High interest rates and high home prices go hand-in-hand when relocating for a job, but we have the inside scoop on how it impacts the actual candidate. Keep reading to find out more!
Convincing top community healthcare executives to relocate is always a challenge. We often use relocation as a negotiation tool for top FQHC administrative executives, doctors, dentists, and more. In 2019, 62% of workers relocated for a job. But in an era of remote work, are our employees still considering relocation? A 2022 Upwork survey says 19 million Americans are planning on relocating next year because they can work anywhere.
The survey doesn’t show how higher-than-normal interest rates and peak home prices (as well as mortgage interest rates) affect relocation trends. We have the answers your hiring teams need to stay on top of these challenging market trends.
How the Economy Affects Worker Relocation
Bloomberg says workers are staying put these days. Increased prices on everything from food and gas to mortgage interest rates have created concerns for even the most previously mobile workforce. Predictions suggest the interest rates may even increase again in 2023. This will force many homeowners to adopt a wait-and-see approach when it comes to relocating their families.
These economic factors will force most companies to shift their relocation policies to continue to entice candidates. One way to counteract higher loan rates is to add a Mortgage Interest Differential Allowance (MIDA) to a relocation package. This was a technique used in the 80s and 90s where businesses offered to pay the difference between the candidate’s original mortgage rate and the new rate. This difference can be paid to the mortgage holder or simply offered as a hiring bonus or subsidy.
Still other businesses will increase the volume of remote workers to offset the need for relocation.
What Can You Do to Counteract These Trends?
The first step toward counteracting high mortgage rates fueled by inflation, is following advice from the Society of Human Resource Marketing (SHRM) which says, “For employers, high inflation puts upward pressure on wages and salaries. To hold on to workers, many employers are resetting their pay strategies and increasing their salary budgets.”
That may be easy for SHRM to suggest, but the challenge of stretching salary budgets has always been a challenge in the non-profit FQHC universe. These organizations must fall back on their top negotiating skills along with a strong employer brand to attract candidates. In this challenging market, some of the usual benefits of relocation to work in community healthcare still apply:
- For candidates still struggling with loan payments, there is the significant benefit of debt forgiveness or even clinic reimbursement.
- Community healthcare is an attractive, mission-driven business for those weary of traditional for and non-profit settings.
- Many community healthcare organizations exist in rural communities with lower crime, outdoor activities, and a less harried lifestyle.
- Work/life balance has always been a benefit of employment at an FQHC.
Even during a down economy, where interest rates are much higher for homeowners, the idea that their existing home will sell at a higher rate due to the housing shortage could be an attractive incentive. Given that the cost of living is typically lower in rural communities supporting an FQHC, the budget numbers may just work out in your favor.
Candidate negotiations are challenging. The best advice we can offer is to develop a partnership with UHC Solutions. We’ve been negotiating relocation with FQHC talent for decades and understand how market fluctuations can make a candidate gun-shy for a move. Our team also understands the market variances by geographics, having worked in the FQHC staffing space with a variety of clients. If you are worried about how inflation and high housing rates are affecting your hiring goals contact us. We can help.