When your business is expanding, you need the best employees in your new locations, helping to get things off the ground and ensure that everything is running smoothly. Sometimes that means transferring some of your trusted employees at your current location to the new site. However, while some employees are thrilled to make the change, others aren't looking forward to packing up and moving to a whole new city, state, or even country. When that's the case, a relocation incentive can help make the deal a little sweeter for those employees. Following are a few things that you need to know about relocation incentives.
What Are Incentives?
A relocation incentive includes many things that you might offer an employee to make the transition easier or the move more appealing. A relocation bonus is one common incentive. This is one where the company gives the employee a lump sum of money that they can use in whatever way they need to -- often this is used to help defray the moving expenses that the employee will face.
Another common incentive is a cost-of-living wage adjustment, designed to help the employee maintain their same standard of living in a new, more expensive city. Companies may also offer helpful incentives like temporary housing, help with moving and storage fees, or employment assistance to an employee's spouse or partner that is moving with them.
Take your employee's partner or spouse into account when discussing relocation issues.
When putting together a relocation budget and writing company policies about employee relocation, it's important to consider which types of incentives your company should offer. You have to decide which incentives are going to be most attractive to your employees as well as which ones are most beneficial to the company.
Much depends on the needs of your employees. A temporary housing benefit is particularly beneficial if the relocation assignments are also meant to be temporary. A relocation bonus might be a more useful benefit for an employee that's being permanently reassigned. Family issues are a common reason for employees to decline relocation offers, so consider making spousal employment assistance part of your policy for employees who have partners with their own careers.
It's never a good idea to insist that employees accept a relocation offer. You'll get better results if the employees that you choose to relocate are happy with the idea and willing to make a move. Candidates should be screened both for their fitness for the new position and their willingness to make the move and take the new position before making any changes.
You may want to ensure that your relocation policy has some flexibility built into it, so that you can accommodate employees with varying needs. For example, if you normally offer temporary housing benefits, you should be able to convert that into a cash bonus for an employee that has their own housing in the desired relocation area.
No matter where your employees are moving to or what incentives you're offering, it's important to keep the logistics and costs of moving house in mind. For more information about corporate relocation strategies, contact us today.