6 Successful Employee Relocation Policy for Companies

At some point, you might need to relocate some of your valuable employees to a different branch location. There are many reasons for this, such as opening a new branch, developing an employee’s career by offering them a promotion in another location or filling a vital position that requires a specific skill set only available in another area.

Employee relocation can be a stressful and demanding process, both for the company and the employee. Employees will be moving to new environments, and this transition can be difficult, especially for those who have families. They may need to find new schools for their children, adjust to a new cost of living, and build a new social network.

For this reason, it’s crucial to establish a clear and comprehensive employee relocation policy for your company to ensure a smooth and successful move from one location to another, especially if your business has multiple sites.

Offering your staff relocation assistance demonstrates that you care about their well-being and are invested in their success. This can have a positive impact on your business by attracting new talent and retaining current employees, ultimately leading to more productivity and business development.

Here are the essential rules you must include in a successful employee relocation policy for your company to help your staff relocate to and acclimate to their new location:

1. Openness

You have to give your workers a detailed explanation of the job description in the new location. Because of this, they get a clear perspective of what to expect after the move.

You may consider informing them about their responsibilities on this new site and the benefits they should expect. Alternatively, you can give them a clear explanation of both the upsides and downsides of the new role.

Additionally, inform them of the move early enough. One to two months before the planned move should be enough. This openness allows them to mentally and physically prepare to relocate.

As a result of this openness, your staff will be ready for the new job when they reach their destination and easily blend into their new job environment.

For example, if an employee is offered a relocation to manage a new branch in Dallas. The company provides a detailed job description outlining the responsibilities of managing the branch, the salary range for the position, and the benefits package that includes health insurance, a 401(k) plan, and relocation assistance.

2. Household goods moving

Relocating is an expensive process. On average, one spends approximately USD$1,400 when making a local move or USD$2,200 to USD$5,700 for hiring a moving company.

On this account, you could help your team cover the moving expenses by offering them a relocation package. You can also guide them to find a reliable moving company to handle the process. Before choosing a company, you’ll need to consider the following:

• The distance of transportation: Inquire if the company offers both local and long-distance moving services.

• Packing services: These are necessary if your staff has many household items.

• Storage-in-transit (SIT) services: This is a vital service since some of your worker’s items will be temporarily stored before delivery to the final destination.  

• Costs: Go for a company that charges affordable rates.

Getting on top of the little details helps you choose a reliable moving company that’ll deliver the services your team needs. This will make the relocation a seamless process.

For example, the company offers a relocation allowance of $10,000 to cover the employee’s moving expenses for the move to Dallas. The company also provides a list of reputable moving companies and helps the employee navigate the process of getting quotes and scheduling the move.

3. Employee Relocation Incentives

Relocation incentives are additional payments of up to 25 percent of the basic pay a member of your team receives, especially if the conditions surrounding the positions they are going to fill are difficult.

With such cost benefits, your worker finds it easy to cater to their needs, which include the following:

• Mortgage payments for the new house, whether they are buying or renting a house. 

• Temporary accommodation before they settle in a new home—for instance if they will stay in a hotel.

• Tenancy management bills once they settle in a new apartment.

• Other personal essentials.

These are essential employee relocation incentives so your team will be comfortable knowing that they can meet their financial needs in the new location. As a result, they can focus more at work and increase their productivity.

For example, the company recognizes that Dallas has a higher cost of living than the employee’s current location. The company offers a cost-of-living adjustment (COLA) to the employee’s salary to help offset the increased expenses.

The company also partners with a relocation service provider to help the employee find a new home in Dallas and covers the closing costs on the new home purchase.

4. Orientation programs

You can sponsor orientation seminars to help your staff acclimate to their new neighborhoods or environments. There is no hard-and-fast rule with these seminars, but you must include the following items on your agenda:

• Area tours and house hunting

• Language and cultural training (if they are moving internationally)

Additionally, orientation is necessary to enhance your staff’s work productivity. You must encourage them to undergo a similar program in the new workplace. This will benefit them in the following ways:

• They’ll get accurate information about their duties.

• They’ll be more confident and comfortable and adapt faster to the job.

• They can easily communicate with the site supervisor.

• They’ll be more effective and productive.

Orientation is a crucial tool for the performance of your staff when they move to a new location. Without informing or orienting your team ahead of the intended move, this can affect their productivity and quality of life.

Following our example, the company arranges a week-long orientation program for the employee relocating to Dallas. The program includes a tour of the city, visits to potential neighborhoods, and meetings with local realtors. The company also provides the employee with cultural sensitivity training specific to the Dallas region.

5. Corporate relocation services

You may find it hard to meet your staff’s relocating needs. This can lead to your employee having a rough transition, ultimately affecting their productivity at work. On this account, you may want to outsource professional relocating services.

You can get professional corporate relocation services to help your employee in their transition to their new workplace at affordable rates. They’ll provide your employee with the necessary information:

• The legal requirements of the new location, such as cost of living adjustments (COLA)   regulations and calculations

• Immigration and tax calculation and coordination

• Global compensation management

They may also help sell your staff’s current home and help them purchase a new one in the new location. Thus, corporate relocating service providers ensure that they provide your staff with extensive assistance for their new location. This makes moving easy and successful.

For example, the company partners with an employee relocation services company to assist the employee with the move to Dallas.

The corporate relocation company helps the employee find a reputable moving company, pack and unpack their belongings, and settle into their new home. The employee relocation company also provides the employees with information about the Dallas area, including schools, healthcare providers, and cultural attractions.

6. Leniency

Relocating can be emotionally difficult for your staff as they leave familiar environments to foreign ones. For this reason, you mustn’t rush them in the process. You should remember that they are still adjusting to the new environment and will need some time to settle fully.

Give them this time and be lenient with them if they underperform initially. A week or two should be enough for them to adapt to the environment and get back to the swing of things.

For example, the company acknowledges that it may take some time for the employee to adjust to the move to Dallas and settle into their new home. The company provides the employee with a one-month grace period before expecting them to meet their full performance expectations.

Conclusion

Employee relocation is a difficult process, both for the employee and even for you in management. As you want your team to maintain productivity in their new job site, you should provide them with means that will ensure a smooth transition.

At the start of the move, be open and outline their duties and conditions of the new location clearly. You can also provide assistance in moving their possessions, offer them relocation incentives, sponsor and encourage them to undergo orientation programs in the new neighborhood, outsource corporate relocation services, and give them time to settle in before expecting them to return to their normal productivity levels.

By following these key rules, you can create a successful employee relocation policy that will help your employees transition smoothly to their new location and minimize disruptions to your business. In the long run, this will be productive for your company.

References

• “Relocation: Relocation Policy And Procedures”, Source: https://www.shrm.org/resourcesandtools/tools-and-samples/policies/pages/cms_015267.aspx 

• “How Much Do Movers Cost?”, Source: https://www.forbes.com/advisor/home-improvement/movers-and-packers-cost/. 

• “FAQ: Relocation Expenses – Department Of Energy”, Source: https://www.energy.gov/sites/prod/files/ReloExpensesQandAs.pdf 

• “Why Is Orientation Important?”, Source: https://hr.oregonstate.edu/employees/administrators-supervisors/onboarding-process/why-orientation-important