Relocation: State of the Industry
Companies seeking to relocate employees in 2007 face a collision of circumstances: The U.S. real estate slump has left relocation managers with too many high-priced homes on their hands, but tight labor markets and the need to get the right workers in the right locations are superseding concerns about rising costs. In its annual corporate relocation survey, Atlas World Group Inc. found that nearly nine of every 10 companies planned to relocate the same or more employees in 2007 as in 2006. A similar number are expected to spend the same or more on relocation in 2007.
Companies apparently are quietly offering qualified new hires many of the same relocation benefits once reserved for existing employees, including home buyout options. A recent Prudential Relocation survey noted that nine of 10 companies said they did not offer new hires the same home buyout option granted to top employees. But in a footnote to that survey, Prudential pointed out that its own experience handling corporate relocations contradicts what companies had said.
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