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Importance of Relocation Incentives

Most companies the relocate employees offer incentives to encourage employees to relocate.  These often include cost-of-living adjustments and relocation bonuses.  Providing duplicate or temporary housing became a top incentive in 2009, presumably as a result of the depressed housing market, which would have made the sale of former homes impractical for many employees.  In response to lower home values, loss-on-sale protection for former home sales was also offered more often by companies.

Influence of Market on Relocation Volume

Interestingly, while companies that relocate employes said that they expected relocations for new hires and entry level employees to decrease during the recession, relocations for executives and senior managers were sometimes expected to increase.  This is likely due to the critical importance of good management to navigate the company through times of crisis.

Financial Performance Expectations Up in 2010

The relocation industry expected a boost in 2010 as a result of the optimism shared by most companies that relocate employees.  Such companies expected their financial performance would improve from 2009 levels, and their budgets for relocation should also improve.  Driving that optimism was an expectation that the economy would continue to recover.  Regarding the real estate market in particular, the majority of companies of all sizes that relocate employees expected the market to stabilize at least, while a third to a half expected improvement.

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