A new survey from Worldwide ERC® , the workforce mobility association, noted that last year, U.S. companies that transferred employees saw a slight decline in domestic transfer activity compared to the previous year, but an increase in hiring has led to optimistic projections for 2012.
The U.S. Transfer Volume & Cost Survey is one that looks to examine how the continued recessionary real estate market and sluggish economy are impacting mobility practices and the related costs. Additionally, it examines how the mobility function is structured within organizations as well as specific aspects of homesale programs including transaction types, fall-through rates and inventory costs.
The good news is that organizations are projecting an overall increase in transfer volume of 6 percent from 2011 to 2012. Worldwide ERC® President and CEO Peggy Smith stated that “although home prices still are down 31 percent from their 2006 peak, we are hearing dynamic news in the mobility industry and the housing market that serves transferees. This survey underscores the optimism that companies are feeling as they ramp up hiring.”
Other key findings from the survey are:
- Organizations continue to be challenged with employee reluctance to relocate. Most respondents cited the depressed housing market and negative transferee equity as the two biggest reasons.
- There was a 5 percentage point increase in the average cost to relocate a new hire homeowner from $69,020 to $72,672. Significant increases were observed for temporary living at the new location, purchase closing costs and spouse employment assistance.
If you’re interested in reading the complete survey a full copy can be downloaded by clicking here