The goal of a corporate relocation program is to make moving easier for an employer’s new hires and transferees, as well as its HR staff. After all, a smooth relocation helps employees hit the ground running and lays the groundwork for a successful employer/employee relationship
There’s a reason that moving ranks high on every “10 Most Stressful Life Experiences” list. With so many balls to juggle, it’s easy to drop one or two—yes, even with a relocation program in place.
Take these terrifying tales of relocations gone wrong. Then, ask yourself this truly scary question: could one of these epic fails happen to you?
Lump sum plans sound so easy-peasy: the employer gives the employee a stash of cash to fund their move, and the employee skips off to arrange it. He/she even gets to keep any unspent funds.
What could possibly go wrong?
Well, everything!
Take Adam, a young programmer. Eager to pocket some extra cash, he booked the cheapest mover he could find. Which proceeded to show up late…damage his stuff…and charge him far more than it originally quoted. Verbally, that is.
Adam got moved, alright. But he also got taken. When he showed up for work on his first day, he was distracted and resentful…which led his manager to wonder if she’d made a poor hiring decision. In this case, the employer’s good intentions weren’t enough.
Fortunately, this is an easy rewrite: replace that lump sum plan with a smart managed budget plan. Managed budget plans offer similar flexibility, but any unspent dollars stay with the employer, so employees aren’t tempted to scrimp where they’d shouldn’t. Plus, these plans include relocation services—i.e., live specialists and prescreened vendors—ensuring employees choose reputable vendors.
House-hunting trips are very important to relocating employees. After all, finding a great place to live is most employee’s first priority.
However, in order to save money, some employers limit coverage for house-hunting visits, which can end up costing them in the long run, especially in hot real-estate markets.
Take Gabrielle’s story. Her new employer—a multi-state healthcare company—provided a single, four-day house-hunting trip. The problem: she was relocating to South Florida, which was in the midst of a record real-estate boom. Homes were snapped up the same day they went on the market, for way over their asking price.
Gabrielle couldn’t find a workable home for her family on such a tight timeframe, so her employer put them up in short-term housing instead—a helpful solution, except that it continued for a long, pricy 90 days.
Offering generous—and/or flexible—house-hunting coverage not only benefits employees, but employers’ relocation budgets, too. It’s much less expensive than short-term housing, and it’s a great way to welcome new employees. Just work the numbers!