Executives Are Reluctant to Relocate to Southland

As major corporations pay more to relocate executives, they are finding executives less willing to move to Southern California, a new survey said.

Seventy-three percent of the human resources directors surveyed at more than 100 Southern California corporations in Russell Reynolds Associates’ annual executive recruiting study said it is “somewhat” or “very” difficult to relocate executives here. In 1989, 71% said it was somewhat or very difficult.

John S. Peterson, an executive recruiter for Russell Reynolds, said the area is full of business opportunities, but housing is just too expensive. So corporations find themselves spending more to bring and house executives here.

The survey found that 45% of local corporations spend $40,001 or more to relocate executives--those earning $75,000 or more annually--to Southern California. That is up from 34% a year ago.

When executives come here, they often have to settle for smaller homes because of the high prices, Peterson said, adding that he has a client in Pittsburgh who lives on an acre of land but realizes that “won’t be an option” when he comes out here.

Ninety-two percent of the respondents said housing costs are a major deterrent in relocating here. Additional factors that make executives think twice before moving here are earthquakes, commute time, traffic, smog, drugs, gangs and crime.

“Fifteen years ago, people would have moved to Southern California in a New York-minute,” Peterson said.

In general, to make relocating sweeter, companies are offering sign-on bonuses and interest-free home loans and guaranteeing job security, he said.

In the meantime, the survey found that 55% of executives from here are reluctant to relocate to other parts of the country.