There’s a growing momentum in favor of corporate relocation in recent years. Almost every major business invests in corporate relocation programs for varied reasons. These include expanding in a new location, handling crucial projects, team building, and of course, retaining skilled talent for vital management and operational functions. 

Let’s put some stats on the table- reports highlight how 62% of employees are willing to relocate to advance their careers or to earn more. On the flipside, 64% of those moving for jobs got relocation packages while close to 1/3rd still shift even if they don’t get these perks. What’s more important is that 85% of companies usually cover temporary living at new locations.

Considering how relocation is a big life change for any employee, there’s a need to invest in structured programs in collaboration with professional service providers. Let’s look at some of the key aspects the same below. 

Relocation Process & Strategy Insights

There’s more to employee relocation than meets the eye; first up are the challenges faced by HR and travel managers throughout the process. These usually include the following: 

• Compliance & Legal Challenges
• Effective Cost Management for Relocation 
• Logistics and Transportation Aspects
• Employee Wellbeing Before, During, and After the Move 
• Workplace and Cultural Integration in the New Location
• Coordination with multiple agents, vendors, and service providers 
• Finding proper employee housing and providing employee support like orientation, language training, spousal employment assistance, etc. 
• Family considerations like healthcare, childcare, and other assistance 
• Creating well-defined and extensive relocation policies 

What’s the best way to solve these challenges? Setting up a structured relocation program for employees is the answer. It usually involves the following: 

• Clear relocation policies, guidelines, and protocols 
• A network of corporate partnerships and service providers at every step of the process
• Established mechanisms for individual needs assessments, flexible packages, pre-move support, etc. 
• Dedicated teams for relocation 
• Tracking and reporting across the entire process

What are the benefits? 

• Full transparency and clarity throughout the process
• Better management of relocation processes with individualized employee support
• Higher retention of skilled talent with improved morale and productivity 
• Cost and time savings 

Let’s now get down to several core aspects one by one. 

Strategic Planning & Policy Development 

When it comes to employee moves, a successful transition always starts with the right strategic plan and clearly defined policies. This ensures consistency for every relocation while preventing miscommunication or ambiguity. Employees get clear guidelines while the policy also helps companies manage costs better and boost employee retention and morale by staying committed to their wellbeing during this major life change. Key aspects include the following: 

• Eligible employees and relocation costs within limits.
• Fairness and equal treatment for all employees.
• Supportive measures for enhancing employee loyalty and morale.
• Outlined steps for the process which makes it easier for HR managers and employees to navigate.
• Adherence to all local regulations and risk mitigation.
• Tailoring packages to attract and retain top talent, or incentivize shifts to new locations.

Role-Based Priority and Support 

• Companies can tailor support based on the job role and prioritize accordingly 
• For instance, entry-level hires may get a basic package with coverage for temporary housing, moving costs, transportation, etc. Senior executives, on the other hand, may get complete packages including spousal work assistance, higher limits for reimbursements, financial planning services, etc. 
• Companies hiring young graduates may have relocation packages tailored to attract better talent, with perks like career development and student loan support, license bonuses, etc. 

Employee-Centric Measures

• Pre-move counselling and support matter a lot for employees
• Companies can focus on helping employees about to move, address any potential concerns/anxieties
• Other steps include orientation programs, offering vital information about the location and other basic aspects
• Support with relocation planning is vital along with home search assistance, spousal career support, school recommendations for kids, financial and legal implications & planning, etc. 
• Stress management and emotional support is another area where employees need support 

HRs can share the Relocation Guide with the employees to provide more information about the employee move.

Case Study:

Technology leader Google has an innovative tiered relocation policy for its employees based on the job level. Basic level benefits include moving costs, temporary housing, and travel, while executives get more extensive packages with premium services. Every tier has its own set of benefits, enabling Google to retain skilled talent. 

Budgeting & Cost Optimization 

One of the things that HR managers and other company personnel also need to tackle is relocation costs for employees. Here are some pointers related to these aspects. 

Major Cost Breakdown: 

• Travel & Moving Costs (for travel managers to identify)- Logistics/shipping, packing, transporting household goods, in-transit insurance, storage, airfare and ground transportation 
• Housing- Temporary housing costs and utility expenses during the stay 
• Legal & Compliance: Legal fees for adhering to regulations, visa and immigration costs, etc. 
• Relocation Support: Language training, spousal job search, childcare, orientation programs 

Lump Sum vs. Full-Service Employee Moves

Tiered relocation models are the way for companies today, where packages are tailored to varying employee job levels or other factors. However, in this case, you may seek to offer a lump sum amount to cover all costs to your employees. Alternatively, there is full-service relocation where the company takes care of everything. It could be the highest tier in the system, while the former may be the entry-level to mid-tier solution. Of course, the lump sum mode is easier to administer and offers more freedom to employees although the full-service model has more transparency in terms of costs. 

