CapRelo Blog

Relocation Policies with Nonprofit Considerations

Posted by George Herriage on Wed, Aug 28, 2013

medical-doctor-1.jpgOn paper, relocation programs are expensive. When recruiting medical professionals, offering attractive relocation programs is a necessity, paying for itself many times over in quality healthcare and strong bottom line profits.

However, many hospitals and clinics are nonprofit organizations and endure the same cash constraints faced by large and small nonprofits. Even when flush with cash, nonprofit organizations must remain conservative with their spending to maintain their IRS nonprofit status.

Yet, the high demand for accomplished medical professionals, along with the diminishing supply, mandates that nonprofit medical facilities offer relocation programs that are competitive with programs for profit facilities offer. Often, the necessities of frugality combined with the need to recruit and retain the best medical professionals available come into direct conflict with each other.

Nonprofit employers must incorporate cash-challenged realities into their relocation packages to meet their budgetary restrictions. You’re right if this sounds challenging for most HR departments.  Fortunately, achieving budget friendly and competitive relocation programs is possible.

Integrating Nonprofit Considerations into Winning Relocation Policies

Incorporating nonprofit realities into competitive relocation programs for medical professionals requires thought, planning and focus. While a one-size-fits-all relocation policy is easy to administer and control, more creativity may generate additional cost control and increase competitiveness.

  • Provide relocation assistance to certain key employees.
    Strong nonprofit relocation programs can be restricted to only key medical professionals, which further controls cost.

  • Create a two-tier relocation program, with reasonable monetary caps.
    A single tier relocation policy is cost effective, but is seldom effective in the medical industry. The disparity in qualifications, authority and compensation between physicians or administrators and clerical employees requires another upper level tier.

  • Build in flexibility to the top tier.
    This flexibility gives hiring managers better negotiating ability to attract key employees and convince top performing staff to agree to relocation. While it is unproductive to make constant exceptions to written policy, give hiring executives the ability to match more competitive offers for key employees.

  • Keep the bottom tier basic and low cost.
    A no frills lower level relocation program is better than no relocation policy at all. You could even design an almost no cost program by referring trusted moving companies, real estate agents and other relocation vendors to lower level staff, with low or zero reimbursement promises.

Nonprofit hospitals and clinics can overcome their budgetary restrictions by designing relocation policies using these or similar recommendations. While nonprofits face issues not inherent in successful, highly profitable medical facilities, you can design a cost controlled, yet highly competitive, relocation program to attract highly skilled medical staff.

Free eBook:  A Guide to Developing  Relocation Policies

Topics: Tiered relocation packages, Corporate Relocation Costs, Nonprofit relocation

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