Building relocation benefit packages that work

• Key Insight: Discover how benefit design turns relocation into a strategic talent-acquisition lever.
• What's at Stake: Poor relocation programs risk talent loss, higher hiring costs, and diminished employer brand.
• Supporting Data: 34% tapped savings and 14% went into debt to afford relocations.
• Source: Bullets generated by AI with editorial review

Relocating for a job can be equal parts thrilling and overwhelming, but the right mix of benefits can ease the transition so employees can hit the ground running.

RTO mandates have given employees plenty of opportunities for a fresh start. In fact, according to data from outplacement firm Challenger, Gray and Christmas, 2.4% of all job seekers relocated for new positions in 2024. And while a survey by Southeastern Oklahoma State University found that 47% of professionals said a work move improved their mental health, 65% actually only pretended to feel happy once they had made the move. 

But benefit managers can address that disconnect by focusing on a few key elements of a successful relocation benefit package, and listening to employees' needs, says Wendelyn Risher, assistant professor at SEOSU and an HR professional. 

Read more: Relocation benefits that support employees moving for the job

"Relocation can be isolating — new routines, unfamiliar neighborhoods and a lack of close relationships can make the early months feel lonely," Risher says. "This is completely normal, but employees often worry that admitting it will signal that they aren't adapting quickly enough or that expressing stress or homesickness will be interpreted as low engagement or regret."

SEOSU's survey found that 45% of employees struggled with social isolation, 38% were overwhelmed from adjusting to new environments and 23% were working through the grief of leaving friends and loved ones behind. Providing mental health support and family-focused benefits is one way for employers to ease this transition, Risher says. 

"In most corporate relocation studies, about 70% of failed relocations are tied to family challenges," she says. "That could look like a spouse who is unable to find work, children struggling in new schools, or a general lack of support in a new community. Strong benefits ease those burdens so employees can focus on settling in at work and at home." 

Additionally, benefit managers must address the financial toll: 34% of employees have tapped into their savings in order to afford their move, and 14% went into debt. 

Read more: Relocation benefits may be the key to a successful RTO mandate

"If employees are required to pay large expenses upfront like rent deposits, movers, transportation, and temporary housing, they may have to max out credit cards or drain savings while they wait for repayment," Risher says. "For employees without access to significant credit or cash reserves, a reimbursement-only model can be so stressful that they decline the relocation altogether, even if the opportunity is a good fit." 

Still, over half of respondents said they would relocate again for work if the opportunity was right, according to SEOSU's survey, leaving room for benefit leaders to create more effective strategies to acquire top talent. 

Wendelyn shares three actionable takeaways for building a better support system for employees moving for the job. 

Address the personal impact of a move

"Successful relocations can improve mental health because they give employees something adults rarely get: A genuine chance to start over. That sense of autonomy and growth is strongly tied to better well-being. 

But it's important to acknowledge that long-standing psychological research shows that relocation is also considered a major life stressor. A move that is supported well can remove people from negative work situations, reduce cost-of-living strain, or even open doors to roles that align with long-term goals — but that's only possible when the transition is well-managed."

Read more: 10 best and worst states for nurses looking to relocate

Incorporate comprehensive support

"Better relocation benefits remove uncertainty that makes moving so overwhelming. Relocation is expensive and disruptive, and when employees are left to manage it on their own, the financial pressure and logistical chaos can quickly overshadow the excitement of a new beginning. 

Many employers assume that reimbursement is the right approach, but this can create an unintentional hardship. [Instead] in addition to financial assistance, companies should also provide spouse employment resources, school guidance for families, neighborhood tours, community integration programs, temporary housing, or flexible work schedules. These efforts directly address the factors that most often derail relocations and help employees and their families adjust without feeling overwhelmed."

Ensure relocation strategies reflect company culture

"When leaders take relocation seriously, treating it as an investment instead of an impersonal transaction, they strengthen trust, improve retention, and enhance their employer brand. Supporting employees and their families through a major transition isn't just the right thing to do from a human perspective; it's a strategic advantage in a competitive labor market.

Read more: 5 things your employee relocation policy should cover

When leaders provide clear guidance, practical resources, and ongoing communication, employees feel seen, supported and respected. That psychological safety sets the stage for a successful transition long before the employee arrives on their first day.

Employees who feel supported during a move are significantly more likely to stay because the company has shown it stands by them during high-stress situations. From a recruiting standpoint, word travels fast. Companies that handle relocations well develop a reputation for being people-centered and trustworthy, which attracts stronger talent and reduces the cost of future hires. Even candidates who aren't relocating pay attention to how a company treats employees during major life events because it signals what the culture is really like."