The cost of employee relocation packages varies widely depending on the specific benefits included and the employee’s individual circumstances. However, some common costs include:
- Moving expenses, such as hiring a professional moving company, packing and unpacking services, and storage fees
- Temporary housing costs
- Travel costs for the employee and their family to the new location
- Assistance with selling or renting the employee’s current home
- Assistance with finding and purchasing a new home
- Visa and immigration costs
- Cultural adjustment assistance
According to American Relocation Connections (ARC), a corporate relocation group, the average relocation package costs between $19,309 and $24,216 for renters and between $72,627 and $97,116 for homeowners. The range depends on whether the person is a new hire or a current employee.
While offering employee relocation packages can be expensive for companies, there are also a number of benefits, including:
- Attracting and retaining top talent
- Reducing employee turnover
- Increasing employee morale and productivity
- Improving employee satisfaction
- Strengthening the company’s brand and reputation
- Expanding the company’s reach into new markets
In addition, employee relocation packages can help to offset the costs of finding and hiring new employees. For example, the cost of relocating an existing employee is typically much lower than the cost of recruiting, hiring, and training a new employee.
Tips for Designing an Employee Relocation Package
When designing an employee relocation package, it is important to consider the following factors:
- The employee’s current and future job role
- The employee’s salary and benefits package
- The cost of living in the new location
- The employee’s individual needs and preferences
It is also important to be clear about the company’s expectations for the employee. For example, the company may require the employee to sign a contract agreeing to stay with the company for a certain period of time after relocating.
Employee relocation packages can be a valuable tool for attracting and retaining top talent. However, it is important for companies to carefully consider the costs and benefits of offering relocation packages before making a decision.