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Reducing Relocation Costs
Cost cutting has become a way of life in the business world. Reducing relocation costs covered by an employer is good for the company’s bottom line. The goal should be to cut back and control employee relocation expenses without compromising the experience of the relocating employee. Simple changes can result in substantial savings through reduced relocation expenses without sacrificing employee morale.
1. Lay Down Clear Parameters in Your Employee Relocation Policy to Lower Relocation Expenses
Ambiguities in the policy can mean additional costs for the company. Ensure your relocation policy is stated in simple, easy-to-understand language. The policy should allow for what is needed to facilitate a smooth, efficient move, without room for extras.
2. Establish Expense Caps on Certain Benefits
Put expense caps on some relocation benefits, such as loss on sale of a home. This can be a major expense for the company that should be capped, as many homeowners have experienced depreciation of their real estate assets. A relocation policy should clearly state a maximum amount for how much loss will be reimbursed, taking into consideration capital improvements when calculating value.
3. Utilize Relocation Management Software
Relocation management technology can help companies track relocation spend and pay for relocation benefits in a number of different ways. Relocation software allows companies to reimburse their employees for relocation expenses, disburse a lump sum of cash, or pay for moving services on behalf of the employee via direct bill. Relocation technology, like UrbanBound, allows employers to use a combination of these different payment methods, which provides them more control without sacrificing employee flexibility.