When originally conceived, the typical domestic relocation package was a generous suite of benefits. Companies tailored these relocation packages for senior level managers who owned an often-expensive home, planned to buy a new one at the destination and had considerable personal effects to move. They frequently centered on a Guaranteed Buyout Program, where the company would buy the employee’s home if s(he) could not sell it in a timely manner. Because these were executives, the objective of getting them in place at the destination as quickly as possible trumped cost considerations. Read More
Category: Relocation Policy
SHRM’s 2018 Employee Benefits Study assessed the prevalence of more than 300 employee relocation benefits and found that lump sum payments are the single most popular relocation benefit offered by the surveyed companies, offered by 28% of responding companies. Other relocation benefits most offered in 2018 included temporary relocation benefits (16% of companies), location visit assistance (16%), reimbursement of shipping fees (12%), and cost-of-living differentials (11%).
However, just as important as understanding the most popular benefits to relocating employees is understanding which benefits are less popular. Because companies periodically reassess their relocation policies to ensure they are remaining competitive in the marketplace and offering benefits employees currently want and use, it’s important to know which benefits have become less necessary and desirable. Read More
To put it succinctly, virtually any company or industry can benefit from outsourcing global mobility services. As a relocation management company (RMC), we will let you in on a secret: mobility is probably one of the most cumbersome of all benefits to attempt to administer in house.
A typical domestic relocation might include counseling, expense administration, tax gross-up, home selling assistance, household goods transportation, temporary housing and home finding assistance. Many third parties are part of this process, bringing further complexity, as a company must source, vet and manage each of their services.
With the rebound of the U.S. real estate market and the current competition for talent, companies that distanced themselves from home sale assistance often have found themselves at a disadvantage. However, given the current trends impacting U.S. domestic relocation policy, it’s worth taking another look at relocation home sale assistance as a strategic tool for at least some employees. Read More
This is a particularly dynamic time for companies that relocate employees within the U.S. Several overarching social and demographic trends are influencing the way we work, and employee expectations can vary greatly across generations, locations and industries. Similarly, company needs and competitive situations can vary widely, depending on industry, location and business strategy. A start-up company likely will have different mobility goals than an established corporation.
The term “best practices” recognizes an ongoing industry collaboration to identify ideas or solutions that increase employee and business stakeholder satisfaction while creating efficiencies. The current U.S. domestic best practices outlined in our latest eBook for global mobility professionals provide a useful starting point for developing or reviewing your own domestic relocation policy. Ultimately, your company’s best practices will be the policy elements most closely aligned with your culture and business objectives.
For many years, Hong Kong has been ranked as one of the safest cities in the world. However, the recent protests in Hong Kong and unrest have raised some security concerns for corporations with employees and families deployed there as part of its international relocation program. On November 14, the U.S. State Department raised its travel advisory for Hong Kong from Level 1: Exercise Normal Precautions to Level 2: Exercise Increased Caution. The U.S. State Department website advises the following: Read More
Help! I Need to Put Together a Domestic Relocation Package, and I Don’t Know Where to Begin! Getting Started with Employee Relocation
We see it all the time: a company (often a smaller or start-up organization) reaches out to TRC because they have found the perfect employee candidate. The only problem is that the candidate lives on the other side of the country and there is no existing employee relocation program.
Fortunately, this candidate is willing to relocate, but she knows that it is expensive, and she has asked what kind of employee relocation package the company will provide. The company has never been involved with a domestic relocation before and is not quite sure what to do. She is a must-have candidate and she knows it, so she has considerable bargaining power. Read More
The core relocation benefit ensures there is some level of parity and predictability among relocating employees and that all employees receive the basic benefits needed to get the transfer done. For domestic relocations, such a core flex program benefit might include: relocation counseling, home marketing assistance, rental or home finding assistance, final trip to the destination, and shipment of household goods.
Additional flexible elements that could be matched to the employee’s requirements could include: Read More
Core-flex relocation programs build in flexibility and minimize costly exceptions, and ultimately this model can increase employee satisfaction and acceptance rates for both international relocations and domestic relocations. In addition, a carefully considered core-flex program can help companies to:
– Gain a recruiting edge
– Tailor relocation benefits more closely to employee or candidate needs
– Make employees feel more valued and invested in the process
– Empower hiring managers, business units, regional locations, etc.
– Eliminate or at least dramatically reduce exceptions
The core-flex model has become one of today’s most talked-about employee relocation programs. As the name suggests, core-flex incorporates a defined, core relocation benefit and a flexible selection of optional benefits to supplement this core. Along with lump sum packages, core-flex programs are an increasingly popular way to add flexibility and align mobility benefits with employee needs.
Two major factors are driving the need for more agile mobility programs: the keen battle for talent in a full-employment labor market and the growing population of millennial transferees. Recruiters and hiring managers who are eager to sign the best talent need every tool at their disposal, including mobility benefits that make relocation more attractive. For their part, millennials are accustomed to an array of choices in almost every aspect of their lives. They value personal control and dislike corporate mandates.