When a business makes an investment, it’s banking on a positive return—aka, its ROI. And that applies to corporate relocation plans, too.
But there’s no set formula for calculating the ROI of relocation benefits. For example, what value do they provide, and how does this contribute to the bottom line? Is it even measurable, and if so, how do you go about it?
These are all good questions! Fortunately, we have answers. Let’s take a closer look.
Identifying the Value of Relocation Benefits
Most employers view relocation benefits as a recruiting tool—one that makes them more attractive to long-distance candidates. This is especially true in industries where there’s great demand for skilled talent, like healthcare.
In addition, relocation programs are considered an effective talent deployment tool, because employees are more likely to accept transfer opportunities when their relocation is covered and supported.
These are a given, but relocation programs provide less obvious benefits, too. Specifically:
Obviously, employees like it when their employers invest in them. So, it’s not surprising that, according to one survey, 84% of employers say their relocated employees are more productive and engaged than their peers.
And on a more immediate level, providing a smooth, low-stress relocation experience improves productivity, too—because employees are free to focus on work, rather than the logistics of their move.
Most employees relish opportunities to advance their careers and develop new skills. When employers provide relocation opportunities—and corresponding benefits—they allow employees to do just that, which elevates job satisfaction.
Satisfied employees contribute to a positive company culture—which in turn adds value by enhancing the company’s brand as an employer.
Finally, engaged employees stay with their employers. In fact, 82% of employers view relocation benefits as a powerful retention tool. And when employees stay with an employer, it greatly reduces recruiting and training costs, while safeguarding the company’s institutional knowledge.
Tally it up, and the outcome is clear: all these advantages contribute to a better bottom line.
Admittedly, it’s difficult to measure the dollar ROI of relocation benefits (or any employee benefit, for that matter). However, here are several tools you can use to gauge its effectiveness: