CapRelo Blog

Address Real Estate Concerns in Your Executive Mobility Program

Posted by Amy Mergler on Tue, May 15, 2018

sold_home2-resized-600-2A comprehensive talent mobility program is essential to recruit and retain top executive talent. Offering a competitive mobility package is one way to attract and keep the best talent on your executive team.

Addressing concerns about selling a current home and purchasing a new home in your mobility program may play a large part in an executive’s decision to accept a relocation offer. Consider the following for your executive mobility program:

Guaranteed Buyout Program

A Guaranteed Buyout (GBO) program involves providing a buyout offer after a home has been on the market for a certain length of time. This gives your employees the assurance that they can confidently purchase a new home without the constant worry of whether their old home will sell.

Buyer Value Option Program

A Buyer Value Option (BVO) program offers similar advantages to a GBO once an outside buyer has been identified. This option often focuses on providing employees with sufficient marketing support to sell their homes.

Home Sale Bonus Incentives

A home sale bonus incentive involves providing an additional bonus for employees who sell their homes within a certain period of time. These bonuses – also known as quick sale bonuses – provide employees with motivation to sell their homes more quickly and relocate without having their attention, focus and efforts diverted by their former properties.

Loss on Sale Provisions

A loss on sale provision involves reimbursing employees for a loss incurred due to the sale price of their home. This helps assuage employees’ fear about losing money on a home sale.

Home Staging Assistance

Provide access to a third party company to stage your employees’ homes for sale to improve the chances for them to sell quickly.

New Location Orientation & House Hunting Trips

Conduct research on area neighborhoods, schools, child care, typical commute times, medical services, places of worship, etc., and provide that information to help your employees become familiar with the new location and assist them during paid house hunting trips.

Home Finding Assistance

Look for and provide access to real estate professionals in the area who have relocation experience. These professionals will be best suited to manage the time constraints of your employees’ house hunting trips to maximize the use of their available time.

Download Our Executive Mobility Guide

 

Topics: executive relocation package, executive mobility program, mobility package, talent mobility, talent acquisition, talent retention

The Best Cities for Jobs 2017

Posted by Jim Retzer on Thu, Aug 17, 2017

Mapping It Out Across North America

Summer can often be a good time for hiring with so many new college graduates on the job hunt. According to a recent job report, the unemployment rate in the United States is 4.3 percent, the lowest it has been since March 2001. There are jobs out there and people willing to work. But if you’re looking for a job in a specific field or industry, where is the best location to look?

At CapRelo, we wanted to take a look at some of the job opportunity hotspots throughout North America. As a global relocation company, we are always interested in the business landscape as a whole, what the best cities are for jobs, and who is hiring the most. So, we decided to look at the 25 largest metropolitan areas in the United States as well as the top five areas in Canada and Mexico in order to find out what industry has the most open jobs. To do this, we used data from LinkedIn (taken the first week of June) to look at job listings for each metropolitan area and then put together a map of our findings.

Talent Hotspots in North America

Overall, we were surprised by some of the results while other results were to be expected. For instance, it was not shocking to see that New York was the best city for jobs in 2017, with the most total open jobs, but specifically the highest number of financial jobs. It also made sense that Los Angeles is hiring in large numbers for construction. The city has a number of development projects going on, including in the downtown area where the LA Times says there hasn’t been that much construction since the 1920s.

One of the most surprising results was that Washington, D.C. was hiring the most information technology jobs in the country, ahead of markets like San Francisco, Seattle, and Austin. San Francisco and Seattle were numbers two and three, respectively, but Washington had thousands more open positions. Boston was another interesting result. Healthcare is their top hiring industry with just over 23,000 open positions. Digging a little deeper, healthcare jobs have been steadily rising since June 2016, adding about 20,000 jobs. Internationally, IT jobs were most in demand. It was the top industry in all five metropolitan areas in Canada, as well as Mexico City.

