As a company working across the globe, you are constantly looking for new talent. Finding the right person is only half the job. Convincing them to move country for employment is the hardest part.
International relocation is not an easy process and involves moving parts and perfect timing. Employees, who have to move countries, cannot do it by themselves.
If you are an international company and hiring or relocating employees, you need an employee relocation package. A relocation company can help you create tailor-made packages that will help your employees move easily.
Why Your Company Needs an Employee Relocation Package
The fact is that if your company does not have a package in place, employees will be more hesitant to accept a role in a new country. With diversity playing an important role in company strategy, diverse teams being 87% better at making decisions, it is important to make sure you have a diverse team.
An employee relocation package will make the job of hiring global talent seamless. When it comes to international recruitment, having your company take responsibility for arranging everything when employees are coming from a foreign country is not only difficult, it is not smart money-wise.
Instead, hiring a professional company to support you in arranging for employees is not only smart, but it is also time and cost-efficient.
Here is why you need an employee relocation package for your company:
- Win global talent from across the world
- Send your employees to other countries to expand your market
- It will be more cost and time-effective than arranging things in-house
- It will help to create a more organized and consistent move for your recruit
- Will assist in items like pet registration, house hunting, and insurance coverage
An employee relocation package will help your company send your employees across the globe to expand your market. If you have a relocation company on board that can help relocate your employees, it will make your job easier when it comes to sending staff abroad.
An employee relocation package will ensure your employees are settled safely and seamlessly.
What does a Standard Employee Relocation Package Include?
A standard employee relocation package will offer services that will generally cover lump sum costs so that your employee can relocate without bearing extra costs as a result of the move.
The bare minimum is as follows:
- The cost of the initial move
- Any storage facilities required to store items
- Costs associated with house hunting
- Any temporary housing that is required
- Air travel costs of the employee and family
- Any costs associated with selling an existing home or breaking a lease
- Support once they reach their new destination
Other items that could be included:
- Spousal employment assistance
- School relocation assistance for children
- Transporting pets
- Cultural integration services
When it comes to creating an employee relocation package, you need to keep in mind the needs of your employees. Not all employees will require the same needs due to differences in family size, housing requirements, and transportation of furniture/other items.
Costs can vary anywhere from $2,000 to $100,000 depending upon if the employee is a high-level executive or a new hire.
You want to keep in mind that your employee relocation package will need to be flexible. You may need to create a few different packages that can be tailor-made for specific circumstances.
Another important point is that when relocating your employees, always keep in mind what your employees are open to. It is always easier to move employees internationally who are willing compared to those who are more hesitant.
Those who are willing will be more open to new cultures and languages, while those who are not open to international moves will be more difficult to deal with.
What are The Types of Relocation Packages?
Lump-Sum Cost Packages
A lump-sum cost package will dedicate a certain amount of money to international recruitment. This money will be given to the employee in one go so that they can finance their move.
The problem with this method: sometimes the employee may not use all of the money for the move and will pocket some. This may result in the move not happening seamlessly and a loss of trust between the employee and the company.
Cost Tiered Packages
In this package, the amount of money given for the relocation is decided based on the seniority of the employee and the specific circumstances of the move.
The amount of money allocated will be according to the housing requirements and what kind of facilities are required based on seniority.
An example of different tiers is as follows:
- Entry Level- They would be provided with the basic minimum
- Mid-Level Managers-These are employees who have served the company for a long time and may have a mortgage that they would need to be compensated for
- Senior Managers-These employees would need high-level relocation packages that would differ based on different circumstances. They would be provided with all the necessary details.
In this package, you would create a budget with a professional relocation company based on the requirements of your employee. This will help your company set a limit as to how much they would be willing to spend and will help the relocation company determine what services are needed.
Challenges of Relocating International Relocating Employees
Unsuccessful employee relocation can cost a company a lot of money. The last thing you want is to invest a large of money to move an employee only to find that they cannot settle into their new position and country.
To make sure your new employee can adjust to a new culture, language, and new customs, you should make sure to support other challenges of relocating employees.
Support should be given to the international recruits in the following areas:
- Lack of personal support to the employee in a new country
- Building personal relationships in a new country
- Adjusting to a new business culture
- Overcome language barriers
Making the Move: Employee Relocation in 2024
Employee relocation is so much more than just providing financial support to a recruit. You need to make sure that you can provide mental and personal well-being support if you want your employees to adjust seamlessly in a new country. With a comprehensive employee relocation package, you can do just that.
One thing is clear more and more employees are opting to make the move, and you as a company should be ready.