Companies relocating employees to high-cost areas are realizing how important it is for transferees to fully understand the financial situation in the new location.
 
In fact, according to a recent survey from Runzheimer International, a Wisconsin-based consulting firm, 79 percent of the relocation managers surveyed said they encounter resistance from employees being asked to move to high-cost locations; 81 percent cited the primary cause for this resistance was fear of a reduced standard of living.

If an employee accepts the transfer without realizing what he/she is getting into, that individual may ask to be transferred again, which could prove very costly for a company, said Jarvis Racine, Runzheimer's director of Business Development of Relocation Services. Accordingly, some companies are now providing potential transferees with tools to analyze their own financial position as well as the financial components of the new location before they decide to accept a transfer.