Relocation policies are often seen as perks that only benefit the relocated employee. But the closer you look at them, the more you realize that having a well-defined, clear-cut relocation policy in place can also benefit the company that offers it. Here’s a quick look at some of the companywide benefits of an established relocation policy.
- Drastically lowered cost. Initially, the cost of relocating an employee can add up to a pretty large sum. But when you compare that cost against the time and money a company would spend recruiting, interviewing, hiring, training, and mentoring a new employee who may or may not work out, you begin to see that funding a relocation can be far more cost effective.
- Improved efficiency in operations. For many companies, relocating existing employees can be far more efficient than hiring new employees to fill open positions. The newly hired employee may take several months, or even a year or more, to become proficient enough in their jobs to reach a measurable level of efficiency. On the other hand, relocating experienced employees and placing them into key roles can boost overall productivity.
- Ensured continuity of business. When a company moves a portion of its business to another location (whether that location is in another state or another country) it almost always requires a relocation of the existing workforce. Without a relocation policy in place to facilitate this, company productivity can standstill while new employees are sought out, hired, and trained. This could end up costing the company a far prettier penny than the costs associated with relocation.
Many businesses recognize these factors and have loose relocation guidelines in place. Unfortunately, failing to put into place a specific, detailed relocation policy can have negative impacts on everyone involved.
- Employees in the process of transferring from one location to another may find their workplace performance greatly impacted. Relocating to a new city, state, or even country can be extremely stressful on employees and their families. By letting each transferee know exactly what to expect and what’s being cared for in the policy, they can focus on resuming work without stress.
- Hiring managers may be unable to concentrate on performance and job related issues, instead having to field questions from transferring employees about the logistics of the relocation. With a clearly defined policy in place, there’s no ambivalence and each function is carried out by a specific party.
- HR departments can find themselves in a confusing whirlwind of relocation coordination. When a company has an explicit policy that lays out every move in detail, HR employees are able to go about their duties and functions without having to feel the weight of the world on their shoulders – and they can concentrate on tackling other work-related matters instead of allowing their every day to be consumed with matters of relocation.
Ultimately, having a clearly defined relocation policy in place that accounts for the differences in benefits for executive level employees versus entry level employees is also critical. Not only can it help a company better forecast the economic cost of proposed relocations, but it can also use the clearly spelled out benefits as a tool to recruit talent from other locations, instantly making the nationwide (or even worldwide) recruitment of talent a feasible scenario.