5 Ways to Recognize a Toxic Work Culture During an Interview

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Today’s job market has pulled a complete 180 on how we envision the hiring process. Candidates, especially in more specialized fields, have their pick of opportunities - with the focus shifting on applicants and cultural fit, rather than just job openings and necessity. The silver lining to this shrinking talent pool is the sense of accountability for companies to create better work environments for employees, including better benefits and fun perks. However, in-office perks like table tennis and early-out Fridays don’t always make up for bad work environments. In fact, a study by Jobvite found that over 15% of candidates turned down job offers due to perceived toxic company culture. When interviewing, it’s important to consider if a company is the right fit for you by learning about the culture, not just the benefits. During this process, here are 5 ways you can recognize a toxic work culture - and avoid it - before accepting an offer. 

5 Ways to Recognize a Toxic Work Culture Blog Graphic 1

 

1. Ask About Feedback

If you want to give a good interview it’s recommended that you are prepared to ask questions, not just answer them. To get better insight into the company’s leadership, you should ask about how feedback is given within the team. If you are interviewing with management, ask for an example of a time when they approached an employee with feedback and how that feedback was received. Then, critically listen to their response. When joining a new business, no matter your prior experience, there will always be hurdles in learning their preferred processes. You’ll want to make sure that the learning curve isn’t stacked against you, and that the leadership within the company is prepared to help you along the way. Asking this question can help give you an idea of how your potential new employer will either set you up for success, or otherwise. 

 

2. Examine their Core Values 

Every company will have their own set of established core values. The trick here is to look past the catchy taglines and make sure that they are embracing their code. Before your interview, try to look for the company mission statement on their website. Assess it, then bring it up in the interview. They will be impressed by your initiative and, more importantly, you will be setting yourself up for an authentic response. Some interviewers might have their own tactics for selling their company’s culture down to a script. To cut around the sales pitch, ask for more examples. “I read that a core value of your company is perseverance - can you give me an example of how you have displayed that in your own role?” You want to work for a company that is true to their word, and one that supports values that truly align with your own. 

And do your research! If there is bad press about the company that you think misaligns with their core values, ask about it. Don’t come across as attacking, just say, “I read something concerning about your brand online, and rather than believe everything I read on the internet, I decided it’d be better to get the answers from the source. Can we talk about it?” Conversations like those that happen in interviews are the perfect place to voice your concerns, and can help clear the air in a constructive way. 

 

3. Get a Lay of the Land - or the Office 

A person’s definition of toxic can differ depending on their preferred job structure, so it’s important to know your preference before starting the process. If you’re doing an in-person interview, ask to see the work space. Pay attention to how employees are interacting on the floor - are they engaged in their work? Are they collaborating? Are they distracted? Are they tense? Think about the kind of work environment you thrive in - everyone works differently! If you find side conversations with coworkers too distracting, and you see that behavior happening in abundance, maybe consider if this work environment would set you up for success. Or, on the other hand, you could thrive better in a workplace that encourages socialization and teamwork. It’s up to your preference! One person's hindrance could be another’s motivation. 

 

4. Ask an Employee Their Opinion 

Try to take advantage of all opportunities. If you have the chance to speak to someone within the department you are looking to join - better yet, someone in the same role - ask them about their experiences. Discuss what they like about working there, and ask about the team dynamic. With some larger companies, the issues on the ground floor aren’t always known by higher ups, and can cause misalignment in the understanding of the team’s collaboration. As always, if you have a question you should try to get the answers from those closest to the issue. You never know, they might tell you new, exciting information too! 

 

5. Gauge the Pace of the Process 

One of the biggest red flags in the interview process is speed. If you are rushed through from interview to offer, odds are the company could just be looking for a warm body to fill the role. While flattering, speed can signify high turnover and deeper issues within the position. Be wary of processes that feel forced. 

On the flip side, interview processes that drag on for weeks could signify complications in corporate structure. This usually means that there is quite a bit of red tape within the company, and that there may be too many voices at the table concerning things like hiring. Of course, different types of roles can have different types of interview processes. If the role is especially technical, for instance, there might be more rounds to cover knowledge and testing. It’s one thing to be thorough, but know the difference. 

