Are you sending your star employee across the country or across borders? If so, it’s time to bring a feast of employee benefits to the table with great employee relocation packages.
For those in the process of constructing a competitive employee relocation package, be sure to pinpoint your primary objectives. Whether you’re incentivizing a key player to uproot their life and start anew or hoping to cushion the blow of a physically and emotionally exhausting relocation, an employee relocation package is an excellent way for you to show appreciation for your employees and their hard work. Not to mention, these relocation packages can help you preserve your company’s retention rate and prevent star employees from throwing in the towel.
To help you figure out what your relocating employee needs to succeed, consider these building blocks of a competitive relocation package.
The costs involved in moving across the country add up. Here are some of the common moving expenses that should be factored into all relocation package decisions.
With auto transport, you can quickly transport your automobile from one place to another, whether you’re moving across the country or the globe. There are a few things that you have to take into consideration when looking at the price of shipping your car, and those include calculating cost per mile or distance traveled. Another factor is the type of vehicle undergoing transportation.
Once you’ve calculated a rough estimate of the shipping cost total, employers should research affordable auto shipping companies like these that will guarantee their employees a pain-free moving experience. With a reputable car shipping service at their side, your employee can cross one stressor off their list of possible moving mishaps.
When in temporary housing, employees will need somewhere to store their belongings. Therefore, they will have to rent storage units, which can add up over time. With these swelling expenses in mind, an employer should take the liberty of covering storage costs. That way, an employee isn’t left to sort through stacking expenses (along with stacking cardboard boxes).
When moving long distances, employees will want to opt for mover’s insurance to ensure their belongings are covered if accidents happen during transit. For those employees hesitant to relocate, compensation for mover’s insurance can grant this nervous employee long-awaited peace of mind.
More companies are turning more towards temporary housing to get their employees up and running as soon as they arrive.
One option revolves around house-sharing programs like Airbnb, where you could rent out someone’s home for a few months at a time instead of putting an employee in hotel rooms that would be costly on both sides.
These arrangements often cover utilities and rental costs, so there are no added expenses for the employees when they’re getting settled in their new location. This can be a big "win" in employee relocation packages.
Most companies offer relocation packages that include travel expenses. They may cover the cost of airfare, gas for your car, or train tickets to make it as straightforward as possible for employees and their families. While not mandatory, consider rewarding your long-term employees with free plane tickets or a gas gift card.
When asking an employee to relocate, it might be a good idea to help their spouse find work elsewhere and schooling or caregivers for their children. Otherwise, the stress of unemployment may swallow up dual-income families that are already grappling with the emotional rollercoaster of relocation.
Any costs associated with purchasing a new home, selling an employee’s current house, or breaking their lease usually fall into the relocation-package-worthy category. Without the assistance of an employer, a relocating may employee may find themselves tied down by a house gathering dust on the market.
After accepting a job offer, new hires usually start about two weeks later. However, if they need to move for the position and can’t find suitable housing within that time frame, it can take up more of their free time and additional company funds.
That said, employers should keep this building block in mind when developing relocation programs. Start by asking employees how much extra time they would like before beginning their new position. This way, your star employee isn’t flustered on their first day. It's an essential aspect to consider for employee relocation packages
Considering city and state taxes, some companies offer substantial relocation bonuses to help offset the potentially higher cost of living. For example, a Kansas-based employee with a comfortable may find themselves struggling to make ends meet in the Golden State of California. Because this financial strain could result in a resignation, employers should do their part to compensate valuable team members fairly.
For those employers wandering in the dark, these seven building blocks for employee relocation packages should help provide context and clarity on what competitive employee relocation packages look like. Soon enough, your star employee will be thriving in their new home base.