What can cooperation with a Relocation Agency look like?
What is important for companies?
Ask yourself the question: how important is a happy employee to you? What is the culture of your company when it comes to supporting your employees in their needs? How much are you willing to pay for your employees’ relocation experience?
It is worth giving some thought to that bigger talent mobility picture, especially if you’re regularly moving employees to new locations.
Typically, companies try to align their relocation support with the level of employee benefits they provide overall. A company relocation policy can be helpful. If you came up with such a policy on your own, it makes sense to discuss it with a relocation agency and get tips and recommendations for improvements. The relocation agency might be able to structure processes in a more time-saving way, find opportunities to reduce costs, or enhance the employee’s relocation experience.
If you do not have a corporate relocation policy, a relocation agency can help you develop one quickly. In general, it is best practice to rely on consistent, written relocation policies to ensure employees’ fair treatment.
Company Relocation Policies
In most cases, relocation benefits for employees differ with the job levels they hold. For example, a company might distinguish between an executive package, a middle-management package, a professional package, and an entry-level package. Each level contains a different set of benefits and relocation services provided for the transferee.
There is a set of core benefits that all the packages include, while higher job lever employees benefit from a more generous scope of services. This could be additional days of temporary living, a larger miscellaneous allowance, or simply more services.
Some companies distinguish between a homeowner package and a renter package, with no distinctions for the job level. Others differentiate between renters and homeowners on each professional level. Homeowners usually receive more generous benefits due to the added costs and complexity of selling a home and buying a new one, versus terminating a lease and finding a new rental property.
Flexible vs. Lump Sum Policies
For some companies, a flexible relocation program is just the right thing. A flexible relocation program gives employees more choice in selecting benefits and services that meet their needs considering their specific situation. The employee can choose benefits and services from a relocation menu within a defined budget. These programs allow more choice, but they are also more demanding to administer. The pros of flexible relocation programs are:
- Relocation benefits are tailored more closely to the employee’s needs
- Employees feel more valued and invested in the process
- Hiring managers have more influence and feel empowered
- Reduces unexpected exceptions
In contrast, some companies are better off with traditional lump sums relocation programs. They are a lot more straightforward. The employer provides the transferee with a fixed payment to meet the cost of the relocation. The sum may not cover 100 percent of the employee’s relocation costs. However, any additional charges are the employee’s responsibility. This program is a popular entry-level benefit.
The pros of lump sums programs are:
- The costs are predictable for the company
- Administration is simple
- All employees are treated equally and feel the fair treatment
On the downside, employees receive less support, that might lengthen the relocation process. All in all, this might lead to a less satisfactory relocation experience for the employee.
A typical Company Relocation Policy
Any company relocation program should have written policies spelling out the eligibility, available benefits, terms and conditions. That is equally important for the company and the employee because it guaranties consistency and equality.
You can start with defining your employee relocation packages, by writing down what each of them includes. In a second step, you can explain what each individual service within the packages includes, such as the specifics of a home search or household goods’ transportation.
What makes a good relocation agency?
A good relocation company will not just try to sell you services, but function as your partner. Needless to say, the service must be of the very best quality. The more you include the relocation agency in developing a corporate relocation policy and incorporating employee relocation into your talent management strategy, the better and more efficient partner the relocation agency will be. When developing your company relocation strategy, your partner relocation agency will consider many factors: typical services, mandatory services, coverage, technology, price, etc.
And not to forget: an essential consideration is how well the relocation agency´s company culture aligns with your own company culture. Only if the two cultures fit together, you can form a productive, durable partnership.
If your company does not have a relocation policy in place yet, HereLocation is happy to help you develop one. We offer a wide menu of relocation services and we are happy to tie them together into relocation packages that meet the needs and requirements of both your company and your employees. Contact us now to learn more!