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Organizations relocate employees to fill skill gaps, support business expansion, or optimize operations in different locations.

Relocations are on the rise, with 4/10 organizations predicting more employee relocations in the coming years.

While potentially beneficial, the process involves navigating logistical, cultural, and legal complexities across regions and ensuring the workers themselves are properly looked after. As we’ll go into, the costs can quickly add up.

Use this guide to help you decide if it's the right strategy for you and to relocate employees smoothly and efficiently.

What Is Employee Relocation?

Employee relocation refers to the process of moving an employee from one location to another, often due to business needs. This can involve transferring employees to a new office, city, or even a different country.

Relocation typically includes providing support, such as covering moving costs, housing assistance, sorting out visas, and providing services to help the employee, and often their families, adjust to the new location. 

The aim is to ensure a smooth transition for the employee and minimize disruptions to their work and personal lives.

Why Companies Relocate Employees

Employee relocation takes quite a lot of resources, so why bother? Companies relocate employees for various strategic and operational reasons:

  • Expansion into new markets: Companies may relocate employees to help establish or support operations in new geographic markets where they need experienced talent.
  • Skills and expertise needs: Certain locations might require specific expertise or leadership, and relocating a seasoned employee ensures those skills are available where they’re needed most.
  • Cost efficiency: Some companies relocate employees to areas where operating costs (e.g., real estate, labor) are lower, helping reduce expenses.
  • Career development: Relocating employees can be part of career learning and development plans, offering them new challenges, exposure to different business areas and cultures, or leadership opportunities.
  • Project-specific needs: For large projects or key assignments, companies may move employees to ensure they’re close to where the project is happening, enabling better oversight and coordination.
  • Mergers and acquisitions: When companies merge or acquire new businesses, relocation may be necessary to integrate teams or align corporate cultures and practices.
  • Office consolidation: Companies may consolidate multiple locations into one and relocate employees to a central hub to streamline operations.
  • Employee retention: Some companies offer relocation as an alternative to losing valuable employees who may need to move for personal reasons.

How Does Employee Relocation Work? 8-Step Process

Employee relocation typically follows a structured process to ensure the needs of both the company and the employee are met during the transition. Here’s a general overview of how it works:

1. Relocation policy and planning

  • Relocation policy: Companies usually have a formal relocation policy as part of their HR policies outlining what level of assistance will be provided e.g. moving expenses, housing allowances, or temporary living arrangements.
  • Assignment confirmation: The company identifies the need for relocation, assesses the costs vs benefits, and, if appropriate, confirms the assignment or role in the new location.
  • Employee agreement: The employee is formally notified about the relocation offer, and details like timing, benefits, and expectations are discussed.

2. Cost estimation and budgeting

  • The company estimates the costs associated with the move, such as transportation, moving services, temporary housing, support for dependents (such as schooling for children), travel, and other benefits like language classes or visa support (for international relocations).

3. Relocation services and support

  • Moving assistance: This includes hiring professional movers, shipping personal belongings, and providing logistical support for transporting furniture, cars, etc.
  • Housing assistance: Companies often assist employees in finding permanent or temporary housing in the new location. This might include home-finding trips, paying rent, or offering down payment assistance.
  • Travel and temporary living:  Some companies offer short-term accommodations if employees need time to settle or if there’s a gap between the move and the start of work in the new location. Some companies offer one round trip a year back to the home country to allow the employee to come back and handle personal or family needs.
  • Family support: Many relocation packages provide support for spouses and children, such as job placement assistance for spouses, finding schools for children, or adjusting to the new community.

5. Tax, compensation, and benefits adjustments

  • The employee’s compensation package may be adjusted to reflect cost-of-living differences between the old and new locations. This can be done by giving a salary increase or a relocation allowance. In the case of a relocation allowance, the benefit is temporary and only applicable as long as the employee stays in the new location. 
  • Companies may offer additional insurance to maintain the same level of coverage that the employee had in the home location. If the relocation is to a country at high risk of natural or political threats, companies may offer evacuation and emergency response insurance.  
  • The company may also offer tax assistance or handle tax filings for employees relocating internationally.

