by Ted Stiles & David Portney
Stiles Associates

Americans are relocating for new roles at a record-low rate.

Recent data from outplacement services firm Challenger, Gray & Christmas reveals just 1.6% of jobseekers in the first quarter of 2023 packed up their things and headed for a new city or state. This is down from 6% in 2019 and down from nearly a third of workers from the 1980s and 1990s. The reasons are complicated, but it’s clear this downward trend creates headaches for companies that need to source talent outside of their geographic areas. This downward trend is especially challenging for manufacturers looking to hire on-site, executive talent in an already tight market.

Here's what many of the top companies are doing to address the relocation challenge head on and create industry-leading rosters:

Prioritizing local candidates

The easiest way to combat the relocation challenge is to avoid it altogether, if possible. Local candidates make up the bulk of our client’s new hires for several reasons, including ease of the hiring process, lower relocation costs and familiarity with the local culture and business practices. Hiring local talent can also lead to a quicker onboarding process, reducing the time and resources required to get the new employee up to speed. For the bulk of the searches at Stiles Associates, we begin the search process by targeting top talent closer to the location then expanding out as needed. It’s important to note that even in today’s environment, not every suitable candidate in a given market is on LinkedIn or reviewing local job boards. A proactive search that includes working professional networks is key to finding those “under-the-radar” local candidates.

Selling the community, company and career trajectory

The top reason we hear why some candidates are hesitant to relocate is family-related concerns, especially when it comes to their children. Disrupting a child's schooling can be a major deterrent, as parents often prioritize stability and continuity in their children's education – and understandably so.

This is where they get creative to sell the location(s) where they would potentially move. Great neighborhoods; family-friendly events and activities; things to do; and schools are just a few things prepared companies highlight. Few understand the communities and neighborhoods of the surrounding area better than the hiring team, so they enthusiastically share this throughout the process and even show candidates if they come in for an interview.

Selling the community isn’t enough, however. Pitching candidates on the company itself and tying it to their career growth is incredibly effective. Sharing the company culture; what’s behind the mission statement; and the long-term expectations for the company go a long way in instilling confidence that the move isn’t only about taking the next job, but the next step to a more fruitful career and a happier family.

Offering competitive relocation packages

Relocating for a job can be a costly affair, with expenses ranging from moving and housing costs to potential adjustments in lifestyle. While some companies are willing to cover all relocation costs, many organizations offer partial relocation packages, leaving candidates to foot a substantial portion of the bill. Sometimes, companies will offer temporary housing; moving expenses; and / or cover incidentals. Any extras companies cover will help, as the financial burden may deter potential candidates from considering relocation as a viable option.

For companies that decide to partner with a recruiting firm, they confirm the relocation package at the beginning of the search process. Clear communication about the company's relocation policy saves time and prevents candidates from pursuing career opportunities that might not align with their relocation preferences.

Understanding that candidates’ perception of work is evolving

The concept of work has undergone a profound transformation in recent years, and this is here to stay. With the advent of remote work and flexible work arrangements, many candidates now prioritize work-life balance and a favorable company culture over simply higher compensation. Sometimes, companies can’t just spend their way to top talent – even if that level of spending is necessary to keep them interested. Organizations that promote a healthy lifestyle and foster a positive work environment are more likely to attract the A-players willing to relocate for the right opportunity.

Utilizing internal training and development programs

While bringing in outside talent is sometimes unavoidable, the top organizations successfully develop internal employees and promote from within. It fosters a sense of loyalty and motivation among the existing workforce, as they see clear opportunities for growth and advancement. Internal promotions also save time and resources that would otherwise be spent on external recruitment processes, allowing for smoother transitions and quicker skill integration. Promoting from within nurtures a culture of continuous learning, as employees are encouraged to develop their skills and competencies in anticipation of future opportunities.

Conclusion

Relocation remains a significant decision that candidates weigh carefully, considering various factors like family, life balance, career goals and financial implications. While some industries and employers are embracing remote work options, the majority still prioritize local candidates. To attract top talent willing to relocate, companies must offer attractive relocation packages and additional perks to make the transition smoother. By understanding the evolving priorities and concerns of candidates, businesses can adapt their hiring practices to meet the changing demands of the candidate market.

The executive recruiting team at Stiles Associates has over 30 years of experience working with clients to craft competitive relocation packages that attract the A-players. Contact us today to discuss how we can help your company bring on its next leader by overcoming the relocation barrier.