Reasons for relocating an employee may include opening a new location, filling a vacant position to another location, professional development, and more. Employee relocation is when a company decides to move an existing employee, a new employee, or an intern to a new location for work purposes. It allows you, as an employer, to find some of the best candidates from outside your city, increase the talent pool and staff your company with the best people. When an employee makes an assignment at a new location, they will transfer their unique skills and knowledge to a new location.
This is a great way to bring new ideas, knowledge and perspectives around the world within your company, strengthening it. In some cases, by hiring employees in a new country, you can leverage valuable talent and experience that is relevant to your company. On the other hand, you may have trouble finding qualified candidates in-country, making it a better decision to relocate employees from their home country. 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.
Most companies will have a tiering system that determines the amount of benefits an employee can receive for their relocation. If an employee goes through the relocation process, there is a significantly higher likelihood that they will remain with the company. Until recently, the staff relocation process has been a complicated matter, as organizations are often unable to cope with the true costs involved, both in terms of the time lost due to the relocation of staff members and the actual costs involved in making it a reality. Typically, companies offer relocation benefits to employees who move to a new office outside of their current market.
From an employee's point of view, superior relocation packages are another benefit that comes from showing loyalty and a strong overall work effort with a company over an extended period of time. It can be difficult to create a relocation program that protects the benefits of your company and benefits employees who move. If your company aims to motivate employees to move, you'll need to consider offering some type of relocation benefit. Employers could also deduct relocation expenses incurred when relocating their employees, which benefits both parties.
In a GBO, the relocation company buys the house from the employee at fair market value, before later selling it to an outside buyer. An employee relocation package is a benefit that companies use to help new and current employees move from one location to another because work requires it. A competitive company will work with a relocation partner who can connect their employees to a network of quality moving providers and help escalate problems when things go wrong. 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.
Once you understand the basic dynamics of the employee relocation process, you can begin to create the relocation policies that best fit your organization's objectives. Relocation is an entirely different area of Human Resources; a relocation specialist can take the lead in ensuring a smooth transition for you and your new employee.
