New Recruiting Dilemma–Tip of the Week

Layoffs are dominating the news, not a demand for new workers.  But, let’s face it, as bad as things are right now, there are open positions — some of them good ones.  Thus, recruiters aren’t completely out of business, and all employers have a need to fill certain jobs.

The sub-prime mortgage debacle, the housing crisis, or whatever you want to call it presents a new impediment to redeploying human resources, aka employees. Homeowners who have negative equity in their homes (mortgage exceeds resale value) are 50% less likely to move than those who can afford to pay off their mortgages by selling their homes. Bottom line?  Millions — yes, millions — of employees may have unexpectedly become long-term residents of where they live now. A great job opportunity isn’t so great if you can’t sell your house.

According to a new study by economists, every two years, about 12% of homeowners move, usually to change jobs. For those having negative equity in their homes, that percentage is cut in half.

Right now, a lot of people are slipping into default and foreclosure (91,000 in August alone) and are having to move whether they want to or not. That’s hardly better, however, than forcing them to stay where they are. Employees uprooted by foreclosure may be compelled to leave jobs they like to find a new place to live, which may not have favorable employment opportunities. The Catch 22 dilemma.

Many employers aren’t in the best position these days to help new employees with these kinds of problems. When a business is booming, there’s a willingness sometimes to help an employee with housing — buying or selling. With today’s anti-boom, that’s hard for most employers to swallow.

But don’t cut off your nose to spite your face. Unless you believe we’re doomed forever, you might want to bite the bullet and help your employees or prospective employees with their housing problems when they’re offered a transfer or new job. Chances are you’ll pick off some good people. And they’ll be loyal to such a wonderful employer, working hard to “repay” the company that made it possible for them to get out of what feels like debtors prison.