How to reduce employee relocation costs
If your company is moving or you are planning to move your employee to another location. Or you are hiring someone from outside of your city. You are probably wondering how to reduce employee relocation costs. Luckily there is a way to do that. But you need to be careful. Your company shouldn’t be too much of a cheapskate when it comes to its workers. Especially if you are moving an employee with a family. That person needs to continue to work for you. So, you need to worry that he doesn’t feel disrespected at the end. And if you create a strict company policy regarding worker relocation. And offer them special moving packages you will manage to do just that. Also, hiring long distance movers Houston is maybe your best option. Your employee will get a first-class relocation, and you will be satisfied with the final price.
Reduce employee relocation costs by offering moving packages
Today almost every company offers its employees moving packages. It serves to cover the moving expenses of your employees. And to reduce the stress of relocating because of work. The companies are not obliged to offer relocation packages to their employees. But it has become some kind of a standard in the business world. Especially if you are trying to attract new recruits.
Do you want to be recognized as a company that offers relocation packages and you want to help your employees relocate? Then you will need to form different relocation packages. That is the best way to suit the diverse needs of your employees.
The things that relocation policies could cover
- Cost of finding a new home. That is the one things that should be covered by your moving policy. Of course, if you want to reduce employee relocation costs, your company should find a real estate agent to hire.
- Selling old and buying a new home. Include real estate commissions, closing fees, and any other costs that are normal when buying and selling a property.
- Finding a job for the spouses of your employees. This option can sometimes be included in some relocation packages.
- Packing and unpacking of household belongings. It is a standard thing that you must include in every relocation packages.
- Transportation of an employee and his belongings. That is an essential thing in every relocation. And every moving package should cover it. Find the best long distance movers you can find. So you can be sure that your staff gets the best service possible.
- Temporary accommodation. That is sometimes necessary, and you should include it in most moving packages.
How to create moving packages and use them to reduce employee relocation costs
When you are creating relocation packages for your employees, you need to be aware that not every package will be suitable for every employee. So you need to create several different packages.
To cover all of your employee’s needs. You can have basic and advanced packages that will include most of their requirements. Or you can create executive, mid-level and entry-level moving packages for your staff. Of course, you will have to think about how a worker can become eligible for a moving package. If you want to reduce your worker’s moving costs, you will need to create strict rules about qualifying for a relocation package. That is one good way of reducing your employee’s expense. Here are some examples of moving packages.
Core flex relocation model
This relocation package model is perfect because it can cover a broader range of your employee’s needs. It usually contains a set of core components that are available for everyone. Plus a set of flexible benefits that you will offer according to worker’s needs, function, and importance for the company. So the company has to decide what the core benefits that are available for everyone are. And to offer extra components according to the employee’s needs and function in the company.
This model can be a little complex, but it has great benefits not only for the employee. But for the company too. Especially in situations where you have to relocate two, or more, equally ranked employees. With different marriage and family status.
Tiered relocation model
This moving model is more complex. And it needs a lot of administrative work. So you can expect that tiered moving packages will be tough for your HR personnel to create. It is because every offered package is different. You must primarily determine a fair and strict tiered policy. That will determine the value of the worker for the company. And according to that value, the company will offer him a custom package to meet his needs.
The lump-sum model
That is one of the most commonly used relocation packages. The company uses its previous relocation examples to decide what the lump-sum is required to cover similar relocation costs. So the company pays the worker the whole sum, instead of many small payments. This package is trendy among workers that move regularly. Because they can save everything, they don’t spend.
So, you can expect that the employee will try to spend the least sum possible. Obviously, this is not a very efficient package for you as an employer. If your employee manages to move and save money in the process, that means that you could’ve done so as well.
Single policy model
Single policy model is the easiest to create. And probably the best package in situations where you want to reduce employee relocation costs. It merely offers the same moving option for everyone. Regardless of their function or skill level. If your worker is moving from Florida. Call your interstate movers Miami. And get their moving quotes. So, you can include that in your policy. The only thing that you need to watch out while implementing this model is the possible dissatisfaction from higher positioned employees.
Hiring long distance movers Texas as a way to reduce employee relocations costs
Hiring long distance movers Texas is one of the best ways to reduce employee relocation costs. They offer the best value for your money. So their services should be included in the packages you are offering to your employees.