Relocation packages are a great way for employers to attract top talent. They also help employees feel at ease during the relocation process.
Companies typically offer job relocation packages when an employee is offered a long-term position over 50 miles from where they currently live.
Relocation packages often include travel, housing, and other expenses to help employees move smoothly into their new location.
Tiered Packages
Tiered packages are an effective way to position your offerings and differentiate yourself in the marketplace. They offer the potential for increased conversion rates as they target clients of different sizes and budgets. A well-designed tiered pricing structure also enables you to appeal to new customers and build loyalty among existing ones.
When implementing tiers, you need to ensure that your price points make clear the value of each service and product included in the tier. Otherwise, your higher tiers may not be appealing to the right customers or are too expensive for the value they provide.
Relocation packages usually cover a number of areas, such as housing, moving expenses, and transportation costs. This helps to alleviate the financial burden of relocation, which can be a difficult process for many people.
Some companies use a tiered system for their relocation packages, allowing employees to choose which level of service best suits them. This is based on their level of seniority and their circumstances, such as whether they have a mortgage or are a private tenant.
This system is considered one of the most cost-effective options for employers, ensuring that every employee can be helped during their move. However, some tiers and options may not be as effective as others, so it’s important to check each plan against the needs of your employees.
In addition to this, it’s essential that you research industry competitors’ relocation packages to determine what they offer. This will help you to prepare for a discussion with your employer about their plans and help you to make an informed decision about what plan is best for your needs.
Another popular option is a lump sum package, a cash payment that the employee can use to cover relocation costs. Traditionally, these lump sums have been used by companies as a cost-effective way to manage relocation costs. But they are not always as effective as they could be, and some candidates find them frustrating.
A managed budget package is another common type of relocation package. These packages include a capped allowance, which the employer sets for their employee to spend during their relocation. This limits the amount the employee can spend on their relocation, ensuring they don’t exceed the budget.
Lump Sum Packages
Relocation packages are one of the ways that some companies attempt to attract and retain top talent. They may offer full-service relocation programs or lump sums depending on their employees’ needs and budgets.
Lump sums are a popular option for a relocation because they can reduce employee stress and help them manage their moving expenses more effectively. However, employers need to ensure employees understand how to use their lump sums and avoid spending them unnecessarily.
For example, one employee, Marshall, was able to receive a lump sum package from his employer, but he and his family were still left with a substantial amount of moving expenses that they had to pay out of pocket.
As a result, they ended up with more stress than they had originally planned and felt they did not get the value they expected from the relocation package.
Employers can help ensure that employees receive a proper lump sum package by educating them on the different types of relocation packages and explaining the benefits of each. They can also provide employees with a cost breakdown of common moving expenses so that they know how to allocate their lump sum package.
Another way to ensure that lump sums are properly used is to partner with a reputable and experienced long-distance home moving company that can assist you with packing and unpacking your items in your new home. This can save you significant time and money in the long run.
If you are relocating internationally with a lump sum, it is important to research international shipping costs. This can vary greatly, so it is best to obtain several quotes from reputable companies so you can determine what is affordable for you.
In addition, you should also take the time to research local moving companies in your new location to ensure that you are getting the best deal. This will help you save money on the moving costs and ensure your move is a success.
Relocation is a stressful experience for both employers and employees. However, a good relocation package can eliminate stress and make the process more enjoyable.
Managed Budget Packages
There are many options available to you and your employees, but few can top the Managed Budget Package or Capped Allowance plan as the best relocation plan of its kind. In addition to a hefty check for relocation expenses, your employees are given the opportunity to participate in a slew of other activities designed to spruce up their new digs and get them settled into the next chapter of their lives. For example, there is no limit to the number of meetings you can schedule with your movers and shakers, from the first day in the new place to the last.
The most common type of relocation package is a lump sum, usually in the form of an allotment of the employee’s paycheck. Although this type of program is not the most cost-effective, it still comes with some perks – especially for high-flying executives with a long list of responsibilities to juggle. A well-managed budget package can keep your top earners from overspending while reducing the stress and hassles that come with moving.
Core/Flex Packages
Core/Flex Packages are becoming more popular for companies looking to save money while still providing high employee satisfaction. They combine essential relocation benefits (the “core” part of the policy) with a flexible selection of options that can be customized for employees’ specific needs.
These policies allow for greater customization and empowerment, which can benefit the employer and the employee. They can also increase compliance and improve retention rates.
A key element of a core/flex policy is the ability to assess each individual’s relocation needs and preferences before they move. This helps ensure that the right services are provided and avoids overspending on services that are not important to employees.
In addition, this type of relocation program is a good way to build relationships with employees and foster a positive employee experience. However, administering it can be challenging and require a lot of time and resources.
Generally, these policies require more extensive reporting procedures and metrics to track cost, usage, and success. Employers wishing to do so in-house will need to incorporate this data into their existing HR management systems.
Many core/flex programs offer a variety of optional benefits, including travel costs, household goods transportation, and other relocation-related services that can be added to each employee’s relocation package based on his or her individual needs. Some examples include spousal and family support, home purchase assistance, pet care, linguistic training, cross-cultural training, school search assistance, and more.
Another way that these packages can help reduce costs is by reducing the amount of administrative work involved with each relocation. By limiting the number of exceptions and ensuring consistency across policies, these programs can cut down on administration time and reduce the overall cost of your mobility investment.
In a recent survey, only 19 percent of companies surveyed used an overall dollar cap on at least one policy tier. However, only a handful of those companies use dollar caps on flex benefits, such as Duplicate Housing, Tax Assistance, and COLA.
To succeed, core/flex programs must be carefully designed and implemented with input from multiple stakeholders. These policies should have clear rules that establish qualifying factors for flex benefits and be consistent with other parts of the relocation policy.
