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Resistance grows to relocating workers

By Staff -- Industrial Distribution, 4/1/1998

Valhalla, N.Y.--Convincing employees to relocate is becoming a major challenge for automakers, aerospace companies and other manufacturers, a new study reveals.

A study by Prudential Relocation, a real estate, relocation and human resources consultant, found that nearly three-quarters of firms in those manufacturing industries are looking for qualified employees to accept positions.

This occurs as more manufacturing companies expect to relocate their headquarters and other offices through the year 2000. The survey, released last month, shows 53 percent of respondents anticipate a continued increase in domestic employee relocation in the next three years. The study included 127 firms with 1.6 million employees, of which nearly 24,000 were transferred in the past year. Nearly one-quarter of those workers come from auto, aerospace and manufacturing centers.

Four out of 10 manufacturers surveyed also said resistance by families to move is a key issue in attracting and retaining top candidates.

"As the number of relocations are expected to increase, top corporate priority is to attract and keep the best employees while offering competitive relocation programs, and keeping costs in control,'' says Richard Schwartz, president of Prudential Relocation.

Topping the list of reasons for resistance is a desire to stay in the present location, reluctance of a spouse, lack of promotion and the higher cost of living in a new place. Nearly half of the companies surveyed say the relocation packages are too costly, while 41 percent believe they are appropriate.

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