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2012 Allied Workforce Mobility Survey: Recruiting and Relocation

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<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

About the <strong>2012</strong> Research<br />

The <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>, conducted in March <strong>2012</strong>, captures the<br />

voice of HR professionals on critical topics relating to “workforce mobility,” which is<br />

defined as the willingness <strong>and</strong> ability of employees to relocate for a job with either a<br />

current or new employer.<br />

The survey approaches workforce mobility from two angles. One set of questions<br />

assesses the “mobility environment,” the context in which relocation occurs,<br />

including economic, cultural, demographic <strong>and</strong> organizational variables.<br />

The second set of questions examines HR topic areas related to or affected by<br />

workforce mobility: recruitment, relocation, onboarding <strong>and</strong> retention. These topics<br />

encompass a broad range of activities <strong>and</strong> responsibilities for HR professionals,<br />

not limited to moving or relocating. The survey was intended to identify tools <strong>and</strong><br />

practices, as well as measures for success in these areas.<br />

Study results are scheduled to be released in stages:<br />

<strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong>: April 30<br />

Retention <strong>and</strong> Onboarding: May 21<br />

Further <strong>Survey</strong> Details <strong>and</strong> Analysis: June 11<br />

Sponsored by <strong>Allied</strong> Van Lines, the survey is intended as a service to human<br />

resources professionals <strong>and</strong> is part of a larger ongoing initiative, <strong>Allied</strong> HR IQ, which<br />

will conduct additional research projects, host events <strong>and</strong> facilitate discussions in<br />

the HR community via the <strong>Allied</strong> HR IQ website.<br />

The topic areas <strong>and</strong> questions for the survey were determined through collaborative<br />

discussions involving <strong>Allied</strong> Van Lines, <strong>Allied</strong>’s independent research partners, <strong>and</strong><br />

distinguished HR professionals.<br />

*A sample of 500 yields a confidence interval of 95 percent ± 4 percent.<br />

<strong>Survey</strong> Methodology<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

IQ<br />

www.alliedHRIQ.com 04/<strong>2012</strong><br />

The <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong> was conducted online with 500* human<br />

resources professionals from 49 states <strong>and</strong> the District of Columbia. The vast<br />

majority of respondents are employed by companies (95 percent vs. 5 percent<br />

external contractors), across a broad spectrum of HR titles, companies <strong>and</strong><br />

industries.<br />

Respondent Responsibilities Within HR:<br />

HR managers/supervisors ........................................................................................28%<br />

HR generalists............................................................................................................24%<br />

Recruiters ...................................................................................................................14%<br />

HR assistants .............................................................................................................13%<br />

C-level/Directors/VPs ...............................................................................................11%<br />

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<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

IQ<br />

www.alliedHRIQ.com 04/<strong>2012</strong><br />

2


<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Results<br />

<strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong> in Today’s Challenging Environment<br />

According to the <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>, human resources<br />

professionals face a challenging new recruitment environment. The economy is<br />

growing <strong>and</strong> businesses are hiring, with many planning “extensive” recruiting<br />

programs for the coming year. March <strong>2012</strong> marked the lowest unemployment rate in<br />

the United States since the beginning of the economic downturn in 2009.**<br />

Meanwhile, even though the housing market is slow, HR professionals are optimistic<br />

about the willingness of the workforce to relocate <strong>and</strong> do not foresee obstacles in<br />

the way of recruiting c<strong>and</strong>idates from distant locations.<br />

Still, many survey respondents admit that their companies are not tuned up for a<br />

competitive period of recruiting:<br />

Many companies lack confidence in their recruitment <strong>and</strong> relocation<br />

programs.<br />

The overall rate of recruiting success for many companies is not as high<br />

as it could be.<br />

<strong>Recruiting</strong> incentives, including benefits packages, may not always meet<br />

c<strong>and</strong>idate needs or expectations.<br />

Recruiters are not using all the recruiting tools they could, including<br />

social media.<br />

Company relocation packages do not address some key areas, like<br />

spousal support.<br />

The <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>, sponsored by <strong>Allied</strong> Van Lines, asked<br />

