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Another option is to give your employees an "X" amount of money (either up front in the form of a signing bonus or on their first paycheck). Then employees can use that cash to cover the cost of their moving expenses.
Providing your employees with cash gives them complete flexibility, however, it does leave them on their own when it comes to planning their relocation.
Managed Budget or Capped Allowance
In this scenario, you can put a cap on the amount of relocation expenses you are willing to cover. For example, you may provide a $10,000 managed budget to cover a household good shipment, short-term housing, gas mileage and hotels. If the employee doesn't spend the full $10,000, it goes back to the company.
This provides a flexible experience for the employee but also allows employers to save money.
5. Personal Support
When an employee is relocating, it’s helpful to offer avenues of personal support to ensure a smooth transition. At the end of the day, if they’re not happy, their loyalty to your company might waver. Here are a few ways to provide help.
Spousal Employment Assistance
In the U.S. 61% of couples are dual-income so a spousal employment assistance program can be incredibly helpful to your employee and their family. Plus, it’s likely to lower their stress and increase their satisfaction during the transition.
School Location Assistance
Another avenue of support is school location assistance. A child’s well-being is a high priority for prospective employees. It can be very difficult for children to leave their school and friends. By offering support with the process of finding the best school in the new area, you help relieve some of that stress.
It’s also hard for adults to start over in a new city where they don’t know anyone. In fact, 41% of adults worry about making friends when relocating for work. Integration assistance programs help employees learn about the new area, find out about social gatherings and activities to help facilitate a smooth landing in their new life.
Let’s say you’ve researched your competitors’ relocation offerings, and the prospective employee wants to negotiate details of the relocation package. First, listen to their requests to understand what they’re seeking. Only after you’ve truly heard their concerns should you decide if it’s reasonable.
Human capital is often the greatest determinant of an organization’s success and is worth investing in, but there’s a fine line between providing support and being taken advantage of. If a request is not feasible, consider a counter offer that makes sense for them and the business.
Build Competitive Relocation Packages to Support Your Business and Employees
We live in a time where the competition for great talent is high and companies need to take care of their employees to earn their loyalty. A competitive relocation package is one way to do so.
It really sets the tone for your company and shows employees how much they’re valued. By using the tips above as a guide, you’ll build a competitive and effective relocation package that attracts and supports the talent you want.