5 Ways to Recognize a Toxic Work Culture Blog Graphic 2

Toxic work environments aren’t a hiring manager’s favorite topic to cover during an interview - but are quickly discovered by those who accept the position without doing their due diligence. Jobvite found that over 32% of new hires who quit within the first 90 days cite company culture as a reason for leaving. Don’t make the mistake of accepting a job offer without diving into company culture first. Listen to your gut, and pay attention to what’s not being said through these preliminary stages to avoid landing yourself in a less than ideal work culture. 

Blue Signal Welcomes 11 New Team Members to Keep Up with Growing Demand

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In order to keep up with growing demand for Blue Signal's recruiting services, we recently welcomed 11 new additions to the Blue Signal staff. With these experienced and diverse extensions of our team, Blue Signal is on track to make more placements in 2020 than ever before. We're excited to introduce the newest members of our staff!

Why Successful People Take Recruiters’ Phone Calls

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Recruiters sometimes have a reputation for reaching out at inconvenient times. It can be tempting just to delete the LinkedIn message or reject the call. But overcoming that natural aversion and taking the call can pay big dividends.

Many companies cannot keep up with the flood of resumes in response to their job postings, and they use recruiters to fill their most critical openings. Many of the top openings are never even posted on job boards. Successful people know that a good recruiter can hold the key to their next great role.

Here are 10 more reasons that successful people take recruiters’ calls:

Successful people are proactive.

There are four professionals that everyone should know before they need them: a doctor, a lawyer, an accountant, and a recruiter. A crisis is not a good time to be looking for one of these people! Take a call when things are good. Candidates who wait until they desperately need to change jobs often find themselves boxed in without many great options.


They get free market intelligence.

Some recruiters are generalists, but most have a specialty focus. Recruiter who hire within a specialized niche are tuned into which parts of the market are growing, and who will be hiring or firing in the near future. A good recruiter relies on industry news to drive their business. They can pass on that industry news to hard-working candidates who might not have time to catch up on the market trends.

 
Take Recruiters Calls - Time InvestmentIt’s a good investment of time.

An investment of 10 minutes can turn into a dream job. Not only that, it can pay big money. Employees get an average pay increase of 8-11% when they change jobs. This is a lot more than the 3-5% annual raises offered by most companies. Young workers see the biggest gains when they change jobs.

Consider the opposite. If proactive candidates are changing jobs and getting those pay increases, there is less money available for the people who stay put. Occasionally changing jobs has become more common

 
Recruiters work for free.

The hiring manager’s company pays the recruiter, so the candidate benefits from a recruiter’s hard work for free. It never hurts to listen. Searching for a job is stressful even in the best of times, but a recruiter does a lot of the difficult leg-work, including getting the attention of the hiring manager, negotiating salary and relocation packages, selling the candidate’s skills, and coordinating all of the logistics.


Passive talent gets the best jobs.

“Passive talent” is a buzzword that has gained popularity in the recruiting world in recent years. Hiring managers have come to understand that top performers almost never need to leave their job, and are more likely to be passive in their job searches. Often, hiring managers are willing to pay more for passive talent. Not only are they willing to pay a fee to a recruiter, they often have higher salaries than advertised job postings.
Many companies cannot keep up with the flood of unqualified applications that come with job postings, so often a recruiter is their best path to top candidates.


They can double-check their career strategy.

Take Recruiters Calls - Career Strategy

Successful people have a set of written goals to map out their career. However, no one has a perfect perspective of the industry. Many employees have no mentor for their careers. A recruiter’s job is to talk to a lot of people, usually at a high level. They can give valuable insight on what is happening in the industry, as well as general workplace trends. Is it too soon to ask for a raise? What technologies are up and coming? Is it better to change jobs for growth, or stay put to avoid job-hopping? A specialized recruiter can answer these questions and more.


Recruiters often know industry salaries better than the hiring managers.

