Not only do people move more frequently in current times as opposed to the past, but companies and employees are relocating more frequently as well. Some reports indicate that employee relocation continues to increase year over year and more than half of all new hires are individuals relocating. Company budgets are increasing to allow for more flexibility in transferring employees or hiring from outside their city. With a strong global economy, there is high demand for employee flexibility both nationally and internationally.
Offering relocation for a current employee within your company may be the best option in keeping the best talent working for you. A relocation package is considered as well when hiring someone from outside your company’s geographical area. It is important to factor in several key elements when making an offer to relocate, such as salary, moving compensation, and timeframe.
When it comes to salary, it is important to look at the position as well as the geographical location. While the job title might be the same and come with the same responsibilities and expectation, the city that the employee is relocating to may not have the same cost of living as another city. Compensating the employee appropriately based on where they are working and living is important in valuing their work.
The process of moving an employee and their family is an expensive undertaking, from housing expenses to moving expenses and everything in between. Formulating a policy for how much of the move is covered is an important step in establishing expectations on both parties. Moving expenses are often paid as a lump sum to cover moving expenses – although some of that may be taxable, leaving employees with slightly less to budget for a move. Specialized assistance for homeowners is common. Some employers opt to pay for temporary housing in the new city while either trying to sell a previous home or search for a more permanent home. Some companies even take the house expenses a step further and provide compensation for loss-on-sale of a previous residence. Furthermore, there is often job-search help granted to spouses, and relocation bonuses are common.
Timing of the move is often a critical piece, especially if an employee has school-age children or the spouse is currently employed. (Read our article: moving with children in tow for suggestions how how to ease the transition) Timing the move is critical for the company but also for the employee. Consideration is often taken into account by an employer for either delaying the employee’s relocation or establishing a long-distance work or commute. Oftentimes, the employee is often moved temporarily ahead of their spouse or family.
While not all of these possibilities might apply to every position within a company, they are all important factors to consider in the relocation package. Making a move to offer an employee to relocate should include a relocation package worth moving for. Having formal relocation policies in place can help a company retain valued employees and reduce the risk of turnover. For a professional and affordable corporate relocation package – contact our team of long distance movers for a customized moving quote.