Leery of Relocating, Execs Trigger Creative New Strategies

Relocation Reluctance: The terrorist attacks of September 11, 2001, continue to exert their influence on people’s lives. In the realm of HR, one problem that has surfaced is an increasing reluctance on the part of top executives to relocate overseas. As a result, companies are having to be “more proactive and creative” in persuading talented leaders to swap locales when taking a new position, according to Salveson Stetson Group, an executive search firm in Radnor, Pennsylvania.

Augmenting their fears is a collapsing housing market. Salveson Stetson says concerns over selling their homes is a chief impediment to relocating—indicating that companies may need to compensate executives for falling home prices or pay them additional money to ease the anxieties. Almost as important is getting those thinking about accepting a relocation assignment invested in the new region, with companies spending more time doing a “pre-sell” to avoid executives backing out at the eleventh hour. Getting employees who are unwilling to relocate to rely on telecommuting is expected to also gain prominence as a trend.