Managers who do a lot of hiring often have a very good idea of the market rates. However, most hiring managers only hire a few people per year, and many have limited information about current salary ranges. Since it is in the recruiter’s best interest to get the candidate the highest possible salary, candidates can learn where their salary falls with regards to the market rate. They can also discuss what salary range to ask for.

While some jobs naturally develop good negotiation skills, like sales, candidates in industries like technology and engineering often do not get as much opportunity to hone their negotiation skills. A recruiter can not only give them salary information, they often do the negotiation on the candidate’s behalf.


They want privacy.

Online job applications require a lot of information—name, current company, and often salary. Working with a recruiter adds a layer of privacy for candidates in small industries. Ask a recruiter on the first call what their confidentiality policy is. Good recruiters work with NDAs and can run protected searches that keep the client and/or candidate names confidential throughout the process. It pays to work with recruiters with strong confidentiality policies and to have a signed confidentiality agreement in place to protect everyone involved.


They know what upgrades they want.

No job is perfect. Top employees know the benefits and shortfalls of their current role, so that if something significantly better comes along, they can quickly evaluate it and act decisively. Every candidate has slightly different priorities: work-life balance, shorter commute, salary, benefits package, company culture, location, or more exciting projects. Candidates who talk to recruiters regularly are more likely to know what they want and to have clearly defined career goals, preparing them to handle any crisis that might come up.

Take Recruiters Calls - Confidential Interview

Not every recruiter’s call will lead to a job change, but that is not the only benefit. Candidates owe it to themselves, their families, and their careers to keep an open mind about potential opportunities. It is a time investment that more than pays for itself.

 

Salespeople: How to Sell Yourself Better in a Sales Interview

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When it comes to interviewing, salespeople have a natural advantage over employees in other departments: they talk to people every day, they are naturally persuasive, and they have a strong internal motivation. That means that any time they interview for a sales position, the competition is stiff.

Not every salesperson is good at pitching themselves, but this is no reason to get tongue-tied. It is not worth leaving it to chance that the hiring manager will notice all shining qualities from the resume. Before an interview, after doing research on the company, salespeople can tweak their mindset to put themselves in the best possible position to sell their skills effectively to a hiring manager.

 

6 Interview Tips for Salespeople:

1. You are a solution, not a product.

Salespeople sell products and services every day, but many of them find it distasteful to think of “selling” themselves to a company like a product. Products get used up and eventually thrown away, and they are static—not a great way to describe a person. Instead, take a page from the modern sales playbook and sell a solution, not a product. In this interview, the employee is the solutions package. Tailor the pitch of the “solution’s” features and capabilities to match with the company’s business needs, and show them why they should expect a good ROI if they make the hire.

This also helps to dampen some of the personal feelings that can creep into interviews. Interviews are stressful, but their purpose is to determine whether or not a candidate is a good fit for the job in question. Analyze the job’s goals and present the solution—you. There are no hard feelings if the job ends up not being a good fit.

This shift in mindset sets the best possible tone for the interview, and puts the interviewee in a position to speak from firsthand experience and practice.

2. Tell a story with a timeline.

Every employee should have a set of career goals and a career timeline (if not, start one now). In the interview, the interviewee should tell a story that shows the hiring manager where they started, what goals they have already reached, and what goals they hope to reach at this new position.

Be honest and be flexible. Anyone who is hiring a salesperson is going to be able to see past a fluff response.

The solutions selling mindset is the starting point. Salespeople who practice consultative solutions selling know that a static, rigid solution will eventually become obsolete and lose its value. People are not finished products; they grow and change. Likewise, a good hiring manager recognizes that to attract the top talent, they will need to provide growth opportunities for their people. Be ready to describe what that looks like.

3. Have numbers ready.

Sales interview tips - sales report numbersMany departments struggle to quantify their ROI. Not sales! Salespeople are fortunate to have easy access to the impact they have had on their company’s bottom line. Most companies publish regular reports showing rankings, quotas, revenue, and other metrics. This is a key advantage because it is direct proof of success.

