A Guide To Relocating While Working Remotely For Employers And Employees
Whether it’s moving closer to family, seeking a lower cost of living, or simply craving a change of scenery, relocating while working remotely is an enticing option for employees wanting to live in places that better suit their lifestyles and preferences.
Remote work relocation refers to the act of moving to different locations while working remotely and can involve overcoming challenges such as internet connectivity, financial implications, tax complexities, and logistics planning.
Employers are getting better at providing this opportunity by using services such as an employer of record, but this freedom comes with the need for careful planning and preparation to ensure a smooth transition for employees.
In this article, I’m going to take you through the process of relocation without dropping the ball at the work.
Benefits Of Relocating While Working Remotely
Remote work has a long list of benefits for employers and employees alike, but for a lot of employees, relocating is more than a perk, it’s a key part of what drives their satisfaction at work and how they structure their lives.
Maintaining one's current job while relocating can have significant career implications, making it imperative that a remote worker consider how the move will impact their current role.
Here are some benefits that are commonly mentioned by people who have relocated while working remotely.
Improved work-life balance
Imagine what you could do with 51 extra hours each year. That’s the average amount of time commuters in major U.S. cities lose to the time it takes to travel to work, according to INRIX’s Global Traffic Scorecard.
This is to say nothing of the fuel costs, which in 2022 alone was upward of $1,300 a year. Whether employers see that as work or not, it doesn’t really matter. Employees do see the commute as work-related time and for many, getting rid of it is a key factor in how they define flexibility and satisfaction with their job.
The time freed from the commute can be spent with family, making time for exercise, or simply decompressing from their day.
Access to new and diverse environments
Relocating can expose you to new cultures, environments, and experiences.
Whether it’s the vibrant streets of a new city or the tranquility of a rural area, these diverse settings can provide fresh perspectives and inspiration. Relocating to a new country can also offer unique financial benefits and enriching experiences.
The desire for this can be seen in the rise of the digital nomad visa. More than 35 million people worldwide have embraced the digital nomad lifestyle with countries ranging from South Korea to Portugal and Colombia now offering digital nomad visas to attract high-income workers to their shores.
Cost of living advantages
Many remote workers choose to relocate to areas with a lower cost of living. For instance, moving from a high-cost city like San Francisco to a more affordable town in the Midwest can result in significant savings.
Understanding income taxes is crucial when relocating to different states or countries, as variations in state and city income tax rules can impact your finances.
These savings can then be redirected towards other financial goals, such as buying a home or investing.
If employees choose to go international, it can result in some significant changes in terms of who their employer or record is, or how their taxes are structured, but the right choice could also help them save a significant amount of funds.
Enhanced productivity and creativity
New surroundings can boost your productivity and creativity. Changes in the environment can break the monotony and stimulate new ideas or even what some might call a "zone of genius" for remote workers.
Planning Remote Work Relocation
Once an employee decides to relocate, it’s good to help them understand their options and what the benefits and drawbacks of each location are.
It is also important that you and the employee understand and comply with local employment laws and regulations when planning a relocation.
Here are the initial considerations anyone looking to relocate should think about.
Researching potential destinations
Before packing any bags, it's important to research potential destinations thoroughly and properly investigate the following:
- Cost of living comparisons: Use online tools to compare the cost of living in different areas, taking into account housing, utilities, groceries, and other expenses.
- Quality of life factors: Consider aspects such as safety, healthcare, education, and recreational opportunities.
- Climate and local amenities: The employee will want to consider they climate they prefers and the amenities that are desired, such as proximity to outdoor activities, restaurants, and cultural events.
Employment Laws and Logistical Considerations
Moving to a new location involves understanding and complying with local laws and regulations.
- Understanding laws and living arrangements: Employees need to research zoning laws, rental agreements, and other legalities in the new location.
- Adapt your employment contract: The company will have to comply with local labor laws. Consider using an Employer of Record (EOR) to ensure your contract and benefits package meet the legal requirements of the new country.
- Immigration and visa requirements (for international moves): If moving abroad, ensure the employee understands the immigration and visa requirements.
- Healthcare and insurance options: Investigate healthcare facilities and insurance options in their new area to ensure they have access to necessary medical services.
Financial planning tips for employees
Financial planning is essential to avoid unexpected expenses and ensure a smooth transition. Here are some things employees looking to relocate should consider.
- Budgeting for moving expenses: Create a budget that includes moving costs such as hiring movers, transportation, and temporary accommodation.
- Managing taxes in different locations: Understand the tax implications of your move, including state and local taxes.
- Setting up a new home office: Plan for the setup of your home office, including purchasing necessary furniture and equipment.
Managing Work While Relocating
As employees move, it’s possible that they have to dip into their PTO to make it work, but others will want to work as they do. There’s a way to do that and you’ll want to outline that process with them.
Additionally, consider the potential impact of relocation on the need for in-person meetings and career growth.