The business landscape is always shifting and those shifts have a variety of impacts on different cities and different regions. Currently, plenty of companies are hiring and unemployment is a level not seen in years. At CapRelo, we wanted to see which industries had a large number of open jobs in some of the largest metropolitan areas in North America, and present our readers with a list of the best cities for jobs and opportunities. Some results were surprising while some were not. However, taking a step back and looking at the overall hiring landscape helps give perspective to both employers and job seekers.

Talent Management: Engagement Article

Topics: employee engagement, talent management, talent retention, talent acquisition

Rotational Assignments - The 2 Main Purposes

Posted by Amy Mergler on Thu, Aug 03, 2017

Team Meeting during Rotational AssignmentThe current talent landscape poses several challenges to companies acquiring and retaining the human capital they need to expand. Without quality workers, their ability to reach operational objectives and build companies that are poised to thrive in the digital economy can be compromised.

This is where rotational assignments come in. A rotational assignment is a consecutive series of professional assignments designed with specific employee or business outcomes in mind. A series usually comprises between three and five assignments and typically consists of short-term placements of between three and six months each.

Companies use rotational assignments for two main purposes: talent development and project work.

Using Rotational Assignments for Talent Development

To boost their human capital, employers are investing in rotational assignments to develop their in-house talent and add new talent. This type of rotational assigning is typically used for four more targeted purposes:

  • Leadership development. Rotational assignments allow future leaders to acquire cross-functional knowledge of mission-critical functions and develop agility by varying roles, departments, scope, units, sectors, objectives and job locations, according to Fernández-Aráoz, Groysberg and Nohria in their Harvard Business Review article titled "How to Hang on to Your High Potentials."
  • Knowledge transfer. Hands-on learning is critical to knowledge retention. Employees sent on rotational assignments can acquire local business knowledge or knowledge of the specific location's processes, if it differs from the point of origin.
  • Recruitment. Companies also use rotational assignments to attract new talent. A Wakefield Research study revealed that 82 percent of millennials believe relocation will be required if they want to advance in their jobs. Giving new hires the opportunity to work at multiple organizations within a short period of time allows them to explore various job functions and locations and can help them determine what career path they want to pursue at a company.
  • Retention. Rotational assignments can be used to encourage employee engagement and loyalty by providing opportunities to learn new skills, acquire new knowledge, work with knowledgeable colleagues and contribute to interesting projects.

Meet Critical Business Objectives with Rotational Assignments

Companies also use rotational assignments to manage projects or fill skills gaps on projects, whether those are internal or for clients. These are projects that, without the right leadership or skills, would fall short of their objectives – for example, internal manufacturing process improvement that require Lean Six Sigma experience or product for clients that require niche engineering skills. Companies are hard-pressed to find qualified STEM talent – so when the necessary skills and experience aren't available onsite, companies can use alternative solutions. Sending employees on rotational assignments can perform the double function of providing the needed abilities at a fraction of the cost of hiring external talent while simultaneously challenging and developing employees.

A Guide to Rotational Assignments

Topics: rotational assignments, talent management, talent retention, leadership development

A Look at the Biggest and Best Companies in the U.S.

Posted by Amy Mergler on Fri, Apr 07, 2017

In business, it’s important to keep up-to-date on the country’s economic landscape. An improving economy and the addition of new jobs have prompted us to investigate some of the top employers across the country.

Our investigation examined  employers in two categories: Largest Employers (based on the number of employees) and Best Places to Work (based on Glassdoor rankings and reviews). It was interesting to see which companies made the lists.

Largest Employers

First, we looked at the largest employers in each state and found that they were most often university systems or “big box” retailers. So, instead, we took a different approach and looked for the largest company headquartered in each state based on the total number of employees worldwide.

Largest Company by State

Using this approach, we could see where some of the largest brands, not only in the United States but around the globe, chose to locate their base of operations. Some of the most well-known brands immediately stood out, such as UPS, AT&T and Starbucks. But it was a surprise to see a large state like Florida have a lesser-known company like Jabil Circuit as a top employer (the company has more than 175,000 employees worldwide). It was also interesting to see who lead in smaller states, like Hawaiian Airlines in Hawaii (6,100+ employees).

