You know you have an excellent HR staff. The team is expert at recruiting and hiring new employees, managing training initiatives, managing benefits (while keeping costs down), addressing employee concerns, building company spirit with team events… the list goes on. Your staff has a lot on their minds, a lot of balls in the air… and they’re expert jugglers – usually.
But corporate relocations pose significant challenges to your staff. It feels like they have to negotiate every relocation package individually. There are no standards set so they can replicate the process each time. And none of the employees are happy with their relocation benefits package. You’ve already lost a handful of employees who simply refused to move, and you’re not surprised.
Do you need help with corporate relocations?
If you only move a handful of employees each year, relocation package exceptions may not be too much of a hassle. Maybe, until now, you’ve addressed each employee as an individual, structuring and negotiating customized employee relocation benefits each time a key executive changed offices or new talent moved to join your company. This extremely personalized, hands-on approach, managed by your HR staff, can work well if you don’t move a lot of employees. But is doesn’t fit every company.
If you are organizing employee relocations on a large scale due to a merger or acquisition, rapid corporate expansion, new product roll-outs, opening a new office, a group move to another location or any other company changes, you can’t afford relocation exceptions that may add unplanned expenses. In addition, exceptions to standard relocation packages can open your company up to lawsuits or a drop in company morale if other employees discover exceptions were made for others, but not for them.
A group move or other circumstance that requires many employee relocations take place at the same time stretches the resources of your HR staff even thinner.
What is the solution?
Tiered Relocation Packages Minimize Exceptions
More and more companies making group moves or conducting many employee relocations each year are shifting to a tiered relocation package over a lump sum approach. Tiered relocation packages:
- Are favored by many employees, resulting in greater employee satisfaction, higher company morale and a faster return to productivity
- Minimize exceptions because of the flexibility of the program
- Can have as many or as few tiers as necessary, although most companies opt for three or four tiers
- Can be established based on any number of factors, including salary, position/title or length of time with the company
Check out Part 2 of our series for a discussion on how to establish a tiered relocation package.