Last Updated: December 9th, 2023

How HR Professionals Should Handle Employee Relocation

How Hr Professionals Should Handle Employee Relocation

When an organization needs to relocate an employee from one location to another, there are procedures that HR professionals follow. These procedures mitigate the risks of losing employees or wasting resources sending employees to new locations.

Relocation is a major decision for an employee, and the employee will also consider career growth opportunities. HR will want to ensure the employee transitions smoothly to the new location and has growth opportunities, or the employee may look for vacancies in new companies.

Policy Design

Policies must be written to ensure equality prevails throughout the organization and that all employees are treated fairly and consistently. Clear documentation guides HR employees and gives non-HR employees a transparent view of company policies.

The policies are for three categories of employees:

  1. Fresh employees who have just been recruited.
  2. Employees who have worked for a long time and have significant experience are more likely to be settled with a home and/or a family.
  3. The top-level management is well-established in their current locations and has a strong network.

The HR department can devise different policies for each category. For instance, the third category would require the relocation package to be attractive, and costs will increase. An employee will not likely find a simple job transfer an enticing opportunity. Hence, a cost/benefit analysis would be required before relocating any employee.

Relocation program example

Generally, an employee relocation program will want to address various factors. These factors pertain to employee retention, helping them adjust to a new location and protecting the company’s investment in relocating an employee.

Some companies prefer specialized relocation services for company VIPs, like executive relocation from ARC.

An example of a thorough employee relocation program would look like this:

  1. Bonuses and pay adjustments.
  2. Site visits
  3. Place of stay
  4. Moving expense
  5. Family support
  6. Payback clause
  7. Communication

Retention rates also tend to fall after the relocation. As a result, an organization’s relocation packages, practices, and policies are a significant factor that plays their part in alluring and hiring new talent, which is a key element in a business’s growth.

Therefore, an organization must ensure its competitive relocation package to allure and hire new talent. The human resource department in any organization must plan for this ahead.

A great relocation program would guarantee increased competitiveness. However, there are chances of mismatch between the talent and the requirements of the new location.

If the relocated employee does not adjust well, it weakens the employer’s power to retain the employee and comes with the risk of losing a skilled and developed employee.

Many industries have arranged work-from-home setups in the past year with their employees. Instead of employee relocation packages, companies may choose to invest more often in company retreats and in-person events. With remote work software and Livestream meetings, many employees may not need to return to work in offices so online hiring will be a preferred method.

How HR can remain proactive

However, relocation doesn’t just require devising a relocation program by the human resource or approving expenses. It requires a solid strategy that aligns with the company’s strategy and finances in a way that the relocation programs contribute.

To ensure the smooth functioning of the relocation programs, the human resource department needs to synergize with other departments of the organization.

For smoothening relocation, the human resource managers can do the following:

  1. Devise policies by collaborating with the chief operating officers and internal business partners.
  2. Collaborate with the talent office and managers to identify employees who best suit mobility opportunities.
  3. Manage a group of vendors and external service providers by collaborating with financial officers.
  4. Resolve legal issues by connecting with the legal department.

Human resources must scrutinize the program strategically, financially, and operationally.

Conclusion

Remember, your business is your baby. No one will love or care about it as much as you do. So while it is important that you put your trust in others to help it grow, it is also important to stay on top of those people. If you hire a third party to come in and do work for you, get as much feedback and reports as possible on their work so you can see if they are living up to what you want.

When it comes to your employees, do not be afraid to use any method you can think of when see if they are completing the jobs you have given to them. When measuring the employee’s job performance, the health and growth of your business need to be at the forefront of your mind. If that employee is not improving your company, you may need to find someone else. It is that simple.

In the end, while it may seem overbearing at times, keeping tabs on everything in your business is good. If you go look at some of the most successful businesses in the world today, none are run by owners who did not care. So even though you may want to be the fun guy everyone loves, remember, this is your business, and you need to look out for that first. That is what is important.