Ct Healthmarket via BizWire
08-11-2003, 06:20 AM
IRVINE, Calif.--(BUSINESS WIRE)--Aug. 11, 2003--High costs of
living and expensive housing were cited as the main reasons why
employees choose not to relocate to new areas, according to a recent
online survey conducted by Prudential Relocation, a subsidiary of
Prudential Financial (NYSE:PRU).
"There is a dramatic change taking place in the workforce that we
call 'PeopleShock.' It is the convergence of several trends including
demographics, the emotional impact of war and terrorism, and economic
realities. People are staying home. Companies that need to transfer
employees across the country and across the globe, are finding it
increasingly difficult to get that talent to move," said Margery
Marshall, president, Prudential Relocation.
More than 170 Human Resources professionals responded to the
survey on human resources and relocation trends. Sixty-four percent of
the respondents felt the top barrier to relocation cited by employees
is the cost of living in a new location. Another 55 percent of
respondents indicated the cost of housing is a key barrier to
relocating.
"It's a double-edged sword. Because of low interest rates and a
down stock market, home prices have been on the rise. This has been a
great wealth builder for our economy, but in terms of getting people
to accept a move, the cost of housing and living is increasingly a
barrier," said Marshall.
The survey also found (most questions offered more than one
choice):
-- 42 percent of the respondent's companies use short-term
assignments in lieu of relocation.
-- 35 percent allow employees to work from home and another 32
percent offer telecommuting.
-- 43 percent of the respondent's companies have asked employees
to contribute more to benefit costs in the last year to deal
with changes in the workforce and the economy.
-- 41 percent reduced the number of relocations and 40 percent
now provide more online self-service tools.
-- Middle management is most likely (30 percent) to be reluctant
to relocate or to decline to relocate.
-- 46 percent indicated that family concerns are a main obstacle
to relocating.
Marshall recommends that companies should be creative in their
strategies to convince employees to move to high-cost areas. She noted
that many companies offer options to encourage their employees to
accept a relocation assignment. The options may include special
financial incentives and bonuses; pre-decision tools; pre-departure
support; additional trips home; extra housing allowances; and
spousal/partner career assistance.
"Business as usual doesn't cut it anymore. There is a new normal
and companies have to adapt to attract, retain and relocate the
knowledgeable workers of the 21st century," said Marshall.
Prudential Relocation offers a variety of innovative services such
as a personal concierge, At Your Service; elder care alliances with
Senior Bridge housing; and a home service portal, Prudential Home
Connections(SM), to support employers and employees who increasingly
see the home as the center of their lives. To learn more about this
workplace change and other mobility issues, visit Prudential
Relocation's online reference library at
www.prudential.com\referencelibrary.
Prudential Relocation has offices in Paris, London, Hong Kong,
Mexico City, Toronto, Singapore, New York, and Phoenix offering more
than 30 services to meet the increasing need for integrated domestic
and international services in a global economy. Some of these services
include policy counseling, homefinding, settling-in assistance, global
workforce development, cost management and household goods management.
About Prudential Relocation
Prudential Real Estate and Relocation Services is Prudential
Financial's integrated real estate brokerage franchise and relocation
services business. Prudential Financial's relocation group offers
clients a variety of services in connection with the relocation of
their employees. These services include coordination of appraisal,
inspection and sale of relocating employees' homes, equity advances to
relocating employees, assistance in locating a home at the relocating
employee's destination, household goods moving services and client
cost-tracking and a variety of relocation policy and group move
consulting services.
Prudential Financial's relocation group is the second largest
provider of comprehensive global relocation services in the United
States as of Feb. 22, 2002, according to Relocation Information
Services. In 2002, Prudential Relocation completed 188,000 service
transactions to 56,250 transferees of its corporate clients.
Prudential Relocation has an established client base, ranging from
Fortune 500 companies to United States government agencies.
Prudential Financial companies, with approximately $422 billion in
total assets under management as of June 30, 2003, serve individual
and institutional customers worldwide and include The Prudential
Insurance Company of America, one of the largest life insurance
companies in the United States. These companies offer a variety of
products and services, including life insurance, property and casualty
insurance, mutual funds, annuities, pension and retirement related
services and administration, asset management, banking and trust
services, real estate brokerage franchises and relocation services.
For more information, visit www.prudential.com.
PeopleShock! Survey Results (April 2003)
What are the main obstacles of those relocating or being asked to
relocate?
Cost of living in new location 63%
Housing costs in new location 57%
Family concerns 46%
Spouse's career/employment 34%
Other 8%
None of the above 2%
Does your company use any of these alternative work arrangements
in lieu of relocation?
Short term assignments 43%
Work from home (field based) 34%
Telecommuting 34%
Virtual office 16%
Other 3%
None of the above 22%
How has your company changed benefits in the last year to deal
with changes in the workforce and the economy?
Asked employees to contribute more to benefit costs 45%
Reduced the number of relocations 52%
Provided more online self-service tools to reduce cost 41%
Increased focus on hiring minorities and women 21%
Added career assistance or outplacement programs 14%
None of the above 10%
Generally, what group in your company is most likely to be
reluctant to relocate or to actually decline relocating?
Middle management 30%
New hires 9%
Executive management 7%
None of the above 43%
What solutions does your company have in place to encourage
employees to accept relocation?
Special financial incentives/bonuses 29%
Additional trips home 28%
Pre-decision/pre-departure support 28%
Spouse/partner career/employment assistance 27%
Family settling-in assistance 20%
None of the above 18%
Shorter term assignments 11%
Return move rights 9%
What is your greatest HR challenge? (selected sample of comments)
"Maintaining positive attitudes during difficult times."
"Laying people off."
"Budget vs. service."
"Hiring the right talent."