HR professionals about strategies, practices <strong>and</strong> performances relating to<br />

workforce mobility. The results address recruiting <strong>and</strong> relocation.<br />

Five hundred HR professionals in the U.S. took part in the survey, sharing their<br />

perspectives on how they manage recruitment <strong>and</strong> relocation in the current<br />

**U.S. Dept. of Labor, April <strong>2012</strong>.<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

IQ<br />

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economic context. They noted what they are doing well <strong>and</strong> not well. In addition, they<br />

reported on a wide range of strategies, approaches <strong>and</strong> practices, which varied not<br />

only by the size of their companies, but also by the success of their recruiting <strong>and</strong><br />

relocation programs (see Segments for more). These differences may illuminate a<br />

path toward improved recruitment <strong>and</strong> relocation performances for all firms, even<br />

those that currently lag well behind industry leaders.<br />

The Race Is On, But Not Everyone Is Ready<br />

Corporate recruiting is moving into high gear in <strong>2012</strong>. HR professionals may be<br />

tripping over each other as they chase c<strong>and</strong>idates of choice. Two-thirds of all<br />

respondents characterize their company’s <strong>2012</strong> recruitment plans as “extensive”<br />

or “moderate,” with larger companies being more bullish. Among larger companies<br />

(> 10,000 employees), 80 percent are planning for extensive or moderate activity<br />

(Figures 1 <strong>and</strong> 2).<br />

Yet many companies aren’t ready for a competitive situation. Nearly one-third of all<br />

respondents describe their companies as having no recruitment plans or limited<br />

plans. Larger companies are more likely to have recruitment plans, according<br />

to the survey results.<br />

Further, 52 percent of all respondents say their recruitment programs are only<br />

“somewhat successful,” <strong>and</strong> even “highly successful” programs lose nearly<br />

one-quarter of their top c<strong>and</strong>idates during the process (Figures 3 <strong>and</strong> 4). More than<br />

one-quarter of respondents secure only 50 percent of their top c<strong>and</strong>idates (Figure 5).<br />

Given the investment recruitment requires, even a small improvement in this area<br />

would yield significant savings. Companies spend on average $10,731 per hire,<br />

taking on average 51 days to fill an open position (Figures 6 <strong>and</strong> 7). (For more insight<br />

on how companies with highly successful recruitment programs manage differently<br />

than other companies, see Segments.)<br />

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<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

<strong>Survey</strong> respondents said their companies could do more to improve their recruiting<br />

prospects. Most HR professionals, in fact, do not view recruiting incentives at their<br />

companies as strengths. For example, only 27 percent rated their firm’s healthcare<br />

benefits as a “5” (on a scale of 1-5, “5” being a strength <strong>and</strong> “1” being a weakness).<br />

And yet, healthcare benefits are rated the highest among all possible strengths or<br />

recruiting incentives. In addition, one-third of respondents rated their company’s<br />

lifestyle benefits as a weakness, <strong>and</strong> 15 percent rated relocation packages a<br />

weakness (Figure 8).<br />

Social Media Not Taking Hold;<br />

Best Sources for C<strong>and</strong>idates Are Still Traditional<br />

HR professionals believe the best sources for c<strong>and</strong>idates are usually right down the<br />

hall or across the parking lot. Respondents rated employee referrals <strong>and</strong> internal<br />

recruiter referrals as the best sources for c<strong>and</strong>idates – rated “good” or “excellent”<br />

by 74 percent <strong>and</strong> 66 percent of HR professionals, respectively (Figure 9).<br />

