Employers need relocation policies that work for them and for their employees. No “one-size-fits-all” relocation policy works for every employer in every industry. Successful companies design relocation programs to recruit and retain talent, meet and beat their competition, and fit their relocation budgets.
Employer Primary Goals and Objectives
When designing their relocation programs, many employers target objectives such as:
- Controlling relocation program costs
Organizations must carefully balance offering competitive relocation programs and minimizing expenses. For instance, loss on sale of home benefits can prove expensive depending on market circumstances. By establishing reasonable reimbursement caps, employers can still assist employees while managing expenses.
- Offering attractive relocation policy features
Employees’ relocation needs can evolve over time, necessitating changes to relocation policies. Some policy features may be more fluid while others remain consistent. Employers can combine flexible features with more traditional benefits to create an attractive relocation policy.
- Reducing the reimbursement risk with new hires
Employers face some risk when hiring new employees at any level. This risk increases if new hires will immediately access the corporate relocation program. Worldwide ERC® reports that 86% of companies mandate that newly hired employees sign relocation payback agreements should they leave the company voluntarily within a stated time period, typically one or two years after the relocation.
- Making relocation manageable for HR personnel and employees
Relocation policies that feature manageable administration components help HR staff balance competing priorities. Transferees also appreciate complete and well-managed programs that make their relocation a problem-free and successful experience.
- Minimizing lost productivity from transferees during and immediately after relocation
Relocated employees sometimes suffer from “move-lag,” which reduces their productivity. Similar to the learning curves seen in new hires, transferees—weary from the taxing responsibilities of moving—sometimes experience reduced productivity until they settle in and become more familiar with their new office and peer group. Employers will understandably want to minimize downtime.
While it may be impossible to address every unexpected problem that could arise during a major move, writing a relocation policy that addresses these objectives will help.
Whether you administer your program in-house or partner with a third-party relocation firm, your company’s relocation policy should address these vital objectives to ensure you offer cost-controlled, competitive benefits that help you attract and retain the right personnel.
Learn more about how to develop an effective relocation policy in our free guide.