Start with these numbers:

  • Percent achieved of quota
  • Number of financial quarters of hit/exceeded quota
  • Ranking amongst other salespeople in the company
  • Records hit (e.g. Presidents Club)
  • Revenue generated
  • Marquee clients or biggest contracts signed
  • Travel percentage (local, regional, nationwide, international)

These metrics will not have their full effect when fired out all at once. Use another sales tactic here: incorporate these numbers into a narrative that tells the story of career growth.

After the interview, crunch the numbers the hiring manager provides. Consider the OTE vs. base salary split, any commission caps, the ramp-up time, sales cycle length, and other factors. Avoid negotiating hard during the interview, when the pressure is on.

4. Go above and beyond references.

Hiring managers generally contact references after the second interview, when they are fairly sure they want to make the hire. Don’t wait that long! Get colleagues, managers, and star customers to write endorsements on LinkedIn (this is good practice even for salespeople who are not interviewing, as it gives legitimacy when a prospect looks them up). Verbally quote satisfied customers in the interview. Consider sending a letter of recommendation from a marquee client or a senior management executive.

Coach references before submitting them to the hiring manager. Many people are not sure how to give a good reference over the phone. At a minimum, provide them with the job description, resume, and key facts that the hiring manager needs to hear.

Be sure to adhere to all privacy agreements, both of the current employer, customers, and hiring company. Violating the privacy of a customer or employer is grounds for termination.

5. Sell “brand value.”

When pitching a solution to a prospect, salespeople have to differentiate their solutions package from the competition. Whoever presents the best value to the customer is usually the one who wins the deal. Not all customers are looking for the lowest price, but almost every customer wants good value for their money.

After getting their attention with sales numbers, move to demonstrate personal brand value. Highlight key differentiators such as niche market knowledge, experience, and any unique approaches that fit well with the company’s goals. People outside of sales sometimes see salespeople as interchangeable. Prove them wrong with a demonstration of why this is the best possible investment they can make for this position.

Some companies incorporate a mock sales presentation into their interviews. If so, take full advantage. Do intensive research on the company’s products and solutions. If they have an online trial, spend time getting to know it. Find out their customers and pain points. Prepare a sales presentation and show them unique and exceptional sales skills.

6. Overcome objections

Sales interview tips - how to handle objectionsTop salespeople have to be big-picture and detail-oriented at the same time. When it comes to closing high-profile deals, they need to anticipate a prospect’s objections and overcome them with solid, compelling data. The same rule applies in an interview.

No one is perfect, so find weak spots in job history or skills and have a defense ready. Ask for the objection, and then overcome it enthusiastically. This gives the hiring manager further evidence of how they can expect their customers to be treated if they go through with the hire.

 

While many employees have to learn a totally new set of skills when they go into an interview, salespeople have a tremendous advantage with highly developed interpersonal skills in negotiation, solutions proposals, needs analysis, and overcoming objections.

An interview is a hiring manager’s opportunity to make a decision about an investment in a person. What they need in order to make this decision is evidence that the salesperson can deliver on their promises, uphold the company’s reputation, and close deals. Give them the proof that the person sitting in front of them is the best fit for their job.


Looking for a new sales job? Check out our open positions here.

The 6 Best Executive Search Firm Interviews of 2016

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Competition is fierce for high-performing leaders who can manage the ever-changing market. Since the recession of 2008, the job market has shifted from an employer-driven climate to an employee-driven market, and this is reflected at the top levels of leadership. C-level tenure is dropping, and many industries are crowded with brand-new billion-dollar companies with inexperienced leadership. More unplanned leadership successions occur than ever before.

As the market takes an expanded global outlook, it poses new challenges for hiring at the executive level. These include unprecedented scrutiny from shareholders, pressure to demonstrate ROI growth, increased politicization of the marketplace, and new technology disruptions in industries across the board.

Executive search firms have seen their own disruptions: an increase in networking sites but a drop in quality engagement, changing search algorithms, and the rise of social media recruiting tools. We gathered the six best interviews given by executive search firm professionals this year. They describe how the executive recruiting industry is changing and how to achieve success in the future.

