In today’s globalised business environment, employee relocation has become increasingly important as it allows companies to access a larger talent pool, expand into new markets, and facilitate knowledge transfer and collaboration between different branches or departments. However, a failed relocation can have severe consequences for both the organisation and the employee. For the organisation, it can lead to decreased productivity, increased costs, the loss of valuable employees, and a negative impact on employee morale. For the employee, a failed relocation can result in stress, dissatisfaction, and potential harm to their career progression.
When it comes to employee relocation, companies 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.