Given the ongoing talent shortage, recruiters are casting a wider net, expanding more searches to a national scope. But in order to court long-distance applicants successfully, employers need an attractive relocation program. Which is why one of the questions we’re getting often these days is: what is a reasonable relocation package?
It’s a great question. It’s also one that demands a nuanced answer. Because frankly, there is no single, magic number here, no easy one-word answer. When it comes to crafting a competitive relocation program, there are several factors at play. One size does not fit all.
For starters, what’s considered “reasonable” in a relocation package varies somewhat by industry, job level and cost of living in a particular area. Obviously, the fiercer the talent war in your corner of the employment universe, the higher the bar will be.
That said, strip out those variables, and there are certain constants that should be part of any self-respecting relocation offering—including our top three.
You know what’s not a reasonable relocation package? One that rigidly dictates what employees can spend their allotted dollars on, or how much they can spend on various components of their move. This is the old-school approach to relocation, and it doesn’t serve employees well.
People are different. Chances are, your new hires have different priorities, family structures, and amounts of/kinds of household goods that need moving.
Whatever you offer in the way of a relocation allowance, giving employees the latitude to spend it the way they choose will not only make it go further, but result in a smoother, more personalized moving experience. And that translates to happier, more settled new hires.
2. It’s Helpful, with Tools and Services that Ease the Move
You know what else is not a reasonable relocation package? One that throws a lump sum of money—$5,000, $10,000, whatever—at a new hire, then leaves them to figure everything out on their own.
Unless you want to stress out your new people before they even start, don’t do this. Reasonable employers want to make things easier for employees, rather than require each one reinvent the wheel.
That means a competitive relocation package will include:
In other words, a reasonable relocation package takes the mystery out of moving, steers employees clear of common pitfalls, and spares them time and headaches.