The Evolving Challenge of Executive Relocation
When our firm opened its doors in 1992, convincing executives to relocate was challenging but achievable. Today, that task has evolved significantly. The fundamental shift began with the erosion of the traditional “cradle-to-grave” employment contract. Gone are the days when high-potential talent would stay with one company for their career and willingly move every few years to climb the corporate ladder.
Today, career advancement no longer necessarily requires geographical moves. Historical data shows a dramatic decline in Americans relocating for work – from 40+% in the early 1980s, to 15+% prior to the 2008 Great Recession, to a post-pandemic average of well below 5%.
Multiple factors make relocation more challenging now. The costs of relocation packages have skyrocketed. The housing market also presents challenges, with many executives reluctant to give up favorable mortgage rates – in fact, this situation is so common, it’s earned the nickname “golden handcuffs.” Beyond financial considerations, quality of life also has emerged as a decisive factor. Once executives have settled into a comfortable lifestyle in a particular city – including quality schools, proximity to family, and opportunities for spouses – they become deeply resistant to uprooting. Also, many senior executives are frequently traveling anyway. Being constantly connected, even at 30,000 feet, has made living near headquarters far less critical than it was at one time.
CEOs often cite engagement and collaboration as primary reasons for wanting executives on-site. Yet, the evidence doesn’t necessarily support requiring a five-day office presence. Instead, some companies are finding creative ways to balance in-person interaction with flexibility.
Many organizations also are investing heavily in internal talent development to reduce external hiring needs. Some are embracing hybrid models with fewer office appearances, while others allow flexible commuting arrangements from nearby cities. We’re even seeing “happy medium” solutions. For example, rather than requiring a move from New York to Los Angeles, companies might accept relocation to Denver or Dallas while allowing work-from-home arrangements.
To improve the odds of a successful relocation, there are a few key aspects to consider. Investing significant time upfront qualifying candidates’ genuine willingness to move, probing beyond the initial “yes” to understanding family circumstances, such as a spouse’s career, and community ties can be invaluable. This has become increasingly critical with the rise of dual-career households, which has fundamentally changed the relocation equation.
Conducting extensive due diligence around a candidate’s relocation history and current family circumstances, including detailed discussions about schooling, dual careers, and extended family obligations is beneficial. In addition, working to customize relocation packages early in the process to address potential deal-breakers before they arise can be a difference-maker in the end.
For candidates requiring relocation, success often hinges on several key factors. First, the internal recruiting process should be streamlined to prevent losing candidates to competing opportunities. Second, the hiring manager needs to be deeply engaged, making themself available for multiple conversations and demonstrating genuine interest in the candidate’s family situation. Third, communication must be comprehensive and transparent, particularly regarding advancement opportunities and long-term expectations. Fourth, family involvement should begin early, including sponsored visits and introductions to local schools and community resources. Finally, relocation packages must be both generous and flexible, addressing each family’s unique circumstances.
Looking ahead, relocation will remain a significant challenge in executive search, but success is possible through a combination of careful planning, thoughtful candidate selection, and unwavering support throughout the process. The key lies in recognizing that we’re not just moving an executive – we’re relocating an entire family, along with all their hopes, dreams and aspirations.