Best Places to Work

Next, we explored the best-rated employers across the country. To map this out, we researched information on Glassdoor to find the 50 Best Places to work in North America. Forty-nine of the top companies are located in the United States, while one, Lululemon, is headquartered in Canada.

Top 50 Best Places to Work


California led the way, with 17 California-based companies making the top 50. Many are tech companies and household names like Apple, Facebook, Google and Aibnb. With Silicon Valley and the Bay Area attracting top talent, it’s no surprise to see so many tech companies based in the state.

In addition to technology companies, a number of restaurant and grocery store chains made the national list. Trader Joe’s (CA), Wegmans (NY), H-E-B (TX) and Costco (WA) all appeared on the list of great places to work. Two quick-serve restaurants joined the top 50 list – In-N-Out Burger (CA) and Raising Cane’s (LA). We found it particularly interesting to find these six companies reviewed as some of the top workplaces because quick-serve and retail work is not often seen as glamorous.

Overall, we found only one company on both lists – FedEx, based in Tennessee.

It’s sometimes good to look at the big picture when you’re examining the biggest and best companies in North America. In this case, it was eye-opening to see how states compare when it comes to employers. Every state is unique, and the companies on these lists add to their individuality.

Talent Management: Engagement Article

 

Topics: employee engagement, talent management, talent retention

Tax Gross Up Formula & How to Calculate Gross Up

Posted by Nicole Overholt on Fri, Jan 13, 2017

tax-calculator.jpgA tax gross up is when the employer adds to the taxable relocation amount to assist with the tax liability of the addition of taxable relocation costs to an employee's income. For example, if the relocation costs include $5,000.00 taxable dollars, the employer may pay a total of $7,500.00 so that the employee gets the full benefit of the $5,000.00, as the estimated taxes of $2,500.00 are paid by the employer.

It's said that death and taxes are the only certainties in life. I'll leave the answer to that question to the great philosophers. However, one thing is an absolute certainty: taxes are a fact of life.

This is particularly true in the employer, employee relationship. The government requires that the employer withhold taxes from the employee's paycheck. Some would call this wise on the government's part, others wouldn't be so kind. In the corporate world, practically everything is taxed, including aspects of relocation packages provided to employees.  Most relocation expenses associated with a move, whether it is a reimbursement made to a transferee or a payment made to a vendor on the transferee’s behalf, is required to be reported as taxable income to the employee and is subject to IRS supplemental withholding regulations.

Can you imagine the look on your employee's face when you gently explain that the generous relocation benefits provided will increase his or her tax burden? It is a guarantee, the once happy employee's mood will change quickly and not for the better.  Well, fortunately for these employees, a portion of the tax liability of the relocation package can be covered by tax assistance (gross up) paid by the employer. Unfortunately, grossing up can add 55% or more to taxable relocation costs. If you consider the obvious benefit to the employees’ long-term happiness, it is money well spent.

3 Tax Gross Up Formulas You Can Use

Gross Up Formula #1 - The Flat Method 

The flat method is a flat percentage calculated on the taxable expenses and then added to the income.  For example, an employer will gross up at a rate of 25% for taxable expenses.  If the transferee is paid $1,000, the gross up would be 25% of this, or $250, and therefore the transferee would receive a benefit of $1,250 total.  Note that the gross up is also considered taxable income and may create an additional tax liability to the transferee.

It’s important to note that this method likely doesn't cover the employee's tax liability since the gross up is taxable income. Additionally, this tax gross up formula is not compliant with supplemental withholding regulations.

The following tool will help you calculate tax gross up using the flat method:

 

Gross Up Formula #2 - The Supplemental/Inverse Method 

This gross up formula is often used because not only are relocation expenses considered income, but the gross up is considered income too. Therefore employers will pay the gross up on the gross up. To determine the amount, add up all the tax rates (fed, state, OASDI, SS) and then divide the taxable expense by the sum of the tax rates. Take this number and subtract the taxable expense.

