15 Aug The Relocation Package to Keep in Mind for Domestic Moves
In recent years, a considerable number of Americans relocating elsewhere for job opportunities has been observed. Move.org shares that in its 2021 research, more than 7 million American workers opted to relocate locally for job purposes.
While the Year 2021 yielded the lowest percentage of movers in decades, it’s still important to consider the numbers. With the onslaught of the pandemic, it’s no surprise why relocations are at a record low. What we might view as mediocre in relocation terms, global mobility professionals view as opportunities to grow.
As a point of fact, Graebel made an interesting discovery. The relocation services firm in partnership with Wakefield Research found in their study that 51% of 1,500 knowledge workers who resigned in the last two years demand relocation opportunities from a job offer.
This goes to show that a portion of the labor market indeed does have thoughts of relocating for work if given the opportunity. Another study from Allied Van Lines reports from its hard data that the top reason for people who made the leap to relocate do so because of career advancement or the opportunity to make extra cash.
Though there is demand for relocation opportunities, many are hesitant to take them due to the possibility of living in a locale with a higher cost of living. Graebel reveals in their research that an estimated 3 out of 10 knowledge workers fear the higher cost implications of living in a new location, while 30% of the respondents are concerned with the expected cultural barriers.
In addition, the pandemic has caused delays in the relocation processes. If an assignment needs to be expedited in a short amount of time, it can cost much more than expected.
What global mobility teams need to do is polish their relocation packages to help ease the cost implications of relocating to a far location.
Entrepreneur enumerates 8 essentials that should be included in a relocation package:
One of the largest opportunity costs in rapid relocations is the loss of the sale of a home. When assignees are subjected to fast-paced moving processes, they often settle for selling their current properties for less than their market value.
Some companies offer to cover the difference from a property’s initial purchase or provide support by marketing the home through a real estate agent.
The prospect of totally moving your entire life in a short amount of time is nothing but overwhelming. The process from packing to moving personal belongings to a new location is expensive and tiresome.
Equipping relocation packages with moving support will help assignees minimize their expenses and provide ease in the moving process. In addition, some companies offer high-quality insurance for the move to protect the employee from unforeseen losses.
Finding a place one can call home is also an overwhelming aspect of a move. The possible costs incurred from selling a house rashly or even breaking a lease can cause a lot of stress for the assignee. In cases where an assignee is unable to find a suitable home in the new location, companies can opt to provide temporary housing
Another thing that can be costly as well is traveling. Many relocation packages allow assignees and their families to have initial visits to the new location to get familiar with their future environment. It’s important to cover these costs. It can make or break a candidate’s decision to relocate.
Some assignments require more relocations resulting in heavier financial burdens for an assignee candidate. Instead of constantly moving household goods from one location to another, it would make more sense to store a portion of an assignee’s belongings in one place before moving them all to the permanent residence.
Unfortunately for some assignees, some companies refuse to increase the relocation lump sum once it has been agreed upon. Issues may arise when workers encounter costs such as damaged belongings from moving. Rushed relocations can often lead to lost or damaged household goods and belongings and if employers don’t provide insurance it can affect employee retention.
The wide array of expenses from a relocation can be a lot to take in. Cornerstone, a firm that helps organizations create work environments that inspire growth, productivity, and success, terms these expenses as “hidden costs.”
An example is settling-in costs. This includes car registrations in the new location and even driver’s licenses. Spousal salary is another hidden expense. Some companies opt to provide spousal assistance to help spouses find new work since it’s possible they had to give up their current job to make their partner’s decision to relocate a reality.
A good relocation package is non-negotiable for candidates for an assignment nowadays. Data shows that the workforce is becoming more and more demanding.
They are aware that they have more influence over the labor market these days. If global mobility teams refuse to accept this reality, they might end up with unfilled talent gaps. Adequate relocation assistance can help an organization gain a competitive advantage now that the talent competition becomes tighter.