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In the current competitive job market, providing appealing relocation packages is a strong strategy to attract top talent and keep your current staff. Whether moving an employee across the country or to a new international destination, a thoughtfully crafted employee relocation package can ease the transition and show your commitment to their achievements.
This detailed guide will outline the common components of a job relocation package and provide information on the latest trends in the relocation sector.
Traditional Lump Sum
The conventional lump sum relocation package entails the company should offer a relocation package to the employee to cater for all relocation expenses. This method provides flexibility, enabling employees to allocate the funds based on their requirements, like hiring professional movers, arranging temporary accommodation, or covering travel expenses.
The straightforwardness and simplicity of this process benefit both the company and the employee.
For the company, it ensures swift disbursement without managing intricate details, while the employee has financial independence to select services that align with their situation. Nevertheless, the adequacy of the lump sum is vital; if it falls short, employees might encounter extra out-of-pocket expenses.
Transportation Agreement
Transportation support can be included in the relocation assistance provided by employers to new employees. This may involve assistance with transportation expenses or logistics, or both.
For instance, reimbursing employees for their flights and moving costs to a new destination can ease the financial burden of relocating and help new hires begin their roles seamlessly.
Family Relocation Services
Many expatriate workers prioritize settling their families when relocating. While 18% of survey participants mentioned a family-friendly setting as a reason for relocation, others anticipate receiving assistance in establishing their families. This aid may involve:
- Assisting in finding and reaching out to local schools for their kids
- Arranging job opportunities for their spouses or partners
Tiered Approach
Different tiers of employee relocation packages provide varying benefits depending on the employee’s role or the specifics of their relocation. Generally, these packages are divided into basic, mid-level, and executive tiers.
New employees may receive help with essential moving costs and temporary accommodation, mid-level employees could benefit from extra services such as assistance with finding a home and support for their spouse’s job search, while executives might access premium moving services, personalized tours of the area, and increased allowances for housing and travel.
This system effectively manages resources by ensuring higher-tier employees receive more extensive assistance, promoting transparency and equity.
Expand Candidate Pool
Offering relocation support, whether through a one-time payment or ongoing assistance, enables employers to broaden their talent pool significantly during the recruitment process for a vacant position.
Previously, organizations depended on a local workforce, but by engaging a global workforce and enticing top talent through relocation aid, the range of potential candidates to fill a position expands significantly.
Endnote
Crafting a comprehensive relocation package is a powerful tool in attracting and retaining top talent. Understanding the essential elements enables you to develop a program that surpasses typical job relocation packages, meeting your employees’ requirements and enhancing your talent strategy.
