They’re here – the newest generation in the workforce. Baby Boomers and Gen X, meet your coworkers from Gen Y. Their needs are simple: a work/life balance and a strong sense of accomplishment and enjoyment in both their professional experiences and home life.

But does the Gen Y worker need to own that home to be satisfied, or are they a large contributor to the ever-increasing rental market? As industry professionals are aware, relocations involving rentals and long-term temporary assignments are on the rise. This year, more than half of the employees permanently relocating within The Americas, and more than 95 percent of temporary assignments, will involve rental units.

To gain a better understanding of Gen Y’s relocation issues, we spoke with Jon Hile, Vice President of Rental Relocation Services at CORT, to gain his insight into the emerging rental relocation market.

What do you see as the driving forces behind the increased demand for rental relocation services?

“Traditionally, relocating employees were homebuyers. Today, we know that more than half of relocating employees are renters. This change is due to a number of factors, including instability in the housing market, new and more restrictive lending practices, and an increasingly mobile lifestyle driven by a younger workforce. In the face of a tightening economy, many companies are turning to long-term temporary assignments rather than relocating employees. Others are finding that their current homeowners are becoming renters in their new location rather than taking a significant loss by selling a house during the current housing downturn. These forces are all working to drive demand for relocation services tailored to the specific needs of renters.”

What are the unique needs of Gen Y employees that employers must address?

“Gen Y employees are the fastest growing segment of the workforce. For employers to successfully recruit and retain these young professionals, they must address the employee’s unique perspectives on career, work/life balance, and finances. Fully familiar with today’s communication technology tools and juggling packed schedules from a young age, Gen Y professionals have been groomed to be high performers.”
“Unfortunately for human resources professionals, experts also characterize this group as particularly high-maintenance. Today’s young professionals are much more likely to change careers or switch jobs if they believe that their expectations aren’t being met. Few experiences can be more disappointing than a stressful, unsupported move to a new city. Most Gen Y employees will be renters, yet most relocation services are tailored for homebuyers, setting the stage for an employee to begin a job in a new location dissatisfied with their experience. For a company investing tens of thousands of dollars in relocating an employee, it is important to work together to ensure a positive experience.”

Do you have any tips for Gen Y employees who have received a lump sum relocation payment from their new employer?

“A majority of companies offer a lump sum payment to relocating employees. For Gen Y professionals, this may be their first job or relocation, and it is often difficult to plan for all the expenses associated with such a move. A young new hire might, for instance, rely too heavily on Internet searches to determine which housing option offers the optimal commute to work. Without having an opportunity to visit those locations, however, they might miss the fact that the main artery to the work location will be under construction for the next three years. This is why it is essential to visit the city before making any decisions about housing.”

“When planning to spend a lump sum payment, employees need to consider all of the expenses associated with moving. There will be deposits for an apartment and utilities, movers if they choose to use them, furniture, and other household items. Employees may have to purchase a parking pass, a new license plate, or a driver’s license. They may have to arrange for temporary housing until they are able to move into their apartment. While it is tempting to buy a 50-inch plasma television, they should first be sure that they are able to cover all of the expenses of moving.”

What are important services for relocating renters to consider?

“A local tour is often the most important step for a renter. A tour with a local area expert can help determine the ideal location in which to live, based on each employee’s personal or family situation. Employees want a location that provides a manageable commute to work and is conveniently located near schools, shopping, recreation, and other amenities. For example, young professionals may prefer a lively urban environment where they can walk to many of their destinations. In a new, unfamiliar city, help in making these choices can be critical to employee job satisfaction and can eliminate distractions that might hamper job performance. Many corporations are providing this tour option under a modified lump sum arrangement.”

“Local market knowledge, including awareness of available rental units, move-in specials, and market-specific rental practices, is critical in many locations where occupancy rates may exceed 95 percent. Other services that can ensure a smooth transition for Generation Y new hires may include arranging for utilities hookup, guidance in obtaining renter’s insurance, and even recommendations for temporary lodging. These services are available through useful sites, such as www.ApartmentSearch.com, at no cost to renters.”

About CORT
CORT’s rental relocation services include hotels, apartments, corporate housing, single-family home rentals, destination touring services, utility services, renter’s insurance, car rental, job search assistance for spouses, and much more.
CORT has access to more than 70,000 hotel and extended stay units and more than 15,000 corporate housing units. The company also has access to more than 3.8 million apartments across the nation through its www.ApartmentSearch.com service, the nation’s most comprehensive online apartment search Web site.

CORT (www.cort.com) is a Berkshire Hathaway company and the nation’s leading furniture provider in the “rent-to-rent” industry for more than 35 years. In addition, CORT has an expanding global presence with furniture rental affiliates in more than 50 countries and the recently established Roomservice by CORT in the United Kingdom.