Innovative Approaches to Employee Relocation: Beyond Traditional Packages

Sometimes, upholding tradition is a wonderful thing. Take cherished family and cultural traditions, for example.

But when it comes to corporate relocation plans, preserving traditions doesn’t serve anyone. The industry is evolving. To stay competitive, your relocation offerings must, too.

A little unclear on what’s old and what’s new? This three-minute update is for you. 

3 Traditional Relocation Plans—and Their Pitfalls

Today, most traditional policies fall under these three categories. They have some pros, but major pitfalls, too.

Lump Sum Allowance

Under lump sum plans, the employer gives the employee a single, upfront payment toward their relocation costs. No strings attached, but no support either!   

• Pros: Flexibility for employees; simplicity for employers.
• Pitfalls: Without guidance, some employees make poor relocation decisions, which leads to bad experiences. And because employees keep any leftover funds, they’re motivated to take chances and go with their cheapest option.         

Simple Reimbursement

Here, the employer reimburses employees for agreed-upon expenses up to a certain max, once documentation is provided. Again, there’s no support.   

• Pros: Employees still have flexibility; employers have more control.
• Pitfalls: Employees must front their expenses, which doesn’t sit well. Plus, there’s more admin all around. And employees are still on their own (gee, what could go wrong?).
  

   

Fully Covered Plan

Under fully covered plans, the employer pays for the employee’s entire move, enlisting a relocation company to manage the admin and help guide the process. 

• Pros: Employees love these plans. Not only are their expenses covered, consultants help ensure a smooth move.   
• Pitfalls: These are very expensive for employers, which is why they’re typically reserved solely for top management.
  

5 Game-changing Relocation Innovations

Fortunately, there is an alternative to inefficient, expensive traditional plans. Modern relocation plans avoid these pitfalls by incorporating a number of innovative elements. Here’s our top five.

1. Managed Budget Plans

Under managed budget plans, employees have the flexibility to personalize their relocation, but they also receive support from professional relocation consultants, ensuring a well-planned move. It’s the best of both worlds.

Furthermore, expenses are often paid directly by the relocation company—and any leftover funds stay with the employer, so they’re more cost effective for employers.