The biggest concern facing organizations is attracting and retaining talent. Human resource experts need to have effective relocation for businesses and employees policies and practices as well as competitive relocation packages. Businesses can use relocation assistance to retain current employees and lure new hires by providing advanced business operation and development and career development opportunities and also ensuring that they get the right talent in the right place at the right time. Companies will be able to complement their employer’s talent management program with a well-designed relocation program.
There is an expectation from the organization to increase or maintain their relocation budgets and volumes as the economy improves. According to a study, almost all participated firms in the survey maintained or witnessed an increase in their relocation budgets and volumes.
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Business Case
Individuals that bring productivity, creativity, and profitability to a business are the employer’s highest costs and best resources. Though employers can boast of healthy competition through their good talent management program, the talent’s location may not be where the company needs it most. There could be a need by the employers for current and new employees to bring their knowledge to different locations or subsidiaries or relocate for continued career development.
As such, employers may see these moves to be a daunting task, and employees could find it a high-stress situation. The relocation program can threaten the employer’s ability to retain the employee if they don’t handle it successfully. As such, the risk of losing a talent the company has devoted money and time to develop may happen.
Lots of risks are associated with relocation. It doesn’t matter that an employee has a high level of commitment to the company even when they are willing to relocate. There is also the possibility of a drop in retention rates after an employee relocates. When employees adapt quite well, they see new opportunities in their new locations that can take them away from the employer. In the end, employees can end up leaving the jobs they moved to take when there is a clash with their new locations, conflict with their new bosses, and moves go badly.
HR’s Role
Those that manage the relocation programs of the organizations’ employees are the human resources departments. The case is then more than a hiring manager or human resources to approve moving expenses of relocation. As such, for any organization to ensure that the relocation program is to the advantages of the company’s strategy, there may be a need for a strategic focus on the company’s fiancés and business for relocation. Therefore, for the consistent management of relocations, HR needs to work with other company sections.
When a company wants to relocate an employee, the mobility/relocation managers or human resources are necessary for the following:
- Mitigate and identify legal issues by working with the legal department, including immigration or tax questions.
- Manage and select a portfolio of vendors and external service providers by working with financial or procurement officers.
- Working with talent managers and officers to identify employees best suited for mobility opportunities.
- Manage and set policies by working directly with internal business partners and chief operating officers.
The consideration for the total program operationally, financially, and strategically is the duty of human resources. Also essential are the metrics and evaluations to provide the program’s strategic value, as with any human resources program.
Policy Design and Development
All employees will have a clear mind of being treated fairly and consistently through written policies. They can be sure of clear rules of preventing pressure or favoritism from managers to provide different treatment for their preferred employees or own hires. There is also clear information from the policy that any employee can make informed decisions when they know what is included when they relocate.
Depending on the group the employee belongs, there are generally three levels of coverage when it comes to relocation policies:
- Those with limited experience, young recruits, or new hires.
- Experienced employees like those with more possibilities to settle with a family and have been in the workforce for a while.
- High-level employees, such as executives, may have an in-depth entrenchment in their current locations with community and family ties.
While they may have policies for all three levels, employers can adopt policies that align with their circumstances.
Businesses may face the high costs associated with some packages when they plan to provide attractive relocation packages to high-level employees and executives. They need to consider if the relocation cost will outweigh the financial gain of transferring or hiring an employee. That is why HR has a considerable pressure on it to tweak policies and trim costs for employees to relocate to the place they are needed. They can get the necessary help to develop a picture of the move’s total costs using metrics like cost/benefit analysis when they are analyzing real estate costs. Many organizations may offer optional benefits and core relocation benefits based on employee needs as they plan to offer flexible relocation packages.
Elements of a Comprehensive Relocation Program
When it comes to relocation packages, organizations discover that they have no magic formula. However, when these organizations are constructing a domestic relocation program, they need to consider some of these elements.
- Communication
- Family support
- Payback clauses
- Moving expenses
- Help with buying and selling homes
- Site visits
- Bonuses and pay adjustments
Special Circumstances
Individual employee’s permanent relocation is the focus of this toolkit. However, when HR is creating relocation policies, they need to consider two special circumstances, and they are:
- Temporary relocations
- Group moves
Outsourcing
It is now a high-stake game when it comes to the idea of relocation, with the risk of lower employee retention and high cost of relocation. There is increasing popularity in relocation service outsourcing because of the risks as organizations make moves to success and manage the details by turning to these services.
Businesses have been finding successes through communication with vendors. They understand that a clear relocation policy will minimize the unexpected and manage relocations through a reputable relocation services provider. Also, through contract negotiation with household goods, they need planning and information. They stand to gain a higher advantage when they know what to look for in an HHG.
