With the Great Resignation well and truly underway, employers around the globe are looking for ways to attract and retain the best talent, while meeting the new expectations of potential employees. With 60% of employees planning to leave their jobs this year, it’s more important than ever for companies to reassess their policies and values - including relocation packages.
51% of knowledge workers who quit their jobs in the last two years said a relocation opportunity is a must for new job offers. As flexibility, remote working and global business travel continue to drive trends, more employees than ever are willing to travel for work, with many placing relocation opportunities high on their priority list.
We’ve already discussed how to build a more sustainable travel policy, but how do you design a competitive relocation package? Read on to find out more.
Why is a competitive relocation package important?
Last year, 16% of Americans moved for work-related reasons. For businesses, it’s all about having the right people in the right place. Developing a relocation package (whether domestic or international) is extremely worthwhile, as it provides companies with new growth opportunities, engages potential candidates, and offers employees the support they need when relocating for work.
A competitive package outlines the expenses and benefits a company is willing to cover if an employee agrees to relocate. Relocation packages will vary across companies, businesses and circumstances - but, a competitive package should compensate an employee for disruptions associated with moving for work.
As a business, it’s crucial to have a relocation policy in place if you have plans (either now or in the future) to relocate employees. Moving is a huge life change and can take both physical and mental tolls on employees and their relationships, so it’s important they have the right support available.
What should be included in a relocation policy?
Packages can cost companies anywhere between $2,000 and $100,000. There is never a one-size-fits-all solution (factors will vary depending on the employee and assignment), but there are a few important basics a relocation package should include:
Coverage of moving expenses
There’s no doubt that moving is expensive. Typically, a company will aim to cover moving expenses for an employee, including flights or transport to the destination, packing and shipment of household goods, moving insurance, and any other moving services required for a relocation.
Visa application and resident permit sponsorship
To make international relocation as easy as possible, many companies assist with travel visas and immigration services. This often includes providing the employee with the information required for documents, assisting with the filling out of visa application documents, providing legal services if required, setting up appointments, and handling paperwork where possible.
Extended-stay accommodation support
It’s common for companies to cover the cost of temporary employee accommodation while they search for a permanent home in their new location. The best option is typically corporate housing, which provides employees with access to their own safe, private and vetted space - far more homely than a standard hotel.
How do companies develop a competitive relocation policy?
Once a relocation policy meets the basic requirements, it’s time to think about the competitive edge. With 74% of professionals believing that employee turnover will only increase in 2022, it’s more important than ever for companies to develop a package that sets them apart from the rest. In other words, why should employees choose to work for one company over another?
Help with selling previous property and house-hunting
Finding a new property in a new location isn’t the easiest of tasks, which is why many companies pay for the expenses related to finding a new home. Whether it’s real estate fees or assisting with the closing costs of a property, providing financial support for employees who need to find a new home in a new destination can alleviate their stress. Additionally, some companies also offer assistance to help sell an employee’s previous property.
On-location assistance
Relocating is exciting, but it can be incredibly daunting too. The aim is to ensure employee relocation is as seamless and smooth as possible, which may require some on-the-ground assistance. Simply providing employees with integration tips and guidance can make all the difference. Language courses, assistance with opening a bank account, and even a free plane ticket home to visit family and friends can ensure employees feel supported in an unfamiliar environment.
Spousal/family support
Employees may have partners or families to consider - in which case, it’s difficult to ask them to uproot and leave. Providing spousal and family support can go a long way - whether it’s financial coverage of childcare, assistance finding schooling, or help to find a partner a new job.
Key takeaway
Designing a competitive relocation package helps businesses attract, find and retain the best talent - but developing one isn’t always easy. Taking the time to understand the needs and expectations of employees, and incorporating these into a solid relocation policy will give your business a competitive edge, and ensure your employees feel supported every step of the way.
3Sixty
3Sixty is a state-of-the-art marketplace that reduces the noise in extended-stay employee travel. Our HomeMatch™ technology leverages machine learning and human expertise to curate quality, cost-effective housing where your employees feel safe, comfortable, and at peace.