Attracting and retaining top talent is the #1 priority for most corporations. Effective relocation policies and competitive relocation packages can help your company lure new hires, engage and retain talented, high-performing employees. With mobility being a global phenomenon, employees relocate for a higher paying job, career advancement, to be closer to their family, or for flexible work hours.
Some of the biggest challenges people face when they move to a new location relate to finding suitable accommodation, selling their current house, and orienting themselves to the new location. Offering a comprehensive relocation package that addresses these pain points sets your company apart while helping make your new employees feel valued and welcomed.
What does a relocation package include?
Corporate relocation packages can vary widely between companies and for different employment tiers. The basic relocation package will include:
- The costs of moving and storage -including packing, shipping cars, and unpacking.
- Temporary accommodation and living expenses – many companies offer fully-furnished short-term housing solutions and temporary living expenses for the employee and their family travels to the new location.
An ideal employee relocation package covers the costs of:
- moving, packaging, and storage
- selling the home
- mileage or airfare for house-hunting trips for the employee and partner/spouse
- finding new accommodation (temporary or permanent)/ home-finding assistance
- real estate appraiser fee,
- perks and bonuses related to corporate relocation.
- Miscellaneous Expense Allowance for expenses not covered otherwise in the corporate relocation policy.
- Immigration assistance in case of international relocation
These costs are typically decided by the company or negotiated between the employee and your company in advance.
Other things that can be covered in the package:
• Destination services: Many companies cover the orientation trip costs that include accommodation rental, airfare, meals. ground transportation and destination tour guide.
• Lease break costs: Costs associated with breaking a lease/selling home are also part of the relocation package.
• Spousal support: For employees at higher-level, spousal support is offered that includes assistance for the spouse to find a job or establish their own business.
• Tax gross-up: In addition, some relocation packages offer tax gross-up on services covered.
Budgeting for a corporate relocation package
When budgeting for your employee relocation package, there are many factors to consider. Asking these questions will help you formulate a budget plan for the relocation package:
- Will the company cover the entire cost of the move or take care of certain expenses?
- How far is the move? International relocation is more expensive than domestic moves.
- Does the employee have a family?
- How much household goods need to be moved and what do they weigh?
- What size of temporary and permanent homes are required?
- What are the additional costs of moving belongings such as boats, automobiles, or trailers?
- What are the charges involved in disconnecting and reconnecting telephones, space heaters, water, TV, air conditioners, and other appliances?
The average cost of relocating an employee within Canada, according to the Employee Relocation Council is $53,500.
When designing a corporate relocation policy, you will need to think about what best aligns with your business goals. However, keeping in mind the varied needs of your employees is equally important. While no one package suits everyone, a generous, well-thought-out relocation package may be the key to attracting new talent, boosting diversity, and retaining your valuable employees.