Supplemental-Inverse Gross Up.png

This methodology covers gross up on the gross up, but may not accurately reflect the tax bracket of the employee.

The following tool will help you calculate tax gross up using the supplemental/inverse method:

 

Gross Up Formula #3 - The Marginal/Inverse Method

This method is typically handled by a CPA or full-service relocation companies and also incorporates the tax on tax calculation. The difference is this methodology takes into account employee income and IRS Form 1040 tax filing status. In most cases policy dictates that only company-earned income will be considered and other forms of income, such as spousal income or investment income, won't be taken into account.

These three tax gross up formulas represent the essentials of grossing up taxable relocation expenses to assist with the employee's relocation tax liability. While one can do the calculations, it is always wiser to seek the help of experienced relocation experts.

MISHANDLING TAX GROSS-UP

When done properly, a tax gross-up can reduce the tax burden on a transferee and offer consistency in records and paperwork to better prepare both the employee and employer for tax filing. That said, if not done correctly, a relocation tax gross-up can result in the following problems:

  • Extra work and time (read: increased company expenses) as well as frustration for your accounting and HR departments as they need to take the time and effort to go back into their records to recalculate and correct mistakes and possibly issue W-2C forms.
  • Failing to offer a tax gross-up for relocation expenses or miscalculating a gross-up can diminish employee morale due to being unfairly taxed, resulting in lowered productivity and retention rates.
  • An incorrectly filed tax gross-up may result in an employee having to request an extension for filing a tax return, creating filing delays that could carry penalties.
  • In some cases, the employee may even have to go to the trouble of filing an amended tax return as a result of incorrect W-2 statements.
  • A possible audit and/or tax penalties and other fines, perhaps for your transferee as well as the company.

The IRS has several publications concerning tax consequences of moving expenses, including the gross-up concept, in their Publication 521 "Moving Expenses" and Publication 523 "Selling Your Home." Both are recommended reading for transferees planning a job-related relocation move.

SHOULD YOUR COMPANY HANDLE RELOCATION TAX ITSELF OR GIVE THE JOB TO A PRO?

Many corporate accounting and finance departments, while adept at handling day-to-day corporate financial operations and record-keeping, may not have the expertise when it comes to accurately and fairly figuring tax gross up. Due to the complexity of tax laws and other local, state and federal regulations, turning the work over to a full-service global mobility management company may be beneficial.

THE CONSEQUENCES OF MISCALCULATING OR IGNORING TAX GROSS UP:

  • Extra work and time (read: increased company expenses) as well as frustration for your accounting and HR departments if they need to recalculate and correct mistakes and possibly issue corrected W-2 forms (W-2C).
  • A possible audit and /or tax penalties and other fines.
  • Diminished employee morale due to being unfairly taxed, resulting in lowered productivity and retention rates.

THE TAKE-AWAY:

Working with an experienced global mobility management company that can efficiently handle all aspects of a transfer may prove beneficial in eliminating tax errors and omissions. Among its many services, a good global mobility management services provider will track expenses and submit accurate reports of taxable costs as well as help calculate tax gross up. As one of your preferred suppliers, a trusted global mobility management company can give you and your transferees peace of mind – along with a lower tax bill. 

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Although this written communication may address tax issues, it is not a covered opinion as described in Circular 230.  Therefore, to ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments), unless expressly stated otherwise, was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matter(s) addressed herein.

Topics: talent retention, tax impact of relocation, calculating tax gross up, talent management

The Hidden Cost of Losing Key Talent During a Group Move

Posted by Rick Bruce on Thu, May 05, 2016

Office_Relocation-thumb_.jpgThere are many corporate relocation costs to consider before a group move. Typically, easily quantifiable, up-front corporate relocation expenses are foremost in the minds of management and HR staff. Rarely is the cost of losing key talent considered. 

Find out everything you need to know for an effective, low-stress relocation in our Low-Stress Relocation Guide.

