Relocation Policies and Rental Assistance | Whitepaper

Whitepaper includes:

• Best practices including employee needs, policy guidelines and Incent-to-Rent
• Benefits for both the Employee and the Employer
• Dilapidation in rental properties
• Partnering with an RMC for guidance, coordination and enhanced experience

• Understand Your Employees’ Needs and Preferences
• Set Clear Policies and Guidelines
• Incent-to-Rent
• Placing Caps on Rental Assistance
• Encourage employees to negotiate a Diplomatic Clause
• Establishing a partnership and hiring an RMC

Moving to a new city or country can be stressful, costly, and complicated.
A comprehensive rental assistance benefit can help ease relocation stress and ensures the employee feels supported throughout the process

Smooth Transition to New Housing
Securing housing is often one of the biggest challenges in a relocation.  Relocation assistance often includes help finding housing, whether it is by providing rental assistance, offering temporary accommodations, or helping with house-hunting services. This ensures employees do not face the stress of searching for a home in an unfamiliar city or country, especially when rental properties are in high demand. Knowing that housing support is available allows employees to focus on other aspects of their move, such as setting into their new job and community.

Reduced Stress
Relocating is inherently stressful, and housing is one of the most stressful aspects of the move. Receiving rental assistance helps to ease the stress, allowing employees to feel more comfortable in their new environment. This sense of security can lead to a smoother transition, both personally and professionally.

Improved Satisfaction and Loyalty
Providing rental assistance as part of the relocation package shows that the company values the employees’ well-being and wants to make their transition as smooth as possible. This support can increase employee satisfaction, demonstrating that the company cares about their long-term success. As a result, employees are likely to feel more appreciated and loyal to the company.

Help With Lease Agreements
Leases can be confusing, especially when moving to a new city or country. With Rental Assistance, employees benefit from support with lease negotiations, ensuring they understand the lease agreement’s terms. Additionally, they can also receive legal support to help with local laws, especially when relocating internationally. This assistance helps to ensure that employees understand their obligations and rights as tenants.

What is Dilapidation?

On a rental property, “dilapidation” refers to the damage a tenant leaves a property in at the end of a lease, meaning that they are responsible for any damages beyond normal wear and tear and must return the property to its move-in condition as outlined in the lease agreement. This usually includes repairs, decoration, or restoring any alterations made to the property during their tenancy.

Landlords often issue a “Schedule of Dilapidations” detailing the necessary repairs and their associated costs to the tenant at the end of the lease. Dilapidation is typically more of an issue with international assignments since they are for a set duration.

4 key points about dilapidation in rental properties include:
1) Tenant Responsibility
2) Lease Agreement
3) Schedule of Dilapidations
4) Normal Wear and Tear

How to avoid Dilapidation?

Your employees can reduce the risk of dilapidation by minimizing the wear and tear of the property, saving them money in costly repairs at the end of the lease.

Prevent dilapidation charges at the end of the lease by:

• Having a Well-Written Lease
• Conduct Regular Inspections

Incorporating a comprehensive rental assistance program into relocation policies is essential for supporting your employees through the relocation process.

By addressing the challenges of securing suitable housing, managing lease agreements, and facilitating a smooth move, organizations can enhance the overall employee experience. A well-executed program not only reduces employee stress, but also strengthens talent retention and productivity, reinforcing the company’s commitment to employee well-being. As workforce mobility evolves, including a comprehensive rental assistance benefit in
your policy will remain a key factor in ensuring successful relocations and assignments.

RFP – Relocation Request for Proposal Generator

The future of global mobility is not just about moving people – it’s about moving towards a sustainable future. In a time when sustainability is a top priority for businesses across all sectors, the global mobility industry has a unique opportunity to lead the charge. Rather than seeing relocation as an obstacle to sustainability – given the right circumstances, it can result in a positive impact on the environment. By embracing a holistic view of relocation, the global mobility industry can redefine what it means to move talent across borders, creating a future where business growth and environmental sustainability are not mutually exclusive.

Relocation is a major life event, where nearly every aspect changes at once – from their home and country to the surrounding language and culture. Daily habits are disrupted, and new ones are formed. This is known as habit discontinuity and presents a unique opportunity to encourage sustainable behaviors. During this time, people are more receptive to adopting new habits, making it an ideal time to introduce sustainable habits.