6. Relocation timeline

  • A relocation timeline is created to ensure all steps, such as finding housing, moving, and starting work at the new location, are coordinated efficiently. This also includes any necessary transition periods needed to train or hire a replacement in the location of origin.

7. Onboarding and integration

  • Once in the new location, companies provide onboarding support to help the employee adjust to the new office, work culture, or country. This might include orientation, networking opportunities, or cultural training (for international moves).

8. Ongoing support

  • Depending on the company’s policy, employees may receive ongoing support such as language training, legal assistance, or additional financial help to cover incidental moving costs after settling into the new location.

8 Benefits Of Employee Relocation For Employers

Employee relocation offers several strategic benefits for employers, helping to enhance business operations and achieve long-term organizational goals. Here are key benefits for employers:

1. Access to specialized talent

  • Relocation allows companies to bring in employees with specific skills or expertise needed in a particular location, ensuring that key roles are filled with trusted talent.

2. Expansion into new markets

  • Relocating employees can support business growth by helping to establish a presence in new geographic markets. This ensures experienced staff are on-site to manage operations and build local relationships.

3. Improved business performance

  • Relocating top performers or leaders to critical locations can improve business performance by ensuring those with proven track records are positioned where they can make the biggest impact.

4. Cost savings

  • In some cases, relocating employees can lead to long-term cost savings, especially if the new location has lower operating costs (e.g., lower taxes, real estate, or labor costs).

5. Employee development and retention

  • Offering relocation as part of career development plans helps retain and develop top talent. Employees may view relocation as an opportunity for career advancement, new experiences, or leadership roles, increasing job satisfaction and reducing turnover.

6. Enhanced global collaboration

  • In multinational companies, relocating employees can help foster better collaboration between different global offices. Employees who understand the culture and operations of different regions can act as bridges, improving communication and coordination.

7. Project-specific success

  • Relocating employees for specific projects ensures that key staff are in close proximity to manage time-sensitive or high-stakes initiatives. This reduces delays, enhances oversight, and ensures the project is completed efficiently.

8. Strengthened employer brand

  • Offering attractive relocation packages demonstrates a company’s commitment to investing in its employees, which can strengthen the employer brand. This makes it easier to attract high-quality talent who see relocation opportunities as a sign of growth potential and employee care.

12 Benefits Of Employee Relocation For The Employee

Employee relocation offers several benefits for employees, both professionally and personally. Here are the key advantages:

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1. Career advancement

  • Relocation as part of internal mobility programs often comes with opportunities for career growth, such as promotions or taking on more significant roles in a new location. This can lead to faster career progression and exposure to different aspects of the business.

2. Skill development

  • Moving to a new location may require employees to adapt to new challenges, systems, or market conditions, allowing them to develop new skills and gain valuable experience.

3. Increased compensation

  • Many companies offer financial incentives to employees who relocate, such as higher salaries, relocation bonuses, or cost-of-living adjustments, especially if the move is to a more expensive region or involves more responsibilities.

4. Cultural exposure

  • For international relocations, employees get the opportunity to live in and experience different cultures. This can be personally enriching and can broaden their perspective, making them more adaptable and culturally aware.

5. Networking opportunities

  • Moving to a new location allows employees to expand their professional network, both within the company and in the broader business community. These new connections can lead to further career opportunities and collaborations.

6. Improved work-life balance (in some cases)

  • Relocation may offer employees the chance to live in locations with a better quality of life, lower cost of living, or shorter commutes, leading to improved work-life balance.

7. Personal growth

  • Relocation often pushes employees outside their comfort zones, helping them build resilience, independence, and problem-solving skills. The experience of adapting to a new environment can lead to significant personal growth.