Here are just a few of the added corporate relocation expenses you may face if your key talent refuses to make the group move:

  • Potential loss of intellectual property and human assets

  • Cost of key talent going to a competitor if a non-compete clause was not signed

  • Bad public relations if high-profile company leaders leave

  • Loss of company morale during and following the move when a company already in a state of flux loses well-respected personnel

Tangible Corporate Relocation Costs of Losing Key Executives

In addition to severance pay that has the potential to equal up to a year's salary for a top executive, there are other tangible costs associated with losing company leaders. These costs won't be considered part of your corporate relocation expenses because they'll be incurred after the company has settled into the new location. But if you are unable to keep the desired staff on board, you will find that these hidden expenses will add up. Even worse, these hidden costs are not tax deductible like some corporate relocation expenses.

  • The costs of hiring and training new employees, which can equal up to five times the amount of an executive's salary

  • Loss of productivity during ramp-up time with new employees

  • Potential corporate relocation expenses if you need to look outside your new region for talent

If your company is planning a group move, wouldn't you rather have your top performers make the move with you? 

The Low-Stress  Relocation Guide

Topics: talent retention, Home Selling and Purchase Assistance, Corporate Relocation Costs, corporate relocation program, talent management

Relocation is a Key Factor in Making Millennial Employees Happy

Posted by Amy Mergler on Thu, Dec 17, 2015

Millennials' Rising Expectations

staff-resized-600.jpgMillennial workers, defined as those born after 1980, are graduating from college and ready to take on the world – literally. According to a Pew Research study, millennials are expected to comprise 37 percent of the workforce in the U.S., which will grow as Boomers retire. Because they have grown up with digital media, the world of the millennials is wider than that of their parents. Consequently, they have developed a global mindset that is reflected in their choice of career paths as well as the need for balance in work and personal life.

Learn more about developing relocation policies in our free guide.

Unlike their grandparents or even parents, most millennials see career travel as a given, seldom staying in one job for more than two or three years, especially if few opportunities exist for relocation and career growth. On the other hand, millennials also value personal growth, balance and meaningful work in addition to career advancement. To successfully manage workers of this generation requires an understanding of what millennials need and want.

Millennials Often Delay Marriage While Establishing Careers

Millennials are more likely than their parents or older siblings to delay marriage and family to establish themselves in a career first, one which preferably includes travel and all of its career-supporting, culturally enriching benefits. Lack of family and other external "baggage" often gives them the freedom to pick and choose plum assignments without worries about spousal employment, quality school availability or other concerns and restrictions often experienced by employees with families. Once millennials do marry and settle down, however, they insist on a work environment that allows a balance of work and family.

Until recently, relocation was usually considered an "earned right" reserved for higher-ranking executives. Millennials believe that organizations intent on keeping their loyalty should offer them the chance to experience other locations and cultures as part of their employment experience.

What Do Millennials Want at Work?

A characteristic of millennials is authenticity in their work as well as personal lives, reports a Bentley University study, with most refusing to compromise values. This includes a willingness to leave companies whose work demands restrict their ability to live an authentic life aligned with their values, including a healthier balance of work and leisure than that experienced by their parents. Pew Research Center studies confirm that many millennials preferred fulfilling careers, where they are valued and enjoy what they do, to high salaries. (Benefits, however, did rank highest in millennials' corporate "wish lists.")

Far from rejecting the corporate world, over 72 percent of millennials surveyed in the Bentley study would enjoy working with a large company; 48 percent of responders also reported that they want to be loyal and would prefer to work for no more than two companies over the course of their careers. The good news is that companies offering great benefits, including travel as well as flexibility, balance and purposeful work should find it easier to keep their millennial workers productive and happy.

Talent Management: Engagement Article

 

 

Topics: talent retention, employee engagement, talent management, millennials

How to Attract and Retain Female Executives In the High Tech Industry

Posted by Shirien Elamawy on Tue, Jun 09, 2015

leader-resized-600.jpgAround the globe, employers are becoming aware that the low participation rate of women in the high tech industry has a negative impact on business. According to Sharon Florentine in her CIO article, “6 Ways to Attract and Retain Female IT Talent,” research shows that actively recruiting, retaining and advancing more women is good for a company’s bottom line. And when women are in leadership positions, turnover is reduced, the overall performance of the organization is enhanced and a strong leadership pipeline is established.

