Companies offering guaranteed buyouts in their relocation policy are finding that their transferees are not too happy. Is it for good reason? Yes…and no. The economy has stabilized, but the housing market still has a long way to go before there is a sustainable rebound. This can be confusing – and incredibly frustrating for employees who approach their relocation with optimism, only to learn through the appraisal process that the price of their home has sunk way below their expectations. While the appraiser, the relocation company and/or HR is not responsible for macro-economic influences, all groups should be prepared to answer tough questions about appraisals without becoming defensive. Here are the top four appraisal issues that HR should understand as we continue to manage the housing slump:
We are officially half way through 2011. Where’s the economic turnaround that we were all hoping for? Apparently, it’s hiding. Recent news reports of stalled foreclosures, sinking home prices and cluttered markets are enough to make even this Pollyanna feel glum. Earlier in the year, economists predicted that the housing market would weigh down an economic rebound – and they were right. We can expect to see more underwater mortgages, foreclosures and loss on sale for years to come. Consequently, more homeowners will opt to rent out their homes. As this is not a decision to be made lightly, we’ve outlined considerations for renting out a home in the whitepaper linked below.
I think we can all agree that we are facing significant talent management challenges when it comes to Millennials. They are different, but can you blame them? Throughout the past few decades, the world has experienced major cultural shifts including dual-family incomes, incredible technological advances and a 24/7 marketing and news cycle that has changed the way society approaches both work and play. Having grown up in the midst of all this activity, younger employees are not only used to having information at their fingertips, but they also expect to have a choice in just about everything – more so then older generations had when they came of age and entered the workforce. Relocation is certainly no different and it’s important that we prepare for and address this change, rather than resist the shift.