What do you think about relocation?

by Jon Shelton
(Boston, MA)

I have a phone interview lined up with a company located in the Texas, but I'm not sure if I want to move. How risky is relocation in this economy?

Being open to relocation is often a requirement if career advancement is your goal. In this economy, however, it has become increasinly difficult to talk to candidates about relocation.

Most people have two primary concerns.

First, the housing market. You need to think about whether you can sell your house within a reasonable time frame, and understand what the economy has done to housing prices in your area. If you are living in a part of the country where the housing market is still fairly strong (and yes, there are places where homes are still selling!), this will be less of an issue.

You need to do the math to calculate whether you will have a gain or loss on the sale of your home and any associated carrying costs, for example, the cost of two mortgages (your current home and the home you'll purchase when you relocate). More on this in a minute.

The other question that is much more subjective is whether you are better off being a known commodity in your current company, where you understand the stability of your current position, vs. going to a new organization, where you'll be last in (and potentially first out), and despite your best due diligence, might not know the true story around stability until you're on board.


Is the package you're being offered strong enough to overcome these concerns and any financial loss on the sale of your current property?

When you evaluate your offer, consider the following elements in your relocation package:

1. Will the company buy your current home?


2. Will the company provide bridge financing to cover timing differences between the purchase of a new home and the sale of your old home?


3. Temporary housing allowance. Understand how long you have to find a new home, and whether incidental living expenses - e.g. car rental - will be covered.


4. How many house hunting trips will the company pay for?


5. How often can you travel between the old and new location, especially if your family does not move at the same time?


6. How are moving costs handled?

If the financial package is strong enough and you are not overly concerned about selling your existing property, then relocation, even in a down economy, is likely worth the risk.

Think about negotiating a severance package up front to build in some protection for yourself, or an employment contract to guarantee your salary for some period of time.

If disaster strikes, you don't want to be limited to a "years of service" severance formula. Be sure to build in some protection for you and your family.

Cindy McGeever