Five Important Things to Include in a Relocation Package
If you’ve ever offered relocation packages before, then you probably know that they can be expensive and can become complex very quickly. Depending on several factors, such as the destination, relocation distance, and employee level, the relocation package can vary from a simple lump sum to inclusion of multiple benefits, such as temporary housing, moving benefits, home sale and buying assistance, and assistance with moving household goods. It can be difficult to determine the appropriate benefits to offer your employees at times, and that’s why Paragon Relocation is here to help. Here are five important things you should consider including in your standard relocation packages.
Quality Moving Company with Insurance
Just as is the case with any move, people relocating will always have belongings they need to move with them. It’s essential to offer your employees the services of a high-quality moving company, while making sure to provide insurance equal to the cost of the household goods’ value. When considering whether to accept a relocation package or not, most employees, especially homeowners, will look for assistance in this category. Having a moving company handle this often frustrating and stressful task helps ensure the transferring employee can focus on more important things, like maintaining productivity at work.
Home Sale/Lease Breaking Penalties
Another essential to include in an employee relocation package is help selling the employee’s home or breaking their lease. Being tied to a home or lease can be extremely costly, especially if the employee needs to move in the middle of the leasing term or while owning a home. Many employees choose not to relocate if this benefit is not provided because of these high costs. Lease cancellation expenses can be provided in full or up to a specific amount. Home sale assistance can be provided in several ways, from professional marketing of the home or even the employer assisting in buying the home before reselling it to an outside buyer, allowing the employee to move on to the new location quickly. Paragon can help you identify the best type of home sale program based on your organization’s specific needs.
One significant obstacle of moving to a new location is deciding where to live. Home-finding or house-hunting trips can be helpful tools in managing this stressful aspect of moving. Standard relocation programs typically offer at least one or two company-paid house-hunting trips to help the transferring employee and their family find a new home. This relocation benefit can also include the expenses associated with house hunting, such as transportation, lodging, meals, and even pet or childcare. In many cases, through use of house-hunting trips, an employee can identify and secure a new home before leaving the old location.
Temporary Living and Household Goods Storage
Depending on when the relocation needs to occur, and how tight the deadlines are, temporary living and storage for household goods can be extremely helpful. Most standard relocation policies include at least 30 days of temporary housing and storage for relocating employees. In some cases, an employee’s new home is not readily available for move in. During this temporary period, household goods must be held in storage while the employee remains in temporary housing, making both of these benefits essentials for a move.
Transportation to the Destination
Most relocation packages also reimburse the transferring employee for any transportation costs to the destination. This can include reimbursement for mileage expenses if the employee travels via automobile, or even reimbursing the cost of moving the employee’s vehicle if it makes most sense for the employee to travel by plane or train.
Keep in mind that, with a tiered program approach, each policy can vary on these five important benefits and how much support is provided. While most employers strive to save as much money as possible when developing effective relocation programs and simultaneously ensuring transferring employees and their families are comfortable, it’s also important to consider including these essentials in your standard relocation packages or a monetary inclusion for them if providing lump-sum options. Remember, a happy employee is a productive employee, especially during a stressful time like a relocation.