What a Strong Economy Means for Employee Relocation

Posted by Abby Baumann on Feb 22, 2018 8:00:00 AM

booming-job-market.pngThe Great Recession had huge impact on the relocation industry. Between 2008 and 2010, there was a dip in the number of relocations, and an overall reduction in relocation benefits altogether. In the rarity that a relocation benefit was provided, it was often times given in the form of a lump sum or a small cash allowance. However, all that has changed in the last 5 years, and more specifically in the last year.

In fact, the economy is the strongest it’s been in a very long time—even with the sporadic dips in the stock market. Plus, 2018 tax law reduced the corporate tax rate which could contribute to further economic expansion. With a strong economy, comes a strong job market, and here are some signs of this:

Signs of a Strong Job Market

It’s a great time to be an American worker. However, what does the booming job market mean for American businesses?

As the job market continues to grow, the fight for qualified talent will become increasingly more competitive. And employers will have to get creative in their recruiting efforts. Employers will adapt to candidates rather than asking candidates to adapt to them, and offering employees a relocation benefit is one way companies can adapt to their candidates.

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How Relocation Benefits Fit into the Growing Economy

As the unemployment rate dwindles, the pool of available talent gets tighter and tighter, and hiring managers have to get realistic. What’s the likelihood that the quantity of talent needed, lives in the city where a company operates?

Despite what some universities or cities will lead one to believe, there’s not one central epicenter for the best candidates—skilled professionals, technicians, and students can be found across the globe. If a company only recruits within their city, state, or country, they are limiting their candidate pool even further!

Branching outside a geographical comfort zone to recruit talent, will ensure that a company will find the right person for the job. What’s more, when a company offers a relocation benefit to all of their relocating employees, from C-Suite executives to campus recruits, it shows candidates that the company values all of its employees, and further distinguishes the company in the fight for top talent.

How Employee Relocation Technology Can Help

A healthy job market requires a strong relocation benefit as one way to distinguish a company as an employer of choice. It shows prospective employees that a company cares about the individual. 

Utilizing technology to power your relocation program creates efficiency that can’t be achieved or replicated by people. Plus, companies don’t need to sacrifice employee experience to achieve efficiency through technology. Many employees today want access to online, self-service tools to manage their relocations. In fact, they often time expect it. Find out how Urbanbound can help distinguish your company and attract top talent.

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Topics: Relocation, Recruiting

How HR Professionals Can Leverage Company Location to Attract Talent

Posted by Nathan Sykes on Feb 20, 2018 2:26:47 PM

This is a guest post, written by Nathan Sykes, a tech and business blogger for Finding an Outlet.

leverage city to attract talentThe race to attract the best candidates often times has HR professionals asking themselves: “What more can my company offer?

When considering what to add to make an offer letter more attractive, hiring managers and human resource professionals should consider the advantages of their company’s home city or state.

Relocating for a job is a big decision, and not every candidate will consider it. However, some locations are naturally more attractive than others when it comes to convincing a candidate to move. In fact, most candidates will look for a community that offers diversity and culture, recreational activities, affordable living and a mild climate. So what do you do when your city has frigid winters or a high cost of living?

Every city has something special to offer, and many times there are only negative connotations associated with a city due to lack of knowledge. Which is why it is up to HR professionals to educate potential candidates about their company’s city. Here are 5 ways HR professionals can sell candidates on a company’s location.

5 Ways to Sell Your Company’s Location

The Commute: Commuting to work contributes to an employee’s daily stress level. Getting caught in a traffic jam or trying to find parking can greatly increase anxiety. So, if your city has a new public transportation system, or if your office is right off a bus line, be sure to mention this. Additionally, if there are a number of desirable neighborhoods near the office, highlight the potential for a 10-minute commute! Additionally, some companies will subsidize public transit or parking expenses to help further seal the deal.

shorter commute can attract talent

Activities and Culture: Many candidates look favorably on areas that are family-friendly or places that have things to “do.” Be sure to highlight family-friendly activities and culture. Discuss state and city parks, zoos and museums. Focus on proximity to schools and enriching activities for the whole family. Also, don't forget to mention the nightlife for young professionals. Talk about the city’s best restaurants, bars or concert venues. If you are near a major metropolitan area, be sure to mention this as well. If a candidate can’t get all of the things they want from your company’s specific city, it may only be a short drive away.

city culture

Weird City Titles: Is your city the lost luggage capital of the world or was your city voted into a top 23 list for best street food? Focus on what makes your city unique, so candidates get to know the vibe of the city's culture and envision themselves living there


leveraging culture to attract talent

Wellness Opportunities: Many workers, especially young professionals, want to feel good about themselves and their health. Does your city have an acclaimed hospital or an organic grocery store? Does it have wide bike lanes or a community garden? Be sure to leverage anything that could help a candidate see themselves living a healthy lifestyle in your city.

pre-decision services

Offer a Relocation Benefit Package: Moving to a new city is scary, but a company can make the move more attractive by offering employee relocation benefits. This doesn’t mean you have to spend a fortune to help every single hire move. Relocation management software, like UrbanBound, empowers employers to digitally administer relocation benefits from simple educational support to a full-service move.

