Job Seekers Don’t Want to Relocate. Here’s What You Can Do About It

Moving for a new job used to be commonplace, but job seekers are increasingly hesitant to pack up and leave their residences for work. Only 1.6% of job seekers relocated for new positions in the first quarter of 2023, down from 3.5% a year ago and nearly 30% in the 80s/early 90s.

With remote and hybrid work options now prevalent in the marketplace, where and how employees work is important. According to iHires’ What Candidates Want: 2023 Job Seeker Report, 54.7% of job seekers would not apply for a job if they considered it too far away or don’t want to relocate/commute to work. That hurdle was the leading deterrent for candidates, 10 percentage points ahead of salary not being specified (44.7%) and twice as much as the company not offering remote work options (27.2%).

With mortgage rates at record highs, mid-sized and suburban cities (and even other countries) incentivizing remote workers to live there, and inflation eating into worker’s paychecks, the prospect of moving to somewhere more expensive than where they are (or spending money on gas for a long commute) is less attractive without companies offering incentives to sweeten their job offer.

If it’s important to your company to have new hires live locally, it needs to offer a relocation package that convinces candidates that moving is worth the effort. Here are some relocation benefits to consider adding that may move the needle (no pun intended):

Relocation Reimbursement

According to moveBuddha’s moving cost calculator, the average local move costs $1,187, and cross-country moves range from $1,000– $14,000+. Prospective hires know these costs and the hassle of moving and are hesitant to put themselves in a financial hole before starting a new job. Assuming your company recruits outside its local area, footing some or all of the bill in the form of reimbursements (or a lump sum dollar figure) are table stakes to convincing someone to relocate to work for you.

Note: It is reasonable to include a payback clause for relocation benefits where the new hire agrees to repay your costs for moving them if they leave your company before a certain period of time elapses.

Flexible Start Date

While a new hire needs to get to the office and down to work at some point, allowing flexibility with the start date builds trust and ensures that your new employee is at their best as they take care of the stressors of a move (waiting for their moving truck to arrive, unpacking, setting up utilities, etc.). Creating a range of start dates can provide an extra buffer to let an employee get settled at no cost to your company.

Temporary Housing

Depending on how quickly you need to fill a position, an outside hire may need more time to find a new place in the area, even with a flexible start date. Whether footing the bill for an extended hotel stay, an Airbnb, or even a pre-furnished apartment for a specified time frame, the gesture allows your employee to get their bearings in a new location and find permanent lodging at their pace without worrying about a roof over their head.

Job Placement Assistance

Recruiting someone to fill a role isn’t just about convincing a new hire to relocate. Often, a move is a group effort, and everyone in the household must be on board. That can be hard if the family is going from two incomes to one while the other searches for a new job. Providing job placement assistance for a trailing spouse, whether at your company or another in the area, can help alleviate another concern for a new hire.

Relocation Time Away

Similar to a flexible start date, some companies (such as Wells Fargo) offer relocation time away, which is paid time off (PTO) that doesn’t count toward the employee’s overall PTO total. Doing so allows your new employee to become further embedded in their new location and provides ample time for taking care of odds and ends that crop up with a move.

Other relocation benefits that can convince a prospective employee to move to work for your company include:

• Covering closing costs for a new house or helping market the sale of their previous house
• Setting them up with a realtor or apartment tours
• Providing childcare reimbursement during a house search or school transfer

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Whatever relocation package you offer, you should share those benefits in a well-written job ad to convince out-of-town candidates that your job is worth applying to. For more tips to recruit top job seekers and optimize your candidate experience, visit our resource center.