Atlas Amplifier PDF - Atlas Van Lines

Cornerstone Relocation GroupIs it a Light? Don’t Wait to Find Out – Keep Fine TuningIs That a Lightat the End of the Tunnel?The recent release of a series of positive economic contend with declining home values, tightenedindicators is the first real sign of sustained market credit guidelines, rising interest rates, a new wave ofimprovement since the start of the recession. The data foreclosures and inventory surpluses. All of these willshowed nearly across-the-board upward trends for the play into the reluctance of candidates to accept aprior four, and in some cases, six months. Continued relocation opportunity. Some simply cannot affordimprovement over time is the best test of a recovery to move. Corporations and mobility industry serviceand it seems it is indeed underway.providers must create solutions to these challenges toWhile the news is looking like a light at the end meet talent management strategies.of the tunnel, we still have challenges. We have toMany companies have already made changes totheir policies to address the economic environment. Arecent survey indicates that 70 percent of companies madechanges to their policies in the past two years. They’veaddressed loss-on-sale, negative equity and home salechallenges. As we move forward it’s important to keep thelessons learned in mind. We have to stay abreast of changesin unemployment, interest rates and real estate markets tosee if additional tweaks in policy are in order. In this dynamicenvironment, it’s not unreasonable to review policiesannually. Here are things to consider:Finding the Optimal SolutionWork closely with your organization’s talent managementteam to carefully identify the purpose of the relocationand consider alternatives. Options such as hiring locally,offering a temporary assignment vs. a permanent move orproviding commuter benefits in lieu of relocation may bebetter alternatives. Depending on the objective, a less costlysolution might work.Re-instate Mortgage InterestDifferential Allowances (MIDAs)As interest rates hit record-low levels, many companieseliminated their Mortgage Interest Differential Allowance(MIDA) benefits. If interest rates climb, it may be necessaryto reintroduce MIDAs for employees who may have takenadvantage of those low rates.Establish More AccurateHome ValuationsWhile many companies have implemented the practice ofobtaining a Broker Market Analysis before making an offerto relocate, some are considering obtaining an AppraisersPrice Opinion (APO) for a more thorough valuation. Evenif an employee relocated just a year ago, it’s possible theemployee’s home value has dropped even further. An APOdoes not cost as much as a standard appraisal and thesmall investment may prevent a much greater loss.Push Home MarketingAssistance FurtherThis area of policy has seen many enhancements over thepast few years. Companies are offering home sale bonuses,fix-up allowances and buyer and agent incentives. They’veadded mandatory list price requirements and have insistedthat homes be listed with relocation-savvy agents. In abuyer’s market, it’s critical not only to have the proper listprice, but to position each home to be the next to sell.Think outside the box when helping employees sell theirhomes, using all the tools possible. Each home is unique,and situational strategies are just as important as policydrivenstrategies. The true test on whether the real estatemarket will rebound will come in the spring – the peakseason for home buying. That’s when we’ll start to discoverjust how bright that light truly is. In the meantime, we’llremain diligent in doing all we can to meet our clients’recruiting and talent management goals.The Consumer Confidence Index(CCI) surged to 70.4 in February,a 3-year high. Some economistsbelieve this to be the single mostimportant indicator of recoverysince confidence encouragesspending and spending drives70% of economic activity.By Mike Migliaccio,Senior Director,Client Services forCornerstone’sWestern Region Office30 Atlas Amplifier • Summer 2011 Atlas Amplifier • Summer 2011 31