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How to Negotiate a Relocation Package with an Employee
When it comes down to it, you’ll need to throw your all into the negotiation process. You want to keep your costs low while also satisfying your new employee’s needs. This can be a difficult balance but here are a few tips:
Calculate the Costs
In order to be prepared for negotiations, you need to know the cost of relocation for your new employee. Calculate exactly how expensive it is for that employee to move. That way you know the exact cost when going into negotiations. Use this calculation to decide the maximum or minimum amount you can offer in the relocation package.
Set Clear Parameters
You’ll want to set clear guidelines in the relocation package when negotiating moving expenses. Make sure you use simple language so nothing is ambiguous. For example, your company could cover the cost of 2 weeks of temporary housing. Any time after the two weeks would need to be covered by the employee. This way you’ll ensure an efficient package without wasting any money.
Offer a Capped Allowance Plan
When deciding between relocation package methods, capped allowance plans are the most affordable for a company. As opposed to lump sums, capped allowances limit the amount an employee can spend on relocation. The employee doesn’t receive any leftover funds, unlike the lump sum method.
Be Open to Compromising
A huge part of satisfying your new employees when relocated is being open to their suggestions. You need to be willing to negotiate relocation assistance. If you go into negotiations with a stubborn demeanor and closed mind, you may jeopardize the recruiting process. Be sure to be open to offering some extra, more flexible funds to make your employee happy.
Get Help Building a Relocation Program with UrbanBound
Building out a great relocation program is the key to ensuring the happiness of your employees. After all, if they’re not happy with your offer, you risk them accepting another offer with a different company. At UrbanBound, we can help you build out a truly flexible policy that can work with any employee need. Contact us to learn more.