When offering prospective employees a relocation package, it’s important to put yourself in their shoes. The new employee has to weigh the financial and emotional cost of packing up their entire life and starting over against the benefits of the new opportunity.
Aside from being an incentive for top talent to accept your offer, supporting them through this process is essential, because it reflects positively on your company culture and leads to higher employee engagement. Here’s what to consider when offering prospective employees a relocation package.
The most prominent aspect of a relocation package is the covered benefits. As an employer, you’ll have to decide not only what costs you’ll cover, but how much of the moving costs you will cover for each expense type. Some common covered expenses are:
You can browse the market for potential partners to save on these costs, or work directly with a relocation partner like UrbanBound. We work with a variety of supplier types to help your employees “right-size” the move. For example, HireAHelper offers a corporate relocation service that packs an employee’s belongings, loads them into a secure loading container and unloads them for 30% to 50% less than the cost of other full-service moving companies.
Employee relocation packages vary depending on the location, the industry and what competitors are offering. As an employer, research the relocation packages of your competitors or companies of similar size in your area. Use your findings to craft a competitive offering that stands out. Avoid offering way less than the industry average while also staying mindful of what’s possible for your budget.
Although you want to offer the employee security in their relocation, the package should align with the value they’re bringing to the company. Consider offering tiered relocation packages based on the employee’s level within an organization.
Lee West, Founder and CEO at Tidewater Capital Service, says, “If they are moving from a regional director role to an H.Q. vice president role, the package would have to be robust and complete. Even to the point of buying their existing house.”
On the other hand, West says, an employee moving into a junior management role isn’t likely to get as comprehensive of a relocation package.
Once you’ve decided on the benefits you’ll offer employees, it’s time to consider how to administer them. There are a few options to consider.
You have the option to cover the full cost of your employee's relocation needs. You can set the guideline for what services you will cover (i.e. household good shipment, short-term housing, storage, etc.) and then you can either book the services for your employees on their behalf or have them book and submit their receipts for reimbursement.
Paying for employee relocation benefits in full provides a great experience, but costs can be hard to predict and control.