Published on November 24, 2010

When employees sell their home, pack up their belongings, and move their family across the state, across the country, or even across the world in the case of an international relocation, you think that shows a level of commitment. You may think those employees are in it for the long haul. But that's just not true. Employee retention percentages often drop after a relocation, especially if the relocation process is not as stress free as possible.

There are ways you can protect your investment in your relocating employees when you take the risk of a generous employee relocation policy. Your employee relocation policy may include “loss-on-sale” provisions when an employee sells a home, down payment assistance to purchase a new home, and all the usual costs associated with relocation. Here are some ways to improve employee retention:

  1. Setting “repayment policies” as part of your employee relocation policy, which mandates your employees to pay back all or part of the relocation costs if they leave the company within a specified time frame, can improve employee retention.
  2. Careful employee screening prior to relocation can gauge your employee's commitment to success in the new location.
  3. Trips to the destination city for the employee and family members can help determine if the employee will be a good fit in the new location.
  4. A low stress employee relocation policy is yet another way to show your commitment to your employees. If you do everything you can to make sure the relocation process stays relatively stress free -- including hiring a relocation management company to help you with the relocation process -- you're indicating to your employees that they can expect the same level of consideration moving forward with your company.