When it comes to employee relocation, organisations often lean towards providing cash allowances rather than investing in comprehensive relocation support packages. Although this approach might appear more cost-effective and less time-consuming, it can impede the overall success of the employee’s transition. This article will explore why organisations should at least consider comprehensive relocation support packages over providing cash allowances for their relocating employees.
Guaranteeing a Smooth Transition
A cash allowance might cover the essential expenses of moving, but it doesn’t tackle the multiple challenges associated with relocating to a new city or country. Comprehensive relocation support packages, in contrast, offer personalised assistance, considering factors like:
- Securing appropriate (accessible) housing in a sought-after or suitable neighbourhood
- Exploring local transportation options
- Understanding healthcare systems and facilities
- Registering children in schools or daycare services
- Opening bank accounts quickly and easily
- Integrating into the local community
- Providing cultural training and language support
By providing such resources and guidance, organisations ensure that employees can concentrate on their new roles without added stress from moving-related issues.
Boosting Employee Retention and Satisfaction
Employee turnover can be expensive for businesses, with costs including hiring, training, and lost productivity during transitions. Offering comprehensive relocation support not only helps retain employees but also enhances their satisfaction levels. Employees are more likely to remain loyal to an organisation when they feel valued and supported by their employer during significant life changes, such as a relocation.
Fostering Diversity and Inclusivity
Organisations with diverse workforces often benefit from increased creativity, innovation, and improved decision-making. Providing a comprehensive relocation package fosters diversity and inclusion by addressing the unique needs and challenges faced by various groups, including individuals with disabilities and LGBTQ+ employees. By offering tailored support and resources, organisations can create a more inclusive environment that encourages the success of all employees.
Although it might seem counterintuitive, comprehensive relocation support packages can be more cost-efficient than cash allowances in the long run. By providing personalised assistance, organisations can save on costs associated with failed relocations, employee turnover, or extended periods of underperformance due to relocation-related stress. Additionally, HR and global mobility teams can benefit from working with experienced relocation service providers who have vast industry experience and are often better placed to negotiate deals on housing, transportation, and other essential services.
While cash allowances may appear to be an easy solution for employee relocation expenses, they often fail to address the myriad challenges involved in moving to a new location. Comprehensive relocation support packages offer numerous benefits, including smoother transitions, increased employee retention and satisfaction levels, enhanced diversity and inclusivity, improved company reputation, and greater cost efficiency.
Investing in comprehensive relocation support packages ultimately leads to better outcomes for both relocating employees and the organisations they work for. As companies strive to remain competitive and attract or retain top talent in today’s globalised job market, providing robust support for employee moves should be a key consideration.
Speak with one of our relocation experts today and find out how Klippa Relocation can support your relocation programme.