Far too many relocations – nearly half, some researchers say – fail. While the causes vary, the fundamental reason usually comes down to one thing: communication failure.

A clearly defined and well-communicated relocation benefits policy reduces the chances for misunderstanding when accepting a relocation opportunity. Transparency ensures that when an employee accepts a job that includes relocation, they know exactly what benefits they are receiving, and what expenses they will incur to make the move.

What are the key elements of a transparent relocation policy?

1. Start by defining eligibility. Does your policy restrict eligibility to moves only of a certain distance or more? Are all employees eligible for the same benefits, or are only new hires or senior-level employees eligible?
2. Provide a full description of benefits. This can be a lengthy list, but the more detailed, the better. It should define what is covered for things like:
   • Household goods shipping (what about shipping pets and cars?)
   • Site visits. For how many nights and for how long and in what properties? Avoid using terms like “moderately priced hotel” that can be subject to interpretation. Instead, specify the dollar amount per day that is allowed. Doing so will cut down on exceptions and misunderstandings.
   • Temporary housing (for how many days?)
   • Home sale and purchase assistance
   • Spouse’s career assistance
   • School search
   • Cost-of-living assistance
   • And more.
3. Define the repayment clause. Clearly communicate the length of the employee’s assignment and repayment consequences if an employee leaves within a certain time.
4. Be equally prescriptive in outlining what’s not included in your policy. We often find that clients’ policies omit a lot of these details. An objective third-party like CapRelo can spot potential holes in the policy that can create confusion or unwanted surprises for transferees. While it may feel like you are getting in the weeds, detailed descriptions of your benefits create transparency that can save your organization dollars and lost productivity in failed relocations.
5. Outline tax implications. Denote how much is covered, and how much is covered in a tax gross up. For example, we recently worked with a client that decided to stop grossing up certain locations – a decision that could create significant increases in employees’ taxes, particularly for those relocating to the US from abroad. By communicating the policy upfront, we were able to mitigate surprises when employees received their relocation package and ensure transferees made relocation decisions with full knowledge of tax implications.

How can companies improve transparency in their relocation processes?

First and foremost, keep your policy up to date. We recommend our clients revisit their policies at least every three to four years. Trends in relocation change, language gets outdated. For example, consider a household goods matrix that is part of a 10-year-old policy. There’s good likelihood that many of the items that were considered back then are now standard expenses. A regular review makes sure your policy benefits are not only clear, but also current with market trends.

When is the best time to communicate policy benefits?

There are really two components to communicating policy benefits. First, it’s critically important that your HR and talent acquisition teams be well-educated on your policy. As the transferee’s first points of contact, they field lots of early-stage relocation questions. By arming them with policy details and documentation, your teams establish that all-important transparency from the outset. Make sure you are working with a relocation management company that offers your teams onsite and/or virtual education.

The second component, of course, is communicating with employees themselves. Be sure to include any relocating family in these conversations, too. The best time to start that dialogue is pre-offer. A trusted relocation consultant who knows your policy inside-out helps support that transparency and eliminate miscommunication. In any relocation, there are a lot of parts and a lot of people involved, from real estate to van lines and other vendors. It’s up to us to make sure the employee understands what to expect.

Lean on CapRelo’s Experts.

For more than 25 years, our relocation consultants have helped clients around the world craft transparent relocation policies that improve employees’ success and satisfaction. Learn for yourself why we have a 96% transferring employee satisfaction rate. Contact us today.