Economy Impacts Corporate Relocation; New White Paper Offers Best Practices for Reducing...

Economy Impacts Corporate Relocation; New White Paper Offers Best Practices
for Reducing Employee Anxiety and Achieving Successful Employee Mobility

WATERFORD, Wis., Sept. 10 /PRNewswire/ -- Economic factors like unemployment
rates, a weak real estate market and recent changes to mortgage qualification
policy all play a critical role in employee relocation, both for employers and
employees. While budget decisions and employee reluctance have reduced
relocations in the U.S. by more than 40 percent this year compared to 2008(1),
employers who face budget cuts still need talent in the right location. A new
white paper from Runzheimer International (http://runzheimer.com), a workforce
mobility firm, and Vandover (http://vandover.com), the leader in
TalentMobility(TM) solutions, outlines how employer benefits can reduce
relocation stress and help achieve successful employee mobility, even during
challenging times.

"Despite today's economy, workforce mobility remains a necessity," said
Margery Marshall, president, Vandover. "The moves we see today are very
strategic, designed to get the right people to the right places to get a job
done. As reluctance to relocate rises, companies are beginning to recognize
that there is a risk of losing key talent who refuse a move, and that the cost
of a failed relocation can be upwards of a million dollars. Therefore, the
scope of support services required to assist the employee and the family
through the decision to relocate, and through the move itself, is also
increasing."

New Mortgage Guidelines Increase Relocation Challenges
Spousal and family considerations are always a top concern for relocating
employees. But new issues continue to emerge that further complicate the
process, such as recent mortgage guideline changes.

The Federal National Mortgage Association (known as Fannie Mae) recently
reversed a policy permitting mortgage applicants to include the current income
of trailing spouses when qualifying for a loan. Fannie Mae will only consider
the second income of a trailing spouse when he or she has secured and verified
employment in the relocation destination. The U.S. Bureau of Labor Statistics
reports that 57 percent of married couples are dual earners. For employees
that face relocation, eliminating the second income that lenders can consider
in a mortgage decision means some employees will have to qualify on the basis
of one income. This could make a relocation impossible for a family, could
draw out the process (thus increasing the overall cost of the move), or lead
to the best candidate declining the move.

Employer Support Can Ease Mortgage and other Relocation Concerns
As outlined in the white paper, employers can offer additional support and
alleviate mortgage and other concerns by helping employees and their families
examine personal, financial and career considerations to help determine their
ability to accept relocation. Even at the decision-making stage, employees can
begin exploring spousal job market opportunities and income potential, as well
as other family transition concerns related to the new location. An increasing
number of employers are providing data such as accurate cost-of-living
comparison information, tools like rental reimbursement options, and
counseling to help employees understand the overall family and financial
changes between the old and new locations.

"Having key talent in the right location at the right time is even more
critical in today's economic climate," said Greg Harper, president, Runzheimer
International. "Meeting the needs of those employees through employee
relocation services that include highly accurate cost-of-living information
and financial projections supports the employee and addresses a key mobility
need for the business."

The complimentary new white paper from Runzheimer and Vandover titled,
"Overcoming the Employee Fear Factor and Reluctance to Relocate," can be
downloaded at
http://www.runzheimer.com/learning-center/events/mobility-white-papers.aspx.

About Runzheimer International
Founded in 1933, Runzheimer International serves 60 percent of the Fortune 500
and numerous government agencies. Recognized for providing innovative
solutions relating to total employee mobility, Runzheimer is the global leader
in workforce mobility programs including business vehicle, business travel,
corporate aircraft, employee relocation and compensation, and virtual office.
For more information, visit: www.runzheimer.com.

About Vandover
Vandover is the leader in providing complete TalentMobility((TM))( )solutions,
serving employers worldwide as they recruit, retain, relocate, and sometimes
release employees. Services include planning and policy development,
decision-making support and coaching, lifestyle resource assistance,
spouse/partner career assistance, outplacement, and survivor services.
Vandover has been serving the Fortune and Global 500, government entities, and
small to mid-sized organizations for nearly 25 years. For more information,
call 800.822.7345 or go to www.vandover.com.

(1) According to Vandover research, 2009

SOURCE Runzheimer International

Andrea Cousens of ABCommunications, +1-310-270-8903, andreabcousens@yahoo.com,
for Runzheimer; or Lauren Kolbe of KolbeCo, +1-636-379-3895, ext. 12,
lauren@kolbeco.net, for Vandover