Relocation expense management is one of the keys to successful corporate relocations. But unfortunately, it's often one of the places where human resource directors who are not experts in corporate relocation often feel as if they are losing control.
If you provide a lump sum relocation package to employees, it may be easier to maintain a relocation budget, but it could backfire. For instance, if an employee selects a lower-cost and lower-quality real estate agent and the home doesn't sell quickly and at a fair price, you may pay more in other areas:
- Temporary housing
- Trips to and from the home for sale
- An unexpected loss-on-sale bonus
- A stressed employee who has trouble focusing on work
On the other hand, a direct reimbursement package could make it harder to predict costs, and your HR staff will be tasked with the job of lining up relocation service providers who provide high value at reasonable prices, managing employee reimbursement dispersion, and even managing issues like relocation tax gross up.
Let Professionals Handle Relocation Expense Management
What's the best way? Let a full-fledged relocation service company like CapRelo determine which type of relocation benefits packages will work best for your company, and then let your knowledgeable company representative handle all the details.
The money you save—along with indirect cost savings like higher employee retention rates, more employee satisfaction, and a faster return to productivity—will more than pay for the services.