9. Tax and financial benefits

  • Many relocation packages include tax assistance to offset any additional financial burden caused by the move, such as covering moving expenses or offering financial support for housing. In some cases, employees may benefit from lower taxes or more affordable living costs in their new location.

10. Better job security

  • Relocating to fulfill a business need or take on a leadership role in a new office can provide employees with a stronger position in the company. It shows commitment and flexibility, which can enhance job security, especially if the move is to help drive a key business initiative.

11. Adventure and new experiences

  • Relocating can be an exciting opportunity for employees to explore new cities, regions, or countries. This adventure may lead to new hobbies, experiences, and friendships, enriching their personal lives.

12. Long-term financial benefits

  • Moving to a location with a lower cost of living or receiving housing support from the employer can help employees save money, leading to long-term financial benefits.

13. Skillset and resume marketability

  • Taking on an assignment in a new location, especially if international, may add more valuable skills to the employee profile who may be able to find higher-level jobs should they leave the organization. While this may not benefit the company that invested in the relocation, it is a strong selling point for employees who may see a long-term benefit.

Costs Of Relocating Employees

Relocating employees can be a costly endeavor for companies, as it typically involves a variety of direct and indirect expenses. Here are the main costs associated with employee relocation:

Moving costs

  • Packing and transporting household goods: This includes hiring professional movers to pack, transport, and unpack an employee’s belongings. For international moves, shipping costs may also include air or sea freight.
  • Vehicle transportation: If the employee’s car needs to be transported to the new location, the company may cover the cost of shipping the vehicle.

Housing costs

  • Home sale or lease break assistance: Companies often help employees sell their current home or break a lease. This could include paying realtor fees, covering early termination fees, or offering temporary housing until permanent accommodation is secured.
  • Down payment or rent assistance: Employers might offer financial support for down payments on a new home or provide rental assistance in the new location, especially if the cost of living is higher.
  • Temporary housing: Before finding permanent housing, employees may need short-term accommodations, such as a hotel or corporate apartment, which the company may pay for.

Travel expenses

  • Relocation travel: Companies typically cover the cost of travel for the employee and their family to the new location.
  • Home-finding trips: Some companies provide financial support for pre-move trips to the new location to help the employee and their family search for housing, schools, or get familiar with the area.
  • Regular trips to the home location: Companies sometimes cover the cost of trips for the employee and their families to return to their home location. This is often used to return home to spend the holidays with family, or handle specific personal matters (such as specialist doctor’s appointments, ID renewal appointments, etc.)

Cost-of-living adjustments (COLA)

  • If the new location has a significantly higher cost of living, companies might offer a COLA to ensure the employee’s standard of living remains stable. This may be a temporary or permanent salary adjustment.

Tax assistance

  • In some cases, relocation expenses are taxable, especially for international relocations. To alleviate the financial burden on employees, companies often provide tax assistance or reimbursements to cover any additional tax liability incurred due to the move.
  • For international relocations, companies must cover the cost of securing work permits, visas, and any legal services related to compliance with immigration and labor laws in the destination country.

Family support

  • Spousal job assistance: Companies may provide job placement assistance or reimburse job search expenses if an employee’s spouse needs help finding employment in the new location.
  • Schooling and childcare assistance: Companies may offer support in finding schools for children or pay for private school tuition, daycare, or childcare services during the transition period.

Relocation bonuses

  • To incentivize or compensate for the inconvenience of relocating, companies may offer a lump-sum relocation bonus. This one-time payment helps employees cover various relocation-related costs that might not be covered directly by the company.

Settling-in allowances

  • Some companies provide a “settling-in” allowance to help the employee and their family adjust to their new environment. This may cover things like furniture, household goods, or expenses related to setting up utilities and services in the new home.

Storage costs

  • In cases where there’s a gap between the move and settling into a permanent residence, companies may pay for the storage of personal belongings.

