Susan Schneider’s Blog

Trend or Condition?

Many companies are completing what I refer to as their “annual” program check-up. This includes analyzing data from last year, reviewing processes and programs, as well as revising policies. There are many factors, including the “infamous” bailout, as well as a decline in real estate prices and unemployment, which can create a strong case for making substantial changes. I think it is important to look at both long and short-term strategies.

It is good to ask yourself why you are considering changes. In order to do this, we need to look at whether the solution is based on Trend or Condition. A trend is something that happens gradually, over time – such as an employee’s reluctance to move or the need to require payback agreements. A condition is a situation based on current circumstances – such as declining real estate values or short sales. Trends require long term thinking and solid program changes, conditions require a short term outlook and solutions that are fluid and can be modified in the future.

I can remember, not so long ago when companies were offering Mortgage Interest Differentials in their policies. It made sense when an employee might be faced with an interest spread of several percentage points, but as rates were continuing to fall, they realized they did not have provisions to stop the payouts. So, as you consider making improvements, always ask yourself, what do we do when the economy, the real estate market, or the talent pool changes?

A Job, a Career or a Calling

There a three types of employees, all with varying degrees of engagement.  The first are those who just take a job.  These are your 9 to 5 employees who are showing up for the paycheck, nothing more.  And then there are the employees who are with you for their career.  They see opportunities for growth and success, but ultimately may hit the ceiling and then move on.  Finally, there are those who do what they do because it is their “calling”; they are fulfilling their passions, using their strengths and feel as though they are making a difference. In my opinion, those of us who have been around the relocation industry for any length of time are here because we have a “calling”.

Let’s not forget that next to death and divorce, relocating is the third most stressful event in someone’s life.  And while you may have entered this industry because you needed a job, you have stayed because you care.  My opinion is that if we remind ourselves of this calling, it will help us get through these challenging times.  As difficult as we may think it is, imagine what the relocating employee and their families are feeling.

Our “calling” allows us to focus on our expertise and our desire to offer high levels of service to meet the individual needs of each human.  While my thoughts are a bit “deeper” today than usual, I do think it is important for each of us to get out of the tribulations and remember the bigger picture.  We need to keep our focus outward.

Caution…Possible Delays Expected

For those of you who are avid travelers, you are probably signing off this site and checking your flight itinerary. Fortunately, well maybe unfortunately, that is not what the blog is about today. The delay I am referring to is connected to the proposed Stimulus Plan. As I am sure you have read by now, the Senate recovery plan has an element that offers homeowners a tax credit of 10% of the value (up to $15,000) for the purchase of a new or existing property. This is a significant increase from the $7500 first time homebuyers plan laid out by the House of Representatives.

This all sounds pretty good. In fact, I briefly thought that I should consider selling my house and buying a new one. Then I got back to reality and saw the potential downside of this plan which is all about “timing.” I think it is quite possible that we could see an influx of buyer’s delaying their closings until this plan is finalized. You can see the rationale; there is not a grandfather clause sited in the details. The $15,000 is good for one year after they come to terms. This could easily be a few weeks from now, and hopefully not much longer, unless there are also proposals for reduced interest rates.

This of course, is on the heels of what we have all been experiencing with the many delays created by lack of resources on the lending side. There are just not enough people to get the work done, even when all of the paperwork is clean and you have sound buyers. I am not sure there is a solution to some of these issues except to stay patient and continually monitor the situation. Hopefully this will prepare us for the next transferee call requesting an extension of benefits.

What is a Billion?

I open the news each day, only to read about people throwing around numbers in the “billions” like it was pocket change. When did we get so used to the word billion? And now it looks like we are going to need to add the word “trillion” to our list, other than just trying to embellish a statement. And if I ever have to add a “googol” to my vocabulary, I know that we are in some serious trouble.

I have to be honest, the numbers with issues like the bailout have lost perspective for me. I mean, I can contextually grasp the difference between a hundred dollars and a million dollars. I can even see the relevance between 10 million and a 100 million. Beyond this, it begins to feel like a lottery winner. If you drive by McDonald’s you will see their sign now says over a billion served. The number has gotten so large, even they have stopped counting. It makes me wonder if I will see the day that it says over a trillion served.

I guess my point is that it is no wonder the every day working human is struggling grasping the enormity of this bailout. At some point, you begin to become numb, even possibly tune out. When you are talking about numbers in the trillions, you think, well what the heck is a few more billion, we are already in deep as it is. I can remember as a child, asking the question, “Why don’t they just print some more money, if they need it”? And here I am several decades later wishing that someone could find an answer just so easy.