In the last few years, the increase in global mobility has become quite noticeable. While some companies are offering relocation packages that are quite enticing, there are quite a few where company relocation incentives are less-than-stellar. Many employees are often frustrated with the experience they undergo. As a global relocation company, WHR Group, Inc. knows the hidden costs, speedbumps, and money that gets thrown at people in the name of relocation assistance.
When your employee is dissatisfied with your relocation package, it is not good news for your company. Moreover, if you are one of the companies who lean towards simply giving a monetary lump sum to your employee or new recruit instead of a well-planned relocation policy, think again. The chances are you might lose your valued employee when they experience the hassle and stress of the relocation. Adding to the annoyance could be a situation when the relocation vendors do not do the job properly.
Hence it is time to increase the spending on relocation. You may ask why?
Importance Of Relocation Package for Employees
As an employer, you might think that offering relocation packages to your employee is expensive and time-consuming. You are not entirely wrong, but there is a catch. While it may seem costly, it is much more profitable in the long run than just offering a lump sum. When your employee has to sort things out regarding the relocation, the chances can increase that they might leave your company.
So, when you compare putting the extra effort, money, and time into offering a good relocation package versus searching for a new employee, recruiting them, and training them, the latter is more expensive.
The Old Days Are Gone
Once, people were happy doing their job in a single company, staying near their homes, and retiring from the same place. However, with Baby Boomers and Gen Xers being replaced by the Millennials, companies must know how to attract and retain them. According to a study, by 2025, 75% of the global working population will be Millennials. The hiring and retaining process needs to be changed along with the workplace objective.
With more employees ready to move for a 10% raise along with other expenses paid, the idea of reluctance to move is gone. A study conducted about relocation among the employees in Canada showed the following as incentives to accept a relocation:
- 48% of respondents were happy to relocate, with a 20% raise
- 39% if guaranteed return to the current role after a couple of years
- 31% replied they would want help with spouse/partner’s employment in the new place.
Apart from these, another highly desirable factor was a company-paid trip to the new location before accepting the position.
With these figures in place, it is pretty clear that offering a good relocation package is much more beneficial for your employee than letting them fend for themselves while you just simply throw a lot of money at them.
What To Spend on Relocation to Entice Talent?
When you are planning to relocate an employee or a new joiner, you can offer certain relocation benefits and processes to ensure they are satisfied with the move offered. Here are the top 5 categories you need to spend on when relocating your employee or enticing new talent.
- Taking the burden off
Relocating to a new place is not only financially challenging but emotionally too for your employee. Make the experience better for your employee by expanding the resources with a Relocation Management Company (RMC). A professional RMC like WHR Group, Inc. can help your employee from start to finish in the relocation process. This will ensure less stress for your staff and warrant that they get back to work in a much shorter span compared to when they have to carry the burden of relocating by themselves.
- Uber-specific Information
Millennials use the internet to find all possible information they can gather but knowing about a new place through a computer is not enough. Invest in an RMC who has a dedicated supply chain with fully vetted destination partners that can provide knowledge about the new location. Ensure they know the local customs, places where to meet, what to do during off days, the culture of the region, and more. Also, provide transitional training to your employee so a mutually positive feeling can be fostered between coworkers.
- Aim For Full Transparency
A well-written and outlined document that states the relocation policy ensures transparency and eventually a smooth relocation experience. This will ultimately translate to a better employee experience and potentially higher retention. Also, keep communication open at all times and take proactive steps to offer assistance to your employee.
- Assistance With Housing
If you are one of those companies that do not have a community housing provision for your relocated employee, assist them with the house search. Helping the employee find a house that matches their requirement and budget will be beneficial for you in the long run. In addition, if your employee needs to sell their house, offer them some closing costs for expediting the process.
- Job Assistance for Spouse/Domestic Partner
At times, employees can become resistant towards relocating when their domestic partner is serving at a good position in the current location. The best way to navigate the situation is to offer a career search assistance for the employee’s partner. It might seem that a company is getting too involved in an employee’s personal life, but it is in the best interest of your company. Your employee will appreciate the effort.
Providing your employees with an affordable and competitive relocation package that will care for them and their families will guarantee their loyalty to your company. Though relocation benefit packages are to not be discussed, employees talk, and if you are not offering the best in the industry, you are then welcoming churning and eventually more expenses for your business. So, spend on a better relocation package to keep your employees happy.