Insurance costs

  • Companies may offer insurance coverage to protect the employee’s belongings during the move, including transit insurance for household goods and additional health insurance if moving to a new country.

Project disruption costs

  • In some cases, there can be costs associated with the employee’s transition time. If the employee is out of the office for an extended period to manage the relocation, the company might need to hire temporary staff or absorb the cost of reduced productivity during the move.

Ongoing support costs

  • Companies may provide ongoing relocation support services like cultural training (for international moves), language classes, and counseling to help employees and their families adjust to the new environment.

Repatriation costs (for international moves)

  • If the relocation is temporary, companies must also budget for repatriation, which involves relocating the employee back to their original location at the end of the assignment.

Challenges Of Employee Relocation

Employee relocation presents several challenges for both employers and employees. These challenges can stem from logistical, financial, emotional, and cultural factors. Here are the biggest challenges:

Cost management

  • High costs: As demonstrated above, relocation costs can quickly add up and managing these expenses while staying within budget can be a significant challenge.
  • Cost-of-living differences: Employees may move to areas with a higher cost of living, and adjusting compensation or offering cost-of-living allowances can strain the company's finances.

Employee and family adjustment

  • Emotional stress: Moving can be emotionally stressful for employees and their families. Leaving behind familiar environments, friends, and support networks can lead to feelings of isolation and stress, which can impact job performance.
  • Family considerations: If the employee has a family, finding new schools, childcare, and employment for a spouse can be difficult. Family members might resist the move or struggle to adjust to the new environment.

Housing and real estate

  • Housing availability: Finding suitable housing in the new location can be a challenge, especially in areas with limited housing options or highly competitive real estate markets.
  • Selling or renting current home: Employees may face difficulties in selling or renting their current home, which can delay the relocation process or cause financial strain.

Cultural and language barriers (for international relocation)

  • Cultural adjustment: Employees relocating to a different country may face challenges adapting to new cultural norms, values, and work environments. Misunderstanding local customs can lead to frustration and hinder integration into the workplace.
  • Language barriers: Employees moving to a country where they don’t speak the language fluently may struggle with communication, both professionally and personally, leading to feelings of isolation or frustration.
  • Work permits and visas: International relocations often require securing work permits and visas, which can be complex, time-consuming, and expensive. Employer of record (EOR) services like Deel can help with this.
  • Compliance with local laws: Employers must navigate local employment laws, tax regulations, and labor practices in the new location, which can be challenging and require legal expertise. An EOR or professional employer organization can help here. 

Workplace integration

  • Employee productivity: Relocating employees might take time to settle in, during which productivity may decline. The adjustment period can vary, and employees may face distractions due to personal relocation-related challenges.
  • Building new networks: In a new location, employees may struggle to establish professional networks or build relationships with their new colleagues, which can affect team dynamics and integration into the company culture.

Career uncertainty

  • Career impact: Employees may feel uncertain about how relocation will impact their long-term career trajectory. Concerns about being “out of sight, out of mind” in a new location, or adapting to a new office culture, can lead to anxiety.
  • Repatriation challenges: For temporary relocations, returning to the home office or country can also pose challenges. Employees may feel out of touch with the home office or struggle to reintegrate after time spent abroad.

Employee resistance

  • Reluctance to move: Not all employees are willing to relocate, particularly if the move disrupts family life or personal plans. Convincing employees to relocate, even with financial incentives, can be difficult.

Timing and coordination

  • Logistical complexities: Coordinating a move involves managing numerous logistical details such as packing, shipping, and arranging housing. Ensuring everything happens on time can be tricky, particularly if there are multiple stakeholders involved (e.g., movers, realtors, lawyers).
  • Timing of the move: The timing of the relocation may not align with the employee’s personal life, causing stress and dissatisfaction. For example, moving mid-school year for children or during a personal life event can create disruptions.

What Are Employee Relocation Services?