Despite all the hype, HR professionals aren’t yet sold on social media as a recruiting<br />

tool. Only 38 percent rate social media as a good or excellent source. In fact, nearly<br />

two-thirds of HR professionals (62 percent) rate social media sites as “poor” or<br />

“fair” for recruiting, <strong>and</strong> many respondents said they do not use social media for<br />

recruitment at all. Others said they are studying social media sites <strong>and</strong> developing<br />

strategies so they can include them in their recruitment efforts.<br />

Here are some representative comments from those who use social media:<br />

“[We are] utilizing Facebook in our campus recruiting efforts for both br<strong>and</strong>ing<br />

<strong>and</strong> connecting fellow incoming new hires together.”<br />

“LinkedIn has provided a large forum for us to review hard-to-recruit specialty<br />

c<strong>and</strong>idates with experience in [our specific] industry.”<br />

“Facebook posts focusing on hiring awareness have generated solid applicant<br />

flow, but not too many high potential c<strong>and</strong>idates.”<br />

C<strong>and</strong>idates Are Willing to Relocate<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

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Many c<strong>and</strong>idates are willing to relocate given the right incentives, according to<br />

the survey. Most HR professionals do not see significant obstacles to relocation in<br />

today’s hiring environment. Only 6 percent of HR professionals believe that today’s<br />

workforce is not willing to relocate (Figure 10).<br />

Fifty-nine percent of the respondents reported that the current economic context<br />

has had “no impact” on their ability to recruit <strong>and</strong> hire. Twenty-one percent reported<br />

that it’s actually having a positive impact.<br />

<strong>Relocation</strong> packages play a critical role in closing the deal with c<strong>and</strong>idates,<br />

according to HR professionals. Fifty-seven percent of HR professionals regard<br />

the quality of relocation packages as “extremely important” or “important” in<br />

determining if a c<strong>and</strong>idate accepts an offer (Figure 11). In an improving economy –<br />

<strong>and</strong> a lagging housing market – relocation packages will become even more critical<br />

in securing c<strong>and</strong>idates of choice.<br />

And yet, interestingly, more than one-third of the survey respondents reported that<br />

their companies did not have a formal relocation program <strong>and</strong> another 45 percent<br />

reported that their programs are only “somewhat successful” or “unsuccessful”<br />

(Figure 12). (For insight on how companies with highly successful relocation<br />

programs manage differently from other companies, see Segments.)<br />

4


<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Many <strong>Relocation</strong> Packages Fall Short<br />

Among companies with formal relocation packages, the most common benefits are<br />

moving expenses <strong>and</strong> temporary living costs, cited by 67 percent <strong>and</strong> 49 percent of<br />

HR professionals, respectively (Figure 13).<br />

But, financial components alone are not always enough. The top three variables<br />

that limit or restrict a c<strong>and</strong>idate’s willingness to relocate are a spousal employment<br />

situation, children’s plans/schools <strong>and</strong> selling a home/mortgage (Figure 14).<br />

Unfortunately, not many companies address these issues (Figure 15), even among<br />

those rated “highly successful” in relocation <strong>and</strong> recruiting. For example:<br />

<br />

While 80 percent of respondents report that a spousal employment situation<br />

is a probable obstacle to a c<strong>and</strong>idate’s relocation, only 2 percent of companies<br />

cover spousal unemployment costs in any form.<br />

While 69 percent of respondents say that selling a home/mortgage restricts<br />

relocation, only 16 percent of companies offer reimbursement on old-home<br />

losses.<br />

While 72 percent of respondents say children’s plans/schools restrict<br />

relocation, only 39 percent of companies offer information on the area <strong>and</strong><br />

schools.<br />

Worse yet, 19 percent of companies in the survey sample do not offer any of the<br />

