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    Relocation Recycled

    February 21st, 2012 by Promisor Relocation

    Last week I attended our local ERC association meeting. It was great to see industry friends that I have known for almost 20 years, as well as meet and greet new faces.

     

    After having attended last week’s meeting, one of my friends who has served in various industry roles for over 20 years (in both corporate and service segments) commented that the creative solutions to current relocation challenges are just old ideas renamed.  I had to agree – even the relocation industry is recycling these days!

     

    While flexible style policies and mandated home marketing parameters may sound new and fresh to some folks in our business, those of us that have been around awhile recognize these ideas from the past. You may remember cafeteria-style policies that offered a choice of benefits with a capped amount. They are now being re-marketed as “flex” and “core” benefits . . . with a twist.

     

    In the early 1980s, mortgage interest rates brushed the stratospheric highs of 19 percent, forcing relocation management companies (RMCs) to get very creative when selling homes. (The story is often told of the new Cadillac in the garage that came with the house). In the early 1990s, home marketing companies popped up with a new idea: “pre-” marketing programs designed to sell the home rather than assume a guaranteed buy-out. This unleashed a whole new perspective on relocation cost management.

     

    Then came the early 2000s when the market was booming and every home sold at a profit. The focus on analytical and comprehensive home marketing programs shifted to RMC service fees. And we now know how the collapses of the real estate and financial markets have impacted our industry.

     

    When it comes to talking about relocation, I’m glad these “new” ideas don’t seem new to me or to the seasoned industry veterans. We know what deserves recycling!

    
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