Your relocation program can help or hinder your efforts to hire and/or retain talented employees. A competitive relocation package is a necessity, as there is often a natural reluctance for some employees and/or their families to move to a new location.
The Human Relocation Factor
It is imperative that you design a relocation package that addresses and minimizes employee and HR personnel stress. Write your relocation policies to be attractive to transferees at all authority levels on the organization chart.
Including valuable relocation features reduces or eliminates the common "fear of the unknown" involved in a major move. Try to understand that, often, the employee's family members exhibit more stress than the transferee himself/herself. If possible, address this potential with features that instill positive feelings in the transferee's family members.
Providing home selling advice, along with financial incentives, can address this natural human factor in a positive manner. Connecting the employee with a real estate agent familiar with relocation necessities and familiarity with mortgage loan sources often removes transferee concerns about housing issues.
Keys to Competitive Employee Relocation Programs
Consider components to make your relocation package equal to or better than your competition when you want to hire and keep the best employees. You can use these suggestions as a guide or checklist to ensure your company is offering what talented employees want most.
- Equitable compensation adjustments if the new location cost of living is higher than the transferee's current home base.
- Using a top professional relocation firm to work with you and your transferee to ensure a low stress, successful change of location.
- Loss-on-sale reimbursement benefits for the sale of the transferee's home.
- Paid house-hunting trips, preferably two, enabling the employee and his/her spouse to view appropriate homes and become familiar with acceptable new location neighborhoods.
- Professional assistance by a relocation savvy real estate agent, and up-to-date resources for competitive, professional mortgage loan options. .
- Moving and travel expense reimbursement so the transferee's personal property is moved professionally and minimizes expenses for the family to travel to the new location.
- Compensation for time off needed to house hunt, for moving days and to get settled in the new location.
If feasible, consider offering financial assistance to transferees to assist with qualifying for a new mortgage or making the required down payment. These key components reduce transferee stress and result in more successful relocations.
You should also be totally positive when discussing relocation with all potential new hires and transferees, to help them adopt an equally positive feeling about the upcoming move. These keys help HR staff and companies enjoy consistent success in hiring and retaining valuable employees after a relocation, discussed in detail in our article on employee retention.
This checklist represents the minimum valuable features you should consider for your relocation program. Your industry or competition may indicate the inclusion of one or more additional components to ensure relocation success. The increasing popularity of top relocation firms is testimony of employers' desires for a cost-effective, low administration, stress free and productive employee or new hire move.