If you are in the process of creating a corporate relocation policy for the first time or restructuring your current policy, one of the questions you may consider is how to differentiate your employees in a tiered policy.
Designing Tiered Relocation Packages
There are many variables to take into account when developing your company's tiered relocation packages. Start by deciding what kinds of candidates and current employees should receive the most extensive and valuable relocation packages and what types of employees should get the more basic level packages.
Your highest tier may apply to top-level executives. You could then create another tier for middle managers, followed by a base-line tier that applies to everyone else in the company. Examine your hiring practices and trends and decide whether you'd like to have an even more pared down level for new hires, or if you'd prefer to assign tiers to recruits based on the levels of their future positions.
Relocation Tiers vs. Employee Status
As you develop your tiers, it's also important to understand how those tiers differ from an employee's moving status. While a current or prospective employee's moving status can certainly influence which relocation tier they receive, the two are not interchangeable.
Moving status refers to the employee's needs during a relocation. For example, is the employee:
- single or married?
- a homeowner or a renter?
- a new hire or current employee?
It can also address more specific circumstances, including whether the employee has children in school, pets that need transferred or elderly parents who require nursing care.
Relocation tiers are certainly related to an employee's status, but you shouldn't necessarily base them on moving status. Instead, you should base the tiers on the employee's standing, or prospective standing, within the company. Basing the tiers on the seniority, salary, job title – or a combination of all three – ensures that more extensive relocation packages are justified by an employee's current and future contributions to the company.
Whatever policy you put in place, you can prevent resentment among employees by maintaining consistency when determining which employees belong in each tier. While it's important to remain consistent with your initial offerings, make sure your relocation policies include enough flexibility for you to move up a tier as a negotiation tactic or for any special circumstances that may arise.