You can consider a lump sum package for Tier 1, with slightly more for Tier 2 and throw in additional options like household goods shipping and temporary housing support. Tier 3 can have a full-service package with everything the company handles. 

Tapping Corporate Partnerships

It always makes sense to leverage corporate partnerships, especially long-term contracts with housing providers. What this does is give you scope to cut costs through group/corporate discounts and bulk booking facilities, along with ensuring access to quality housing without any hassles. Many of these units come with tailored amenities for employees, while such partnerships also reduce time, effort, and money spent in finding suitable accommodation. 

AI-Based Expenditure Tracking

Technology is also reshaping corporate relocation as we know it, with more HR and travel managers leveraging AI tools for gathering and analyzing relocation data. This helps identify trends and patterns to identify cost optimization areas. At the same time, tracking expenses helps identify unnecessary overheads while optimizing dates of relocation and choosing the most affordable relocation service providers are other key elements. 

Predictive modelling to predict future relocation costs, breakdown analysis, vendor optimization, and streamlined procedures can help track and save on costs considerably. Use AI dashboards for real-time insights on these costs and make adjustments wherever necessary. 

Case Study:

A tech firm created a multi-tier relocation plan with lump sum coverage for entry and mid-level tiers (this went up by 10-15% in this segment) and full-service packages for the executive level. With real-time AI-based tracking, cost optimization, and individualized blueprints, the firm could save 20% on overall expenditure. 

Support With Housing/Accommodation 

The cornerstone of corporate relocation packages as every HR professional will know is housing/accommodation for employees in new locations. Here are some key pointers worth noting in this regard. 

Have Multiple Choices

Always strive to give your colleagues access to multiple housing/accommodation options. This can be in the form of serviced apartments in the new location (either independently or through tie-ups with providers). Alternatively, you can consider home-buying support for the full-service or senior-most levels or even rental stipends to cover accommodation costs. 

Help with lease agreements

Relocating employees will need your support in terms of understanding lease agreements and navigating their finer nuances. Help them sign agreements that comply with standard regulations while giving them fair terms simultaneously. 

Use tie-ups with serviced apartment companies/providers

One of the best options for companies is to enter into tie-ups with serviced apartment providers or companies for offering temporary housing to relocating employees. This tie-up will help you offer ready-to-move-in and furnished housing immediately to employees with homelike environments and amenities. It will improve their comfort and well-being considerably, to say the least. 

Cultural orientation programs

Help employees adapt to their new locations with structured programs that cover the local culture, neighborhoods, social norms, customs, communication, language, and etiquette. From coaching on new workplace norms to dedicated local support staff/personnel for guidance, and field trips, there are several ways in which this can be done 

Case Study:

A leading global financial firm recently sent executives to Singapore to expand its presence there. They got short-term housing support as per the policy, based on the tie-up with a serviced apartment provider. Employees could quickly settle in without initial hiccups while getting support with expat networking through groups, meet-ups, etc. for faster integration. 

Support with Logistics, Travel & Settling-In

A large part of the employee relocation process (as most travel managers know), is the whole logistics, travel, and settling-in bit. Here’s what it usually encompasses. 

Streamlining travel arrangements 

You can tie up with travel and relocation service companies to pre-arrange transfers for employees from the airport/station to their temporary accommodation (this also has to be arranged in the first place). 

International shipping assistance 

Tying up with relocation service companies and logistics players will help you have a pre-determined plan in place for shipping household items, sensitive or important valuables, and so on. There are special solutions available for relocating pets as well, along with end-to-end storage and in-transit insurance. 

Pre-arrival orientation

This also matters since you’ll have to educate your employees about local transportation in the new location, their probable commutes to work, setting up bank accounts, money transfers, and even healthcare facilities available nearby. 

Concierge Services

Sometimes dedicated concierge/support services work wonders to ease the initial settling-in process. From helping with arranging utilities to setting up the home and getting groceries delivered, concierge services can be of immense assistance in new locations. Language support and translating requests is another area where they can be useful. 

Case Study:

A top pharmaceutical company had a dedicated relocation specialist stationed in a new location. Employees landing here got support with language/communication, transfers, home setup, utilities, groceries, and more. This increased satisfaction and cut onboarding time by 30%. 