Conclusion

Not all cities have the same appeal or level of fame, but most people won’t want to move somewhere they know nothing about. Providing education to candidates before they accept the offer is the best way to sell your company’s location. When it comes to attracting talent, focus on how your city is unique, enriches lives and grows professionals into more capable citizens.

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Topics: Recruiting, Relocation Management Software

How to Build an Employee Relocation Package

Posted by Darlene Mase on Jan 19, 2018 1:55:32 PM

This is a guest post, written by Darlene Mass, a writer for the apartment rental site, Zumper.com. 

build an employee relocation packageWhen an employee is offered a promotion in another city or the company transfers and the employee needs to relocate, employers will often offer a relocation package. While employers are not obligated to provide relocation packages, it can incentivize a valuable employee to relocate to a new city and help to keep them working at your company.  

As an employer, one of your top priorities should be ensuring that your employee has a smooth transition during their relocation. Here are a few tips on how to make your employees’ relocations as stress-free as possible:

Provide an employee relocation package.

Corporate relocation is on the rise, and perhaps your business would benefit from relocating an employee to another city. If so, you need to start thinking about relocation packages for your employees.

There are many surveys out there that try to determine the average cost of a relocation package, and they can range anywhere from $20,000 to $100,000. However, your employees will appreciate whatever support you can provide. Smaller companies or companies who relocate a lot of mid-level or recent grads, tend to provide less valuable packages.

While it’s difficult to know the specifics of the relocation package until you know the employee and the assignment, it’s important to have an idea of what you want your relocation package to include. Here are a few examples of things commonly included in company relocation packages.

  • Orientation Trip: Some employees, especially expats, will travel to the new location to familiarize themselves with the area and investigate accommodation options. The orientation trip costs generally include hotels, meals, airfare and ground transportation.

  • Transportation and Moving Costs: Companies may reimburse travel expenses to the new location including airfare, cost of gas, or train tickets. Cross country movers and other moving-related expenses may also be part of the package. Some companies may even hire professionals to do a full packing and unpacking of the expat’s belongings.

  • Home Sale / Lease Break Costs: Any costs associated with either purchasing a new home, selling a current home, or breaking a lease are sometimes included as part of a higher-tier relocation package.

  • Spousal Support: Again, in some higher-level employee moves, if the relocating employee is married, a company will provide spousal support. Which can include: helping the spouse find a job or establish their own business.

Benefits included in the package for employee relocation vary greatly depending upon the circumstance, company or employer.

Additionally, some employers offer a relocation bonus. These bonuses are typically paid as an incentive for the employee to agree to relocation or if the employer recognizes that the cost of living is higher in the new location compared to the employee’s current area. Relocation bonuses are a one-time deal and oftentimes have to be paid back if the employee leaves the company before a certain period of time.

Even the most well thought out employee relocation package may need a little tweaking. You won’t know exactly what your employee needs until it’s time for them to relocate, so keep an open mind, and be willing to negotiate and adjust the package accordingly.Be willing to negotiate on the employee relocation package.

Most employers choose to negotiate relocation packages instead of salaries. Relocation costs are a one-time expense whereas salaries are recurring.

Know which method of relocation expense reimbursement to use.

There are three primary ways in which corporations disburse money to relocating employees: lump sums, capped allowance plans (also known as direct bill), or a core/flex program.

When a company gives a relocating employee a lump sum, they are essentially giving them a signing bonus to use for relocation purposes. If the employee does not use the entire lump sum, they get to pocket the rest.

Capped allowances set a limit as to how much the employee can spend on a relocation. The employer usually pays for these expenses by way of direct bill. If money is left over, the employee does not get to keep it.

A core/flex plan includes a combination of both direct bill and lump sum. This means companies have a policy that has some expenses covered through direct bill, like household good moves or temporary housing, and for things that can’t be direct billed, the employee is either reimbursed or simply given a lump sum.

Enlist help from a relocation technology company.

Looking for a place to live, hiring movers and flying to a new destination are all things that only add to the stress of an employee’s relocation. Technology companies, like UrbanBound, can help streamline this process by automating moving to-dos in one central platform.

Plus, relocation management software can also take the pressure off of your internal HR department.

Conclusion

A lot of behind-the-scenes work goes into successfully relocating an employee from one town or country to another. If relocation is in the air at your business, it’s time to start thinking about building out a relocation package!

 

Topics: Relocation Policy, Recruiting

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