How Relocation Trends Are Changing the Hiring Landscape

Learn why fewer professionals are relocating for jobs in 2024 and how to adjust your hiring strategy to address this shift and attract top talent.

Nothing in this world is certain except death, taxes, and change. And constant change is happening faster than ever in business today.

There are many drivers of change, including the impact of technology on what different generations value in their careers. Hiring is no different, and several significant trends impact the process. While there's no perfect way to hire talent since every company, role, and candidate is unique, being aware of these trends can help you adapt your approach. One significant shift is the decrease in professionals willing to relocate for a job. What’s behind this change, and how can you adjust your hiring strategy to address it?

The Shift in Relocation Preferences

Relocation has become a major topic in hiring. People now question the costs, the time involved, and how likely they are to move for a new job. Pre-COVID, relocation was much more common. But in 2024, we see a major shift, with more people preferring to stay close to home due to personal ties like family and friends.

The increase in remote work has led to additional resistance to moving for a job. Added to this complexity are geographical relocation trends. Those moving out of state in higher numbers are leaving California, New York, New Jersey, Illinois, and Massachusetts. States benefiting from candidates relocating are Texas, Florida, Arizona, and the Carolinas. Do take into consideration where your company is located as you begin hiring. Even if the state benefits from the migration of people, individuals are still less inclined to relocate than ever before (since the statistics have been tracked). According to fortune.com, only 1.6% of all professionals open to work are open to relocating. With horticulture being such a production- and geographically-focused industry, this number may be a bit higher for our industry. 

Rising Relocation Costs

Inflation has made relocation more expensive. Housing prices, both for renting and owning, have risen dramatically. Interest rates have also spiked, making it financially difficult for many to move.

Picture a young professional who is currently renting, not married, and does not have kids. In this situation, relocation was once achievable for around $2,500-$3,500. According to movingapt.com, the average cost of moving oneself (individually packing, loading, driving, unloading, and unpacking) per 1,225 miles is around $4,500. To achieve a move for this amount, the individual would need to be doing all the work. As a company, you want this individual’s relocation to be completed as efficiently and stress-free as possible so they can hit the ground running in their new position. Allowing the new employee to utilize a full-service moving company may cost up to $8,700 per 1,125 miles. If you factor kids and a significant other into the move, the number could reach as high as $16,650 per 1,125 miles.

Rising Relocation Costs

Inflation has caused both companies and candidates to rethink what career opportunities genuinely make sense for their situation.

Imagine hiring a new President for your medium-sized ($2m-$10m) horticulture company. You offer a competitive salary, even a bit higher than the industry standard. Top-tier candidates share this is their “dream job,” but they are unable to make a move based on them having to trade their current 30-year mortgage at the average rate of 2.68% in 2020 for a new 30-year mortgage rate at the average of 7.05% in 2024. They would take one step forward in their career and two steps backward in their socioeconomic status to make it happen. A recent article from the Wall Street Journal shared that as of June 21^st, the national median existing-home price rose 5.8% in May 2024 from a year earlier to $419,300, a record increase since 1999.  Prices are not adjusted for inflation, and elevated mortgage rates have dramatically limited the number of sales this spring.

Adapting Your Hiring Strategy

Every company and situation is different. Start your search locally with less emphasis on the expertise of your product, customer, or industry and more focus on the right behaviors for success. Thoroughly vet all local talent before beginning to look nationwide. Is there a local candidate who may need some training and development but has the right behaviors for success? Many of these open roles are backfills for highly experienced contributors who have retired or left. You cannot expect the new professional to come in right where the previous individual had left in terms of impact. Having a robust onboarding alongside a training and development plan will help widen the candidate pool. Slowly branching out the geography of the search will keep candidates fresh and ensure you have completely sourced local/regional options. 

If a professional is having trouble selling their home and can only relocate once they find a buyer, it may be worth looking at a virtual onboarding period. This would allow time for a sale and enable the candidate to map out a practical moving agenda while becoming part of the team. 

Including salary and relocation coverage in the Job Description will add transparency and clarity for candidates. This may push candidates open to exploring relocation to pursue your role over others who do not include these metrics. Lightening up on the years of experience needed in the role will further open your candidate pool. Younger professionals usually have fewer hurdles to overcome when moving and are more open to relocation to continue advancing their careers. 

The Horticulture industry has been fortunate in the post-COVID years, and interest in our industry is higher than ever, so it is essential to identify and solve relocation challenges.  Understanding what it takes to relocate someone efficiently and having a standard operating process while doing so will help your company widen the candidate pool and add confidence and transparency during the hiring process.