Using cloud-based HR systems, companies can easily support employee relocations while maintaining continuity.
Discussing relocation plans with a manager
Communication between the manager and direct report is key when planning a move. Two things they will need to sort our are:
- Ensuring alignment with company policies: Create a remote work policy for the company that outlines whether the move complies with what you can facilitate. If the person wants to move to a country you or your employer of record can’t support, the move can become a bit of a sticking point. Working in a place where you do not have the legal right to work can pose potential risks for both you and your employer.
- Setting expectations and timelines: Employees need to discuss relocation plans with their manager and set clear expectations and timelines for the move.
Maintaining Productivity During the Move
Staying productive while working remotely is already a big topic of conversation among leadership teams, nevermind the challenges of doing it during a move, so it's essential for remote workers to help maintain workflows.
- Scheduling and time management tips: Work with employees to plan the move during a less busy work period if possible, and use scheduling tools to manage time effectively.
- Setting up temporary workspaces: Ensure employees have a functional temporary workspace to maintain productivity.
- Keeping the work routine consistent: Encourage employees to stick to their usual work routine as much as possible to avoid disruptions.
Tips for Employees While Relocating
If you’re an employee whose considering relocating, here are some tips to help you on that journey.
Remote workers need to consider various factors when relocating, including the need for a truly remote position, the impact on career progression, visa requirements, communication with the employer, financial implications, potential tax complexities, considerations for the new work environment, and the need to adapt employment contracts and benefits to comply with the laws of the new country.
If you’re an employer supporting someone through relocation, any tools, tips, or sources of information you can provide to help them do these things will be much appreciated in the end.
Integrating into a new community
Building a local network can help employees feel more at home in their new location.
- Find local networking opportunities: Attend local events and join professional groups to meet new people.
- Join local interest groups and clubs: Engage in activities that interest you to make new friends and integrate into the community.
- Volunteering and community involvement: Volunteering can provide a sense of purpose and connection to a new community.
Ensure utilities are set up before arrival
Arrange for all essential utilities—such as electricity, water, internet, and gas—to be set up and activated before your arrival. Contact utility providers well in advance to schedule these services.
Having your utilities ready upon arrival ensures that you can settle in quickly and start working without any delays, maintaining your productivity and comfort.
Maintain quality of work during the move
During the moving process, try to maintain your regular work schedule as much as possible. Use portable devices and a VPN when necessary to stay connected to what's going on and ensure your colleagues barely notice your situation.
If needed, allocate specific hours for work and moving tasks.
Balancing your move with your work responsibilities demonstrates reliability and commitment to your role, even during a period of transition.
Tips for HR Teams Supporting Employees During Relocation
HR teams play a crucial role in supporting employee relocation. A person’s sense of security and their ability to settle into a new place depend on things like financial stability and what an employer can provide is the peace of mind in knowing that they will have the resources necessary to make their new life work.
Some things HR teams can do include:
Reassess Benefits to Suit Their New Market
Ensure that the benefits package is appropriate for the new location, including healthcare and other support services. If you’re working with a global HR services provider or EOR, they should be able to help you do this with ease.
Offer Relocation Assistance Packages
Provide comprehensive relocation assistance packages that cover moving expenses, temporary housing, and travel costs. This is particularly appreciated by employees and in the case the employee is moving to a native market for the employer, not difficult to facilitate.
This support can significantly reduce the financial burden on employees and make the transition smoother.
Provide Access to Relocation Consultants
As part of your benefits offering, partner with relocation consultants who can offer personalized assistance to employees. These professionals can help with everything from finding housing to navigating local amenities and schools, ensuring that employees settle in comfortably.
Create a Relocation Checklist
Develop a detailed relocation checklist that outlines every step of the process the employee needs to take responsibility for in order for the move to be successful.
This checklist can include tasks such as setting up utilities, registering with local authorities, and finding healthcare providers. This will help employees stay organized and reduce stress.
Offer Flexible Work Arrangements
Provide flexible work arrangements during the relocation process as much as possible.
This can include flexible hours, temporary remote work options, asynchronous working, and additional time off to manage moving-related tasks. This will ensure employees transition without impacting their productivity.
Successfully relocating while working remotely requires careful planning and preparation: This includes researching potential destinations, understanding legal and logistical considerations, and managing finances effectively. Relocating for a remote job also involves considering potential pay cuts, higher taxes, and local employment regulations. Proper planning ensures a smooth transition and helps avoid unexpected challenges.
To ensure a seamless work experience during relocation, it’s important to maintain productivity and effective communication: Setting up temporary workspaces, adhering to a consistent work routine, and using tools for virtual meetings can help keep work on track and maintain strong connections with colleagues.
Integrating into a new community and maintaining a healthy work-life balance are key to a successful remote relocation: Engaging in local activities, networking, and volunteering can help build a support network, while setting boundaries and creating a comfortable environment can enhance overall well-being and work satisfaction.
