This article was initially published in January 2024. We asked author and VP, Global Client Services, Dan Lucisano, for his insights on the latest 2025 trends and updates in corporate relocation, employee mobility, and HR strategies. 

As an HR professional, you know that relocating employees can be a costly endeavor. Whether that means relocating an employee from New York to London or from the East Coast to the West Coast, developing a cost-effective relocation policy that doesn’t sacrifice quality is key. 

To achieve this, you’ll need to develop a comprehensive approach that addresses all aspects of relocation. You might phase in new policies over time or analyze data to give you real-time insights about what’s working and what benefits your employees could live without. Ultimately, your goal is to ensure a smooth and successful relocation while minimizing costs. In this guide, we offer innovative tips and solutions to reduce corporate relocation costs without compromising the essential elements that make your relocation package effective. 

1. Get a Clear Understanding of the Relocation Budget

One of the most important steps you can take to minimize relocation costs is to have a clear understanding of your relocation budget. If you’re working with a Relocation Management Company (RMC), be sure to request a budget that outlines the costs. This will give you a thorough understanding of the budget breakdown and allow you to identify any hidden markups that could be inflating your costs. By working with the RMC CRP to address these, you can ensure that you’re getting the best value for your money. 

Incorporating robust relocation expense management not only mitigates unexpected financial burdens but also enables organizations to make more informed strategic decisions. By leveraging detailed financial insights into relocation costs, companies can refine their budgeting strategies, ensuring that every dollar spent aligns with organizational goals and enhances employee satisfaction during the transition. Effectively managing these expenses ensures a balance between cost efficiency and quality employee relocation services. 

Fall 2025 Update: With rising inflation affecting relocation costs, HR professionals must now consider cost-of-living variances between urban, suburban, and rural locations. Cost benchmarking tools are beneficial for comparing expected vs. actual spend.  

2. Ask for Feedback

As an HR professional, you understand that the success of your company is heavily dependent on the well-being of your employees. Asking for relocation feedback through a survey or a few open-ended questions allows your employees’ voices to be heard. You can use this feedback to identify which aspects of the relocation program were most beneficial to your employees and which aspects proved to be frustrating or challenging. If you receive continual feedback that a certain service or feature wasn’t helpful, you could consider cutting it to reduce costs without affecting your employees. 

Integrating employee feedback in cost savings initiatives for HR can be highly beneficial, as staff often have firsthand insights into operational inefficiencies and potential areas for improvement. Encouraging employees to participate in brainstorming sessions or suggestion programs not only fosters a culture of inclusivity but may also reveal innovative solutions that management may overlook. By leveraging their diverse perspectives, HR can identify and implement practical, cost-saving strategies that have a direct, positive impact on daily operations, ultimately contributing to the organization’s overall financial health. 

Fall 2025 Update: Today’s generation of employees are increasingly more vocal about their needs. Transferees prioritize mental well-being, hybrid work arrangements, and spousal or family support. Surveys should include more than just logistics, but also lifestyle fit.  

3. Ask Your RMC to Get Multiple Bids

When it comes to reducing relocation costs, getting multiple bids from suppliers is a great way to save money. Ask your RMC to expand its pool of suppliers to get multiple bids. While your RMC may have established relationships with specific suppliers, asking them to explore new options can sometimes result in better deals. 

4. Institute a Managed Budget Policy

Whether you’re relocating an individual employee or their whole family, managing your relocation budget can save money while still supporting your employees. One way to achieve this is by adopting a managed budget policy, which enables you to control expenses and reinvest any unspent funds back into the company. With a managed budget policy, you can set limits on expenses like travel, temporary housing, and other relocation services to ensure that costs are predictable and within budget. 

This is a more controlled approach compared to the lump sum relocation package. However, even if you have a lump sum package, you can still incorporate caps on certain expenses to control costs. While both lump sum and managed budget policies have their benefits, a managed budget policy can be especially helpful in ensuring that costs don’t spiral out of control. 

With CompanionFlex, our core-flex programs cater to your employees’ unique needs while providing your team with an integrated analytics approach to gain continuous insights that help eliminate any unnecessary benefits not being utilized effectively (a.k.a. more savings for your company). 

Fall 2025 Update: Our AI-powered intelligence layer, Core-Tech, connects data, business processes, and automation to power our platforms and CompanionFlex, delivering personalized relocation experiences.  

5. Track Your Relocation Metrics and Adjust Accordingly

Tracking metrics and analyzing supplier quotes can help you make informed decisions about your relocation program and reduce costs. It’s essential to regularly compare the quotes suppliers provide with their actual charges to ensure you stay within budget. 