Lou Adler - CEO, The Lou Adler Group

See full interview

Lou contends that the majority of top performers are not looking for a lateral job change. Most employers assume a surplus of top talent. In reality, there is a top talent shortage. “If your company still posts jobs that emphasize must-have skills, experiences and personality traits, you're assuming there's a surplus of talent,” Lou says. Fast and cheap are not goals to have when hiring, especially for companies vying to prevail in the talent war. Lou explains in detail how to shift into a mindset of attracting, hiring, and retaining top candidates.

 

Mark Oppenheimer - Managing Partner of Marlin Hawk Group

Mark foresees more change in the executive search industry in the next few years than the past 10 to 15 years combined. Why? “If you look at search firms, it’s always been very much a reactive mentality to find potential roles in the market,” Oppenheimer says. He advocates seeing the hiring process as a talent ecosystem instead of a set of procedures. Attracting and retaining top talent depends on deep analysis of candidate potential and ability rather than a static list of skills and experience.

 

George Davis - Leader of CEO search at Egon Zehnder

George Davis

See Full Interview

The formal succession plan of many companies does not comprehensively address replacing C-level executives. Further compounding the issue, most boards of directors have experience in their industry, but not specifically in a CEO transition.

Davis points out that stock prices and shareholder confidence suffer when a succession is unplanned. He therefore emphasizes the need for an experienced executive search firm when conducting a C-level transition; he contends that internal candidate retention is a key issue in this kind of search. “In the days of working for one company for decades and receiving a gold watch when you retired, you didn’t have to worry about internal candidates being disappointed and leaving if they were not selected, or not selected fast enough,” he explains. In this era internal candidates who miss out on a position are at a high risk for leaving.

 

Tracy Wolstencraft - CEO of executive search firm Heidrick & Struggles

McKinsey & Company - The Changing Nature of Leadership

See Full Interview

Wolstencraft points to the growing need for authenticity in an increasingly crowded, uncertain, and unpredictable world. Today’s talent enjoys unprecedented access to a potential employer’s information, and top candidates can be infinitely more informed before making job change decisions. What is the best way to resonate with top candidates while maintaining integrity? He advises, “It gets back to communication. You have to strike a balance between being confident and assertive, while helping folks realize, ‘Here are the risk factors.’”

 

Emily Parker Myers - CEO of Myers McRae Executive Search

Emily Parker Myers
See Full Interview

Myers, who specializes in higher education leadership searches, notes that technology has significantly changed the face of recruiting. New tools allow recruiters to make more connections at a higher speed and interview remotely, which previously was very difficult. However, she emphasizes that relationships are the foundation of a good recruiter. “The foundational key to a successful placement is the interaction you have with a prospect and your client,” she says.

While technology makes communication easier and quicker, there is no substitute for developing a good business relationship with clients and candidates—something that internal search teams cannot offer.

 

Keith Mullin - Mullin International

Finally, Keith Mullin of Mullin International collected data for over 30 years on thousands of employees making job changes. He found that networking accounts for the most filled jobs at the senior executive level. While search firms are number two, they are a great option for firms whose networks are immature or who need additional help when bringing on a C-level replacement or making a complex leadership transition. See more of his data here.

Recruiting By Job Level

Image: The rate of success drops sharply for traditional job boards, networking sites, and company websites at the executive level and above. However, recruiters account for a consistent percentage of hires across the board, including the 8-10% of hires at the executive level and above. Only personal networking has a higher success rate.

Data from Mullin International, 2016.

 

How to Improve Your Talent Recruiting Strategy

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Why is a talent recruiting strategy important? No matter the challenges of the economy and the market, hiring managers need to attract top talent to move their business goals forward. Without good people at every level, the company will miss out on its top potential. This isn’t something that can happen overnight, it takes a unified long-term plan.

 

Company Website

Start with the company website. This is the first place most candidates will go to learn about a company. If there is no Careers page, create one. It should be a user-friendly invitation to learn about the company as a whole – not just be a list of job openings. The Careers page should tell a story about all the great reasons to work for the company.

Paint a picture of what the company offers as a total experience: the company history, office culture, value of products, employee testimonials, and the geographical setting. Demonstrate why the company is good to work for through social media, photos, company news, industry awards, company events, and employee testimonials. Talk about what the company offers, not just the openings.

