By Keisha Ward, courtesy of SBAM Approved Partner ASE
When it comes to company benefits, are you offering what matters most to potential employees? One benefit that tends to go unnoticed or overlooked is employee relocation. However, a recent study shows that offering relocation benefits could significantly improve recruitment efforts.
Relocation packages are increasingly becoming a crucial tool used to remain competitive in today’s job market and is used as a tool to attract top talent.
Allied Moving Company recently conducted a study which surveyed 1,000 people who have relocated for work. The results indicated that employees and candidates are open to relocation for the right position. The study also found:
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The top reason that people are willing to relocate is career advancement or higher pay
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Young professionals are the most likely to relocate
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Candidates are willing to move for small organizations – 22% of relocated workers moved for an organization with less than 50 employees
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Of the organizations that provide relocation assistance, most provide assistance with moving expenses, while some provide additional benefits like help with living expenses, miscellaneous allowances, lump-sum packages, and pre-move, house-hunting trips
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70% of employers who offer relocation provide less than 60 days of move time
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Candidates are willing to travel the distance – on average 200 miles for relocation
Gone are the days when relocation assistance was offered exclusively to higher-level employees or executives. The war on talent, global economy, and changing workforce nearly require that companies get onboard in order to remain competitive and attract talent.
Atlas Van Lines recently reported an increase of 13% over a three-year period among companies offering relocation assistance. Companies now realize the importance of an attractive relocation package. A nice relocation package can seal the deal.
Liz Ryan, LinkedIn Influencer wrote in a Forbes article, “What an employer will pay and what they won’t pay a relocating employee is a huge, neon signal. It tells you everything you need to know about the company culture.”
It can be a stressful time for a new employee to change jobs, home, and city – or country in some cases. This is a great opportunity for companies to show they care about the well-being of their employees by offering a package that centers around how it can help alleviate some of the burden associated with a big move. This can be offered in the form of paid moving expenses, temporary housing, discretionary spending allowance, or lump sum payment for miscellaneous experience reimbursement. Moving assistance is also a major plus.
Common Relocation Packages include:
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Full pack and/or unpack services
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Quality moving company service with reasonable insurance coverage
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Home sale or lease-breaking penalty assistance
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House-hunting trip, minimum one
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Temporary housing
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Transportation, including auto moving, to the destination
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Miscellaneous expenses
Standard Relocation Package typically include:
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Temporary living expenses
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Storage costs for household goods
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Spousal employment assistance
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Child and elder care costs help for transferees caring for elderly parents.
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School location assistance for school-age children
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A loss-on-sale allowance in the event your present home sells for less than its purchase price
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Trips home for those in longer-term temporary housing, usually limited to one every 30 days
The key is to remain competitive:
A relocation package may or may not include every item listed. However, packages should always be evaluated and if possible, compared to that of the competition. Packages can be based on job level, however, many companies offer some type of relocation benefit to all levels – entry to executives in order to remain attractive. Smart organizations are also willing to negotiate or make needed changes to these plans. Keep in mind that per the Tax Cuts and Jobs Act relocation expenses are no longer tax deductible so employees are likely to negotiate a “gross-up” to cover any taxes associated with the move.
Depending on age, people move to advance their careers, earn more money, live closer to or away from family, or to improve their quality of life. Whether the move is due to job elimination or company transfer, the fact is people are open to change – some welcome it. Offering and utilizing a strong relocation package as a branding and recruiting tool can considerably improve your hiring and attract top talent.