Clearmove solution

Ways to Cut Relocation Costs

Offering relocation packages to employees is a great way to acquire talents, but it also comes with a price—a pretty hefty one too, if done incorrectly. Here’s how to cut relocation costs. 

While there are numerous ways to cut down relocation costs, here are certain things to consider while building your relocation package and thus, minimizing the cost associated with each assignment. No worries—it is not as difficult as you might think. 

Introduce Budget Caps

Keeping track of every single expense while building a relocation package can be challenging. On top of that, the costs can add up in the end, ultimately leaving you with a hefty bill. 

To counter that, a great way to cut (minimize) relocation costs would be to introduce budget caps to your expenditures such as housing allowances and flight tickets. That way, you have a much better picture of how much you would be spending without going over the budget. 

Have a Well-Defined Policy

There are numerous elements within a relocation package, and again, it might be difficult to keep track of every single one of them. Therefore, it’s important to have a well-defined policy.

Make sure every component is listed out clearly—how much does it cost? What is included in the service? It’s always a good idea to go through every single element and make sure there’s no ambiguity in place to avoid unexpected costs. 

Outsource the Relocation Process

While it is possible to handle the relocation process in-house, it is always a good idea to outsource the service to relocation companies due to several important reasons. 

First and foremost, relocation companies (such as Clearmove) have an extensive network of partners who can help streamline the process and avoid unnecessary hiccups that could delay the process and incur extra costs. 

Secondly, relocation companies often have discounted rates from their partnership network, which in turn can help minimize your expenses. 

Introduce Different Packages

No relocation package can fit everyone—on top of that, based on the level of seniority of the assignee, it might be a good idea to introduce different packages with differing policies. 

For example, it is possible to build a basic relocation package with the essentials included (e.g. flight tickets and visa fees), and include more benefits in the package (e.g. household goods moving and tax compliance) based on the level of seniority of the assignee. This way, you can keep the cost low while accommodating the need of different assignees. 

Flexibility is important in the relocation process, and our products are designed with that in mind. Through Clearmove, it is possible to create specific policies for different assignees with different services included, helping you create the best talent acquisition strategy. 

Conclusion

Relocation packages don’t have to be expensive—with careful planning and the right services, it can be an extremely rewarding business strategy. Want to know how Clearmove’s smart relocation solution can help you cut down the costs? Contact us for a demo today!