Holding someone’s future in your hands is a serious matter. When you hand an employee relocation letter to someone, it may hit him or her like a ton of bricks. ... Or be a joyful moment that is cause for celebration. This largely depends on your company’s approach.
According to most psychologists, a move is one of the most stressful events in a person’s life—a major life event. You never want the employee relocation letter to be the first time that the employee has heard of their move. The employee should already know that this is a possibility. When you issue the letter, counseling before and after the letter are obligatory.
To put this in perspective, picture yourself as a child. One day your parents hand you a letter. It tells you to pack up everything and say goodbye to your friends with little to no warning. You may react to this with fear or shock. You may feel insulted or indignant, even though the new town and new school are much nicer, and have great new friends. The out-of-the-blue approach goes over like a lead balloon.
Employee Relocation as an Exciting Opportunity for Growth
Employee relocation is an exciting opportunity to welcome change. Your offer for relocation shows that you are willing to make an investment in your employee; that you see him or her as an integral part of your growth and success of the company. The employee relocation letter will talk about the tangible details to follow.
You want your employee relocation letter to be straightforward and in plain English. At the same time, your letter needs to take into consideration the unique financial considerations of the employee. Before presenting the letter, start with a customized analysis of your employee’s situation.
The employee should never be asked to go through this stressful situation and then have to absorb a negative cash flow, too. This is why a careful analysis beforehand is imperative.
Employee Relocation Analysis
If the individual is moving to an area with a higher cost of living, the analysis and compensation should reflect this. Just as moving to an area with a lower cost of living should plainly show how your employee benefits due to lowered living expenses. Your analysis should review property taxes, spousal income and after-tax cash flow.
The letter should include the terms of the transfer, one-time reimbursements for the move, any bonuses they may receive for the move, and any new responsibilities and promotions. Some letters of relocation may act as a starting point of negotiation while others will finely detail any discussions beforehand.
An exceptional employee relocation letter should be surrounded by an experience that is so compelling that the future will be happy and productive for all involved parties.