10 relocation package components listed in the survey.<br />

<strong>Relocation</strong> Packages Vary by Company Size<br />

HR professionals at a wide range of organizations (by size, industry, etc.)<br />

participated in the <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>, <strong>and</strong> these differences<br />

are reflected in significant variances in the cost of relocation packages. An average<br />

relocation package costs $21,033 (Figure 16). While smaller companies, in general,<br />

provide less valuable packages – averaging $10,971 – there are exceptions. Some<br />

small companies offer highly competitive packages. When a company – big or small<br />

– really wants a c<strong>and</strong>idate, it can level the playing field by meeting the competition’s<br />

offer, even if that requires a gold-plated relocation package, the survey suggests.<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

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Five percent of the survey respondents rated their relocation packages as<br />

“excellent” or “gold-plated,” <strong>and</strong> another 46 percent rate them as “good.” Even<br />

among smaller companies – less than 100 employees – 4 percent provide<br />

“excellent” or “gold-plated” packages. According to the survey, “gold-plated”<br />

packages average $65,333 in value.<br />

What Makes C<strong>and</strong>idates Willing – or Unwilling – to Relocate?<br />

The <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong> identified <strong>and</strong> measured the chief<br />

variables that influence a c<strong>and</strong>idate’s willingness or readiness to relocate:<br />

Economic – What is the state of the economy? Does it encourage change<br />

<strong>and</strong> risk?<br />

Organizational – Are companies hiring outside their local areas? Or, are they<br />

requiring relocation for existing employees? What incentives or assistance do<br />

they offer for relocation?<br />

Demographic – What age <strong>and</strong> economic groups are willing or unwilling to<br />

relocate <strong>and</strong> why?<br />

Cultural – What lifestyle issues encourage or restrict relocation?<br />

Findings suggest that the mobility environment is challenging <strong>and</strong> complex. While<br />

the lackluster economy discourages risk, companies that offer the right incentives<br />

(salary, career advancement <strong>and</strong> relocation assistance) can close the deal. The<br />

most challenging scenario for companies are employees over age 30 with concerns<br />

about selling an existing home, finding spousal employment, <strong>and</strong> moving children to<br />

new schools.<br />

When the economic environment is not favorable for relocation, the result is “longer<br />

recruiting lead times” (reported by 62 percent of HR professionals); hiring secondor<br />

third-choice c<strong>and</strong>idates (58 percent); <strong>and</strong> more local hiring (54 percent).<br />

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<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

More specific findings on the variables that affect a c<strong>and</strong>idate’s willingness<br />

to relocate:<br />

Economic – 30 percent of HR professionals report “excessive” or “high”<br />

unemployment in their region of the U.S., confirming that the economy is still<br />

a long way from recovery (Figure 17). Potential recruits may still be less than<br />

confident about changing jobs <strong>and</strong> relocating in this environment.<br />

Organizational – Most companies have at least some positions requiring<br />

executives to relocate throughout their career, <strong>and</strong> nearly half of the survey<br />

sample reported “many roles” in this category (Figure 18).<br />

Further, companies in the survey sample report that 14 percent of their new hires<br />

require a relocation, <strong>and</strong> more than three-quarters of the sample cast the net wide<br />

– nationally or internationally – when recruiting.<br />

However, only one in five respondents rate their company’s relocation programs<br />

as “highly successful,” <strong>and</strong> one-third have no formal relocation program. Also,<br />

most relocation programs do not address a c<strong>and</strong>idate’s chief worries: spousal<br />

employment, children’s plans/schools <strong>and</strong> selling the home.<br />

Demographic – Two-thirds of HR professionals (65 percent) believe that<br />

young workers – age 30 or under – are most willing to relocate, followed by<br />

workers 31 to 40 years old (cited by 26 percent of respondents). The top two<br />

variables that limit or restrict a c<strong>and</strong>idate’s willingness to relocate are family<br />

considerations related to one’s spouse <strong>and</strong> children, situations that are more<br />

common in workers over age 30.<br />

Cultural – Two factors are most likely to increase a c<strong>and</strong>idate’s willingness<br />

to relocate – higher salary (reported by 82 percent of HR professionals) <strong>and</strong><br />

career advancement (reported by 79 percent) (Figure 19).<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

