For your company to thrive, you need the right talent in the right locations. While some of this can be resolved with skillful recruitment and hiring, it may be necessary to relocate both new and current employees to boost performance and productivity.
However, relocating can be stressful for employees and their families and, if not managed carefully, can impact your company’s bottom line. This is why it’s important to be prepared for possible issues that may arise. Below, we’ve outlined a few things for you to consider.
Moving is considered one of the most stressful life events, and not everyone will jump at the opportunity to move for your company. This rings true when your employee or candidate has a significant other, a family and/or a mortgage. That is why it is imperative to make relocation as easy and appealing as possible for your employees (and their family). When you ask someone to pack up their life for your company, you must consider what the company can do for them in return.
If your company has the goal of motivating employees to relocate, you will need to consider providing some kind of relocation benefit.
Many companies offer employees a lump sum allowance or signing bonus as an incentive for relocation. On the surface, lump sum allowances seems like a no-brainer: the hiring manager determines dollar amount, HR includes the benefit in the offer letter, payroll adds the bonus to the employee’s first paycheck—done!
While lump sum allowances seem easier to administer and give employees more flexibility for how they want to manage their relocation, the downside is exactly that: employees have to manage their own relocation.
This means the employee has to determine the best way to get from point A to point B without going over their budget. While in reality, most employees have the expectation that their employer will support them in the move process—providing guidance and advice in addition to cash.
What’s worse, if the cash doesn’t cover the full cost of the move, guess who will hear about it? More often than not, employees will reach out to HR teams or their hiring manager for support. Thus, HR professionals end up researching and answering relocation questions on top of their day-to-day duties—making lump sum allowances, not so easy to administer after all.