You want to be able to hire who you want when you need to hire them. But there are a number of external factors that can affect your ability to recruit and secure top talent to your organization. Among those factors is housing prices. While it may seem to be unrelated, cost of living can greatly impact your hiring process.
Here are a 2 ways to tackle fluctuations in the housing market when recruiting and hiring:
On one hand, it may seem like a great thing for housing prices to be on the upswing. It certainly signals an overall healthy economy. However, if your organization is located in an area with an especially high cost of living, you’ll want to evaluate your compensation packages to make sure a new higher is appropriately covered for a move that may involve much higher expenses. For example, the average home cost in Hartford, CT is $53000 higher than that of Akron, OH. Someone moving from the former to the latter is going to require a salary that makes that move a reasonable financial decision for their family.
Unfortunately, you’re not out of the woods when housing prices go down. In a down market, many people find themselves “underwater”, in a house not worth what they owe on it. If a new hire in that situation needs to relocate in order to accept your position, you may need to include in their compensation package some help with selling their house. At the very least, they may require an increase in pay to help offset the loss from the sale.
The bottom line is, if you want to stay ahead in the recruitment game, you’ll also need to stay ahead of housing costs. Don’t wait for a shift to evaluate your compensation packages – keep your eye on the market and be a leader of appropriate compensation in your field.