 

Job Ads

Analyze job openings advertised by the company. Is the focus on requirements or on selling the highlights of the job to top candidates? In a candidate-driven market, top talent is likely to pass over job postings full of must-haves and buzzwords. Instead, write job descriptions to highlight challenges, experiences, authority, and advancement opportunities. Attract and sell first, screen second.

Consider passive candidates who are working for the competition right now. What do they want to hear? What opportunities can the company offer them that they are missing out on right now?

Talent Recruiting - job boards

When posting an ad, have a current employee apply for the job through the site and report back if they had any difficulties. Some online forms are long and difficult. Candidates do not want to go through pages and pages of manual data entry when everything is already listed on the resume. Streamline the process as much as possible.

 

Internal Referral Programs

An internal referral program is a low-expense and high-reward talent recruiting source. Internal referrals have the highest percentage of successful hires of any sourcing method.

Firstly, offer an incentive bonus to employees when they refer a candidate. Make sure that the employees know the program exists, and remind them of it often. It shows employees that their contribution is appreciated.

Second, thank employees publicly for referrals. Take time to seriously review referred resumes and follow up with the employee who referred them. While an incentive is important, most employees make referrals because they think someone is genuinely a good fit for the company.

Lastly, keep in touch with exceptional employees who have left the company. They are often a trustworthy source of referrals.

 

Third-Party Recruiters

Recruiters are an effective way to source high-quality candidates, but they need information from the hiring manager in order to succeed. Take time for an in-depth consultation call so they completely understand the requirement. Make sure that they know the top selling points of the job and have a compelling story to present to candidates.

talent recruiting - recruitersTrying to find a good recruiter on a deadline during a crisis is not a good idea. Build a relationship with a recruiter ahead of time. A good recruiter will always be open to potential future job openings, and they will have the benefit of extra time to get to know the company before a job opening comes along. Choose a recruiter who knows the industry well and who has a strong pipeline of candidates that could fill the company’s tough positions.

Track the effectiveness of all talent recruiting channels. Measure the number of hires, the cost per hire, the tenure of the employees hired, and if possible, a cost and revenue analysis. This puts the company in a better place to set appropriate budgets and prioritize methods that work.

 

Need to get your candidate recruiting strategy on track? Contact us at [email protected].

 

How to Structure Employee Relocation Packages

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Employee relocations happen for a number of reasons. A company may be opening an office in a new location, or changing offices as part of an acquisition. However, the most common reason is that a company has hired a new employee in another part of the country.

Relocating an employee is a complex and often high-stress process. The logistics and emotions of the move can be difficult for everyone involved. But with some planning and forethought, the process will go smoothly for everyone.

When interviewing a candidate who would require a relocation package, start the discussion early, and keep it separate from salary negotiations. Many hiring managers combine relocation and compensation into one conversation, but this often leads to conflict and bargaining. No matter what the compensation is, the cost of relocation is different for every situation and should be considered separately. Having a recruiter to act as the middle-man is very helpful, since they can manage discussions on both sides to come to a mutual agreement without tensions running high.

Employee relocation packages

Employee Relocation Decision Factors

 

1. Living situation

The house or apartment is a major consideration in a relocation package. For renters, the process is straightforward. They will need to break their lease and find a comparable apartment in the new area. Homeowners will need to value their house, sell it, and buy a new one, usually all within a short timeframe. It all starts with a comparative market analysis with a realtor. Get MLS data to compare similar homes in the area that have recently sold, and develop a price listing for the home as soon as possible. This will help the house to sell for a fair price.

What to Consider:

  • Lease breakage and security deposit coverage for renters
  • Realtor fees
  • Home selling and home buying services
  • Property management to maintain old home while on the market
  • Hotels and temporary housing
  • Current home equity that may be lost due to housing market difficulties
  • Interim housing
  • Storage for personal property
  • Replacement cost for depreciated items such as old furniture

 

2. Cost of living

A middle-class lifestyle does not look the same everywhere in the country –Manhattan has a very different cost of living compared to suburban Texas. A relocated employee may find that their spending habits have to undergo many adjustments in a new area.

