It’s like you are back in school; you want to wear the clothes that are in style but your parents don’t want to spend $200 on the pair of tennis shoes that the popular kids are wearing. Only this time you are challenged by offering competitive benefits to new talent (cool kids) but with a very restrictive budget from upper management (parents). You constantly ask yourself “What are the core benefits that need to be offered to effectively attract the talent needed to fill our open positions?” In other words, how cheap can I go but remain popular and attractive to the labor pool?

This is the Motley “Cool” Guide to help you discern between what is really needed to hang out with the cool kids and what can be left out. At the core of an employee relocation is getting the employee from point A to point B on a pre-determined timeline so they feel taken care of and can begin their new role effectively. The main components to consider in a relocation are:

  • Selling the home in the old location
  • Finding temporary housing
  • Locating and purchasing a home in the new location
  • Moving the household goods

 

To cover all of these items you could offer a lump sum and let the employee coordinate the move through their own research and resources. However, that may a bit overwhelming to them if they are also trying to close out on their old role with the company, acclimate successfully to their new role and handle all the family transition issues that arise in a relocation. Additionally, a lump sum may also not be the most cost effective for the company or employee with regard to tax benefits that can be realized with a move. A more prudent approach may be to ensure you are offering the core benefits but as efficient as possible by maximizing on every cost savings opportunity available.

Based on the 50th annual Corporate Relocation Survey by Atlas, these are the must have core benefits (aka the trendy tennis shoes) in a relocation policy:

  • Travel Expenses – final move
  • Household Goods Shipping
  • Temporary Housing
  • Travel Expenses – house hunting
  • Miscellaneous Expense Allowance
  • Storage
  • Real Estate Assistance /Transaction Costs (selling & purchasing)
  • Rental Assistance/Transaction Costs

 

No matter how you slice and dice the budget, eliminating the above could put you on the sidelines of talent recruitment or in other words…a flashback of you sitting by yourself in your Trax tennis shoes at the cafeteria table. However, there are cost cutting measures that can be achieved within the core benefits. Many relocation management companies (RMC) assist their clients with cost containment through their supplier management models. Building a thoroughly vetted network of worldwide providers allows them to not only provide the best fit for the move, but often at the lowest cost by comparison. So, go ahead and design your program with the “must have” benefits in mind and discuss with an RMC your budget goals and ways to keep the overall spend low. This will allow you to be competitive in attracting talent while keeping leadership happy. No one will ever be the wiser. Just make sure your Trax are hidden under your desk when they come for the interview!

This article was posted on following categories: Relocation Tips Relocation Trends