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 disperse 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

Recruiting Good Talent: How Relocation Benefits Can Help You Seal the Deal

Posted by Lauren Decker on Dec 4, 2017 1:00:00 PM

Chances are, you’ve heard of the skills gap. It’s a phenomenon that has resulted in 39% of U.S. employers reporting difficulty filling jobs and 12.4% of 2014 college Recruiting top talentgraduates unemployed.

What’s causing this disconnect? The answer varies, but according to CareerBuilder’s 2015 Skills Gap Study, 55% of employers blame educational gaps in particular areas. Others believe it is caused by educational challenges related to new technologies, outsourcing jobs to other countries, or lack of knowledge about potential career opportunities.

Regardless of what’s causing the skills gap, most employers agree — finding good talent is tough. Which begs a couple questions: Where do you find top talent and how do you seal the deal once you’ve found your ideal candidate?

Let’s start with the first question: Where do you find top talent?  

Despite what some universities or cities will lead you to believe, there’s not one central epicenter for the best candidates—skilled professionals, technicians, and students can be found across the globe. If you only recruit within your city, state, or country, you are limiting your candidate pool and might be getting applicants that all share similar experiences and skillsets.

Branch outside your geographical comfort zone and recruit the best talent from around the country or around the world. When attracting top talent, it’s important to promote your company’s location in addition to the position you’re hiring for. Tell candidates why your city is a great place to live and work.  

How about the second question: Once you’ve found the best candidate, how do you seal the deal?

You can find several articles on the web about how to woo your top choice. One way is to offer competitive benefits, including relocation assistance. Show your top candidates across all levels, from C-Suite to campus recruits, how your company values employees by helping them relocate to your location.  

This doesn’t mean you have to spend a fortune to help every single hire move. Relocation management software, like UrbanBound, allow you to deliver everything from simple educational support to a full-service move.

For entry and mid level employees, providing guidance about their destination and suggestions for where and how to spend their money can go a long way to making them feel valued and supported. For your managers or executives, you may want to provide a more hands-on approach that eliminates any out of pocket costs for them.

Attracting, recruiting, and signing good talent is one of the most prevalent challenges human resource professionals face today and as you might expect, there’s not a silver bullet that will result in ideal candidates lined up at your door. Keep these tips in mind as you continue to build and evolve your recruitment program and we’ll try to help you along the way!

the recruiting advantage of relocation

Topics: Relocation, Recruiting

Three Keys to Attracting & Retaining Millennial Employees

Posted by Ryne Inman on Nov 8, 2016 9:08:39 AM

attracting and retaining millennials

Millennials are the most mobile generation in history.

In their lifetimes, everything from phones to the internet have gone from rooted connections to roaming, unchained necessities in daily life.

Their perspective towards a career has done the same—especially compared to previous generations.

An early 2016 Gallup poll found that 60% of millennials were open to new job opportunities. On top of that, 21% have changed jobs within the last year, triple the number of those in other age demographics.

Millennials have no qualms about moving from job to job or company to company in pursuit of career advancement. The combination of their mobile upbringing and a lack of loyalty to corporations (likely due to their experience with economic recession and job losses) means that retention of this huge generation is an issue across the board. But, you can take preemptive steps to avoid issues by appealing to other common traits among this generation.

A Path Forward

This generation wants more from a job than just a paycheck. Now, this doesn’t mean they don’t value their pay. A staggering 42% of millennials have student loan debt. But beyond monetary fulfillment, they seek to be part of a cause and part of a big picture goal. They want to contribute and see a progression in their contribution to an achievement.

Two places you see this manifesting itself are in the explosion of “cause marketing” (when a company advertises a product by tying its sale to a charitable group) and “gamification” (turning everyday tasks or goals into a game, granting points and levels up when tasks are completed) in recent years.

While you don't have to turn every job duty into a point-giving task for millennials, understanding how much progression and a path forward matter to them will improve their work and make them more likely to stay.

Continued Learning

Alongside a career path/progression, millennials value continuing their education. They want to gain new knowledge with experience, whether it is specific to their industry or something that adds to their employment value.

Whether you can offer lunch and learn sessions, pay for a portion or all of an employee’s continued education, or encourage cross-departmental learning for those interested, millennials will value your commitment to their development.

Guidance

One of the earliest reads of the millennial population (that turned out to be inaccurate) was that they were a coddled, needy generation that required constant supervision. The reality is that they have a strong urge to please their superiors and a desire to stay on the right track to remain efficient. They grew up in an educational environment that began to heavily value testing, meaning there was a right and wrong way to do things.

A weekly check in, or whatever arrangement works best for each manager, should be enough to prevent too-frequent contact from millennial employees. Most of the time, the certainty of knowing there is someone and a specific time to turn to for questions and feedback will be enough to keep them on task and out of managers’ offices.

There’s nothing that can guarantee a high retention rate, but making your culture attractive to millennials, and focusing on the short-, medium-, and long-term of their careers can make a huge impact. Remember that they value many of the same things as previous generations, but the way they seek to achieve them manifests differently.

trends in relocation

Topics: Millennials & Gen Z, Recruiting

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