Many companies that relocate employees underestimate the possibility of unpleasant consequences when trying to manage the details themselves. The most common side-effect of relocation is lower employee retention. After a relocation move that doesn’t go seamlessly, an employee can feels neglected, upset or otherwise unhappy at the way things turned out, and leave the company. Even relocations that go well can end in employee abandonment. The employee finds himself in a new city with new opportunities, and leaves to pursue them.
Companies that relocate employees know that employee retention rates drop after a relocation. Employees find themselves in a new city with new opportunities, and sometimes those opportunities draw them away from their former employer. Sometimes the stress of the move itself, or conflict arising between the employee and employer resulting from the move, can also drive employees away. When an employee is willing to relocate, this does not prove that the employee has a high level of commitment to the company.
Companies who relocate employees often find themselves in the predicament of wanting to offer an attractive relocation package, especially to high level executives, but being faced with the daunting cost of doing so. The question is always, will the financial gain of hiring this employee outweigh the cost of their relocation? We can offer no pat answers here, since each company’s circumstances are different. However, there are areas where cost/benefit decisions might be easier than others.
Does your business relocate employees? Don’t count on your employee’s excitement of moving to a new office and new residence to balance out the stress. The move will almost certainly be more stressful than exciting.
Whether your company is relocating new hires or current employees, the employee and the employee’s family must be aware of the stressful issues that can arise. Getting a handle on these issues can help make the transition as seamless as possible, ensuring that your newly relocated employee will be happy and productive from the get-go.
Corporate relocation can be very difficult as many businesses search for a partner with the right skills for a safe move. The novelty of the relocation area can cause difficulties in locating the right resources for a proper and risk-free move of the business. The best solution can be a corporate relocation services provider that can move your business to the new venue in a safe manner while minimizing your burden of relocating.
Business relocation can be a challenging endeavor for any HR manager or relocation worker. The unknown factors of the new location make it difficult to obtain the right resources for a proper relocation. An option would be to hire a relocation service provider to manage the relocation for you and move all parts of your business safely to the new location.
The ratio of companies outsourcing relocation services dropped in 2009 to just over half. As might be expected, mid- sized and large companies tended to outsource relocation services more frequently than small companies. They also tended to outsource a greater diversity of relocation services than smaller companies. Large firms are more likely than mid-sized and small companies to outsource real estate marketing and purchase, property management and invoice payment to relocated employees.
For the first time since 2003, companies that relocate employees reported that in 2009 relocation volumes were most affected by economic conditions, a result of the economic downturn. A lack of local qualified people had previously been the biggest factor. The economic recession of 2002 - 2003 was the last time economic factors figured so strongly in lower relocation volumes. The lack of qualified local people has declined as a factor in relocation volumes over the last four years.
Most companies the relocate employees offer incentives to encourage employees to relocate. These often include cost-of-living adjustments and relocation bonuses. Providing duplicate or temporary housing became a top incentive in 2009, presumably as a result of the depressed housing market, which would have made the sale of former homes impractical for many employees. In response to lower home values, loss-on-sale protection for former home sales was also offered more often by companies.
Interestingly, while companies that relocate employes said that they expected relocations for new hires and entry level employees to decrease during the recession, relocations for executives and senior managers were sometimes expected to increase. This is likely due to the critical importance of good management to navigate the company through times of crisis.