Learn key ways to increase employee retention in our free article.

Also, since the high tech industry is overwhelmingly male-dominated, companies are missing out on a significant pool of quality talent. Especially in a labor market where employers are concerned about a talent gap in professions such as engineering, companies can’t realistically afford to not foster female talent. However, statistics indicate a lack of success when it comes to retaining women: a Harvard Business Review report led by Sylvia Ann Hewlett shows that 41 percent of highly qualified STEM workers are female, yet more than 50 percent of them leave the field in their mid to late thirties.

What Employers Can Do

According to the Kelly Services article, “Attracting and Retaining Women in the High Tech Industry,” some of the reasons women leave the IT industry include a lack of female colleagues and role models, as well as distinctly inferior treatment such as lower salaries and fewer advancement opportunities when compared to their male peers. It’s only logical, therefore, that addressing these issues would make for more attractive work environments for women. Employers should consider taking the following measures:

  • Diversity training aimed at promoting understanding, tolerance and equal treatment between male and female workers. This training should include both management and employees and be geared to eliminating gender bias.

  • Offering equal salaries. According to David Louie in the ABC7News article, “Silicon Valley Job Growth Exposes Increasing Gender Gap,” men in tech earn up to 61 percent more than their female counterparts. Obviously, offering women equal remuneration will form an important incentive.

  • Offering clear career paths for women. Employers should clarify how women can advance within the company from the start of the recruitment process.

  • Providing paid maternity leave, as well as flexible work arrangements. Many women leave the high tech industry due to a lack of support for motherhood. Creating work environments where they can fulfill both their roles as mothers and as professionals will likely help retain them beyond their mid to late thirties.

  • Actively encourage female role models. Inviting senior female employees to speak to and mentor younger ones provides clear role models who prove women can succeed in the high tech field. At the same time, recruiting female students in the same manner can encourage more women to study STEM subjects and enter the field of high tech.

  • Provide relocation support geared specifically toward women. Women who need to relocate for their jobs may require tailored support to help them and their families acclimate to the new environment. From cultural training for a female employee relocating to a more traditional society to support in locating schools and childcare, relocation companies can provide superior relocation experiences that help employers retain their top female talent.

Attracting and retaining women in the high tech industry is an ongoing endeavor. But by understanding what women want and where companies fall short, employers can effectively adapt their talent management strategies to foster and support top female talent.

 Talent Management: Engagement Article

 

Topics: talent retention, attracting new hires, talent management

The Difficulty of Engaging and Retaining Employees Globally

Posted by Jim Retzer on Tue, Mar 31, 2015

23percentofworkersplantoleaveinfographiccopy

A 2015 financial article titled “Global organizations face looming crisis in engagement and retention of employees, according to Deloitte survey” states that 87 percent of business and HR leaders agree a lack of employee engagement is their primary concern.

What’s more, while the percentage of leaders who stated engagement was very important doubled from 26 to 50 percent from last year, an overwhelming 60 percent said they didn’t have specific processes to measure and enhance employee engagement.

Learn more about key ways to increase employee engagement in our free article.

These numbers are disturbing, especially when you consider that employees are most companies’ primary resource. A lack of engagement signals a lack of motivation and retention, resulting in reduced productivity, costly turnover and the inability to successfully and continuously expand business operations. ­

Moreover, according to Achieve Global’s report “Worldwide Trends in Employee Retention – How to keep your best employees in any market,” talent mobility is on the rise. In the United States alone, 23 percent of workers plan to leave their current jobs within the next 12 months. This level of attrition is concerning, especially since replacing employees is a lengthy, costly process.

And though many companies are streamlining their recruitment processes in order to minimize recruitment and return to productivity time, these types of measures can’t be effective without addressing the lack of employee engagement.

