Considerations of Employee Relocation
The global employee relocation market has been forecasted to hit $32 billion this year, with one of the main drivers being the increasing number of international assignees to US, Western Europe, Australia, Singapore, Japan, India, and China. With such staggering numbers, what exactly does employee relocation entail?
Employee Relocation Is Driven By Multiple Factors
Typically effected by a company, employee relocation takes place when an employee is assigned from one location to another. Some of the reasons include:
1. Expansion Plans
Companies usually consider employee relocation when its business profits are increasing steadily. By relocating the workforce, there is a shorter time needed to hire employees in new locations. When employees are relocated, they bring their accumulated skills and knowledge to the new venture, allowing it to be set up at a faster pace.
2. An Open Position In Another Location
Rather than training up an employee from scratch, companies may prefer to relocate a current employee to fill up an open position in another location.
3. An Employee’s Career Development
If a company identifies an employee with potential, relocation could be part of his or her career development path. It serves as a good training and testing ground to develop his or her potential. Additionally, employees who have been through a successful process of relocation tend to develop a sense of commitment to the company, increasing the chances of retention.
4. As A Tool To Attract Prospective Talents
Finally, relocation plans can be used to attract exceptional talents who are looking to broaden their international experience.
Is Employee Relocation Worth The Costs Involved?
Employee relocation costs vary on a case-by-case basis. In America, the average relocation package costs between $19,309 and $24,216 for renters and between $72,627 and $97,166 for homeowners. The package can be broken down into the following expenses: travel tickets, packing and moving costs, moving insurance, short-term housing, temporary storage rental, real estate cost assistance, relocation taxes and of course, pay adjustments or bonuses that help sweeten the deal. After all, it is a big life change for employees and their families.
As long as the job opening is good and the employee relocation package is competitive, businesses can look forward to attracting stellar candidates worldwide. A 2019 survey of 2,800 American employees showed that a majority of 62% of them would consider relocating for the right job.
Employees Have A Myriad Of Considerations Before Relocating
If you want them to get on board with relocation plans, you will have to see through their eyes and understand the considerations that may be holding them back. Once their key considerations have been address, you would be surprised by how flexible they can be.
Mindset 1: Readapting In A New Country Will Be Difficult
This is a roadblock many first-time relocators face. Almost every aspect of their lives would change, from their job and house to the people and culture around them. It can be extremely stressful and daunting to think about.
Break this mindset: Plan time for employees to get a hold of their new surroundings. Let them ease into the relocation within a mutually agreeable number of days or weeks. When they have readjusted emotionally and have pretty much settled all relocation matters, they would be in the right mind frame to be productive at work. In the long run, they will be able to perform consistently and once they have experienced success at work, they will be much more inclined to stay.
Mindset 2: Relocation Will Affect Family Members Adversely
If your employee is married and has children, it is only natural for them to worry about putting distance between them and their family. To them, relocation is not a singular decision but a joint one. Not only do the children need to change schools, his or her spouse will have to quit their current job and find a new one in the new location.
Break the mindset: Ensure the employee’s spouse and children are included in the relocation plan. While you do not necessarily need to cover the expenses of his or her family, you can research and recommend schools and childcare in the area for the children as well as potential jobs for the spouse. Better yet if you have contacts in the area you can put them in touch with.
Mindset #3: Relocation Is Tedious And Costly
Moving is expensive and packing up is time-consuming. Not only that, having to change addresses and possibly contact numbers with service providers can be a pain. If the employee is relocating with his or her family, the process is double, tripled or quadrupled.
Break the mindset: Make the process as smooth as possible. Think for your employee and offer support wherever you can whether it be monetarily or by providing relocation assistance. It is an opportunity to show them that they are making the right choice to relocate.
How Moovaz Can Help
Companies could consider a strategic partnership with a relocation company to improve employees’ flexibility to relocate. Established relocation companies have many years of experience in relocating employees to countries across the globe and will be able to make it a seamless experience for both the assigners and the assignees.
Moovaz relocation platform is a one-stop relocation management for you and your employees. You can easily activate relocation journey for your employees and they’ll be able to plan their relocation tasks, ranging from pet relocation, house moving, accommodations and settling in, all in one place. Partner with us today to elevate your employee relocation experience!