relocation in the digital industry- the candidate

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Relocation in the digital industry: are candidates making the move?

A research study by The Candidate - June 2016

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Executive Summary.


According to the Tech Nation Report 2016:• Therearecurrently1.56mpeopleemployedindigitalandtechrolesintheUK• Thedigitaltechindustryturnedover£161bnbetween2010-2014,growing32%fasterthantherestofthe

economy• ThedigitaltecheconomyintheNorthspecifically,accountsfor283,515jobs

This report looks into the relocation landscape in the digital industry at the moment, to see if morecandidatesarerelocatingasaresultofsectorgrowth.Throughdoingthisresearchwehavefound:

• 75%ofpeoplehaveneverbeenofferedarelocationpackage,yet94%saiditwouldmakemovingforajobmoreappealing

• Unsurprisingly, 88% of respondentswould findmoving to a new locationmore appealing if theywereofferedapromotion

• Movingtoacitytheyhavealwayswantedtoliveinisthebiggestincentiveto41%ofcandidatesrelocatingforajob,whilemovingclosertofriends/family/partnerwasnext(33%)

• 48%ofrespondentswouldbehappytocommutefor40minutestoanewjob,withonly3%sayingthattheywouldcommute1.5hours

• Thebiggestbarriertorelocationfor59%ofpeoplewasaffordability,thenextbiggestbeingapartner(49%),followedbyfamily(39%)

• Thesmallestbarriertorelocationwasfear,withjust10%ofpeoplecitingthisasabarriertomovingforajob• Overhalfofthosesurveyedsaidinthenextthreetofiveyearsthebestlocationtoworkindigitalandtech

intheUKwillbeManchester


We are increasingly speaking to clients that are eager to look further afield when bringing talent into their businesses

ThedigitaltechindustryintheNorthWestisundoubtedlybooming.SomuchsothatinrecentmonthswehaveseenbigbusinessesincludingSainsbury’s and Bet365 relocating their tech teams to Manchesterastheyseethepotentialofbeingapartoftheindustryhere.Butourthrivingstart-upscene,teamedwiththelargebusinessesmovingintotheregion,meansthenumberofskilledprofessionalswehaveintheregion isn’t keeping up with the rising, and immediate, demand forrolestobefilled–weneedmorepeople.Andthisisn’tanissuesolelyrestrictedtotheNorth,it’snationwide.

Asaresult,weareincreasinglyspeakingtoclientsthatareeagertolookfurtherafieldwhenbringingtalentintotheirbusinesses.Throughthis,wehavediscoveredmorecandidatesarewillingtomakeamovethanmanypeoplethink.

Theremaybeconcernsthatbringingintalentfromoutsidetheregionswilltrampleontheopportunitiesavailabletograduatescomingoutofouruniversities.Butthetruthis,thereissomuchpotentialgrowth,anever-increasingnumberofrolesemerging,andarealthirstfortalentinthedigitaltechindustrythattheoppositeisinfacttrue–thesectorstillisn’tgettingthequantityoftalentthatitneeds.

As the industry competes for staff, relocation and relocation packageshavebecomeamorecommonoccurrence inthe last fewyears.This isreflectedinthisreport,aswecomparetheresultstoasimilarstudywedidbackin2014,lookingintohowpopularrelocationpackageswerethen.

Brian MatthewsismanagingpartnerofManchesterbaseddigitalmarketingrecruitmentcompany,TheCandidate.


What could a relocation package include to make a role more appealing to a candidate?

The aim of this report, therefore, is to uncover how commonrelocationpackagesarein2016,theperksthatareusuallyincludedaspartofa relocationpackage,andwhata relocationpackagecouldincludetoenticecandidatestomoveforajob.Tofindoutthisinformation,weasked:

1. Howmanypeoplehavebeenofferedarelocationpackageaspartofajobdeal?

2.Whatcouldarelocationpackageincludetomakearolemoreappealingtoacandidate?

3.Wheredocandidatesactuallywanttorelocateto?

4.Whatarethebiggestbarrierstocandidatesrelocatingforajob?

Toanswer thesequestions,wecommissionedastudy tospeakto 500professionals currentlyworking in thedigital tech sectoracrosstheUKabouttheirthoughtsonthetopicofrelocation.Wealsosoughtoutthethoughtsofpeoplethathaverelocatedforajobinthepast,tofindouttheirmotivationsformakingthemove.

Our research produced some interesting findings – we hope you enjoy reading!


Section One: Are candidates being offered relocation packages?


