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As search consultants, we are often asked about the
need to go outside the local marketplace to source
the critical talent our clients engage us to
recruit. In fact, search firms are as concerned
about the cost and long-term success of a relocated
candidate as their clients.
Most quality executive search firms have a guarantee
on their candidate placements ranging from six
months to a year, so the idea of placing the right
candidate in the seat is in the best interest of
everyone. Additionally, Southern California has
become increasing more challenging to recruit
candidates to, based primarily on the high cost of
housing. It is typically necessary for the search
firm to screen 2-3 times as many individuals in
order to find the appropriate number of qualified
candidates that will consider a move to Southern
California.
The Wall Street Journal recently reported on a study
that found relocated employees have an attrition
rate three times greater than those who do not
relocate. The personal distraction of moving and
acclimating a family to new surroundings in addition
to meeting the expectations that go with the new job
puts a great deal of pressure on a new employee.
This reality should be a deterrent to the idea of
reaching into other markets so readily for talent.
The dynamics of transferring or relocating an
existing employee versus relocating a new employee
is quite different. You are asking the new employee
and his/her family to pick up and move for the
“devil they don’t know” as compared to the existing
employee who knows their employer well and
understands the professional and personal risk they
are being asked to take.
Occasionally however, the tight requirements of a
key position on a company’s management team require
a nationwide search. If this is the case, a few
suggestions are:
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Put an emphasis on recruiting from the local
market, comparing any out of area candidates
with the several local candidates that might be
a safer choice.
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A complete corporate relocation package is
important to a new employee and gets things off
on the right track, but avoid structuring the
package to create a phantom signing bonus for
the new employee.
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Don’t forget you are most often relocating an
entire family, not just a key employee. Take
everyone’s personal emotions into account. It is
often times the unhappiness of the family that
prevents the success of the relocated employee.
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Spend the additional time and money up front to
bring the employee and family in town for an
extra trip or two, and get them involved in
community orientations and spousal assistance
programs.
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Avoid the concept of a long-term interim commute
(6-12 months). Whether intentional or not, the
new employee is “trying the job out” before
making the commitment.
For those who do most of their business in
California, you are extremely fortunate. The huge
population base, coupled with the quality of the
labor pool is extremely high. While the desire to
hire the best candidate possible often requires the
need to search outside the local marketplace,
consider the risk, and how to best minimize that
risk when bringing in out of area talent.
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