WATERFORD, Wis., Sept. 10 /PRNewswire/ -- Economic factors like unemployment rates, a weak real estate market and recent changes to mortgage qualification policy all play a critical role in employee relocation, both for employers and employees. While budget decisions and employee reluctance have reduced relocations in the U.S. by more than 40 percent this year compared to 2008(1), employers who face budget cuts still need talent in the right location. A new white paper from Runzheimer International (http://runzheimer.com), a workforce mobility firm, and Vandover (http://vandover.com), the leader in TalentMobility(TM) solutions, outlines how employer benefits can reduce relocation stress and help achieve successful employee mobility, even during challenging times.

"Despite today's economy, workforce mobility remains a necessity," said Margery Marshall, president, Vandover. "The moves we see today are very strategic, designed to get the right people to the right places to get a job done. As reluctance to relocate rises, companies are beginning to recognize that there is a risk of losing key talent who refuse a move, and that the cost of a failed relocation can be upwards of a million dollars. Therefore, the scope of support services required to assist the employee and the family through the decision to relocate, and through the move itself, is also increasing."

New Mortgage Guidelines Increase Relocation Challenges

Spousal and family considerations are always a top concern for relocating employees. But new issues continue to emerge that further complicate the process, such as recent mortgage guideline changes.

The Federal National Mortgage Association (known as Fannie Mae) recently reversed a policy permitting mortgage applicants to include the current income of trailing spouses when qualifying for a loan. Fannie Mae will only consider the second income of a trailing spouse when he or she has secured and verified employment in the relocation destination. The U.S. Bureau of Labor Statistics reports that 57 percent of married couples are dual earners. For employees that face relocation, eliminating the second income that lenders can consider in a mortgage decision means some employees will have to qualify on the basis of one income. This could make a relocation impossible for a family, could draw out the process (thus increasing the overall cost of the move), or lead to the best candidate declining the move.

Employer Support Can Ease Mortgage and other Relocation Concerns

As outlined in the white paper, employers can offer additional support and alleviate mortgage and other concerns by helping employees and their families examine personal, financial and career considerations to help determine their ability to accept relocation. Even at the decision-making stage, employees can begin exploring spousal job market opportunities and income potential, as well as other family transition concerns related to the new location. An increasing number of employers are providing data such as accurate cost-of-living comparison information, tools like rental reimbursement options, and counseling to help employees understand the overall family and financial changes between the old and new locations.

"Having key talent in the right location at the right time is even more critical in today's economic climate," said Greg Harper, president, Runzheimer International. "Meeting the needs of those employees through employee relocation services that include highly accurate cost-of-living information and financial projections supports the employee and addresses a key mobility need for the business."

The complimentary new white paper from Runzheimer and Vandover titled, "Overcoming the Employee Fear Factor and Reluctance to Relocate," can be downloaded at http://www.runzheimer.com/learning-center/events/mobility-white-papers.aspx.

About Runzheimer International

Founded in 1933, Runzheimer International serves 60 percent of the Fortune 500 and numerous government agencies. Recognized for providing innovative solutions relating to total employee mobility, Runzheimer is the global leader in workforce mobility programs including business vehicle, business travel, corporate aircraft, employee relocation and compensation, and virtual office. For more information, visit: www.runzheimer.com.

About Vandover

Vandover is the leader in providing complete TalentMobility((TM))( )solutions, serving employers worldwide as they recruit, retain, relocate, and sometimes release employees. Services include planning and policy development, decision-making support and coaching, lifestyle resource assistance, spouse/partner career assistance, outplacement, and survivor services. Vandover has been serving the Fortune and Global 500, government entities, and small to mid-sized organizations for nearly 25 years. For more information, call 800.822.7345 or go to www.vandover.com.

(1) According to Vandover research, 2009

SOURCE Runzheimer International