Research by psychology professor Bas Verplanken highlights that our behaviors are largely shaped by habits rather than conscious decisions. His studies reveal that during major life changes, such as relocation, habits are naturally disrupted, making it easier to break old patterns and establish new, sustainable ones. This means that, with the proper support, assignees can be encouraged to adopt more sustainable transportation methods and integrate sustainable practices into their daily lives.

The global mobility industry has the potential to serve as an enabler of positive change, and this is where we, as your Relocation Management Company (RMC), can facilitate and encourage sustainable choices. Through our tailored services and dedicated support, WHR Global (WHR) empowers organizations and assignees to adopt environmentally responsible strategies.

Incorporating sustainability into every stage of the assignment not only facilitates sustainable business practices but also provides the opportunity to track and manage Scope 3 emissions more effectively. By aligning sustainability policies with sustainability training, the assignees gain the knowledge and resources to make sustainable choices and recognize their potential impact. Continuous support ensures that they can implement long-term changes, making sustainability an integral part of every step of the relocation process.

Through practical pieces of advice, such as reassessing your organization’s use of air shipments, WHR can help you drive meaningful change in sustainable global mobility. By guiding the assignee to make more sustainable choices, it is possible to significantly cut Scope 3 emissions without disrupting productivity. Partnering with an experienced RMC ensures that the assignees receive the proper support, guidance, and practical solutions to make sustainable choices easier.

WHR is proud to have achieved a Silver EcoVadis Sustainability Rating in 2024, placing us in the top 15% of companies globally.

We are also a participant in the Science-Based Targets Initiative (SBTi) for sustainability & corporate climate action.

WHR commits to reducing Scope 1 and Scope 2 greenhouse gas emissions by 50% by 2030, compared to a 2018 base year, and to measuring and reducing its Scope 3 emissions.

But what happens when there is an off-hand approach to relocation? Why not just let the assignee decide what sustainability efforts they want to pursue?
This brings us to an essential challenge in sustainability efforts: lump-sum relocation policies.

Relocation undeniably has an initial environmental cost, primarily due to travel and logistical emissions. However, viewing relocation holistically offers opportunities to instill long-term sustainable behaviors. Consider an employee relocating to a new country who chooses to lease an electric car rather than opting for a traditional combustion engine vehicle. In said country, there is an excellent electric car charging network, meaning the assignee does not have to compromise on their comfort. Throughout the whole assignment, the reduction in carbon emissions from daily commuting may be more significant than the emissions emitted from the move itself. This highlights that when sustainability is embedded into relocation policies and assignees are provided with the proper support, relocation can drive positive environmental change – sometimes making it more sustainable than not relocating the employee.

Relocation is more than just moving from one country to another—it represents a significant life event that disrupts established habits and creates an opportunity for change. This shift offers the Global Mobility industry a powerful opportunity to influence sustainable choices. By seizing this opportunity, the industry can play a crucial role in helping companies achieve their ESG objectives and make a positive environmental impact.

For a more in-depth exploration of these insights, we invite you to read ExpatRide’s comprehensive white paper here and join us on our journey toward a more sustainable future.

This article is based on ExpatRide’s white paper Global HR’s Green Opportunity: Using Global Mobility to Drive Environmental Change, which examines the immense potential of the global mobility sector in fostering a more sustainable future.

Most companies have developed a formal relocation policy (or policies) that outline the specific guidelines and benefits available to an employee in conjunction with a job-related move or assignment. This policy typically details the types of relocation packages available, the scope of services offered, and the eligibility criteria for receiving assistance. Employers may offer different types of relocation packages based on the employee’s level, job role, or distance of the move.

Common relocation packages include the three options below, including: comprehensive full-service relocation plans, lump-sum payment and direct reimbursement.

1) Full-Service Relocation Package:

• • This comprehensive option may cover all aspects of the move, from hiring professional movers to providing temporary housing and helping with home-finding services. For high-level employees, this can also include additional support like spousal job search assistance and school placement for children.