Not only will there be differences in normal expenses such as car insurance and property tax, they may need to revamp their work wardrobe, buy or get rid of a car, or take on unfamiliar expenses. This can work heavily in favor if an employee is moving to a less expensive area, but it is painful for an employee to start a challenging new job and also keep up with big lifestyle changes at home.

Companies can provide a “Why Our City” packet with highlights of the area and helpful tips for settling in. This small gesture can have a huge influence on a new employee and get them excited for their new home.

Employee relocation packages - cost of living

As of 2016, Hawaii, Washington DC, and California had the highest cost of living. Mississippi had the lowest. (Source)


What to Consider:

  • Tax rates (income, property, etc.)
  • Difference in home values between new and old locations
  • Square footage differences, which impact the cost of furnishing and maintaining a home
  • Normal day-to-day expenses, such as car insurance, gas prices, and food
  • Cost of medical care and health insurance
  • Major lifestyle differences (such as keeping a car in an urban area, mass transit costs, wardrobe expectations, etc.)
  • Tax liability from receiving the relocation package

 

3. Family Situation

A relocation usually involves the breadwinner of the family, but most families rely on two incomes. The employee’s spouse will need to make decisions about their employment situation in the new location. Be sure to address with the employee whether other family members would need to secure new employment before accepting the offer. Children are another consideration if they are in school. An employee may choose their housing based on a particular school district or the location of services that their child needs, like athletics, religious organizations, or medical services.

What to Consider:

  • Spouse’s lost income and cost of finding a new job
  • Children’s educational expenses, travel expenses
  • Athletics, programs, religious organizations
  • Additional cost of special or medical needs

 

4. Transportation and moving

Transportation is the final major expense item. This includes more than just the one-way trip to the new location; there is a lot of back and forth during a major move.

What to Consider:

  • Plane flights
  • Square footage of current house to pack
  • Packing, shipping, and unpacking fees
  • House-finding trips
  • Rental cars (or Uber fees)
  • Cost of transporting vehicles (cars, boats, motorcycles, and recreational vehicles)

 

Types of Employee Relocation Packages

How should a company approach a major relocation to keep their new employee happy? There are three major types of relocation reimbursement packages:

Direct Bill or Third-Party

In this type, the company hires and pays the moving company directly. This type of reimbursement is convenient for the company and the employee for big-ticket items, but it makes it difficult to cover smaller expenses and can lead to a lot of back-and-forth.

A similar type is the third party reimbursement, where a company hires a third party to handle all details of the relocation. This is convenient but expensive. It also may lead to conflict with the employee if the relocation company is inflexible or difficult to work with.

Open-ended

Open-ended reimbursement agreements can be problematic, because there are so many small expenses to consider, like professional cleaners, double rent payments, deposits on cable, utilities, property inspections, realtor fees, etc. These small costs add up fast, and can lead to bickering over details and an unending stream of invoices.

Lump Sum (Capped Reimbursement)

A lump sum reimbursement plan is the simplest way to go, especially for relocations that involve a whole family. A lump sum reimbursement takes into account the major big-ticket items, including the cost of movers, housing expenses, hotel stays, and transportation.

employee relocation packages

In all cases, the employee should complete a detailed assessment of what their move will cost. Surprises are often expensive and hard to manage in the middle of a big relocation. It pays to plan as much as possible up front, and stay flexible. One major expense that many employees overlook is tax liability. When an employer gives an employee a large sum of money for relocating, the employee may not realize that the government considers it taxable income. The employer should be clear whether or not they will cover this tax liability, or if it is the employee’s responsibility.

Relocation is an opportunity for growth and positive change for an employee. Roll out the red carpet for new employees to make sure that their first impressions of their new home are positive and exciting. In addition, consider the company’s new employee onboarding strategy to make them feel welcome in their new job.

Find more of Blue Signal’s relocation tools here.

 

Working on an employee relocation within your company? Contact us at [email protected] for a free consultation.