"Managing the rate of change, allocating resources."
"Continue the great customer service with the increase in volume
of workload."
living and expensive housing were cited as the main reasons why
employees choose not to relocate to new areas, according to a recent
online survey conducted by Prudential Relocation, a subsidiary of
Prudential Financial (NYSE:PRU).
"There is a dramatic change taking place in the workforce that we
call 'PeopleShock.' It is the convergence of several trends including
demographics, the emotional impact of war and terrorism, and economic
realities. People are staying home. Companies that need to transfer
employees across the country and across the globe, are finding it
increasingly difficult to get that talent to move," said Margery
Marshall, president, Prudential Relocation.
More than 170 Human Resources professionals responded to the
survey on human resources and relocation trends. Sixty-four percent of
the respondents felt the top barrier to relocation cited by employees
is the cost of living in a new location. Another 55 percent of
respondents indicated the cost of housing is a key barrier to
relocating.
"It's a double-edged sword. Because of low interest rates and a
down stock market, home prices have been on the rise. This has been a
great wealth builder for our economy, but in terms of getting people
to accept a move, the cost of housing and living is increasingly a
barrier," said Marshall.
The survey also found (most questions offered more than one
choice):
-- 42 percent of the respondent's companies use short-term
assignments in lieu of relocation.
-- 35 percent allow employees to work from home and another 32
percent offer telecommuting.
-- 43 percent of the respondent's companies have asked employees
to contribute more to benefit costs in the last year to deal
with changes in the workforce and the economy.
-- 41 percent reduced the number of relocations and 40 percent
now provide more online self-service tools.
-- Middle management is most likely (30 percent) to be reluctant
to relocate or to decline to relocate.
-- 46 percent indicated that family concerns are a main obstacle
to relocating.
Marshall recommends that companies should be creative in their
strategies to convince employees to move to high-cost areas. She noted
that many companies offer options to encourage their employees to
accept a relocation assignment. The options may include special
financial incentives and bonuses; pre-decision tools; pre-departure
support; additional trips home; extra housing allowances; and
spousal/partner career assistance.
"Business as usual doesn't cut it anymore. There is a new normal
and companies have to adapt to attract, retain and relocate the
knowledgeable workers of the 21st century," said Marshall.
Prudential Relocation offers a variety of innovative services such
as a personal concierge, At Your Service; elder care alliances with
Senior Bridge housing; and a home service portal, Prudential Home
Connections(SM), to support employers and employees who increasingly
see the home as the center of their lives. To learn more about this
workplace change and other mobility issues, visit Prudential
Relocation's online reference library at
www.prudential.com\referencelibrary.
Prudential Relocation has offices in Paris, London, Hong Kong,
Mexico City, Toronto, Singapore, New York, and Phoenix offering more
than 30 services to meet the increasing need for integrated domestic
and international services in a global economy. Some of these services
include policy counseling, homefinding, settling-in assistance, global
workforce development, cost management and household goods management.
About Prudential Relocation
Prudential Real Estate and Relocation Services is Prudential
Financial's integrated real estate brokerage franchise and relocation
services business. Prudential Financial's relocation group offers
clients a variety of services in connection with the relocation of
their employees. These services include coordination of appraisal,
inspection and sale of relocating employees' homes, equity advances to
relocating employees, assistance in locating a home at the relocating
employee's destination, household goods moving services and client
cost-tracking and a variety of relocation policy and group move
consulting services.
Prudential Financial's relocation group is the second largest
provider of comprehensive global relocation services in the United
States as of Feb. 22, 2002, according to Relocation Information
Services. In 2002, Prudential Relocation completed 188,000 service
transactions to 56,250 transferees of its corporate clients.
Prudential Relocation has an established client base, ranging from
Fortune 500 companies to United States government agencies.
Prudential Financial companies, with approximately $422 billion in
total assets under management as of June 30, 2003, serve individual
and institutional customers worldwide and include The Prudential
Insurance Company of America, one of the largest life insurance
companies in the United States. These companies offer a variety of
products and services, including life insurance, property and casualty
insurance, mutual funds, annuities, pension and retirement related
services and administration, asset management, banking and trust
services, real estate brokerage franchises and relocation services.
For more information, visit www.prudential.com.
PeopleShock! Survey Results (April 2003)
What are the main obstacles of those relocating or being asked to
relocate?
Cost of living in new location 63%
Housing costs in new location 57%
Family concerns 46%
Spouse's career/employment 34%
Other 8%
None of the above 2%
Does your company use any of these alternative work arrangements
in lieu of relocation?
Short term assignments 43%
Work from home (field based) 34%
Telecommuting 34%
Virtual office 16%
Other 3%
None of the above 22%
How has your company changed benefits in the last year to deal
with changes in the workforce and the economy?
Asked employees to contribute more to benefit costs 45%
Reduced the number of relocations 52%
Provided more online self-service tools to reduce cost 41%
Increased focus on hiring minorities and women 21%
Added career assistance or outplacement programs 14%
None of the above 10%
Generally, what group in your company is most likely to be
reluctant to relocate or to actually decline relocating?
Middle management 30%
New hires 9%
Executive management 7%
None of the above 43%
What solutions does your company have in place to encourage
employees to accept relocation?
Special financial incentives/bonuses 29%
Additional trips home 28%
Pre-decision/pre-departure support 28%
Spouse/partner career/employment assistance 27%
Family settling-in assistance 20%
None of the above 18%
Shorter term assignments 11%
Return move rights 9%
What is your greatest HR challenge? (selected sample of comments)
"Maintaining positive attitudes during difficult times."
"Laying people off."
"Budget vs. service."
"Hiring the right talent."
"Managing the rate of change, allocating resources."
"Continue the great customer service with the increase in volume
of workload."
