THE IMPACT OF AN IMPROVED ECONOMY ON YOUR COMPANY’S RELOCATION BENEFITS
Chances are that during the last recession your company did not increase the relocation benefits offered to new hires—both experienced hires as well as college recruits. And during this time some companies actually reduced relocation benefits to new hires to reflect the economic situation. After all, securing talent is easier when there are more people chasing fewer jobs. Therefore, keeping relocation benefits the same (or even reducing them) in times of greater unemployment and economic downturns is prudent---there is less competition for skilled talent and the relocation component in a hiring offer is seen as less critical.
Similarly, in tough economic times, current employees are likely more motivated to relocate to where the company wants them to go as they are generally more inclined to remain with their employer when their options to go to another employer are limited by the economic environment. And in such times, whatever the relocation policy offers, employees accept it because they have little leverage or inclination to negotiate.
If your company has not had a professional review of its relocation benefits in the last 3 years or more your company may be at a disadvantage in the hiring marketplace; as well as in achieving the obvious goal to retain valued employees whom your company needs to relocate in order to achieve company objectives.
For a modest investment, an experienced relocation consultant can review what your company now offers and provide you with what other companies in your particular industry, and at your work locations, provide for both their new hires and current employees. In short, it is a needed calibration that ensures that your company is not only competitive; but through innovation provides competitive advantage. This advantage is achieved by having relocation programs in place that assure that your company’s scarce relocation dollars will be spent in the most efficient manner possible and which all employees will value.