Are you a fresh employee being offered the world wrapped up in a relocation package but you’re not entirely certain about what to look for in such an offer? Or maybe you’re a business owner seeking to diversify your workforce? Find the best and brightest employees globally by luring them in with the perfect relocation package. Still not sure what to request when accepting a proposal or what to include to capture top talent?
We at Jimble are experts at making relocations happen, so we figured we would lend you a hand by compiling a guide for both employers and employees on what a good relocation package should look like. So if that’s what you’re looking for, then happy reading!
What’s a Relocation Package?
First things first, allow us to explain what a relocation package is in the professional world.
An employee relocation package is a company compensation benefit that’s offered to employees by recruiters or the HR departments to assist the employees in moving from one location to another, for a long or short-term, as part of the employee’s job.
Some relocation packages are offered and discussed early on as part of the hiring process, while others are offered for existing employees who either personally requested a change of scenery, or with talents needed at another company location. Additionally, relocations can happen within the same border or between continents, therefore the packages tremendously vary based on if the relocation is happening internally or internationally.
What’s good to know is that, in recent years, relocation packages gained popularity and become more sophisticated as they’re being used as a tool to attract talent and a method to combat low employee retention.
Common Relocation Packages
According to job-listings giant, Indeed, there are 5 main relocation packages in the professional realm and they are as follows:
- Third-Party Relocation Package
This is what Jimble has been trusted to do by hundreds of employers throughout the Netherlands. This package is where the employer doesn’t get directly involved in the move details themselves but hires a 3rd party vendor(s) to take care of the needed processes from A through Z.
- Expatriation Assistance Relocation Package
Yet another area where Jimble soars, this package is exclusively offered to international relocations. It usually includes finer details beyond the move itself which can involve but is not limited to covering the expenses of applying for work visas, paid orientation trips, cultural training and temporary housing. As this package includes a lot of details, advance planning happens and details are ironed out weeks (if not months) in advance.
- Lump-Sum Relocation Package
With this package, the employer and employee agree on a set amount of money to support the moving expenses. The employee is responsible for using this budget to complete their relocation the best way they see fit.
- Reimbursement Relocation Package
Through this package, the employer and employee agree on reimbursing the employee with the relocation costs (fully or partially) after the relocation is complete. In such cases, the employees keep track of their expenses through receipts which they can later submit to their employer for reimbursement.
- Direct Billing Relocation Package
This type of package allows for the employers to direct bill moving services and other relocation aspects on behalf of their employees.
So, What Makes a Good Relocation Package?
As you can see, a relocation package is highly personal and must allow for the flexibility to be tailored to the employee’s needs within the employer’s capabilities.
While we cannot possibly list all the scenarios of relocations as they’re infinitive, we can advise you to consider the following pointers for a good and solid relocation package:
☐ Family Support
If the employee is moving with their partner, spouse, children, or even pets (because our furry friends are family too) consider how their move will fit as a piece within the relocation puzzle.
We’re talking school applications for the kids, veterinary-friendly accommodations, applying for legal documents for the entire family, if applicable, and even accounting for extra time and effort personalizing this relocation package for a family as opposed to a single person.
☐ Transparent Vendor Communications
Whether the employer or the employee is leading the communication ship, it is of the utmost importance that a communication plan is set or at least understood at an early stage of the relocation process.
Communication during a relocation is not only time-sensitive but it can get tediously filled with strategic planning.
So if you’re an employer or employee, expect a lot of communication to happen and be prepared to deliver timely responses regardless of the discussed platform as proper communication can save you a lot of time and expense in the long run.
☐ Temporary Housing Allowance
In certain cases, a deal on a rental or purchase cannot be reached prior to the set arrival date of the employee. That’s where a clause of short-term temporary housing becomes necessary to consider in a good relocation package in order to guarantee good and safe planning on everyone’s end.
☐ Information Beyond the Relocation
Oftentimes, especially for international destinations, the relocation doesn’t exactly start or end with finding properties as there’s a lot more that will save the talent in the long run from falling into the trap of sudden cultural shocks while in the process of relocating.
Getting oriented with a location, setting up utilities after a contract is signed, information about governmental taxes, having access to local service providers, and even helping with municipal processes — these are all items that not only Jimble provides as part of their services, but we deeply believe in as components of a balanced relocation package.
So ask yourself, will I, the employee, have the resources to aid me beyond finding a rental at my new destination? Am I, as an employer, able to provide the support in settling for my talent beyond the key handover? If the answer is yes, then congratulations, you’ve got yourself a good relocation package between your hands.
☐ Funded Home-Finding Trips
Sometimes also referred to as a pre-assignment site visit, we at Jimble believe that home finding trips make the home-finding process and the relocation as a whole easier.
With available technology these days, home viewings can be a video call or a message away. In fact, many property agencies already offer virtual tours of their listings. However, we’ve experienced the importance of neighborhood tours and city orientations with clients enough for us to vouch for the importance and value of a pre-home-finding trip as that’s when employees get to truly experience their new destination to the fullest.
In conclusion, relocations are not easy, neither for the employee nor for the employer as they require a lot of hassle for everyone involved. However, talent relocation is becoming more and more of a necessity in the current job market.
The solution is simple, and that’s for the employers to be prepared with good relocation packages that can support their needs, and be attractive for outsourcing or retaining talent, all while accurately anticipating the support needed for their employees. After all, good talent is invaluable.