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Companies often need to relocate their employees. The business may be relocating, and most staff are relocating with it. Or, the company is relocating executives to a different office. Many companies also provide relocation assistance to attract new talent to the organization.
Corporate relocation, however, is becoming increasingly complex. A successful employee relocation program requires developing a strategy and gaining organizational commitment.
Elements of a Comprehensive Relocation Program
Each company's relocation program will differ based on its needs. Some companies offer a set amount towards relocation that the employee can spend on services based on their needs. Many companies will have a tiered relocation program that provides more significant benefits for executives than for lower-level employees.
Regardless, comprehensive programs typically contain these elements:
Financial incentives
Many companies provide financial incentives to encourage existing employees to relocate. These incentives might include cost-of-living adjustments for the new location or relocation bonuses.
Visits
Organizations typically allow employees and their spouses to travel to the new location to learn about schools and housing options before relocating. A relocation policy will usually set a specific number of visits or days the company will reimburse
Housing Assistance
Housing assistance will take many forms. Some companies offer marketing assistance or pay a realtor to market an employee's house. They may even buy an employee's home if it doesn't sell within a specific time, especially for more senior executives. Others offer legal help for canceling leases or help employees pre-qualify for mortgages. Many packages will also include reimbursement for temporary housing until the employee can find suitable permanent housing.
Moving Expenses
Companies typically offer to cover some or all of the employee's moving expenses. They do this in different ways. Some offer a lump sum. The employee keeps the difference if the move costs less than the lump sum. If it costs more, the employee pays extra.
Others agree to reimburse moving expenses either totally or up to a certain amount.
Family Support
Some companies will provide job search assistance for the employee's spouse. If the relocation is to another country, some companies offer expatriation help, such as helping spouses obtain visas. They also assist the whole family in adjusting to a new culture.
Payback Clause
According to Chron, the average cost of transferring an employee can be as much as $90,000. If the employee resigns soon after the relocation, the company has lost its investment. Many companies are including payback clauses in their relocation policies to prevent this. If the employee leaves the company within a specific time, they must reimburse the company for some or all of the relocation package.
Flexible Start Date
Often, companies will ask the employee for a realistic timeframe for them to report to the new location rather than simply setting a start date two or three weeks in the future.
Corporate Relocation Assistance
Your most valuable resource is your workforce, and they hold the key to your company's success. Chipman Relocation and Logistics will take care of your employees and their families to ensure a smooth relocation so they can quickly return to contributing to your company's success from their new city.
Chipman Relocation and Logistics is a versatile, experienced corporate relocation expert. Our team can tailor a relocation package to meet your company's needs. Contact us for a free quote today.
