Essential Information on Employee Relocations

1. Essential Information on Employee Relocations Finding the perfect candidate is never easy. You make your way through piles of applications to find the perfect person that is going to fit into your business, meeting company values and working with a team. Often one thing that stops you from hiring the best talent is their location. Sometimes they may need to change cities, states or move abroad to work for you. Employee relocation plans are used, though many companies outsource this function. Employee relocations are when companies choose to move an existing employee or a new candidate to a location for work. This enables the employer to find the top talent in their industry, outside your city borders. This type of relocation means that as the business owner, you cover all or part of the costs incurred by the employee to make the move. While businesses vary, the approximate cost of employee relocations is around $16.2 million each year, with the relocation industry being worth billions. When you relocate an existing employee, who also owns their own home, costs can accumulate to just shy of $100,000. If they are renting their home, then the costs can drop to $24,000. New candidates that are home owners can cost $72,000, while a new hire that rents, can cost around $20,000. There are a number of important considerations that must be taken into account, over and above finding your employee a home, so they have a roof over their heads on arrival. Usually it includes an airplane ticket, pet relocations and more. The good news for companies wanting to relocate a new candidate or existing employee is the choice of relocation packages on offer, making it easier to get the right candidate for the job. Lump sum packages are cash only payments and are the easiest of the relocation packages, though they don't ensure the best outcome. The new employee is offered a lump sum of cash to assist with their move and they keep any change. While this may sound suitable, the employee may choose the cheapest option, which can result in a bad moving experience and delays with starting dates. Tiered packages are very common and probably the most popular, they are a cost effective solution with the relocation package being matched to the employee, their circumstances and level of seniority. Tier one usually includes intern or entry level employees with no mortgage, the second tier is mid level managers and long serving professionals that may have a mortgage or is a private tenant, while the third tier is senior managers and high level executives. Each tier focuses on if the relocation is domestic or international,

2. if the employee is relocating their family and their current living arrangements. Managed budget packages are offered by relocation specialists, known as a capped allowance. This enables the business to set a limit to what they will spend on the move. This usually involves hiring a relocation specialist to manage the relocation on their behalf. The relocation company works to the budget given, which makes it easier for your accounting team, ensures the employee starts on the date discussed and ensures a smooth move for the employee. Some companies choose fully covered relocation packages, which are for higher level employees and can be unpredictable when it comes to cost, when compared to the other options available. Having a relocation specialist handle this can be beneficial, reducing budget risks and eliminating the risk of incurring unnecessary expenses. About Us: Relocation Coordinates International is a leading domestic, international and commercial relocation specialist based in San Diego, backed by more than thirty years of experience. The company provides a complete service from pre-decision through to departure with international relocation experts and an extensive network of service providers, who have been hand selected based on their proven performance. The company manages worldwide relocation service with personalized and customized solutions, while offering flexibility and keeping costs in check. Relocation Coordinates International assist with costs, area tours, temporary housing, purchasing and rental assistance, visa support, taxation assistance, home sales and property management. Visit http://www.relocationcoordinates.com to find out more.