Employee relocation services are specialized programs or solutions provided by companies, or third-party vendors, to help employees smoothly transition to a new location for work-related purposes.

These services are designed to minimize the stress and logistical challenges of moving, both for the employee and the employer, by offering a comprehensive range of assistance. 

The goal is to ensure that the employee can focus on their work while the practical aspects of the relocation are managed efficiently.

Here are the key components typically included in employee relocation services:

Moving and transportation services

  • Packing and shipping: Professional movers are hired to pack, transport, and unpack the employee’s belongings, including personal items, furniture, and sometimes vehicles.
  • Vehicle shipping: Some services include transporting the employee’s car(s) to the new location, especially for long-distance or international relocations.

Home finding and housing assistance

  • Temporary housing: Before securing permanent housing, employees may need short-term accommodations, such as hotels or furnished apartments. Relocation services arrange and cover the costs of this temporary housing.
  • Home-finding assistance: Employees are helped in searching for a new home, including real estate agent support, home tours, and negotiating leases or purchase agreements. This service may also include coordinating home inspections and paperwork.
  • Home sale or lease break assistance: If the employee needs to sell their current home or break an existing lease, relocation services can assist with selling the property, covering early lease termination fees, or even buying the home from the employee to speed up the process.

Cost-of-living and financial support

  • Cost-of-living adjustments (COLA): Assistance with salary adjustments to account for differences in the cost of living between the employee’s current and new location.
  • Relocation stipends/bonuses: Some relocation services provide lump-sum payments to employees to cover incidental relocation expenses.
  • Expense management: Tracking, managing, and reimbursing the employee for moving-related expenses, such as travel, temporary housing, and meal allowances.

Travel and logistics support

  • Home-finding trips: Companies often arrange for employees (and their families) to visit the new location before the move to find housing, visit schools, and explore the area.
  • Travel arrangements: Booking transportation for the employee and their family, including flights, ground transportation, and other travel logistics.

Family support services

  • Spousal job assistance: Helping the spouse or partner of the relocating employee find employment in the new location, through job search assistance, resume help, and networking resources.
  • School placement services: Assistance in finding suitable schools for children, including arranging school visits, helping with applications, and navigating educational systems in the new location.
  • Childcare and elderly care: Providing resources to locate and arrange childcare or eldercare in the new area to help families adjust.
  • Visa and work permits: Assisting employees and their families with securing work visas and residency permits, and complying with local immigration laws.
  • Legal compliance: Managing compliance with local laws, labor regulations, and tax requirements in the new country, ensuring a smooth transition and avoiding legal complications.

Tax and financial planning

  • Tax equalization: Assistance with handling any additional tax burdens the employee may face due to the relocation, especially for international moves. This ensures that employees pay no more in taxes than they would have in their home country.
  • Financial counseling: Offering advice on managing financial aspects related to the move, including understanding tax implications, adjusting to cost-of-living changes, and managing real estate transactions.

Cultural and language training

  • Cultural training: For international relocations, employees and their families may receive cultural training to help them adjust to the customs, work culture, and social norms of the new country.
  • Language classes: Language training services are often provided to help employees and their families learn the language of the new country or region, making it easier to integrate into the community and workplace.

Settling-in services

  • Utilities and services setup: Assistance with setting up utilities (electricity, internet, water, etc.) and other essential services like banking, phone plans, and insurance in the new location.
  • Orientation and local resources: Offering orientation tours to help employees get familiar with their new area, including finding grocery stores, healthcare providers, and recreational activities.

Repatriation services (for temporary international assignments)

  • Return move assistance: For employees on temporary international assignments, repatriation services manage the logistics of moving the employee and their family back to their home country, including shipping belongings, securing new housing, and ensuring a smooth transition back.
  • Cultural reorientation: Helping employees adjust back to their home country’s culture and work environment after a long-term international assignment.

