Employee relocation is a process in which a company moves an existing employee, a new employee, or an intern to a new location for work purposes. It allows employers to find the best candidates from outside their city, increase the talent pool, and staff their company with the best people. By hiring employees in a new country, companies can leverage valuable talent and experience that is relevant to their business. Most companies have a tiering system that determines the amount of benefits an employee can receive for their relocation.
This includes opening a new location, filling a vacant position to another location, professional development, and more. When an employee makes an assignment at a new location, they will transfer their unique skills and knowledge to a new location, bringing new ideas, knowledge, and perspectives around the world within the company. Until recently, the staff relocation process has been complicated as organizations are often unable to cope with the true costs involved, both in terms of time lost due to the relocation of staff members and the actual costs involved in making it a reality. 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. 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 (Global Business Ownership), the relocation company buys the house from the employee at fair market value before later selling it to an outside buyer. 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. Employee relocation is beneficial for companies as it allows them to find some of the best candidates from outside their city, increase the talent pool and staff their company with the best people. It also brings new ideas, knowledge and perspectives around the world within your company, strengthening it. By offering superior relocation packages as another benefit that comes from showing loyalty and a strong overall work effort with a company over an extended period of time, companies can motivate employees to move.