Relocating an employee can be a costly endeavor for businesses. If a relocation company is used to purchase the home through a GBO (Guaranteed Buyout) and a third-party buyer offers a higher price, a Modified Value Option (AVO) can be employed. In this article, we'll discuss what should be included in a relocation package and how to create one that ensures stress-free success. When you extend a job offer to a candidate and begin the relocation process, you want to make sure that the company you partner with is an extension and reflection of your workplace. Offering employees options in relocation packages provides incentives for current and future employees to stay and pursue careers within a company.
Fortunately for new hires, companies can generally arrange higher relocation packages because they don't have to pay for hiring as much of a higher salary. If your company would benefit from an employee's relocation to another city, you should start thinking about relocation packages for your employees. Now that you have an overview of what should be included in a relocation package and what a reasonable package should look like, it's time to get down to business and create that perfect package. Companies always use their lawyers to add policies with protections in case you find yourself in problematic situations, so be sure to consider a few things in the fine print before finally accepting a relocation package. While it's hard to know the details of the relocation assistance package until you know the employee and the assignment, it's important to have an idea of what you want the relocation package to include.
Never assume that your company will offer you a relocation package that you have already guessed assistance for your needs. Concise, clean and rational phrases always win the day, so make it as easy for your company as possible to defend a higher relocation package for yourself. And the company may not offer unsolicited relocation assistance if you don't request it, so again, it's important that you do your due diligence. A strong relocation package is an effective hiring tool that can attract quality candidates and keep your company competitive in the global job market. Remember that the benefits included in an employee relocation package vary greatly by circumstance, company or employee.
In a GBO (Guaranteed Buyout), the relocation company buys the house from the employee at fair market value, before later selling it to an outside buyer.
