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  • Employee Relocation Guide: How To Help Your Relocating Employees Move Seamlessly
relocation guide for employees

Employee Relocation Guide: How To Help Your Relocating Employees Move Seamlessly

Employee relocation is providing assistance to the employee in shifting from one place to another for work-related reasons. It can include a number of incentives like travel expenses, housing, insurance, family expenses, and more.

Employee relocation is an important part of any company that wants to cast a wider net on the talent pool. The best employees are attracted to firms that provide financial assistance during the relocation process. Most companies would have corporate relocation packages in place. They can be offered to new employees, existing employees being transferred to a new location, or as a part of a promotion package for the employee. In some cases, the employee may even be allowed to relocate to another work site due to personal reasons. 

The relocation process of employees is a task related to the workforce, so it usually falls under the leadership of the HR department. Several businesses will have the “mobility clause” embedded in the contract at the time of making the hire which details the relocation requirement, rights, and the process. The relocation can be domestic or international.

Let’s take a deeper look at how companies can help their employees in the relocation process when the need arises.

What Costs Does Employee Relocation Cover?

To relocate an employee who rents, the employer may have to cover about $20000 to $25000 for the process. The total cost for the corporate relocation process will vary with where the employee is moving and the specific circumstances. Also, note the prices keep varying with time and place, so your cost could vary largely.

 In general, the employer has to cover the following corporate relocation costs.

Relocation Costs

The most obvious cost of the employee relocation process is related to the relocation itself. This could include transport, airfare, insurance for travel, and other related expenses.

Housing Costs

This is another major cost of the corporate relocation process. In most cases, the employer will have to support the employee in securing a reasonable place where they could stay. This is mostly a rental apartment. The quality of the house will surely vary as the place the employee is moving to may have higher or lower prices for the same quality of house the employee was already living in. A rental stipend might have to be provided as well.

Familial Costs

Often, an employee is not the only person the corporate relocation process affects. They may have independents or a family living with them. In that case, the employer has to take into account the costs associated with moving not only the employee but their family as well.

The costs may only cover relocating the family of the employee, or it may have to be extended to help the spouse find new employment at the place of relocation.

 Increased Pay

If the employee relocation is a part of the promotion package, it would certainly involve a pay hike. The amount of pay increase will definitely vary with each company. Sometimes, there might be a bonus or incentive due for the employee.

Other Costs

A few other costs might be included according to the situation, such as visa costs for international relocation, pet relocation, the costs for research on international policies for employee relocation, etc.

What To Include In A Relocation Policy?

Corporate relocation is a $14.1 billion industry, and there are extensive rules associated with it. Generally, the following things are included in the corporate relocation policy.

  • Moving household goods
  • Transport for the employee, family, and pets
  • Housing
  • Personal assistance
  • Employment assistance for the spouse
  • School assistance
  • Integration assistance to settle with the culture
  • How will the relocation money be paid – lump sum, installments, tiered, etc.

Challenges Of Corporate Relocation

A company will have to face several complications and challenges when going through the process of employee relocation. It can be even more tricky if the corporate relocation process is international. There will be issues regarding legal requirements, taxes, visas, family transfers, and more to be addressed.

Handling Associated Costs

Keeping the cost of corporate relocation is a tough task as there are not just costs associated with travel but also the costs of helping the employee settle in. If the family needs to be relocated with the employee, it could be even more problematic.

Compliance Issues

Other than cost, there could be several compliance issues with taxes, law, government, and more when employee relocation is under consideration. Some employees may be unwilling to move, while others may be limited by law from moving to a certain place.

Resistance to change and move by the employees poses a serious compliance issue. If there was no mobility clause in the contract, the employer might have to negotiate the employee relocation process. According to stats, about 62% of the employees would consider relocating for a great job, and about 50% of people would relocate for a career promotion or advancement.  


There are several issues with finding the right kind of housing for employee relocation. First, the real estate competition is stiff, and you may not be able to find a house that meets employee expectations. Also, employees may perceive housing provided by the employer as low quality. It is important to set the expectations of what will be provided beforehand.

Alternatively, the employee could be given a stipend and may be asked to find a house within that budget themselves.

Employee Relocation Vendors

To take the burden of corporate relocation off, the employer can hire a relocation vendor or outsource the process. There are several benefits to this, like vendor’s connection with recruitment agencies in different parts of the world, their pre-set relocation strategies, technological solutions, knowledge of legal requirements for relocation, and several more.

Employee relocation vendors specialize in this process and can streamline it better.  

Key Takeaway

Employee relocation can be a hectic process for the internal HR department to handle on its own. Bringing in relocation experts can help make the process smooth and reduce costs.

Moovaz helps with shifting to a new place by using the latest technology and data advancements. It aids in finding accommodation, jobs, international schools, services for pet relocation, and so much more to make the corporate relocation process easier. Moving away from home can be emotionally, physically, and mentally taxing. Having strong experts to back the relocation process can make it seamless for both the employer and the employee.  

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