Cost cutting has become a way of life in the corporate world. When relocation costs are reduced, the bottom line increases. Relocation expenses can drain other resource spending. Cutting back and controlling these expenses – without compromising the relocating employees’ experience – should be the goal of every human resource department. Unfortunately for many companies, this goal remains an enigma. However, simple changes to the relocation policy can equate to substantial savings without compromising employee morale.
Set Clear Parameters in Your Relocation Policy
Policy ambiguities can result in additional costs for the company. Your relocation policy should be written in easy-to-understand, simple language. Take into consideration what is needed to facilitate a relocation smoothly and efficiently, without allowing wiggle room by the employee.
Put Expense Caps on Some Relocation Benefits
You would be surprised at how many companies ignore capping expenses like loss on sale. Loss on sale clauses for employees who own homes can be a major expense that should be capped. Many homeowners have experienced depreciation of their real estate assets. This makes loss reimbursements a major expense for relocating employees. Your relocation policy should clearly define a maximum amount that will be reimbursed. Additionally, it’s critical to consider capital improvements to the property when calculating its value.
Change the Way Relocation Expenses are Paid Out
If you’re currently using traditional expense reporting to reimburse employee expenses, you may want to consider if a lump sum payout method is best for your company. Numerous expense reports generated by the transferee will result in time and costs to review, approve and issue payment for each report. A lump-sum method may eliminate the headaches and costs involved with multiple expense reports and save your company money. There are a variety of types of lump sum programs. Take the time to research and evaluate if this kind of program would be beneficial to your company.