Ongoing support and counseling

  • Employee assistance programs (EAP): Some relocation services include counseling and support for employees and families facing emotional or logistical challenges related to the move.
  • Transition coaching: Offering ongoing coaching to help employees adapt to their new roles, integrate into new teams, or adjust to the corporate culture in the new location.

Benefits of using relocation services:

  • Reduced admin: Using a third-party vendor takes the pressure off internal teams managing the relocation process.
  • Reduced stress for employees: By providing logistical and emotional support, relocation services help employees focus on their work rather than the challenges of moving.
  • Added knowledge and value: By relying on relocation services, companies can rely on a group of experts to provide the support needed. In addition, some relocation services can have partnerships or obtain discounts for some of the costs associated with relocation (for example they may have discounted rates for moving companies).
  • Increased productivity: With the relocation handled efficiently, employees can settle into their new roles more quickly, minimizing downtime and disruption.
  • Talent retention: Comprehensive relocation services show a company’s commitment to supporting its employees, improving retention and job satisfaction.
  • Compliance: Ensures that the company and employee comply with local laws, tax regulations, and immigration requirements, avoiding legal risks.

6 Examples Of Employee Relocation Packages

Employee relocation packages vary based on company policy, the employee’s position, the distance of the move, and whether it’s domestic or international. 

Here are some common examples of what may be included in different types of employee relocation packages:

1. Basic relocation package (domestic)

This package is typically offered for moves within the same country and is often provided for mid-level employees.

Includes:

  • Moving expenses: Covers the cost of packing, shipping, and transporting household goods.
  • Travel reimbursement: Reimburses the cost of travel (flights, gas, etc.) for the employee and their family to the new location.
  • Temporary housing: Provides short-term housing for the employee until they secure a permanent home (typically up to 30 days).
  • Moving allowance: Offers a one-time lump sum to cover miscellaneous moving costs like home setup or buying furniture.

Example:

  • Move distance: 500 miles within the same country.
  • Relocation benefit: $5,000 lump sum for moving expenses, one-way airfare for the family, and 1 month of temporary housing.

2. Comprehensive relocation package (domestic)

This package is more extensive, often offered to senior-level employees or those moving long distances within the same country.

Includes:

  • Full moving services: Professional movers pack, ship, and unpack household goods, and may include car transportation.
  • Home sale assistance: Helps the employee sell their current home, including covering closing costs, realtor fees, or loss on sale.
  • Home-finding assistance: Provides a real estate agent and covers costs for house-hunting trips to find a new home.
  • Temporary housing: Offers up to 60-90 days of corporate housing or temporary accommodations.
  • Cost-of-living adjustment (COLA): Provides a salary adjustment if the cost of living in the new location is higher.
  • Relocation bonus: Offers a one-time payment to offset moving-related inconveniences.
  • Spousal support: Provides job search assistance for the employee’s spouse.

Example:

  • Move distance: 1,500 miles across the country.
  • Relocation benefit: Full moving services, realtor assistance, 2 months of temporary housing, $10,000 COLA, and a $5,000 relocation bonus.

3. International relocation package

This package is typically offered to employees moving to a different country, particularly for long-term assignments or permanent relocation.

Includes:

  • Full moving services: Packing, shipping, and transportation of household goods, including international shipping and customs clearance.
  • Immigration support: Secure visas, work permits, and residency for the employee and their family.
  • Language and cultural training: Language classes and cultural training to help the employee and their family adapt to the new country.
  • Home-finding assistance: Assistance in finding a home in the new country, including covering home-finding trips and realtor fees.
  • Cost-of-living adjustment (COLA): Adjusts compensation based on the cost of living and services available in the new country.
  • Housing allowance: Offers a housing allowance if the new location’s real estate market is much more expensive or provides a company-paid apartment.
  • School assistance: Helps find and potentially covers private schooling costs for children.
  • Tax equalization: Ensures the employee does not pay more in taxes than they would in their home country, covering differences between tax systems.
  • Spousal support: Offers job search or networking assistance for the employee’s spouse in the new country.
  • Repatriation assistance: Provides support for returning to the home country, including moving back, at the end of the assignment.

