Companies may offer relocation packages as a recruiting benefit, as an investment in their workforce. There is no obligation for employers to cover the moving expenses of new or current employees, but they may choose to do so. Reimbursement relocation packages allow transferees to pay all moving expenses with the idea that their employer will reimburse them a specific amount of money after the relocation. To cover their bases, companies should consider adding a reimbursement clause, which states that if the relocated employee leaves before a set period of time, they will have to reimburse the company's relocation costs.
Companies are recognizing that having a strong and attractive relocation package makes excellent business and brand sense, and it is becoming increasingly necessary to be competitive in today's market. Other expenses that could be included in a relocation package include school relocation assistance for employees' children, temporary storage of household items that cannot be transported immediately, or payment of state driver's license fees. While the final cost of an employee relocation package varies widely, there are ways companies can estimate and reduce these costs. Technology employees in leadership positions are encouraged to move to companies that are not willing to extend generous relocation packages that meet their family's needs.
Although most companies have a mostly resolved relocation package by the time they offer a job, employees may have individual needs or requests to make the move as simple as possible. Today, with a more global economy and a better-educated workforce, competition for talent is stronger than ever; as a result, smart companies are jumping on the bandwagon of relocation benefits. Shyft combines the logistics management of relocation technology with the personalized service you can only find with concierge companies. Some employers often deal with relocating new employees and may put you in touch with their subcontracted companies.
Employers have lost the ability to use relocation as a tax deductible and employees have to pay taxes on any relocation benefits received. For businesses, covering relocation services can be a smart and cost-effective contracting tactic. Employers can try to attract candidates by mentioning on job lists that relocation services are available. Often, the employee will keep relocation costs low and the rest of the pay will be pocketed; this can lead to a bad move and many companies are moving away from these packages. If companies discover that they are losing talent, especially as part of a transfer process, a review of their relocation policies and strategies may be undertaken to keep up with the changing face of the modern workforce.
