Thursday, September 16, 2010, 8:08:28 PM | Richard Mansfield
Only a few years ago, the very concept of having a transferring employee sit down with a counselor and discuss the financial, legal, and social aspects of a move would have seemed overkill. After all, houses were a good investment, the job market for spouses and companions was almost universally good, and cities were flush with money to spend on schools. Add to this the commonly generous relocation packages, and getting an employee to move was, one might say, a “no brainer”. Fast forward to the present, and almost none of the positive elements of the mobility environment remain. Many, if not most, houses are underwater (or close to it), the job market is not strong anywhere, and confidence in the economy is down.
With all of these negatives affecting employers, one would think that moving employees would be cut back drastically, if not come to a screeching halt. But that is far from the truth, as shown, for example in the study done by WRRI, and discussed in this month’s Mobility magazine. The numbers show that companies are thinking and acting strategically, in order to be in place and ready to produce as we come out of the recession. Talent management is, of course, a critical issue here, and companies, while trying to keep their costs down, are still moving employees both domestically and internationally.
Domestically, the survey shows that 90% of the respondent companies still have home sale programs, about a third have loss on sale programs, and 75% will have pre decision counseling (PDC) programs in place before year’s end (65% already do).
There is no question but that PDC programs are now an integral part of the relocation process domestically. Another article in this month’s Mobility (written by Cullen Bunn) discusses the components, which are often found in these programs, and points out the reasons they are popular and effective. I couldn’t agree with him more. In fact, I suspect that these programs will continue to be a part of most domestic relocations long after the recession ends.
Both of those informative articles can be found online.
There are some legal risk management issues involved with these programs, which should be top of mind for existing and planned programs, though. It’s not that they cannot be easily put in place, but it is important to keep away from certain pitfalls. Let’s look at these issues.
Continue reading “Risk Management Issues for Pre-Decision Counseling Programs”