94% OF PEOPLE WOULD WANT A RELOCATION PACKAGE WHEN MOVING FOR A JOB, YET JUST 25% OF PEOPLE HAVE BEEN OFFERED ONE

Aquarterofthepeoplewespoketohavebeenofferedarelocationpackageaspartofa jobdeal.This isupfromwhatwe’veseenpreviously - inour2014studyjust17%ofpeoplehadbeenofferedonewhen theywererequiredtomovetoanewlocationforajob.

However,aswefoundthatnearlyallofthepeoplewespoke to (94%) think a relocation package wouldmakeajoboffermoreappealing,businessescouldbemissingatrickinthequesttorecruitstaffbyofferingpackagestosofew.

Wealsofoundthatthemajority(97%)ofrespondentswouldcommuteforupto60minutestoanewrole,butonly3%wouldcommuteforupto1.5hours.

Asaresult,forbusinessesbasedoutsideofcities,orinalocationthatisn’tclosetoaresidentialarea,perksinrelocationpackagesmaybeimportanttoincentivisecandidatestoconsidertheirjoboffer.

Only 3% of respondents would commute to a new role for up to 1.5 hours

1 in 4 people have been offered a relocation package


Section Two: What perks are candidates looking for, and how does this match up to what they are being offered?


PAID FOR ACCOMMODATION AND TRANSPORT TOP PERKS IN RELOCATION DEALS

As the biggest expense for thosemoving to a newlocation, this will be a welcome perk. Businessesoffering to pay for legal fees to nearly 1 in 5 (19%)respondentsalsodemonstratesthattheyarewillingtogoaboveandbeyondtoensureamoveisassmoothaspossibleforacandidate.

Whenweaskedrespondentsthathadpreviouslybeenoffereda relocationpackage thekindsofperks thatwere includedtoencouragethemtomovetoanewplacetotakeupajob,theresultswerevaried:

It’s not unusual for transport to be paid forwhen abusinessistryingtoenticeacandidatetomoveforanewrole,butitisinterestingtoseethatontopofthisa lotofpeoplearebeingofferedpaid for temporaryaccommodation.

1 in 5 (19%) of people we spoke to have had a business offer to pay their legal fees as part of a relocation package

Perksoffered:

Paidfortemporaryaccommodation:Paidfortransport:Increasedsalaryoffered:Paidleavewhilerelocating:Paidlegalfees:Paidforcar:Boostedsalaryuntilsettled:

Percentageofpeople:

69%

42%

35%

23%

19%

15%

8%

Theseresultsshowhowcreativebusinessescanbewith relocation packages, to ensure candidates arecomfortable and supported when relocating. It isworthnoting,too,thatoverhalf(58%)ofrespondentssaid that theywouldwant up to a 25% increase intheirsalarytorelocateforarole,andahuge38%ofpeoplewouldwantupwardsofthis.

Clearly, financial incentives are something that abusinessthinkingaboutofferingarelocationpackageneedtoconsider.


40% OF PEOPLE WILL RELOCATE FOR A ROLE IF IT’S IN A LOCATION THEY’VE ALWAYS WANTED TO LIVE IN

For businesses, considering a candidate’s locationin termsofbeing family-friendly is important.This iswhererelocationpackagescancomeinuseful.Offeringchildcarevouchersortemporaryaccommodationbigenoughforafamilyoracouple,isonewayofmakingamovemuchsmoother.

For those concerned about leaving friends behind,offeringtopaytransportcostsforthemtovisithomeafewtimesayear issomethingthatcanbeworkedintoapackage,too.

It’s interesting thatwe foundonly8%ofpeoplearemotivatedtomove if thecostof living isbetter thanwheretheyarecurrentlybased.Thiscouldbedowntothefactthattheexpensivecitiesareoftentheonesthatcandidatesaremostlikelytorelocatetoforwork,meaningthattheyarewillingtospendalittlemoretolivethere.

Whenweaskedrespondentsaboutthekindsofthingsthatwouldenticethemtorelocateforajob,movingtoacity theyhavealwayswantedto live incametopofthelist.Formanybusinesses,thisisoutoftheircontrol,unlesstheyarealargecorporatethathastheabilitytoplaceteamsandofficesindifferentpartsofthecountry.

Butforsomecompanies,thesestatisticscouldbeseenas a positive. Some candidates might have alwayswantedtomovetothecountryside,forexample,whichisaplusforbusinessesbasedinarurallocation.

And if thereare reasonsother thanpurely jobsatis-factionmotivatingacandidatetomove,theymightbemore likely tohaveacomfortable transition–whichcouldretaintheminthelong-term.Thesecondmostpopularincentiveforcandidateswasmovingclosertofriends,family,orapartner.

