Employee Relocation Budget

4 Pitfalls That Can Wreck Your Employee Relo Budgets

Published 12/16/2021

Making a dollar stretch nowadays is a little harder than in the past. With the cost of goods and services rising, the scarcity of products and inflation in general, it’s near impossible to expect to spend the same on relocating employees than you had pre-pandemic, or even 6 months ago! 

To help you look for opportunities to make your dollar go further, UrbanBound has pulled together a list of 4 common pitfalls that can wreck your employee relo budgets. Here they are:

 

1. Using the “cheapest” suppliers.

While spending less is always the objective, the “cheapest” supplier isn’t always the least expensive in the long run. The biggest consideration when choosing - or recommending suppliers is to pay attention to the reputation of the supplier. If using a “cheaper” supplier requires more work to be placed on your relocating employee, it’s probably time to move on from that supplier. Moving is stressful enough - you don’t want your employee to have a lesser experience than they anticipated because you were trying to save a few bucks. You’ll end up paying for this in turnover costs later on.

It’s also worth considering if the supplier employs background-checked salaried employees or if they’re picking up extra day workers via Craigslist or other short-term work websites or apps. Will a cheaper option mean relocating employees will likely have to replace damaged goods after the move? Does the supplier typically meet deadlines or will the relocating employee be left high and dry awaiting the arrival of their household goods, vehicle or even their pets? 

2. Providing a “One-Size-Fits-All” relocation policy.

Everyone’s situation is unique. It’s unfair to expect that a blanket, one-size-fits-all approach to relocation would meet the needs of employees. Salary and benefit packages vary. So should your relocation benefits.

Consider meeting the needs of your employees via a tiered approach based on job function or level, family size, or even self-reported need. A top-notch employee with a family and a spouse that’s leaving their own 20-year career will not only require a different level of service than an employee just beginning their career, they’ll expect it.

After all, if the perception is that you’re not taking care of your employees, someone at another company will and you’ll lose them to a competitor. 

 

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  • 3. Not providing enough budget for employees to complete their relocation.

Money talks. 

An employee moving to accept a role and make a big impact at your company and on your bottom line, deserves to be taken care of. Shortchanging an employee or requiring they come out of pocket to move can be more than they may have bargained for.  

Expecting your employee to complete their move “on the cheap” is simply adding additional stress and work on the employee. It also adds additional stress to significant others and/or family members that are sacrificing to relocate with the employee as well. 

When you think about upping your per-employee relocation spend, think about the employee experience. Simply spending a bit more upfront to ensure your employees have a positive relocation experience can ensure you save hundreds of thousands on turnover later.

  • 4. Going it alone.

You need a partner you can trust! Employing a Relocation Management Company, or RMC, that is truly an extension to your team pays dividends in time and money! 

A RMC provides support to your team and your relocating employees. From the employer side, a RMC partner will assist with benchmarking your program so they can walk through your relocation policy benefits with you to ensure your organization and employee needs are adequately addressed. They’ll handle the heavy lifting of vetting suppliers and offering solutions for reimbursement and even exception requests. They’ll even provide in-depth reporting so you know where you stand at all times.

On the employee-side, a modern RMC can provide access to a 1-on-1 Relocation Consultant that will walk your employees through their benefits and assist them with their relocation timeline. They’ll also provide 24-7 access and support to your employees via technology. This will alleviate stress and allow your employees to access their benefits, demographic and area information and provide a visual representation of their relocation timeline anytime they need it. 

 

At UrbanBound, we save employers on average 66% on relocation costs vs. in-house relocation spend.
Interested in learning more? UrbanBound can help - request a demo now!

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