It can cost up to $76,000 to move a homeowner (according to 2007 ERC statistics). While salary increases and relocation assistance packages can help alleviate the financial burden for some employees and make the move more desirable, other employees may need added incentive.
If most of the other costs in a move have been covered through relocation assistance packages, you may want to consider a relocation incentive or a retention bonus.
Relocation Incentives as Part of Relocation Packages
Relocation packages that include relocation incentives may be the added incentive some employees need to transfer. However, if employees are unhappy with the idea of a move for intangible reasons (quality-and-style-of-life, moving away from family, etc.) relocation incentives are not likely to make them happier after that money is spent. For employees where money is the primary consideration against a move, relocation incentives can help improve their quality-of-life short-term and make them happier employees. Otherwise, consider a retention bonus.
Retention Bonuses as Part of Relocation Packages
If you're concerned about employees jumping ship after you invest all this money in relocation packages complete with relocation incentives, consider a retention bonus for transferred employees who stay with the company for one or two years following the move. You can also offer relocation incentives, which have to be paid back if the employee leaves before putting in two years on the job.
Relocation packages mean a lot more than just moving expenses. You can add creative provisions to relocation packages to make your employees happier and improve retention.