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Question: How would you describe the extent of your company’s recruitment efforts this year?<br />

Source: <strong>2012</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

Figure 2 shows the percentage of HR professionals rating their recruiting plans as “extensive.”<br />

Results are segmented by the size of the respondent’s company.<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

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<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Question: How successful is your recruitment program?<br />

Source: <strong>2012</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

IQ<br />

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Results are segmented based on how survey respondents rated the success of their own recruitment<br />

programs (e.g., “highly successful”).<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

Results are segmented based on the recruitment program’s rate of success.<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

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<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Results are segmented based on how much the company spends.<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

Results are segmented based on how quickly companies fill their open positions.<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

IQ<br />

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8


<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

IQ<br />

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9


<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Figure 9 shows the percentage of recruitment resources rated “good” or “excellent.”<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

Question: In your opinion, how mobile (willing to relocate) is today’s U.S. workforce?<br />

Source: <strong>2012</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

IQ<br />

www.alliedHRIQ.com 04/<strong>2012</strong><br />

10


<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Question: How important is the quality of the relocation package in determining if a c<strong>and</strong>idate<br />

accepts an offer?<br />

Source: <strong>2012</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

Question: How successful is your relocation program?<br />

Source: <strong>2012</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

IQ<br />

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11


<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Figure 13 shows the percentage of HR professionals who say the items above are typically contained in their<br />

company’s relocation packages.<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

IQ<br />

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Figure 14 shows the percentage of HR professionals who say the items above are obstacles to relocation.<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

12


<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Figure 15 shows the percentage of HR professionals who say the items above are typically included in their<br />

relocation packages.<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

Results are segmented based on the amount spent on relocation packages.<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

Question: Describe the unemployment in your region.<br />

Source: <strong>2012</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

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13


<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Question: Does your company look for executives who are willing to relocate<br />

throughout their careers?<br />

Source: <strong>2012</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

IQ<br />

www.alliedHRIQ.com 04/<strong>2012</strong><br />

Figure 19 shows the percentage of HR professionals rating the items above as reasons for new hires to relocate.<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

14


<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Segments<br />

Why Some <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong> Programs<br />

Succeed While Others Don’t<br />

The <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong> asked HR professionals to evaluate<br />

the performance of their own companies in several areas, rating them as “highly<br />

successful,” “somewhat successful” or “not successful.”<br />

These are self-appraisals <strong>and</strong> refer to specific areas, like recruiting, not to a<br />

company’s overall performance, profits or financial st<strong>and</strong>ing. Still, they are useful<br />

in identifying why some companies do better than others. (For shorth<strong>and</strong>, “highly<br />

successful” companies are sometimes referred to as “best in class.”)<br />

Best-in-class companies …<br />

Spend more, recruit <strong>and</strong> relocate more<br />

Recruit <strong>and</strong> relocate internationally<br />

Are usually larger in size<br />

Have more resources <strong>and</strong> leverage more incentives<br />

But, at the same time, some smaller companies compete effectively with larger<br />

companies. The survey uncovers several areas where companies could differentiate<br />

themselves:<br />

By addressing personal areas of concern in relocation, e.g., spousal<br />

employment <strong>and</strong> children- <strong>and</strong> school-related issues;<br />

By providing flexible relocation packages suited to the individual c<strong>and</strong>idate;<br />

By addressing economic issues related to relocation, e.g., reimbursement for<br />

selling the old home or help selling it.<br />

The analysis below concerns the first set of research findings, which focus on<br />

recruiting <strong>and</strong> relocation. Other research findings will follow on May 21 <strong>and</strong> June 11,<br />

with additional implications.<br />

Segments – <strong>Recruiting</strong><br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

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Most companies are only “somewhat successful” at relocation, according to HR<br />

professionals taking part in the survey. However, a large portion – 36 percent – are<br />