Example:

  • Move location: From the U.S. to Germany.
  • Relocation benefit: Full international moving services, immigration support for the family, language classes, $50,000 housing allowance, $15,000 COLA, tax equalization, and school tuition for children.

4. Executive relocation package

This package is typically reserved for senior executives or high-level employees and offers the most comprehensive support to ensure a smooth transition.

Includes:

  • Full-service moving: Covers all moving-related expenses, including packing, shipping, and unpacking of household goods, as well as vehicle transportation.
  • Home sale/purchase assistance: Helps executives sell their current home, covering all fees and potential losses, and assists with purchasing a new home, including down payment assistance or covering closing costs.
  • Temporary housing: Provides corporate housing for up to 6 months if needed.
  • Cost-of-living adjustment (COLA): Provides salary adjustments based on the cost of living in the new location.
  • Relocation bonus: A substantial one-time bonus (e.g., $20,000+) to cover miscellaneous moving-related expenses.
  • Spousal/family support: Comprehensive support for the spouse’s career, school placement for children, and cultural or language training.
  • Financial and tax planning: Financial advisory services to help the executive navigate tax implications of the move and manage real estate investments.
  • Private school tuition: Covers private school tuition for children if needed.

Example:

  • Move location: Executive moves from the U.K. to Singapore.
  • Relocation benefit: Full moving services, home purchase assistance, $100,000 housing allowance, private school tuition, tax equalization, $25,000 relocation bonus, and 6 months of temporary housing.

5. Lump-sum relocation package

Some companies offer a lump-sum relocation package, where employees are given a set amount of money to manage their own move. This provides flexibility for employees but places the responsibility of managing the relocation on them.

Includes:

  • One-time payment: A fixed amount, typically based on the employee’s position, distance of the move, or average moving costs.
  • Employee-managed move: The employee is responsible for all aspects of the move, including hiring movers, booking travel, and finding housing.

Example:

  • Move distance: 800 miles within the same country.
  • Relocation benefit: $10,000 lump-sum payment to cover all moving expenses.

6. Temporary relocation package

For employees who are relocating for a short-term assignment (e.g., 6-12 months), the relocation package is tailored to cover the essential needs during the assignment.

Includes:

  • Travel expenses: Covers round-trip flights or transportation for the employee and their family to the temporary location.
  • Temporary housing: Provides furnished corporate housing or a housing stipend for the duration of the assignment.
  • Per diem: Daily or monthly allowance for meals and other living expenses.
  • Return relocation: Covers the cost of moving the employee back to their original location at the end of the assignment.

Example:

  • Move location: Employee relocates temporarily from Canada to Brazil for 1 year.
  • Relocation benefit: Travel expenses, corporate housing, $2,000 per month living allowance, and return travel costs.

Employee Relocation Best Practices

I’ll end with a summary of some best practices to keep in mind when relocating employees:

  • Clear communication: Keep employees informed about the relocation process, options, expectations, and available support.
  • Offer comprehensive relocation packages: Cover key expenses such as moving costs, temporary housing, and travel allowances to reduce employee stress.
  • Personalize support: Tailor assistance to individual needs, including spousal job search help or family-specific considerations like schooling.
  • Providing cultural training: Offer cultural orientation to help employees adapt to the new location and work environment. This could include language classes.
  • Supporting integration: Facilitate social and professional networking opportunities in the new area to ease the transition.

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Finn Bartram

Finn is an editor at People Managing People. He's passionate about growing organizations where people are empowered to continuously improve and genuinely enjoy coming to work. If not at his desk, you can find him playing sports or enjoying the great outdoors.

Alice Ferretti

Alice Ferretti is an accomplished global HR leader with over 12 years of experience in managing and scaling human resources functions across diverse industries and regions.