Smart employee relocation

A: The employee relocation benefits that an employer chooses to offer can vary, based on several considerations. These might include things like the level / tenure of the employee (current or new hire, or new graduate in a leadership development program vs. a C-Suite recruit, for example), the origin and destination locations, family size / needs, housing status (homeowner or renter), the type of move (short-term, long-term, permanent, global, domestic, etc.), the company culture, employee preferences and the business need for the move.

A relocation benefits package will typically include those services needed to ensure a safe and compliant move for the business and the employee – such as immigration support to secure all proper workforce and travel authorizations and tax counseling or preparation – and those that help set the employee and their accompanying family members up for success in the new location, such as the shipment of personal effects and securing housing.

Some companies will opt to cover a set of “core” services while also offering employees some flexibility in choosing additional support based on their personal circumstances and needs.

For more information about relocation benefits and approaches, see our consulting services or review the article – Comparing relocation policy approaches.

A. The cost of an employee relocation will be different from one employee to another, depending on many factors, including:

• The origin and destination locations
• Immigration / tax needs
• Family size
• Housing status (owners or renters)
• Type of move (short-term, long-term, permanent, global, domestic, etc.)
• Travel expenses
• Moving costs, including insurance
• Destination services / family support
• Company culture and policy decisions

It’s also important to keep miscellaneous expenses in mind, such as destination site registrations / transferring or obtaining drivers’ licenses, school registrations, utility hookups and the like. Total spend can also be impacted by global geopolitical and economic events that can have an impact on things like the costs of living / housing, fuel, packing materials and travel.

The support and knowledge of an experienced global relocation management company and a holistic analysis of your employee relocation program data – including things like your transferring population demographics / average annual move volumes, most traveled routes and policy levels or support options – can help you establish realistic budgets, track expenses, identify anomalies and find efficiencies.

A. As with most employer-sponsored benefits, many companies have at least some level of choice built into their relocation packages. The extent of employee choice will depend in large part on which policy approach(s) a company decides to take, and what relocation support an employee is eligible for.

Some of the more common approaches include a list of support services that are deemed core to a successful move (including those that are compliance-related) and those that may vary by employee needs and moving circumstances.

A. Some employers may have a lump-sum policy, whereby relocating employees receive a single, direct payment to help cover the costs of their move. It may or may not be “grossed-up” to offset the tax consequences to the relocating employee.

Some employees prefer the flexibility and independence of managing the move largely on their own, but many employers will also collaborate with relocation management company providers to offer an online portal or lump sum technology service to guide them.  These easy-to-use tools help mitigate risk and make it easier for the employee to manage things like scheduling virtual surveys to obtain moving quotes, comparing estimates, and selecting providers, while giving employers valuable insights into how to best support employees so they can be happy, productive and safe in their new locations.