The concept of offering a relocation package is inconceivable to many hiring managers. However, the best candidate for your open position probably lives more than 100 miles away, outside of your local area. Did you know that many people will fund their own relocation, or will accept a job offer containing a small relocation bonus?
Many hiring managers and recruiters think is not feasible to expect a candidate to pay for their own relocation. Some believe that it is too cumbersome to interview remote candidates. Other people simply insist on hiring locally. Do not be fooled into thinking that relocation is unpractical or expensive. It is very likely that some of your best candidates are outside of your local boundaries.
On a recent late-night trip from Atlanta to Chicago, I experienced one of the most pleasing introductions in recent memory. Upon talking with a fellow passenger for a few minutes, our conversation revealed that I am employed by CareerBuilder.com. The gentleman extended his hand and said, "Thank you for the work you do. I have an interview tomorrow morning in Chicago for a job I found on your website." I asked a few questions about the job opportunity and made a key discovery - he was willing to pay his own relocation. - Michael DeHaven, CareerBuilder.com
Financial Limits and Cost Savings
Any time you are hiring you need to set a salary/expense range. Include the potential for relocation expenses in your salary range calculations. Once you have established your first year salary range, you can approach compensation from various angles:
Salary with No Relocation Allowance
This seems to be most common because it is simple and easy. However, most "no relocation" messages push away strong, remote candidates. Remember that many job seekers (like the one noted above) are willing to pay their own relocation for the right job and salary. However, consider some of the below alternatives as they may be more desirable to both the new hire and employer.
Salary plus Small Relocation Allowance
Reducing the offered salary by a few thousand dollars, and offering a small relocation expense account often works well. Using this approach can decrease the employee's taxable income, which is typically desirable from the employee's perspective; and decreases the starting salary, which may be good for the employer as well.
Salary plus Delayed Relocation Bonus
If a candidate performs extremely well in the first six months, you will probably not care about a few thousand dollars of relocation expense. Consider offering a delayed relocation bonus. For example, if a candidate meets clearly defined goals in the first 6 months, he/she is eligible for a bonus that will help cover the cost of relocation. This approach provides a strong motivational tool, which encourages quick growth and learning, and reduces the risk of your new hire prematurely hunting for another job.
Salary plus Full Relocation
The traditional way of fully funding relocation may be necessary if you are trying to steal a happily employed person away from another company. This type of package will often cover travel expenses, movers, and sometimes will even include a provision for a house buy-out if the new employee has trouble selling their old house.
Be Candid and Give Options
Every person has a different situation, and looks at their finances from a different angle. If you are not prepared to offer Full Relocation, it is best to have open discussions about relocation expenses with your potential candidates. When making a job offer, choose two of the above options that will have about the same cost, and let your candidate decide which is better.
Limited Radius Resume Database Searches
Using a 100-mile, limited resume search is most likely not good for your business. It is surprising, but many people are willing to accept a daily commute distance of 150 miles or more for a great job. The increased availability of books on tape, satellite radio, and lower-cost of cell phone usage make longer commutes a more desirable option than ever before. If your perfect candidate lives 110 miles away from your office, you will not find them with a 100-mile limited radius search. It is not bad to start your search with smaller radius, but always search nationally to make sure that all your options are "on the table."
Limited Relocation vs. No Relocation
When posting your job opening and communicating with potential candidates, it is best to not rule out relocation entirely. Use phases like "limited relocation is negotiable" to keep your options open. This will increase the number of applicants, and keep the lines of communication open so you can evaluate the candidate's need for relocation assistance, and gives you the flexibility work with the numbers when you finally decide to make an offer.
Remote Interviewing
Although it is always good to have a face-to-face interview before making an offer, it is possible to go through the interview process by phone. The writer of this article has a better record of making the hiring decision remotely, over the phone, than in person. In-person interviews increase the potential for factors like appearance, mannerisms, and body language to impact the hiring decision.
Remember, the best candidate for your open position is probably a relocation candidate. It is also very possible that he/she is willing to pay for relocation if you make a good salary offer. Keep your options open and be willing to give your candidate options when you make an offer. These techniques will yield better new hires.