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What Are Some Types of Relocation Packages?
Like everything else, relocation packages keep evolving. Here are some popular types or models of relocation packages right now:
The Lump Sum Package (aka Cash Only) – The Lump Sum model is just like it sounds: the employer gives the employee a fixed amount of money, and the employee uses it however he/she likes. It’s easy for employers to administer and budget, and employees get to keep any unused funds. However, the employer has no oversight into how the relocation is progressing, and employees have no support in arranging their move—which can result in disaster. Also, sometimes the lump sum just isn’t enough to get the job done.
The Managed Budget Package (aka Capped Allowance) – Under this model, the employer sets a maximum amount the employee can spend on relocation, often with guidelines on how it can be used. The company may also provide a specialist to help the employee manage the process. If the employee doesn’t reach the maximum, he/she doesn’t keep the remainder. This model gives the employer more control and the employee more support than a cash-only program, while still allowing flexibility. It’s also more cost effective for employers.
The Fully-covered Relocation Package – Also referred to as a traditional relocation policy. As the name implies, under this model, the employer pays the full cost of the employee’s relocation. These plans are typically reserved for high-level executives and can be very costly, although employers can define what services they will and won’t cover. Typically, the employer also provides a relocation management specialist to support the employee’s move, either via an in-house mobility team or a third-party relocation management company. Fully covered plans provide a great employee experience, but costs can be hard to control and predict.
The Tiered Relocation Program – Under the tiered relocation model, the employer offers multiple relocation packages—three is a common number—scaled to different level employees. For example, interns and entry-level new hires receive modest relocation benefits…mid-level professionals receive more benefits with higher maximums…and C-level executives may receive a fully-covered relocation package. The approach is very popular with employers because it is a cost-effective way to offer competitive relocation packages to employees at every level.
What Are Some Employee Relocation Services?
In addition to offering relocation benefits, many employers offer their employees an array of services designed to help them manage their move smoothly. These can be delivered by the company’s in-house mobility team or by a third-party RMC. These services may include:
The personalized support of a relocation specialist, who can make reservations, research information and answer questions for employees
- A network of preferred suppliers, including movers and realtors with a proven track record of success and cost-effective pricing
- Checklists and how-to information to guide the employee through the relocation process Information about the new city, to speed acclimation
- Help with visas and customs, etc., if needed
How Should I Be Managing Employee Relocation?
Well, of course that is up to your company. The good news is, you have choices. If your company only manages a handful of relocations every year—say, under 10—and you have the bandwidth and expertise to handle them in-house, you may prefer to do it internally. On the other hand, you may find it preferable to outsource functions like relocation, so your staff can better focus on your core business concerns.
If you choose to work with a relocation management company, you can elect to go with a traditional RMC or a tech-based RMC. While traditional RMCs largely deliver their services through live specialists—just as they’ve done for decades—tech-based RMCs balance user-friendly software platforms with the support of live specialists.
Tech-based RMCs not only tend to be much more affordable than their traditional counterparts, they are obviously more contemporary in their approach. They also offer greater access to the analytical data we discussed. As a result, they are becoming the RMC of choice with tech companies and progressive businesses and professionals.
Is there an Employee Relocation Tool that Can Help Me?
If you’re interested in employee relocation tools, it’s in your interest to investigate tech-based relocation platforms, which are essentially one giant multi-tool for employers and employees.
Relocation technology gives employers easy access to data about their employee relocation program, including spend, savings, trends and the real-time status of ongoing relocations. This allows companies better control over their relocation budgets and more accurate forecasting abilities—allowing them to make informed decisions about their relocation program.
What are Some Relocation Software Solutions?
Well, we are only qualified to tell you about one of them—ours. But as it happens, talking about UrbanBound is one of our favorite things.
As the first tech-driven relocation management company, we started revolutionizing the way companies relocate employees. Our first-of-its-kind software—combined with our exceptional customer support and knowledgeable policy guidance—is helping companies of all sizes and budgets offer highly-competitive relocation benefits.
Our software offers employers the opportunity to provide a personalized relocation experience to every employee, while optimizing every relocation dollar. Furthermore, we give our clients:- Real-time control over relocation management programs and expenses
- True transparency into how relocation dollars are spent
- Flexibility to structure policies on your terms
- A lighter workload for employees who manage relocations
- Peace of mind that relocating employees are well taken care of
- Potential cost savings over traditional RMC programs
f you’d like to learn more about UrbanBound’s software solution, explore our website or request a demo below! We welcome the chance to tell you more!