2) Lump-Sum Payment:

• • A lump sum payment provides the employee with a set amount of money to cover their relocation expenses. It offers flexibility but places the responsibility on the employee to manage their moving costs within the given budget. The employee is responsible for any costs over and above the lump sum provided.

3) Direct Reimbursement:

• • This type of relocation support is not as common as those listed above. With a direct reimbursement package, a company will reimburse the employee for their moving-related expenses. Spending limits and the types of incurred costs covered for reimbursement are defined in the relocation policy. These costs are paid by the employee up front and reimbursed by the employer.
    
    
    • For U.S. Domestic assignments, benefits included in these packages might include travel allowances, home sale assistance, and the cost of temporary lodging until the employee finds a permanent residence.
    • For an international assignment, benefits may also include immigration assistance, destination services, and cultural/language training assistance.

RFP – Relocation Request for Proposal Generator

1) Internal Resources and Time Commitment

• • Personnel Involvement: The RFP process often requires input from HR/mobility, finance, legal, and procurement departments. Each department may need to review proposals, assess the RMC’s capabilities, and coordinate meetings. Depending on your organization’s structure, this can be a resource-intensive process.
  • Time Investment: The process typically takes several months, depending on the complexity of your relocation program, the staff’s schedules, and the number of proposals received.

2) RMC Selection Process

• • Evaluation: Companies must establish criteria to assess RMCs’ capability of managing their programs, including service offerings, reputation, and past performance. Some organizations do this through a formal Request for Information process.

3) RFP Preparation and Administration

• • Document Drafting and Design: Preparing the RFP requires a comprehensive understanding of your company’s relocation program needs and may include the help of specialized consultants or internal subject-matter experts.
  • Reviewing and Responding to RMC Questions: Clarification questions are part of the RFP process. Upon receipt of the questions from potential RMCs, the company will consult with relevant internal teams and/or subject-matter experts to craft the responses.

4) RMC Proposal Evaluation

• • Time spent reviewing proposals: Reviewing multiple RMC proposals requires time and careful consideration. This is especially true if numerous individuals are involved in the review process. Organizations may allocate time from various departments, including HR/Mobility Managers, Procurement Officers, and finance experts
  • RMC Presentation Costs: In most cases, shortlisted RMCs are invited to present their proposals in person or via virtual meetings. Cost considerations include time spent by internal resources planning and attending the presentation. This includes follow-up discussions.
  • Contract Negotiation: Once the RMC is selected, a detailed contract negotiation occurs, which may involve legal counsel reviewing terms and conditions.

5) Estimated Process Cost

While the cost of the RFP process can vary, companies should be prepared for an investment of anywhere between $30,000 – $40,000 (or more), depending on the scope and complexity of the relocation program being outsourced, the level of internal resource involvement, consultants/advisors involved, and any 3rd party procurement platforms used. For smaller companies with fewer relocations, the cost may be lower. Larger organizations with a high volume of moves may see higher costs due to more complex programs, detailed evaluations, and vendor negotiations.

6) Other Cost Considerations:

• • Opportunity Costs: While more challenging to quantify, the company should also consider the opportunity cost of dedicating resources to the RFP process. During the time spent managing the RFP, these resources may not be available to focus on other vital projects, such as supporting ongoing employee relocation efforts or other core business operations.
  • Consulting or External Expertise Fees: In some cases, companies may hire external consultants or experts to assist with drafting the RFP, evaluating proposals, or providing industry insights. This can add additional costs to the process, ranging from a few thousand dollars to tens of thousands, depending on the level of support required.
  • Software & Tools: If the company chooses to utilize software or platforms to help streamline the RFP process (such as automated RFP platforms, vendor management systems, or third-party procurement tools), there may be additional subscription fees or costs associated with these tools. Depending on the platform, these costs can range from hundreds to several thousand dollars.

Issuing an RFP for relocation services can be a substantial financial and time investment for a company.

However, the benefits often far outweigh the costs when the process is conducted strategically by investing the time to evaluate multiple providers and choosing a partner that offers value, high-quality services, long-term flexibility, and better alignment with your company’s needs.

These savings, combined with improved employee satisfaction and retention, can yield a significant return on investment, particularly as your relocation program scales over time.