Employee Wellbeing and Experience 

A successful corporate relocation process keeps employee wellbeing at the forefront and aims to deliver positive experiences. As an HR manager, you’ll ideally want to focus on the following. 

Pre-Move Counseling 

Now this matters immensely since it helps lower stress levels for employees and boosts their adjustment and adaptability once they move to the new location. Happy employees equate to higher productivity- a proverb you should remember! 

Access to Wellness Resources 

Since we’re talking about stress, take steps to improve the mental health of your relocating employees throughout the process. Give them access to wellness resources and professional support/counselling whenever they want. 

Foster Social Integration 

Encourage relocating employees to integrate into the local community or social circuit. Help them find and join expat clubs, communities, and associations. Get them to attend networking and community events to improve their quality of life after they land. 

Cultural Sensitivity 

You’ll also have to think about making relocating employees aware of the new culture and workplace norms. There can be dedicated workplace adaption programs worth considering in this case. 

Case Study:

A top IT firm took a unique approach towards enhancing its retention levels by 40%. It set up a process to frequently check in on relocating employees, learn about issues, and solve the same. A career development program also boosted employee loyalty considerably. 

Compliance, Legalities, and Risk Management 

There’s a whole bundle of compliance, legal, and risk-related aspects that you’ll also have to factor into the process. 

Visa processing and documentation

The main objective here should be to get the employee working on projects right away from the new location without any delays. This means applying and navigating visas and documentation well in advance, with regular follow-ups for fast-tracking wherever possible. 

Tax regulations 

Offering tax consultation solutions will help employees comply with tax laws in their new locations. Help them with tax filing and calculation procedures, while making sure that they’re well-versed with the rules. 

Risk management plans 

If you’re a seasoned HR or travel manager, then you know how things can go wrong in a few seconds! That’s where your relocation policy should have proper backup measures for sudden crises. Have a mechanism to identify and mitigate risks related to travel, logistics, communication, operations, data, financial stability, etc. Keep regulatory and legal risks in mind along with budgetary overruns, employee dissatisfaction, family concerns, data breaches, etc. Assess risks regularly and keep identifying new areas of concern. 

Emergency response protocols

Set up dedicated protocols for responding to any emergencies, including fire safety, theft, law and order, medical emergencies, and other helplines. Have a contingency plan for employees and make sure that they have the right set of protocols at hand to deal with crises. 

Case Study:

One such compliance-related example can be the tax advisory services offered by Deloitte under its global mobility services initiative. This covers tax returns, equalization, and planning. Compliance, consulting, and pre-travel assessments are also included along with immigration and payroll services. 

After- Move Support

Providing post-relocation support is also essential and the HR department should play an active role to improve employee morale and help them deal with any possible issues. 

Ongoing HR Check-Ins

As illustrated through the case study above, regular follow-ups by HR can help learn about how employees are doing and address their potential issues/concerns. 

Integration Programs

Employees can be eased into the new workplace and cultural environment with dedicated office integration programs steered by HR. 

Career Development Support

Give employees adequate mentorship, training, and opportunities for growth at the new location, thereby enhancing retention levels and helping them stay motivated. 

Family & Spouse Assistance 

One of the biggest benefits that you can give a relocating employee is helping his/her spouse search for and find a job. This aside, you can also recommend reputed local schools for children to ensure maximum convenience. 

Case Study:

Retention levels went up by 30% for a global finance firm with its investment in a structured post-relocation support program. What worked? Regular HR follow-ups, spouse job search and child admission support, career development and training, and integration programs. 

Future Trends in Corporate Relocation 

Several corporate relocation trends are set to go mainstream in the future and here are some that you should be aware of in HR. 

• Sustainability Focus: Sustainable spaces will be in vogue. Expect energy-efficient lighting and gadgets, green housing, recycling, conservation, etc. 
• Hybrid Work Models: Hybrid work models will drive more short-term and project-based relocations in the future. Companies will tap skilled talent without full-time relocation commitments. 
• Diversity-Focused Policies: Expect more relocation policies to look at inclusivity as per DEI goals. Dual-career couples will get more support (housing, job search, etc.) along with LGBTQ+ employees based on specific needs. 

Final Thoughts

To summarize the core aspects in a nutshell, a successful corporate relocation process does not only involve shifting the employee to another location. It involves taking care of various aspects, right from policies, legal, and compliance aspects to housing, community and workplace integration, logistics and transportation, and post-move support. 

HR personnel, in coordination with other departments, should thus focus on creating structured relocation programs. Not only will they save time, energy, and costs, but also contribute greatly towards higher employee retention, well-being, and productivity levels. If you’re on the same page, the above-mentioned insights may be helpful!