Industry

How to Build an Employee Relocation Package

Finding the right person for the job is not an easy task—in fact, 69% of companies have reported difficulties in acquiring the right talents for the job according to a survey. In the ever-competitive business world, offering relocation packages can be a great way to acquire or retain talents. 

Here comes the question, however—how do you build an employee relocation package? It might appear to be a daunting task at first, but it is not as difficult as it seems.

Acquire vs Retain? 

When it comes to offering relocation packages, people often associate it with talent acquisition, but that’s not the only scenario. While relocation packages are often a great incentive for potential employees to take up the offer, it is also a great way to retain talents—sometimes, an employee just needs a change of environment in order to thrive. For either case, the process of building a relocation package is more or less the same. 

The Essentials 

A relocation package consists of various elements, but here are the essential services normally included in an employee relocation package. 

  • Transportation coverage—namely flight tickets and other transportation fees incurred during the relocation process. 
  • Household goods moving—as the term implies, movement of household goods, including the cost of movers, shipping, packing, and unpacking 
  • Visa and legal fees—for international assignments, there are also visa and legal fees incurred that are generally covered by the company
  • Short-term housing—after arriving at their destination, it might take a while for the assignee to find their permanent accommodation. Therefore, the company normally covers the hotel/rental fees before the assignee finds a more permanent solution. 

Optional Coverage 

Apart from the more obvious elements, there are also other services to consider in a relocation package.

  • Spousal support—a particularly important consideration for executive relocation packages. If the assignee is married, the company might also include their spouses in the relocation packages; some even went as far as helping the spouses to search for a new job or set up a business in the destination country. 
  • Orientation services—the destination country could be vastly different from the assignee’s home country in terms of life and culture. Therefore, some companies will help them adapt to the new environment by offering orientation services, such as tours and language courses. 
  • Tax—every country has its own tax regulations. Oftentimes, companies will also offer accounting services and increase the gross salary to help them cover the tax in the destination country as part of their relocation packages. 
  • Home sale or lease break costs—another essential part of executive relocation packages. For more permanent assignments (that involves high-level executives), companies would also assist in purchasing a new property and selling their current properties; they might cover the expenses incurred during the process. 

Cost Efficiency  

Perhaps the most important question of all is the cost—it can vary dramatically depending on the size of the package and the elements included. There is simply no set price for relocation packages.

However, with Clearmove, it is possible to build a relocation package based on your need and with that, minimize the expenditure. With our automated solution, every single service is centralized within the application, with a comprehensive overview of the costs incurred. We also support direct billing where an assignee can file a claim and the employer can handle the payment through the application. 

With Clearmove, it is possible to keep track of every single service through the application and customize the package based on your needs, ensuring a tailored and cost-efficient solution. 

You can also take a look here at how to measure a relocation program’s success.  

Conclusion 

Again, building a relocation package might seem like a daunting task at first, but here at Clearmove, we aim to streamline the experience and make it as seamless as possible. With the right tools and preparation, relocation can be a stress-free process for every party involved. 

Want to know how Clearmove can help you build an optimal relocation solution? Contact us for a demo today!