In years prior, it was common for new employees to receive all-inclusive relocation packages. Now more and more businesses are closely examining their relocation policies, limiting what’s offered in an effort to reduce expenses while maintaining flexibility.
According to Hilldrup’s Vice President of Global Business Development, Douglas Barnett, this change in relocation policies is shrinking the average weight of home shipments by a substantial margin. The average home shipment weighs approximately 6,000 – 7,000 lbs., down from between 10,000 and 12,000 lbs. Instead of an entire relocation package, businesses frequently are offering new employees a lump sum to use toward their move, which often does not cover the full cost, causing families to limit what they might otherwise bring along to their new home.
To help supplement some of the services no longer provided by employers, Hilldrup offers CityPointe, a program that provides customers with reliable resources to help with their move such as assistance with buying and selling their homes. Customers who use the program in their home buying process receive cash based on the value of the home, which on average is more than $1,500.
Nonetheless, the changing landscape of relocation policies raises some concerns businesses should keep in mind as they try to secure talented employees. Human Resource Executive does a fantastic job highlighting these issues in its recent article, “Bending the Relo Rules,” which emphasizes the need for businesses to have some flexibility with relocation policies.
Depending on the circumstances, it’s worth seeing if your moving company can work with you for a specific employee’s move. Barnett recalls a recent move of a retiring executive for one of Hilldrup clients. Even though his retirement package did not include relocation assistance, the company was still able to work with Hilldrup to get the outgoing executive the same contracted rates they use when relocating employees. The total move included two full trucks and a dedicated on-site quality assurance representative, who assisted with all steps of the move.
Relocating an employee and his or her family admittedly is expensive, and it’s understandable that companies need to cut back on how much they assist with the process. But as the HR Executive article notes, it’s important to look at each on a case-by-case basis because there might be times when an employee’s value merits some perks that fall outside the stated relocation policy. We work with companies all the time to help build relocation packages that meet both their needs and their employees’ needs. If we can help to that end, give us a call.