Incentivesformovingforajob:

MovingtoacityI’vealwayswantedtolivein:Movingclosertomyfriends/family/partner:IfmypartnermovedforajobandIfollowed:MovingbacktoacityIpreviouslylivedin:Ifthecostoflivingisbetter:

Percentageofpeople:

40%

33%

10%

9%

8%


CASE STUDY

Rick Lamb LatitudeDigital

Rick Lamb started at Latitude Digital in Warrington in November 2015, having been Vice-President of Search at iProspect in London.

I’mnostrangertorelocating.Aftera10-yearstint inLondonatsomeoftheleadingadvertisingagenciesintheUK,IlookedNorthandmorespecificallytheNorthWesttobeclosertomypartner’sfamily.When I toldmyemployerat the time that Iwanted tomoveupNorth, theyoffereda relocationpackage that indicatedhowmuch theyvaluedme.Theopportunitywasn’trightforme,however.Butwhenapproachingothercompa-nies,thesalarylevelandsecuritythatI’dseeninthepackagegavemeahugeamountofmotivationtomove.Thebuyerpowerwasalsoabigdriverinmydecisiontorelocate,Icouldpurchaseasubstantiallybiggerhouseandmovetoabetterarea–InowcommutefromtheleafysuburbsofCheshire,it’sjustashortcarjourneytoWarrington.Icanseewhyanewcompanywouldofferapackagedealwhentargetingaspecificpersonorskillset–itwouldbeabigincentiveformost.Ioftenseepackagesthatoffer5-10%salaryincreases,soI’mnotatallsurprisedthatthemajorityofpeoplewouldbemotivatedbyarelocationpackagetotakeonanewrole.

Iwouldsaythatbothemployersandcandidatesshouldrememberthatit’snotalwaysaboutsalary,however, therearemanyother factorswhichwillmakepeoplehappyinanewarea,suchasdistancetoschoolsoraccommodation.IhaveseenasignificantincreaseinthenumberofmediaofficescroppingupintheNorthWestandspecificallyManchester–allcreatedtosupportLondonbusinesses.Thebiggestchallengeforthesecompaniesisfindingtheleaders,andseniormanagementstaffbasedintheseregionaloffices,astheseareoftensetupnotjusttobeclosertoexistingclients,butalsototryandbagnewandfreshtalentoutsideofLondon.The level of talent and the work being done outside London is somethingit’seasytoignoreintheagencybubbledownsouth.I’veseenatremendousamount of innovation, and a really positive attitude since joining Latitude.It’shelpingusgo fromstrength tostrengthaswepush intonewareaswithconfidencethatwearedoingworkthatmatchesuptoanyagencyinanycity.I’mconfidenttherewillbeariseinrelocationstotheNorthWest,astheregionbecomesmorepopulatedbyleadingcompanies–it’sinevitablethatpeoplewillfollow.Andrelocationpackageswillobviouslylendahand.


Section Three: Where do digital candidates want to move to?


MANCHESTER CITED AS THE BEST LOCATION TO WORK IN DIGITAL OVER THE NEXT THREE TO FIVE YEARS

It’snosecretthatthetechanddigitalsceneintheUKisprosperous.However,despitegovernment initiativessuchasTechNorthstartingtochangeit,alotofpeoplestillseeTechCityinLondonasthemostprosperoushubforthesector.

Sowedecidedtoaskrespondentswhichcitytheythinkisgoingtobethebest locationtowork indigitaloverthe next three to five years, and over half (54%) saidManchester. The fact that other cities are becomingfamous for techanddigital justshowshowmuch thesector is growing, and how much other regions canmakeanimpact.

BestLocation?

ManchesterLondonLeedsBristol

Birmingham

Percentageofpeople:

54%

37%

5%

3%

1%

54% of respondents say Manchester is going to be the best city to work in over the next three to five years

We’veseenanumberofGovernmentinitiativesappearinthelastfewyearsthataretargetingtheNorth,andpushingtoplaceitonthemapasatechhubintheUK.

This,plusthevolumeofhome-growndigitalandtechstartsupscroppingupallthetime,andbigbusiness-esmovingtheirtechteamstothecity,ispresentingapositive outlook for the future of the sector in ourregion.

Weweren’t surprised, therefore,when thoseworkinginthesectorcitedManchesterasthebestlocationtoworkindigitalandtechoverthenextthreetofiveyears.


CASE STUDY

Jo Parnell MECManchesterJo Parnell is managing partner at media agency MEC Manchester

IhadbeencommutingfromManchestertoLondonforsometime,asmy husband had a job up here, so I was really excited whenI heard about the senior role available at media agency MECManchester.IwantedtobeapartoftheboomingdigitalcommunityintheNorthWest,andjoiningtheUK’sleadingintegratedmarketingagencyseemedlikeagoodwaytogetinthere…Traditionally,officesthatplayacrucialrolewithglobalclientswouldbebaseddowninLondon,butmoreandmoreweareseeingworld-classservicefromtheNorthWest–makingitanexcitingplacetobe.Addtothisthestandardofliving,cityvibe,andqualityofaccommo-dation,thismakesrelocatingattractiveoutsideoftheroleitself.

