Employee Relocation: What Your Company Needs to Know
Employee relocation occurs when a company assists in moving a job candidate or current employee from one location to another location that they prefer. This location may be closer to the home office, within a required territory, or in close proximity to a regional office. The employer may offer additional incentives to help make the process easier or more enticing.
Opening a new location, replacing an existing position, or expanding into a new territory are common reasons for initiating employee relocation.
Benefits for Offering Relocation Assistance
The job market is tough, but finding capable, reliable employees to fill essential positions is even more difficult. Engaging in the employee relation offers employers a way to remain competitive in procuring top talent within the industry. Managing optimal talent and offering additional opportunities to good employees is a corporate strategy that can facilitate company growth and increase profit.
What Benefits Are Typically Offered?
Relocation benefits that accompany a new position or a position change are just as important as the offer itself. If a company can’t make a relocation worthwhile, it is unlikely that your top talent will choose to change their life drastically for limited benefits. Some of the most common employee relocation benefits include the following:
- Pre-Decision Counseling: Employers can’t expect their top talent to make such a big decision on a whim. Relocation requires an immense amount of thought and consideration. Pre-decision counseling can help an employee determine if they are making the right decision and if the benefits outweigh the consequences of such a decision.
- Departure/Destination Assistance: Planning a move requires mental and physical effort. Employee relocation benefits also offer assistance in selling an old home and purchasing a new one. Advice on optimal home locations, preferred neighborhoods, and educational options play a huge role in this task.
- Moving Household Goods: This is probably the first thing that most homeowners think about when planning a move. How will I get my household items to the new location? Relocation benefits often include planning and paying for moving assistance via rental trucks, vans and even air freight.
Though many organizations tend to create their own benefit outline for employee relocation, these are just some of the basic benefits that are required to bring your top talent to a preferred location.
Why Employee Relocation is Beneficial?
With an increase in the number of individuals attending college, the job market is ripe with qualified candidates who are ready to work. However, finding the optimal candidate within the required geographical location may not be feasible. In fact, 45% of employers have trouble finding individuals with the skills that they need. Offering employee relocation providers employers with the potential to widen their job search for more qualified individuals.
Oftentimes, the cost of relocating an employee can be offset by the product, revenue, and other non-monetary benefits that they have to offer. By making an initial investment, employers are able to reap even greater benefits.
When employers are considering the relocation of a current employee, it can provide employers with peace of mind. Relocating an employee who is familiar with the company, displays loyalty, and encourages productivity can be a valuable asset.
Building a Relocation Policy
There is no reason to reinvent the wheel. For many years, companies have followed one of two methods for determining proper employee relocation assistance: the tiered approach and the a la carte approach.
The tiered approach offers employers different levels of assistance for different levels of employees. Certain requirements and limitations are set for each employee depending on which category they fall into. This offers employers some flexibility without making it too complicated for administration.
However, the a la carte approach takes into consideration the different needs that various employees might have. Budget, relocation distance, and the overall need for an employee can decide which benefits may be offered in each specific circumstance. This gives management the option to offer the assistance that they feel will be necessary to secure an employee’s relocation.