“highly successful” (Figure 3).<br />

Best in Class Spend More, Recruit Internationally<br />

Companies best in class at recruiting spend more than twice as much per hire<br />

($12,737), as compared to “unsuccessful companies” (Figure 20). In addition,<br />

73 percent of the best-in-class companies search for c<strong>and</strong>idates internationally<br />

<strong>and</strong> across the United States, as opposed to 35 percent among companies<br />

“unsuccessful” at recruiting.<br />

Best-in-class companies cast the net wider, in part, because they are more<br />

confident about securing c<strong>and</strong>idates in distant locations. They view the workforce<br />

as more mobile than other companies. Fifty-eight percent of HR professionals<br />

with best-in-class recruiting programs believe the current U.S. workforce is<br />

“highly mobile” or “moderately mobile,” versus 48 percent <strong>and</strong> 39 percent of HR<br />

professionals with “somewhat successful” or “unsuccessful” recruiting programs.<br />

Best in Class Are Larger Companies<br />

(But Small Companies Can Be Best in Class, Too)<br />

Typically, companies best in class at recruiting are larger than less successful<br />

companies. Forty-two percent of best-in-class companies have annual revenues of<br />

more than $1 billion.<br />

Yet, best-in-class companies are also found among companies with revenues under<br />

$1 billion or even under $100 million. About a third of companies in these categories<br />

are best in class in recruiting.<br />

15


<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Best in Class Use More Sources, Have Better Incentives<br />

Companies best in class at recruiting are more likely to rate all sources for finding<br />

c<strong>and</strong>idates as “excellent,” indicating their ability to leverage a range of tools to<br />

identify potential hires (Table 1).<br />

They’re also more likely to rate their own recruiting incentives as “strengths”<br />

(Table 2).<br />

Best-in-Class <strong>Recruiting</strong> Programs Spend More Per Hire<br />

Best-in-class recruitment programs spend more per hire, on average $12,737<br />

(not including relocation costs), as compared to $10,504 <strong>and</strong> $4,750 by “somewhat<br />

successful” <strong>and</strong> “unsuccessful” programs, respectively.<br />

As a result, they secure their c<strong>and</strong>idates of choice 77 percent of the time,<br />

as compared to 66 percent <strong>and</strong> 59 percent for “somewhat successful” <strong>and</strong><br />

“unsuccessful programs.”<br />

Segments – <strong>Relocation</strong><br />

Most companies are only “somewhat successful” at relocation. Only one in five HR<br />

professionals rate their relocation program as “highly successful” (Figure 12).<br />

In the context of the survey, a successful relocation program is one that enables<br />

the HR professional to close the deal.<br />

Best-in-Class Companies Recruit <strong>and</strong> Relocate More<br />

Companies best in class at relocation recruit more often, cast the net wider when<br />

recruiting, <strong>and</strong> relocate employees more often than other companies. Eightyfive<br />

percent of best-in-class companies search for c<strong>and</strong>idates internationally,<br />

as compared to 76 percent <strong>and</strong> 39 percent of “somewhat successful” <strong>and</strong><br />

“unsuccessful” programs, respectively. Far more talent is available to companies<br />

with successful relocation programs because of the scope of their search.<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

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Thirty-seven percent of best-in-class companies are planning “extensive”<br />

recruitment efforts in <strong>2012</strong>, as compared to 26 percent <strong>and</strong> 12 percent “somewhat<br />

successful” <strong>and</strong> “unsuccessful” programs, respectively.<br />

Companies Best in Class at <strong>Relocation</strong> Are Larger<br />

Companies best in class at relocation are larger, averaging 60,207 full-time<br />

employees, as compared to 33,170 <strong>and</strong> 9,349 employees at “somewhat successful”<br />

