5 things your employee relocation policy should cover

Employee relocation is pivotal for talent management. A clear relocation policy is more than a perk; it's a competitive strategy, whether attracting top-tier professionals or supporting internal transfers. These elements within your employee relocation policy helps businesses stay agile when hiring and guarantees employee satisfaction during major life changes.

Current employee relocation trends

According to World at Work, only 2.4% of U.S. workers relocated for jobs in Q1 of 2024. The decline reflects shifts in workforce expectations, especially among millennials and Gen Z. Even with fewer moves, strong relocation policies remain imperative in sectors where in-person work is non-negotiable, such as manufacturing and health care. 

Relocation benefits positively impact retention and engagement when paired with personalized support.

What every policy should include

Relocating a business doesn't just mean moving equipment and office furniture; it also involves relocating key employees. That's why one of the most overlooked but critical factors to consider when budgeting for moving your business is the cost and support required to help employees move.

A relocation policy should provide clarity and consistency for employees and HR teams. At its core, the policy should define who qualifies for relocation support, such as new hires or internal employees moving beyond a certain distance. It should also detail the benefits offered, such as moving services, airfare, housing, and destination orientation.

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Additionally, companies should outline how they will provide financial assistance — such as lump-sum payments for flexibility or reimbursement models for greater cost control. Businesses foster transparency and make transitions less stressful by addressing these elements.

5 non-negotiables for benefits packages

While every organization should consider the five non-negotiables for benefits packages as part of a comprehensive HR strategy, employee relocation policies require their own set of benefits. Temporary housing, moving assistance, and similar expenses can influence whether employees relocate from their abode in Madison, WI, to an entirely new one in Las Vegas, NV.

Key inclusions for relocation policies should feature the following:

• Comprehensive moving services to cover the costs of packing, transporting, and storing items to simplify the physical move.
• Home-finding assistance that offers guidance or stipends to help employees secure housing in the new location.
• Temporary housing while procuring permanent housing.
• Spousal employment support to help relocating spouses find work to maintain household stability.
• Tax gross-up for relocation costs to offset tax burdens so employees receive the full value of their benefits.
  

Policy tiers and customization

Not all relocations are the same. Tailoring benefits based on job level, location, or personal circumstances ensures fairness. Executives may need additional services, while entry-level employees might only need basic support. 

International moves require added layers — visa verification, cultural orientation, and housing aid. Flexibility and customization can meet diverse employee needs while managing company resources.

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Creating a smooth transition

Strong relocation policies send a message: the company values its people. HR leaders can ease transitions, foster loyalty, and strengthen the company's image by focusing on the five things your employee relocation policy should cover. Remember, creating a smooth transition is thoughtful and strategic in a competitive job market.