” said Rainone. She said some movement from company to company is positive. “If they’ve done it before and they’ve made it work, then they can do it again.”

Even if you aren’t using an executive search firm, Rainone suggests calling a relocation consultant to collect vital information about schools, real estate prices and quality-of-life issues in your town.

She also recommends looking locally before you look elsewhere. You may be able to hire a wonderful person by offering a higher salary, rather than paying all the relocation expenses to hire an out-of-towner.

Being aware of spousal issues is also important to a positive relocation. If the trailing spouse will have a tough time finding work or adjusting to life in your town, the relocation could prove to be a disaster, Rainone said.

xxxx

The following fields overflowed: CREDIT = Jane Applegate Los Angeles Times