<strong>and</strong> “unsuccessful” companies, respectively.<br />

Yet there are small firms that succeed at relocation, too. For example, 9 percent of<br />

companies with 100 employees or fewer are best in class.<br />

Companies Best in Class at <strong>Relocation</strong><br />

Provide More Incentives<br />

Best-in-class relocation programs are more likely to include all of the relocationpackage<br />

components listed on the <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong> (Table 3).<br />

For example, 74 percent of best-in-class relocation programs provide temporary<br />

living costs, as compared to 60 percent <strong>and</strong> 22 percent of “somewhat successful”<br />

<strong>and</strong> “unsuccessful” programs.<br />

Approximately 17 percent of best-in-class relocation programs offer an “excellent”<br />

or “gold-plated” relocation package, as compared to 1 percent of “somewhat<br />

successful” programs.<br />

Best-in-class relocation programs cost considerably more, on average, $33,193<br />

per package, as compared to $18,730 <strong>and</strong> $13,167 for “somewhat successful” <strong>and</strong><br />

“unsuccessful” programs, respectively.<br />

Better <strong>Relocation</strong> Results in Better <strong>Recruiting</strong><br />

A good relocation program is critical to success in recruiting: Highly successful<br />

relocation programs go h<strong>and</strong> in h<strong>and</strong> with highly successful recruitment programs<br />

(Figure 21).<br />

16


<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Results are segmented based on how the respondents rated the success of their recruitment programs.<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

Table 1 shows the percentage of HR professionals rating resources for finding c<strong>and</strong>idates as “excellent.”<br />

Results are segmented based on how survey respondents rated the success of their own recruiting programs.<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

IQ<br />

www.alliedHRIQ.com 04/<strong>2012</strong><br />

Table 2 shows the percentage of HR professionals rating their recruiting incentives as strengths.<br />

Results are segmented based on how survey respondents rated the success of their own recruiting programs.<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

17


<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Table 3 shows the percentage of programs incorporating various relocation package components.<br />

Results are segmented based on how survey respondents rated the success of their own relocation programs.<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

IQ<br />

www.alliedHRIQ.com 04/<strong>2012</strong><br />

Results are segmented based on how the survey respondents rated the success of their relocation programs.<br />

Source: <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong><br />

<strong>Allied</strong>HRIQ.com<br />

18


<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Implications<br />

Five Lessons for Recruitment <strong>and</strong> <strong>Relocation</strong> Success<br />

Based on the <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>, here are a few lessons toward<br />

a faster, more effective talent pipeline. These lessons concern the first set of<br />

research findings, which focus on recruiting <strong>and</strong> relocation. Other research findings<br />

will follow on May 21 <strong>and</strong> June 11, with additional implications.<br />

Lesson 1: If the Best in Class Can Do It, So Can You<br />

It’s a challenging environment for recruiting. Among the specific concerns raised by<br />

HR professionals:<br />

High unemployment, which discourages risk<br />

Soft real estate market, which makes it hard for c<strong>and</strong>idates to sell their<br />

current homes<br />

Limited mobility among older (experienced) executives<br />

Increased competition for talent<br />

Still, only 20 percent of HR professionals report that this environment has had a<br />

negative impact on their company’s recruiting performance. In fact, companies<br />

“highly successful” at recruiting report that the environment has made no impact or<br />

even a positive impact.<br />

So, Lesson 1 is – If the best in class can do it, so can you. What are the best in class<br />

doing that works?<br />

Investing (attention, time <strong>and</strong> money) in talent acquisition, as though it were<br />

actually as important as everybody says it is.<br />

Developing career paths <strong>and</strong> cultures at your company that are as attractive as<br />

the salaries <strong>and</strong> benefits you offer.<br />

Adopting relocation practices that differentiate you from the competition<br />

(see Lesson 2 below).<br />

Lesson 2: Give Recruits What They Really Want<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

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www.alliedHRIQ.com 04/<strong>2012</strong><br />

