CORT News Center

Relocation Policies Changing in Response to Economic Forces

New strategies support increasing number of temporary assignees, renters

FAIRFAX, VA (October 7, 2009) – The housing crisis and rising foreclosures has forced businesses to re-evaluate how they support employee relocation. New strategies are centered on the rise of temporary assignments and rental services, including the decision by many organizations to incorporate "incent-to-rent" benefits as a key component of their relocation policies.

Jon Hile, vice president of rental relocation services for CORT, will moderate the panel "Emerging Best Practices for Renters" at the Worldwide Employee Relocation Council's 2009 Global Workforce Symposium. The panel includes Shannon Sweeney, relocation representative for Bechtel, Kyle Werremeyer, international relocation specialist for General Mills and Cori Beaudet, corporate relocation manager for S.C. Johnson and Son, Inc. During the panel, presenters will discuss incent-to-rent (ITR) policies and other key changes in relocation.

ITR benefits encourage home rental for transferring employees, deferring homeownership benefits until an employee settles at a permanent location or market conditions improve. These benefits, taking into consideration market conditions and the needs of each employee and their family, often are structured to include a monthly stipend and may be offered for single-family home rentals or other types of accommodations.

CORT, a Berkshire Hathaway company and the leading furniture rental company for the past four decades, offers the nation's first and most comprehensive suite of assignment and rental relocation services. By bundling the services, CORT is leveraging its national scope and core strengths in furniture rental, rental housing locating and destination services to empower the world's mobile workforce and support the evolving needs of the relocation industry.

A recent study from Deutsche Bank predicts that if housing prices continue to decline, the percentage of homeowners who owe more than their house is worth might rise to 48 percent of all homeowners, or roughly 25 million loans, by the first quarter of 2011. Even in this difficult environment, relocation remains a key talent management strategy for organizations that must deploy employees precisely when and where they are needed, leading many companies to increase the number of employees deployed on temporary assignments both domestically and internationally.

A recent Cartus survey found that 42 percent of respondents are either already using short-term assignments or are planning to in the near future as a method of deploying and retaining key talent while managing costs. Relocation polices are often designed based on the length of stay in the assignment location.

CORT provides companies with flexible lodging arrangements based on the length of an employee's stay and local market conditions. Making the right choice between extended stay hotels, corporate housing or apartments may save thousands of dollars, depending on the duration of the assignment and specific market conditions. Assignments lasting up to three months will often use corporate apartments. Short-term apartments or rental homes should be considered for stays lasting more than three months, which can substantially reduce costs for a company. CORT can provide cost-effective solutions regardless of the assignment duration.

Assignments lasting six months are often for the employee only, while longer stays may include the option for the family to also relocate. "Few experiences are more stressful for an employee and their family than moving. CORT is the nation's leading provider of local market orientation tours and can play a key role in supporting this transition," said Hile. "CORT's certified touring specialists help introduce employees to a new community and can help them find a place to live that best meet their needs, including a neighborhood that suits their lifestyle and their family if necessary."

In addition, CORT's suite of destination services can simplify the transition, including help with utility connection services, renter's insurance, and furniture and car rentals. Destination services for inbound internationals help address many of the steps necessary for a successful assignment, ranging from assistance obtaining a driver's license or opening a bank account to training on how to use United States appliances.

The length of assignment determines not only who but what will accompany the assignee, and furniture rental is often a strategic solution. Furniture rental provides an alternative to the high cost of shipping furniture to support temporary assignments and helps accelerate the transition into a new home and location. Families can settle into their new homes right away and employees can immediately be more productive in their assignment.

"Emerging relocation strategies including incent-to-rent policies and temporary assignments help companies reduce spend without reducing the benefit to their employees," said Hile. "CORT is proud to deliver solutions that contribute to a cost-effective assignment management program and ensure a more productive workforce."

For the past 40 years, CORT, a Berkshire Hathaway company, has been a leading provider in rental furniture and has provided services to more than 80 percent of the Fortune 500 companies. CORT has expanded services to include the most comprehensive suite of assignment and rental relocation services to help simplify corporate transitions, including its online apartment search service, ApartmentSearch.com, with 4 million apartment listings in more than 19,000 apartment communities. CORT has offices in every major U.S. market and a global furniture rental network of affiliates in more than 50 countries. For more information about CORT, visit www.cort.com.