The New Landscape of Relocation Costs in Hiring
Blog, Leadership, Recruiting, Recruitment Process, UncategorizedRelocation Costs in Hiring – Talented employees are essential for providing a high level of patient care and operating an efficient organization. To attract top prospects, it’s vital to offer a competitive compensation package that includes relocation costs. Thanks to rising interest rates, the cost of relocating is higher than it was just a couple of years ago for potential employees.
How Rising Interest Rates Impact Hiring
When employees relocate, they usually have to take on mortgage debt to finance the purchase of a new home.
Mortgage interest rates have nearly doubled over the past couple of years; a 30-year $500,000 mortgage at a 3 percent interest rate has a payment of approximately $2,100 a month, while the same loan with a 6.35 percent interest rate yields a monthly payment of $3,100.
Prospective employees who currently have a home loan with a low-interest rate may be reluctant to relocate for a job if their monthly mortgage expenses will significantly increase. Because relocation costs in hiring are rising it is more difficult to hire the talented individuals you need to run an effective healthcare organization.
Why Relocation Packages Matter
Providing potential hires with a strong relocation package increases your chances of attracting the most talented individuals, even in a climate with rising interest rates. You have a few options for revamping your relocation benefits to increase your hiring efforts.
Consider including the purchase of mortgage points in a relocation package. If your package includes the purchase of up to four mortgage points, you’ll decrease the interest rate on their mortgage by 1 percent. A lower interest rate is extremely appealing to individuals who want to reduce their housing costs while remaining homeowners.
Another option is mortgage assistance. Mortgage assistance allows you to subsidize the cost of their mortgage so they can become acclimated to their housing payment. This benefit might cover 30 percent of their mortgage their first year, 20 percent the second year, and 10 percent the third year.
Investing in more competitive hiring benefits may seem frightening if your hospital is facing financial stress, but upgrading your relocation packages can help you reduce your hiring expenses and retain talented individuals.
Employees who are achieving other goals through their employment, like obtaining affordable housing, are more likely to be satisfied with their jobs. When an employee feels like their employer views them as a person, they’re likely to be happier and more productive in their jobs; they’re also less likely to look for different positions.
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Let us know how we can help you!
The HealthCare Initiative has been leading the way in health care recruitment since 1974.