CapRelo Blog

Tips for Structuring your Corporate Relocation Policy

Posted by George Herriage on Tue, Oct 22, 2013

Policy Development MeetingIn many ways a corporate relocation policy is like your company's mission statement. Treating it with equal respect and attention helps you structure your relocation policy and program effectively.

Our free guide to developing relocation policies will help you as your structure your relocation program.

Mission Statement and Strategies Should Match

If your company takes its mission statement seriously, it designs operations, marketing and financial strategies to further achieve its mission. When your company changes or modifies its mission, it should also infuse strategy changes to reflect the new mission focus.

Unless your corporate strategies match the objectives of your mission statement, you may find that the mission goals are compromised by the strategic processes. It is critical that corporate operations, marketing and financial strategies enhance and increase the company's chances of achieving its mission objectives.

Relocation Policies and Programs

Similarly, you should structure your corporate relocation policies before you design program and package changes or enhancements. Your relocation policy precedes and dictates the components of your relocation programs just as your corporate mission statement influences your company’s strategies and action plans.

Structuring relocation programs beginning with a policy restructure will result in more competitive and attractive relocation packages. Many relocation programs can become functionally obsolete because of economic changes or upgrades by your competition for the same talent.

Tips

  • Stay up-to-date with the policies of your competition to ensure your package is attractive to current and potential employees.
    Restructuring your relocation policy can quickly become counterproductive if you’re not aware what your competition is offering. You need to know what recruiting new and satisfying current employees entails, particularly as defined by your industry competition.

  • Build flexibility into policy restructures.
    Since people are unique entities, one hard and fast policy will invariably not work in all relocation situations. Policy language should offer some flexibility to increase or modify benefits when required to attract or keep talented employees.

  • Don’t remove popular benefits, but add cost-controlled new ones if necessary.
    Try to avoid eliminating popular components; your transferees will notice and be displeased. Citing unacceptable expense levels will not help if your competition offers these benefits.

  • Include workable cost control language when adding additional benefits and define all components, with cost controls, that have proven expensive under current policies.
    Controlling the costs of relocation policies and programs is important to all companies, as it should be. While your relocation policies absolutely must remain competitive, they also need language that protects your company from runaway costs. Do this by using appropriate language with stated reimbursement caps and controls that minimize cost, while still delivering needed benefits to new hires and transferees.

Relocation policy restructure can be a smart strategy or a survival necessity. The reason is often immaterial. Your company needs to attract the best talent available and keep the skilled staff you already have. Relocation packages are vital components of these goals.

These tips are not revolutionary, but more common sense solutions. Your transferees will appreciate competitive components and senior management will record better results, creating a more productive workforce.

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Topics: Corporate Relocation Costs, corporate relocation program, Structured Relocation Packages

Expert Tips for Structuring Relocation Packages

Posted by Chris Finckel on Wed, Feb 29, 2012

decisions-resized-600.jpgAre you opening new offices? Is your HR staff debating the pros and cons of recruiting new talent in the region of your new facility vs. relocating trained, experienced staff from your current location? The question of whether it's cheaper to recruit new talent or relocate existing staff is one you should keep in mind when setting your employee relocation policy and when structuring relocation packages.

Are you developing your own relocation policy? Our free guide can help. 

An Employee Relocation Policy Helps When Structuring Relocation Packages

A strong employee relocation policy provides benchmarks for costs and expectations. With standards and best practices in place, structuring relocation packages is much easier. You'll have policies in place so you'll know how much relocation should cost each time.

Of course, a good employee relocation policy also has room for flexibility when it comes to individual cases. This is where skill in restructuring relocation packages comes in handy.

Better to Keep Your Exsiting Employees?

The key question to keep in mind when structuring relocation packages is: "How much is it worth to keep this employee?" Consider the value specific employees add to the company, their level of experience and how easy the employees would be to replace.

Hire New Employees?

When considering hiring new employees already local to the area, some of the costs involve include: 

  • Hiring (including advertising, interviews and assessments)
  • Training (including time and personnel required for training)
  • Learning curve before the new employee becomes as proficient as seasoned employees
  • Risk that you won't retain new employees

When you relocate current employees, you'll still face some loss in productivity during the move and the risk that you won't retain employees in the new location. But you won't have concerns about proficiency or employees assimiliating to the company culture. But a stress-free relocation process can contribute to a faster return to full productivity and better employee retention after relocation.

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Topics: corporate relocation program, Structured Relocation Packages

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