Tracking your metrics can also help you re-evaluate any aspect of your relocation program and make changes where necessary. For example, if you notice a trend where you’re overspending in one specific area like travel, you can budget more money in that direction. 

Fall 2025 Update: Key emerging metrics to watch include the cost overrun rate, employee satisfaction scores (both pre- and post-relocation), time to productivity, and the destination flexibility index. Many RMCs now offer dashboards that visualize these metrics in real time, making it easier to iterate and save. 

6. Pay Attention to Per Diems

Per diems are allowances given to employees for things like meals and housing, and they can be a significant expense for companies during relocations or business trips. One way to manage per diems is by setting caps on them, which can help keep costs under control. 

It’s also important to evaluate which employees may need a larger budget for per diems compared to others. For example, an employee living in a studio with a kitchen for the next year may not need as large a per diem as someone on a quick business trip who will need to eat all of their meals out. By setting per diem budgets tailored to the specific needs of each employee, you can ensure they have sufficient funds for meals while also effectively managing costs. 

Fall 2025 Update: With remote-friendly relocations, some employees may need less support than others. Consider using geographic adjusted per diem calculators and offer flexibility for employees with long-term housing solutions. Also, keep an eye on trends: misalignment with location-specific COL and per diem abuse can result in thousands of dollars in costs per move. 

7. Try a Discard and Donate Program

Walk into anyone’s home and you’ll typically find that the basement, attic, and garage are cluttered with junk. From couches that have never seen the light of day to clothes that no longer fit, there are so many items that could go to a new, loving home when an employee is relocating. 

Check to see if your employee wants to sell, donate, or throw away any items they no longer need. This can help reduce the number of items that need to be moved, which in turn can save on relocation expenses. Additionally, if the employee donates any items to charity, they may be able to use it as a charitable write-off on their taxes (a win-win). 

8. Use COLA Strategically

When it comes to international moves, companies often offer a Cost of Living Allowance (COLA) to help employees adjust to their new location. However, it’s important to use these allowances sparingly and with certain provisions in place. It’s more cost-effective to use spendable tables that don’t take the employee’s salary into account, rather than relying solely on COLA. By doing so, companies can ensure that they are providing fair and consistent compensation for their employees’ cost-of-living expenses without needlessly overcompensating. 

Fall 2025 Update: COLA strategies are evolving, with many employers switching to market-based pay tied to specific zip codes or letting employees choose between COLA and remote work stipends. Stay flexible, employees often prefer long-term salary stability over short-term bonuses. 

9. Opt for Localization

Localization is a key aspect of global mobility management. If you have an employee who has been stationed in a particular country for an extended period of time, it may be time to consider localization. This process involves adjusting their compensation package to be in line with the local cost of living and standard of living. 

By localizing an employee, you ensure that their pay is fair and on par with what local employees are receiving, which could help save the company money in the long run. By conducting regular cost-of-living analyses and adjusting compensation accordingly, you can ensure that your company consistently offers competitive compensation packages that keep your employees satisfied while eliminating bloated salaries. 

Fall 2025 Update: As more employees move permanently to new locations, localization can help reduce long-term mobility costs. However, employees now expect transparency in how localization affects their compensation. Proactively share how pay is benchmarked and offer support for the transition period. 

10. Leverage Technology

Advanced technology is revolutionizing the relocation industry. With the help of modern software and data analysis tools, companies can now identify emerging trends and patterns that can help them make informed decisions about their relocation programs. These tools can also help to reduce administrative bottlenecks and identify cost-saving opportunities, ultimately leading to a more efficient and cost-effective relocation process. 

Advanced technology enables companies to monitor their employees’ locations, ensuring compliance with immigration and tax regulations. By staying tax-compliant and taking advantage of any tax breaks available, companies can save even more money on their relocation expenses. 

Fall 2025 Trend: Technology is no longer optional. HR professionals should prioritize the use of AI for: 

• Smart budgeting and quote analysis 

• Destination matching based on employee preferences 

• Workflow automation and compliance tracking 

Consider integrating your RMC’s tech platform with your internal HRIS or mobility dashboards for seamless data flow. 

Let CapRelo Lend a Hand

At CapRelo, we don’t just manage moves; we anticipate challenges and provide forward-thinking solutions that support employees and their families every step of the way. From home purchase assistance and mortgage guidance to temporary housing and move management, our services are designed to reduce costs while enhancing the employee experience. 

As an extension of your HR team, we simplify complex relocations—domestic or global—so your employees can focus on what matters most: settling in and thriving. Wherever work takes them, CapRelo has them covered. Contact us today to see how we can make your mobility program smarter, smoother, and more cost-effective.