Imagine getting up one day to discover that your company is looking to relocate you to another city or perhaps another country. From one perspective, this may be good news, as you’ll get to experience new things and explore a different location. On the contrary, you might feel nervous about leaving behind your routines, friends, and the comforts of your current place.
Employee relocation is a complicated and arduous task, requiring thorough preparation, support, and communication between everyone involved. Whether you’re an employee about to be relocated or
an employer seeking to grow your company, the process may prove thrilling and challenging.
In this article, we’ll discuss the facets surrounding employee relocation, such as the common reasons for relocation, what to consider, expected challenges, practical tips for a successful transfer, and more. Let’s jump right into it.
What is Employee Relocation?
Employee relocation is simply the process of relocating one or a group of workers from one location to another for work reasons. The move could be within the same city, to another city, or even out of the country.
Amidst this process, employees are still affiliated with your business. They may remain in their current position or be assigned a new one, and their income or perks will almost certainly increase. But relocating to another place isn’t an easy decision. And so, more than often, businesses leverage financial incentives to entice top-performing and talented employees to accept a job position elsewhere.
Some relocations can be voluntary, and others involuntary. A voluntary relocation is one in which the employee requests to be transferred, and it’s up to the employer to support it. On the other hand, an involuntary move entails the employer initiating the transfer, and the employee will have to accept it if they wish to continue at the company.
Reasons Behind Employee Relocation
Different businesses relocate employees for various reasons. A few common ones include, but are not limited to:
- Cost savings: Moving workers to a lower-cost region can help businesses cut labor costs.
- Expansion: A company may relocate employees to help manage the new work location and ensure its standards and culture are upheld across all locations.
- Corporate restructuring: Businesses may opt to move employees as part of an extensive corporate restructuring exercise, often due to changing market dynamics.
- Acquisitions and mergers: When a company acquires or merges with another, it may need to move staff to enhance efficiency and streamline operations.
- Talent acquisition: Businesses, particularly those with a limited local talent pool, may need to move personnel to draw in and keep top talent.
Key Considerations When Drawing an Employee Relocation Policy
Your company’s relocation policy must be tailored to the needs of your current and prospective employees. Identify all the expenses employees are likely to incur during a transfer and compensate them accordingly. This can be achieved through a fixed-rate reimbursement arrangement or a single-payment benefits package.
Regardless of your business’s preference in disbursing the benefits, consider the following expenses.
Travel may prove costly for relocating employees, especially if sent to a different state or overseas.
Consider offering a mileage-based fee in accordance with IRS guidelines when offering compensation to a different state. The IRS recommends a rate of at least $0.65 per mile for people who use a car for moving-related or business reasons.
Moreover, consider other expenses employees may incur when driving, such as parking meters, toll booths, or gasoline. Request your employees to keep all receipts for these costs so that you may offer proper compensation.
If moving overseas, remember to factor in expenses such as plane tickets, trains, and boats, as well as costs for customs or passports.
Hiring professional moving services can be costly, but other fees must also be considered. Besides a team of movers and a moving truck, you might want to reimburse your workers for packing materials such as boxes, tape, or padding.
In the case of an urgent or unexpected transfer, an employee could also use shipping or packing services to leave for their new location as soon as possible. So, consider that too.
Employees may be discouraged from moving if they believe they won’t be able to sell their property. Therefore, consider covering your employees’ costs of selling or buying a house when they relocate.
This gives workers peace of mind if they are concerned about their ability to find a good home soon or sell their current one. Quick tip? Working alongside a real estate professional in the area would be best to make the process less stressful for your employees.
It’s frightening to arrive in an unfamiliar city without a place to call home. Instead of having your employees stay in hotels following the move, consider arranging for their short-term accommodation—an apartment or condo rental will suffice.
Make these plans beforehand rather than expecting employees to find suitable housing themselves.
Paid Time off From Work
Even if your business offers a comprehensive relocation package, planning a move can be time-consuming and hectic for an employee. So, consider providing more paid time off for a few days or weeks to allow employees to complete all tasks, from unpacking to acquiring their new driver’s license.
Best Practices for Successful Employee Relocation
As mentioned earlier, relocation can be stressful for employees and employers. It demands thorough preparation, support, and communication to guarantee a seamless transition.
That said, here are a few best practices that you can employ to render employee relocation successful.
1. Offer Relocation Assistance
Companies should provide their employees with relocation assistance, especially regarding the logistical aspects of the move, such as packing, shipping, and finding housing. This can include offering workers a relocation package covering travel expenses, short-term housing, and other moving-related costs.
2. Provide Clear Communication
Clear and open communication is vital to smooth employee relocation. As such, employers must be open and honest about the moving process, particularly the reasons behind the move, expectations, and timelines.
They should also provide the workers with all the relevant information about the new work environment, including the local community, schools, and housing.
3. Offer Cultural Training
Suppose the employee is being transferred overseas; the employer should consider providing cultural training to allow them to adapt to their new surroundings. This may entail cultural awareness training, language classes, and anything else to help employees feel included in the new culture.
4. Address Family Concerns
Employee relocation can seriously affect the employee’s loved ones, especially if they have to leave them behind or move their kids to a new school. For such cases, the employer should assist in finding resources in the new environment and addressing any family-related concerns to facilitate the transition.
5. Ensure Proper Documentation
It’s also the employer’s responsibility to ensure their soon-to-relocate staff has the appropriate documentation for the transfer. These include things such as tax information, visas, and work permits.
6. Provide Continued Support
Bear in mind that employee relocation isn’t a one-off affair, and employers must continue to offer assistance to ensure their relocated employees settle and adapt well to their new work environment. This can be done through assistance in finding local resources, regular check-ins, and other practices intended to make workers feel at ease and connected.
Tips to Help Employees Adapt Quickly to Their New Environment
Adapting to a new environment after relocating is easier said than done. And for this case, it’s not only about adapting to a new workplace but also a new lifestyle and culture.
However, with the tips below, settling in after relocation to a new work environment will be a breeze.
- Explore the local neighborhood: Employees should create time to visit their local neighborhood and discover fun things to do around, such as attending cultural events, trying out local cuisines, visiting local attractions, etc.
- Interact with colleagues: Employees need to establish relationships with co-workers to smoothen the transition and foster a sense of belonging. One can do so by participating in team-building activities, attending social gatherings, etc.
- Find resources: Some organizations provide resources to help new arrivals adjust to the environment. Employees should leverage these resources, which can be cultural training programs, relocation services, and local guides, to help navigate their new environment.
- Seek a support network: Employees should sign up for local groups or clubs and connect with others in the neighborhood to meet new faces. This can be helpful when adjusting to a new environment.
- Maintain contact with loved ones: Leaving behind family and friends after relocation isn’t easy. However, employees can alleviate loneliness and homesickness by staying in touch with their loved ones by visiting regularly or through video chats and phone calls.
- Establish a routine: To help them feel more at ease in their new workplace, employees should consider sticking to regular mealtimes, creating a regular exercise routine, and dedicating time to fun activities or hobbies.
Your Professional Movers of Choice in Richmond, VA, and the Surrounding Areas
While employee relocation can be a stressful and tedious experience, it can also prove an excellent opportunity for professional and personal growth. Businesses that invest in employee relocation experiences may reap the benefits of having a more engaged staff and better productivity.However, businesses must work with competent professional movers to ensure successful employee relocation. That’s where we come in. At Cavalier Moving, we boast a dedicated team of moving experts ready to offer the best moving services. That said, contact us and let’s move with you.