Obviously, for companies looking to enhance engagement and retention, it’s key to understand employees’ motivations for remaining satisfied with their jobs and their companies.

And this is where some interesting facts become clear. According to Towers Watson’s research, the factors that influence engagement include leadership’s sincere interest in employees’ wellbeing, a healthy work-life balance, flexible work arrangements and reasonable workloads. In other words, employees who feel supported by their companies’ leaders and whose jobs allow them a reasonable work-life balance are far more likely to be engaged than those who don’t.

Other factors that influence retention include a good understanding of a company’s goals and how a job contributes to those goals; a company’s public image; and empowerment (i.e. that management actively seeks out employees’ opinions in decisions that affect them).

When it comes to attracting, engaging and retaining top talent, employers around the world are advised to adapt their talent management strategies to better meet their employees’ expectations. Without taking this all-important step, employees are far more likely to look elsewhere when their job experience isn’t as good as expected.

Adjusting talent management strategies can involve a number of steps, including providing more transparency about the company, creating more flexible work arrangements and facilitating a more collaborative work environment.

Another aspect of enhancing engagement involves providing the best relocation experience possible for relocating employees. When talent feels supported by their companies during the demanding and often stressful time surrounding a relocation, they’re more likely to settle into their new positions smoothly. And that in turn greatly enhances the chances of them being engaged for the long term.

Of course, enhancing engagement and retention isn’t a process that happens overnight. By continuously staying abreast of talent trends and assessing why employees leave their companies, employers can gain the insights necessary to adapt their strategies to better engage and retain top talent.

Talent Management: Engagement Article

 

Topics: employee retention, talent retention, talent management, employee engagement

Information You’ll Need Before Writing an Employee Relocation Letter

Posted by Rick Bruce on Tue, Jan 08, 2013

pen-and-paper.jpgIf you want to write an effective employee relocation letter that invigorates your employee about their new position and makes the transition easier on everyone involved, there are certain key pieces of information you should have first.

Fortunately, you don't need a three-ring binder or thick stacks of information in order to write this letter. Everything you need to write an effective employee relocation letter should be readily available to you. You'll just need to collect, or have someone collect, some key bits of information.

Learn how to write an employee referral letter in our free article.

Before you write your letter, you should make sure you:

1. Know Your Employee

What should be the very first consideration of every employee relocation letter is instead often an afterthought--when it's even a thought at all! Typically, most of these letters are most concerned with employee relocation assistance, the different responsibilities or conditions of the employee's job in the new location, and maybe a bit of a pep-talk as an add-on.

While the employee relocation is being done for the good of your business, it's still your employee who should come first in the relocation letter. That's why it's important to mention the benefits of the relocation, as they apply to the individual employee, as soon as you can in your letter.

(The very first thing you should do, however, is remind him or her of the conversation that recently took place about his or her relocation. This letter should never be the first your employee hears of the move!)

These few minutes of consideration can pay off big in the long run: every bit of individualized attention you give your relocating employee now will make a bigger impact than it would under more normal circumstances. This translates into increased loyalty and productivity for your company.

2. Know Your Employee's New Duties, Responsibilities, or Changed Position

If your employee's responsibilities or job function will change at all, these changes should be detailed in the relocation letter. You'll need information concerning:

  • The employee's new position or title
  • New or added duties and responsibilities
  • Duties the employee will no longer be responsible for
  • New salary or increased benefits, if applicable

3. Know Your Employee Relocation Package

Your employee relocation letter should also outline the assistance package your employee will be provided with. This should include:

  • Assistance directly provided or paid for by you, the employer
  • Information on how to submit claims for reimbursement
  • Information concerning housing assistance in the new location
  • Offers for employee home sale assistance in the current location

Of course, you don't have to put this package together yourself. You can (and probably should) save money in the long run, while investing in your employee's productivity, by hiring out a managed solution by an experienced employee relocation company.

How to Write an Employee Relocation Letter

 

Topics: talent retention, Home Selling and Purchase Assistance, relocating employees, writing relocation offer letter, talent management

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