We are seeing a number of brilliant brands moving up here, andalthoughwehavelotsoftalent,weneedmoretohelpusserviceit.Andlookingoutsideoftheregionisagoodwaytodothat.Salariesherearehealthy,andformeatMECthereisabiginvestmentintailoredbenefitsforstaff–asamumoftwomineareverydifferenttoa20-somethingsingleton,andsotheyshouldbe!TheNorthWesthasalottoofferandamovecanalsobesupplementedwithtailoredperks.TherearenonegativesthatIcanthinkofregardingtherelocationIhavemade,socomeupNorth!


Section Four: What are the biggest barriers to relocation?


BIGGEST BARRIER TO RELOCATION IS AFFORDABILITY

Homeownershipisanothercommonbarriertopeoplerelocating.Whether it’s struggling to sell a propertyinorder tobuyanewone inadifferent location,orworriesaroundtherisinghousepricesinpopularcitiessuchasManchesterandLondon–it’ssomethingthatbusinesseswoulddowelltoconsiderintherecruitmentprocess.

Offering paid for temporary accommodation mightbeoneway to relieve someof the stress, so that acandidate can feel settled in a city ahead of thempurchasingaproperty.

It’s also important for businesses to consider thatmovingacandidateinorderforthemtotakeonaroleis usually moving them away from friends or lovedones.

Asa result, certainperksmightmake this transitionmoremanageable,suchasextraholidayallowanceorflightsandtrainsbacktowheretheyarefromprovidedonceortwiceayear.

When respondents were asked about what mightprevent them from relocating, it uncovered a numberofinterestingfindings.Thetopreasonwasaffordability(59%).Althoughbusinessesofferingrelocationpackageshadconsideredthis,andasaresultofferedtemporaryaccommodation,aninflatedwage,orpaidfortransport–theyneedtostartthinkinglong-term,too.

Many candidates will be concerned about the long-termimplicationsofamoveintermsofaffordability,notjust how theywill get on for the first fewmonths. Tohelpwiththis,businessescouldofferavehicle,orpayapercentageofacandidate’srenteachmonth,inordertoalleviatesomeofthelong-termpressures.

Other top barriers were a partner (49%), family (39%), friends (34%), and home ownership (23%)

49% 39% 23%


So what have we learnt?


Althoughtherehasbeenaclearincreasein relocation packages being offered(8%) sincewe last looked at the topicof back in 2014, businesses could bequickeratadoptingthisincentive.

Inaworldthatismovingmoreandmoreonline, the digital tech industry is onlygoingtogrowevenmore.Initscurrentstate, the talent pipeline isn’t goingtobeable tokeepupwith thiskindofexpansion,whichmeansthatbusinessesneedtostartlookingatotheroptionstoincentivisestafftojointheirbusiness.

BeingbasedinManchester,weseeonadailybasistheincredibleworkcomingoutof thiscity.Beingarecruitmentagency,we also see how the expansion of thedigitaltechsectorisputtingpressureonthesebusinessestorecruitmorequicklythantheyareableto.

It’sbrilliant,therefore,toseethatsomanyofthepeoplewespoketohavechosenManchesteraboveLondon,Birmingham,Bristol,andLeeds,asthebestplacetobefortheindustryinthenextthreetofiveyears.

We hope that businesses take this onboard,andrealisethatcandidateswantto be here. It might just take the rightrelocationpackagetogetthemhere.

Whenweaskedrespondentsabouttheirbiggest barriers to relocating for a job,thefactthataffordability(61%)cameoutontopwasn’tparticularlysurprising.

Considering the costs associated withrentingorpurchasingaproperty,transporttoanew role,and thepriceof living inanewlocation,canallbeoverwhelming– it’sanarea thatbusinessescanreallyhaveapositiveimpact.

Payingtransportcostsandfortemporaryaccommodation(aswefoundthemajorityof relocation packages offer already),canatleasthelpwiththeseconcernsforawhile.Thefollowingbiggestconcernswereallaroundlovedones.

And although an employer can’t solvethese worries, as mentioned, providingtemporary accommodation big enoughforafamilyclosetoschools,orchildcarevouchers,isagoodwaytohelpmakeamovethatbiteasier.

1. 2. 3.Key Takeaways


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relocation in the digital industry- the candidate

Recruiting & HR