Realty Times June 19, 1998

The Relocation Industry's on the Go ... Can Agents Keep Up?
by Courtney Ronan

In an earlier story, "Are You Really a Relocation Specialist?", we revealed that while the term "Relocation Specialist" is a self-appointed one lacking quantifiable measures, one organization, the Employee Relocation Council (ERC), is formally recognizing through its own program individuals who have mastered knowledge of the principles and practices of relocation. The council's Certified Relocation Professional (CRP) designation signifies that relocation service providers have gone the extra mile, pursuing a track that endorses a universal understanding of the entire employee relocation spectrum. Candidates must meet various eligibility requirements that demonstrate that they hold a minimum two years of relocation-related work experience, and they must pass a comprehensive examination, as well.

The education process doesn't stop upon designation, however. Designees must continue to prove themselves by meeting a series of membership and continuing education requirements in order to maintain the rights to the CRP designation.

And continuing education requirements make sense when you consider that transferees constitute an increasing percentage of our nation's home buyers and sellers. According to recent ERC figures, domestically, companies relocate an average of 225 current employees and 74 new hires annually. Average costs to relocate employees are as follows: $35,382 for home-owning new hires; $9,280 for renting new hires; $45,373 for home-owning transferees; and $12,962 for renting transferees.

Several factors currently are affecting the relocation industry, including:

Corporate changes. Who among us hasn't been downsized or at least knows someone who's been downsized? Companies are changing so quickly -- either merging or shrinking in an effort to cut costs -- that the "management shuffle" is common practice these days. And whether you're in the top ranks or somewhere underneath, you're going to feel the changes. Downsizing, reorganizations, mergers, and acquisitions have prompted companies to more closely examine their relocation programs to control costs while maintaining employee mobility.

Work and family issues. Dual-income and partner assistance, and family attitudes toward the move greatly affect the relocation experience.

Technology. While many of us mourn the loss of more personal business interaction, the evolution of technology has bought freedom for employees, yielding more flexible job opportunities and schedules, and allowing relocation professionals to enhance the accuracy and speed of relocation transactions.

Outsourcing. Facilitated by technology, outsourcing reduces staff head count in a company, while providing for the maintenance of current services.

International issues. As barriers to international trade have diminished, and business opportunities subsequently have increased, our population is becoming more mobile. Yet the current economic crisis in Asia has affected U.S. companies with operations in the Pacific Rim. As a result, many of those companies will be forced to cut costs. In the April issue of Mobility magazine, KPMG tax partner Jeffrey Stein predicts that expatriate programs throughout Asia may soon be streamlined, and companies may be tempted to take advantage of the local labor pool, a much cheaper alternative. And since Asian unemployment rates have increased lately, heightening the competition for jobs, U.S. companies with expatriate programs are facing a degree of resentment from the local work force. This sector of the relocation industry may find itself shrinking soon. And likewise, the number of Asians who travel to the United States on business assignments may soon decrease because expatriate programs cost too much when companies are looking to cut corners.

Source: Employee Relocation Council

Regardless of the Asian economic crisis, however, relocation on the domestic front remains at an all-time high. So where is everyone headed? Georgia. According to Allied Van Lines' 30th annual magnet state report, more Americans moved to the "peach state" in 1997 than to any other state in the country. Nevada, the most popular relocation destination of 1996, came in a close second by a mere fraction of a percent.

And from where is everyone moving? North Dakota was the "most-abandoned" state in '97 for the second year in a row. (Could it be the cold weather?) New York (despite its decreasing crime rates, New York City was the most-left destination in 1994 and 1995) came in second. While the exodus from California is decreasing, the state maintains a number-one position in terms of the mobility of its population outbound migration, with a total of 25,862 migrations in 1997. Florida, Texas, Illinois, New York, Virginia, Pennsylvania, Washington, Georgia, and Ohio also are among the nation's most mobile states.

As technology continues to make it feasible for employees to move just about anywhere -- and for employers to expand their operations and move their employees to new destinations -- Realtors are standing in front of a gold mine: an untapped market of transferees who will search for the agents who address their unique concerns. Then, the all-too familiar phenomenon will ensue: As more agents jump on the bandwagon and identify themselves as relocation experts and/or specialists, consumers will begin seeking out those who put their money where their mouths are -- agents who take courses and keep current with an industry changing almost as quickly as technology itself.

For more helpful information concerning relocation:

*"Kids and Moving: How to Reduce the Trauma of Relocating," a report published by the Gooder Group, helps agents anticipate the concerns and meet the needs of relocating families. For your own copy, contact Daniel Gooder Richard at (703) 698-7750.

*Moving to an unfamiliar destination and want to do a little research of your own? Check out the second edition of the "Moving and Relocation Sourcebook and Directory," a guide containing important contact information and demographic data for 100 major U.S. cities. Contact Paul Rogers at (800) 234-1340 for more information.



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