Resilience Starts with Readiness: Disaster Preparedness in Relocation
Relocation is often ranked as one of life’s most stressful events–add in a natural or man-made disaster to the mix, and the stress can quickly escalate into crisis. Disasters come in many shapes and forms – from wildfires and earthquakes to severe weather events such as hurricanes, tornadoes, and storms that cause flooding and extended power outages – with the ability to disrupt lives in an instant. No region is truly immune.
Experiencing a disaster can elicit a range of emotions, including panic and fear, especially for relocating employees, who will likely have a hard time concentrating on the job or the relocation process. On top of that, depending on the situation, they may experience shipment delays, damage to or loss of their household goods, setbacks in buying or selling a home, and even limited housing availability (be it temporary or permanent).
This article explores how organizations can better prepare for the unexpected when disaster strikes. It also examines ways to support relocating employees during such challenging times, emphasizing that resilience begins with readiness. With the right preparation, challenges caused by disasters can be anticipated or minimized. Below, we break down the most commonly affected aspects of relocation and offer recommendations for each area.
Cornerstone recommends the following immediate actions to help relocating employees through a disaster situation whether they are moving to or from an impacted area: - Contact affected employees as soon as possible to ensure they and their families are safe, and have contingency plans if there is advance notice of the disaster.
- Assess the status of each relocation to determine what steps employees have taken thus far and then pause the relocation process. Don’t forget to extend the relocation time frame.
- If possible, adjust start dates in the new location if that helps ease the pressure on affected employees.
- Determine any immediate needs for shelter, food or funds that can be met by the company.
- Confirm (if known) whether property damage (to homes or household goods) may have occurred.
- If damage or loss has occurred, encourage employees to reach out to their insurance providers as soon as possible.
- Grant exceptions to the relocation program as needed, which may include extended temporary living, additional miscellaneous allowance funds or additional storage.
Home Sale
The following recommendations will help minimize any potential risks from purchasing or selling properties affected by a disaster: - If the property is not yet listed for sale, the employee should hold off on signing the listing agreement with the real estate agent until conditions have stabilized. If possible, all necessary steps should be taken to secure the property in advance of an impending event.
- If the property is currently listed, but there is no pending offer, the home should be taken off the market temporarily. Once conditions improve, the employee can re-activate the listing.
- For all homes that are under contract but have not yet closed:
- If the employee is under a direct reimbursement program, or is not eligible for home sale support, they should work with their real estate agent to ensure the property is secure and free of damage. If damage has occurred, the employee should contact their insurance provider as soon as possible. The employee may need additional relocation support should the sale fall through.
- If the employee is participating in a Buyer Value Option or Guaranteed Buyout program, Cornerstone will work with our local real estate providers to ensure the property is secure and free of damage. If Cornerstone cannot secure insurance on the property, we will not acquire the property from the employee. In these situations, we will recommend that the employee close outside the relocation home sale program.
Cornerstone is alerted by our insurance provider of extreme weather / disaster events that may impact homes participating in formal home sale programs such as Buyer Value Option or Guaranteed Buyout programs. With those alerts, Cornerstone can track all active and contract pending transactions and all inventory homes that are in affected areas. In all such situations, Cornerstone will reach out to our clients to advise them of the status of affected home sale transactions and will provide recommendations on next steps.
Home Purchase / Home Rental
If a relocating employee has purchased a home in an affected area, but has not closed, they should work with their real estate agent and seller to ascertain if the property has suffered any damage. The seller is responsible for repairs, but the employee buyer should be comfortable with all completed repair work before agreeing to close on the property. In some cases, the sale may fall through, and the employee may request additional support while securing another permanent residence.
If a relocating employee has rented a home in an affected area, and the home has been damaged, they should work with their new landlord or management company to resolve any issues. The employee may require or request additional company support if a resolution is not quick or easy.
Develop a Plan
While preparing for all disasters is not possible, advance planning is encouraged so companies can react quickly. Cornerstone recommends the following: - Encourage all employees to develop an emergency preparedness plan for their homes and families. Have an emergency supply kit and/or a to-go bag ready, download apps to get emergency alerts and notifications, etc. Excellent resources are available at Ready.gov.
- Ensure your company’s business continuity plan, emergency response plan and crisis communication plans are up to date. Train your employees regarding the appropriate actions to be taken in the face of a disaster.
- When disasters are imminent or occurring, identify and communicate with potentially impacted relocating employees, and monitor events via the media or notifications/alerts. Keep internal stakeholders informed regarding affected locations and employees.
- Establish internal procedures in advance so affected employees can get needed support quickly. This may include temporary housing, storage, or a miscellaneous allowance for needed supplies/food, etc.
- The Federal Emergency Management Agency (FEMA) helps the U.S. prepare for, respond to and recover from disasters. Utilize and coordinate with FEMA resources, if applicable. Employees may be able to register for assistance prior to or after the disaster event. Information and resources are available on the United States Government Federal Emergency Management Agency (FEMA) and Disaster Assistance websites.
After-Effects
Every relocation journey is unique, and the after-effects of a disaster can ripple and affect mobility in unexpected ways. The availability of property insurance and the cost of premiums are directly affected by disasters. Employees moving to a disaster-prone area or an area that recently experienced a disaster may have difficulty obtaining insurance, or may find their housing affordability reduced due to high rates. Employees may request additional company assistance due to these factors.
Another impact may be increased reluctance to relocate to areas affected by disasters. Companies may need to consider alternative locations, if possible, or be willing to provide additional assistance or incentives to relocating employees. While disasters can strike anywhere, companies should determine which locations are the most vulnerable and have a plan in place that can help mitigate these types of after-effects.
Cornerstone Support
Rest assured that when disaster strikes or is imminent, Cornerstone works closely with our clients and their affected employees. We also engage our supplier partners to provide any needed support. This can include locating temporary housing, expediting household goods shipments or ensuring employees receive quick access to funds. Cornerstone’s account directors are always in close contact with our clients, and our consultants calmly and compassionately support affected employees through a disaster event. Cornerstone is here to anticipate these situations and proactively guide you and your employees through the next steps. Don’t hesitate to reach out to us or your account director for any assistance.