Offer These 8 Terms in Your Employee Relocation Packages to Make Your Offers More Competitive
In recent years, a significant number of people have uprooted their professional lives for their careers. According to 2021 research by Move.org, more than seven million Americans relocated for job reasons. Although this number represented a decrease from prior years, the trend is still an important ongoing phenomenon.
When it comes to relocation, research shows that employees are usually most reluctant to move because of a higher cost of living in a new locale. Moreover, on average, employees have 30 days until they begin their job in a new place. This quick turnaround can make a move particularly expensive. Offering a relocation package for moves of more than 50 miles helps ease the transition by providing anything from financial assistance to temporary housing.
Here are eight essentials a company should include in their relocation package.
1. Home sale or lease-break
According to a survey by mobility knowledge nonprofit Worldwide ERC, the biggest expense for relocation is often the loss on the sale of a home. With little time to find a buyer, and even less time to buy a new residence, employees often settle for selling their property at a loss or taking a financial hit when breaking a lease.
Some companies cover the difference from the initial purchase or help market the home with a competitive real estate agent. This process is going to be more expensive for homeowners, although renters might also need help with a lease-breaking penalty.
The sale of a home or early termination of a lease can determine how much money an employee has to finance the move. Company assistance in this case can make or break the employee’s decision to actually relocate.
2. Moving expenses
Uprooting your entire life in 30 days would be an overwhelming prospect for anyone. Packing up belongings and moving them to a new city is daunting and expensive. Relocation assistance supports an employee by helping allay those expenses. Additionally, high-quality insurance for the move protects your employee from unforeseen losses and is essential for a less stressful relocation.