The term relocation bonus goes by many different names. Basically, it's when the company provides each employee being moved with a fixed amount of money based on many determining factors. When a company offers an employee long-term employment more than 50 miles from the current workplace, the company may offer a relocation package. This usually covers the employee's reasonable moving and other work-related expenses, in order to relieve the employee and their family of the costly burden of relocation.
A well-designed employee relocation package provides peace of mind and incentives to accept the job offer, while positively reflecting the company's reputation for attracting top talent. A relocation subsidy (also called a lump sum or bonus) is a fixed amount paid in advance to help cover moving expenses. Employees manage how to spend it and can keep any leftover funds. However, if the money runs out, they are still responsible for unpaid relocation expenses.
The lump sum relocation subsidy or bonus package offers employees a fixed amount of money to cover their relocation expenses without the employer providing managed services. The global quantity is dictated by the relocation policy. Most companies want to save as much money as possible during work transfers and, at the same time, ensure that employees and their families are comfortable and ready to go to work as soon as they arrive at the new location. The transferring company hires and pays directly to a moving company, as well as the costs involved in selling a current home and all other services needed to help relocate the employee and to his family.
For companies with a global presence, partnering with a global human resources provider, such as Rippling, can simplify cross-border relocations. Relocation assistance companies can provide support in different areas, including packing and unpacking services, transportation and moving costs, temporary housing, alienation of a residence, acquiring a new residence, mortgage assistance, cultural training, and language training. With competition among companies for top talent, offering attractive relocation packages is beneficial to both companies and employees. The package includes coordination of all relocation service providers, full orientation and support for the employee, and direct payment of all expenses of relocation to work.
With direct billing, your organization contracts with moving companies, housing providers, and other providers for relocation services and manages all payments. While it may be true that the higher an employee's status within an organization, the more comprehensive and inclusive the relocation package will be, the smartest companies offer to finance relocation costs for even the newest employees, in order to attract and retain key talent. Today, with a more global economy and a better-educated workforce, competition for talent is stronger than ever; as a result, smart companies are joining the relocation benefits bandwagon. Some companies offer different levels of relocation assistance depending on the employee's seniority.
Relocation management companies are professional solutions that help companies manage the relocation of employees. This is because it generally costs companies less to relocate an employee than to offer a significantly higher salary. When it comes to relocation packages, there are a wide variety of options available, designed to meet the needs of both employees and the companies that hire them. By covering these expenses, companies can ease the financial burden on employees, making the transition smoother and more attractive.
Companies can help cover realtor fees, associated legal expenses, or penalties for early lease termination when an employee needs to move on short notice. Relocation packages are a company benefit that supports employees when they move to work, helping to facilitate the process and reduce the financial and emotional strain that accompanies to these transitions.
