Proximity to the place of employment has always been a key decision factor in accepting an offer of employment. In simpler times this usually meant going to work in a relatively nearby company with a family-like environment. Even branch offices of large corporations were cozier because the lines of communication were too long to exercise long distance command and control. Does this sound like ancient history? According to the World Bank the latest wave of globalization began around 1980 with countries developing a more liberal approach to trade in order to attract foreign capital. It will be a topic for scholars to decide if the need for globalization forced technological advancements or if technology made worldwide commerce a reality.
There are four job seeker needs that will almost always be a part of the discussion about the culture of a job. In an economic downturn it becomes even more complex when a major attraction to some becomes a major distraction for others.
- Relocation – The most challenging proximity issue is when the new hire must change geographical location. This is a major life event and also a classic stress factor. It forces companies to add additional expenditure in a time of scarce resources. Recruiters need to listen carefully in order to know when there is real hardship and it is being used as a bargaining chip. Challenger, Gray & Christmas is an outplacement firm that conducts annual surveys on the percentage of people willing to relocate. The fourth quarter of last year was an all time low with only 7.2% saying that they would move. That was the lowest since CG&C started this survey in 1986. Compare that with the 2012 Atlas Van Lines survey of corporate hiring showing that 87% of those surveyed have beefed up relocation policies and over half of last year’s relocations were new hires. This comes from a need to offset negative equity in mortgages and the reluctance of people to sell even after lengthy unemployment. Expert relocation advice by external move consultants has become an integral part of the recruiting team.
- Commuting – Even when relocation is not a problem there is the issue of getting to that new job while there is no end in sight to rising fuel and transportation costs. Often the preferred “local†candidate may be faced with an unbearable commute by car, bus, or train taking away from the quality time spent at home. In major metropolitan areas many companies are subsidizing mass transit vouchers or covering parking costs in congested areas. Census Bureau reports indicate that the average commute is approximately 30 minutes each way, but about 1.7 million Americans have “extreme†commutes over 90 minutes each way and 2.2 million have “long distance†commutes of about 50 miles. Talking about commuting with a candidate is not something to be left to chance. An in depth discussion of onsite attendance requirements must be part of the discussion with expectations fully explained before agreeing to the hire. One of the most common problems associated with early terminations is discovering out too late that the daily commute is not feasible.
- Telecommuting – The good news about lengthy commutes is that they do not appear to be getting worse due to some pretty creative time management techniques. Flexible hours provide commuters with a larger travel window to avoid peak traffic periods. The four-day-work-week is another tool that has been tried, but many companies cannot shut down that extra day and rotating days-off becomes a problem of management. The Census Bureau also reports an increase in the number of people being allowed to work from home. About 4.2 million persons or about 35% of the workforce joined the ranks of telecommuters working from home at least one day per week over the last 10 years. New hires have all heard about some of the recent cases of telecommuting being a benefit on hire and then withdrawn during bad times. They will want an honest assessment of the possibility of this being taken away after it is used as a lure to the hire. The most often failure of telecommuting is that it also requires a new breed of manager that is focused on measured productivity instead of hours worked.
If there is any part of negotiating a hire that needs for the recruiter or manager to think like the candidate this is it. It is must be about mutual needs or it will fail.
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I agree Tom; location is a major factor in the job search and selection process.
In casual conversation with various people who are in a job search, many (not all) have said that relocation is NOT an option for them at this time. Some of the reasons I’ve heard as to why people can’t/won’t relocate are: 1) school-age children; 2) spouse can’t relo due to his/her job; 3) elder-care responsibilities with parents; 4) financial loss on selling house; 5) fear company won’t pay full relo due to seeking non-management position; 6) fear company and/or position will not work out and will need to leave job within 2-yr contract period of paid eligibility with move. Given these legitimate comments, it stands to reason that people will commute longer distances by car, train and bus versus relocation.
It appears that commuting a longer distance is considered the lesser of two evils if we consider the small sampling of individuals I’ve encountered.
Great points, Cyndy.
This whole subject of relocation could be another topic for a series of blog posts. It is still changing as mortgage rates change, housing costs rise, and companies are starting to see that they have to pick up a bigger chunk of the relo costs or lose quality candidates.
I worked at a company that was going through a site closing. Employees loved the company and the culture, but when I offered them either a severance package or a generous relocation package many chose the severance. Ties to the area, to family, and to spouse’s jobs was the key factor to turn down the relo.
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