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Choosing Between Offering a Signing Bonus or a Relocation Package
Choosing between offering a signing bonus or a relocation package can be difficult. Essentially, employers have to choose between relocation policies that please employees but are expensive and hard to budget…or a cash benefit/ relocation signing bonus that offers more flexibility to the employee but leave a them unsupported during their relocation - resulting in a bad relocation experience.
While both are valid ways to attract and offer incentives for candidates and existing employees to move to a different city for work, there is a third option.
The Best of Both Worlds
Flexible managed budget policies combine the best features of a relocation package and a relocation signing bonus into one. Imagine a policy that:
- Offers the flexibility and freedom of cash benefits, so employees can customize their relocation experience.
- Offers the high-touch, personal service of a relocation package, minimizing the risk of mishaps and oversights.
- Offers affordable, predictable budgeting for employers, plus opportunities to save if not all benefits are used.
- Leverages technology to give employees the faster, better, on-demand access they expect.
- Leverages technology to give employers real-time costs and data regarding each move, as well as analytics regarding their entire program.
As the employer, you choose which services to include, and can create as many relocation policies as needed to address different employee levels or needs.
Tips for Using Flex Relocation Policies
- Use technology to give transferees the power to choose how and where to spend their relocation budget. From pet shipment to lease breakage to an extra home-finding trip, employees get to decide which benefits they need.
- Include a vetted supplier network to ensure everything runs smoothly, or for even more flexibility you can let employees use their own providers while still being able to keep track of their budget in real-time.
- Flexible managed budget relocation policies (or Flex Plans) should also provide dedicated relocation consultants to assist with the move. This provides the best possible employee experience.
In short, employees get a personalized relocation experience, and employers create custom relocation policies with opportunities to reduce relocation costs. WIN!