It’s no secret that higher salaries <strong>and</strong> career advancement are two of the most<br />

important incentives you can offer a c<strong>and</strong>idate for relocation, <strong>and</strong> most companies<br />

prepare offers with these considerations in mind.<br />

But there are also well-known deterrents, <strong>and</strong> these are not usually addressed:<br />

The spouse’s employment situation<br />

Children’s plans/schools<br />

Selling the current home <strong>and</strong> managing the mortgage<br />

Therefore, the opportunity to differentiate your firm is enormous:<br />

Only 2 percent of companies help with spousal employment<br />

Only 16 percent will assume a loss for a recruit’s underwater mortgage<br />

Only 39 percent offer information about the local community <strong>and</strong> schools<br />

Lesson 3: Make Your <strong>Relocation</strong> Package More Like a Package<br />

Recruits have diverse needs, especially those who must relocate. A married<br />

c<strong>and</strong>idate with children probably won’t want the same things as a young single<br />

looking for career advancement <strong>and</strong> an exciting nightlife. Yet most companies do<br />

not offer a range of benefits tailored to particular types of recruits. Further, most<br />

packages are limited in the types of benefits they incorporate.<br />

The <strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong> asked HR professionals which of 10<br />

components their companies include in relocation packages (Figure 13). Surprisingly,<br />

19 percent don’t offer any of the components – not even “relocation consultation.”<br />

Also significant: 72 percent offer only four of the 10 components – or fewer.<br />

19


<strong>2012</strong> <strong>Allied</strong> <strong>Workforce</strong> <strong>Mobility</strong> <strong>Survey</strong>: <strong>Recruiting</strong> <strong>and</strong> <strong>Relocation</strong><br />

Do you need to offer all 10 in your relocation package? Probably not, but evaluating<br />

your relocation package against the competitive l<strong>and</strong>scape <strong>and</strong> the range of<br />

possible components would be a useful exercise. It may enable you to get the edge<br />

on your competition.<br />

Lesson 4: There’s Room for Improvement<br />

HR professionals are not shy about calling out weaknesses in their recruiting<br />

incentives. The most common weaknesses were:<br />

Lifestyle benefits (31 percent)<br />

<strong>Relocation</strong> packages (15 percent)<br />

Retirement benefits (11 percent)<br />

Further, most HR professionals do not view their own recruiting incentives as<br />

strengths (Figure 8). The incentives that rank at the top still receive low marks.<br />

HR professionals can make a difference by focusing on what they can improve:<br />

Only 21 percent rate company culture/atmosphere as a strength. This is an<br />

important area where human resources professionals have the training <strong>and</strong><br />

skills to make a major contribution.<br />

Only 4-5 percent of HR professionals rate their negotiating <strong>and</strong> closing skills<br />

as a strength. Given their strong interpersonal skills, human resources<br />

professionals could make quick strides forward in these learned skills.<br />

Lesson 5: David Can Beat Goliath<br />

©<strong>2012</strong> <strong>Allied</strong> Van Lines, Inc. U.S. DOT No. 076235, ALLIED <strong>and</strong> ALLIED ROADWAY DESIGN are registered trademarks <strong>and</strong> service marks of <strong>Allied</strong> Van Lines, Inc.<br />

IQ<br />

www.alliedHRIQ.com 04/<strong>2012</strong><br />

True, larger companies are more successful at recruiting <strong>and</strong> relocation than<br />

smaller companies, according to survey results. Larger companies have deeper<br />

pockets, more experience, better systems, etc. Yet lots of small companies are<br />

successful, too. These companies are making large investments, enabling them to<br />

level the playing field.<br />

Size doesn’t need to be an impediment. With attractive salaries, career paths <strong>and</strong><br />

relocation packages, your company may compete with the best <strong>and</strong> win.<br />

For more details about what the best in class in recruitment professionals are<br />

doing, consult Segments.<br />

20

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