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Employee relocation?

Employee relocation occurs when a company moves workers to a different location for business reasons. This move may take workers to a new city, state or country.

When relocation of employees occurs, these workers are still associated with your company. They may keep the same position or begin a new one with your business, and salary or benefits will likely increase. Financial incentives often motivate high-performing workers to consider a position with your company in a new area.

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Types of employee relocation

Relocating employees can take many different forms. Your company may decide to relocate temporary workers, potential employees, new hires, current workers and employees with dependents such as children or aging family members. Relocation benefit packages may look different for each of the workers below.

Interns and independent contractors.

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New hires

Talented professionals are scattered across the globe, so potential employees might live far away. That’s why many companies consider relocating employees who are a good fit for their company, regardless of their geographical location. This is common in hard-to-staff industries where finding local talent may not be an option due to limited educational opportunities in the area.

Current employees

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Hesitation of Employees to Relocate  We interact with designated key employees seriously considering relocation We provide a detailed overview of their new location.  An area is safe, has recreational amenities, good schools for kids, access to top universities, stable cost of living, great restaurants, less than 10 miles to their job, family recreation and social growth. 

Key or designated employees are transported by aircraft or motor van to the new location for a guided tour of the town or city, view neighborhoods, recreation, social events, 

There are also employees who request relocation so they can pursue or fill a new position with the company. For example, you may have limited management opportunities at one location, while another branch desperately needs supervisors and executives. Transferring these employees helps them reach their professional goals, and it also helps your business grow.

 

Employees with families

Some employees are hesitant to relocate without bringing along their spouse and children, and understandably so. Keep this in mind when you give a current employee the chance to relocate so you can budget accordingly. You may need to provide a bigger budget for housing, travel or meals if you are paying for the relocation of a family. Pet-related expenses, such as a kennel or pet-friendly lodging, are other costs you should consider paying.

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Why might companies want to relocate their employees?

Relocating employees has numerous benefits for workers as well as their employers. In an ideal world, businesses could announce that they’re hiring and quickly attract a pool of qualified applicants. Unfortunately, it’s not always that simple to find skilled workers, which is why many companies consider relocating employees who meet their needs.

Hiring qualified applicants benefits everyone: your business, the customers and the employees at your company. When knowledgeable workers fill key roles, unqualified workers no longer have to struggle to complete tasks that are overly difficult or juggle multiple responsibilities due to staffing issues. Customers are satisfied because their demands are met by skilled workers and an adequately staffed workplace, which in turn helps your business thrive. This the ROI you've made is silently filled.

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Relocating employees can also help your business build a team at hard-to-staff locations or new offices. Sending experienced workers to the new location can benefit your company as it grows. This gives new hires time to adjust to your company and shadow successful employees rather than trying to learn the ropes on their own.

Sometimes relocation occurs when there is workplace drama between creative, intelligent employees. Your company may not want to lose either employee, yet you may realize it’s not possible to continue having these workers in close proximity to one another. This often occurs when married couples who work together divorce or executives don’t mesh well with sales managers or other supervisors.

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What should companies consider when creating a relocation policy?

Your relocation policy should reflect the needs of your employees or potential hires. Think about all the expenses workers may incur during a move, then provide appropriate compensation. You can do this via a lump-sum benefits package or a fixed-rate reimbursement plan. Regardless of how you distribute the benefits, here are some expenses you should consider including.

Travel expenses

Travel can get expensive for employees who are relocating, especially if you send workers overseas or to another state.

When you offer reimbursement to another state, consider providing a rate based on mileage based on IRS guidelines. In 2024, the IRS recommended a rate of more than $0.70 per mile for individuals who operated a motor vehicle for business or moving-related purposes.

You should also consider other expenses employees may occur during the drive, such as gasoline, toll booths or parking meters. Ask workers to save receipts for all of these expenses so you can provide appropriate reimbursement.

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Home sales

Home ownership may deter employees from relocating, especially if they fear they won’t find a buyer for their home. Consider covering the cost of buying or selling a home when employees relocate. This provides peace of mind for workers who fear they may not be able to sell their current home or find a new one quickly. You may want to partner with us to handle the complexities  with the area of employee real estate and work with ypour employee to insure they are completely satisfied.

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Moving costs

Hiring a moving team can get expensive, but there are other costs to consider as well. In addition to the truck or team of movers, your employees may also need reimbursement for packing supplies such as tape, boxes or padding. If the move is unexpected or requires immediate relocation, a worker may also need packing or shipping services so they can leave the area quickly.

Short-term housing

It’s scary to arrive in a new city with no place to call your own. Rather than expecting employees to live in a hotel during relocation, consider paying for temporary housing such as a condo or apartment rental. You should set up these arrangements in advance rather than expecting workers to find an adequate rental on their own.

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Meal allowance

During a move, relocating employees probably won’t have access to a fully stocked fridge. Make things easier on your workers by providing a daily, weekly or monthly meal allowance during relocation. You can provide reimbursement for food purchased at gas stations, restaurants, airport lounges or grocery stores.

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Paid time off work

Preparing for relocation can quickly become tedious and time-consuming for an employee, even if your company has a generous relocation package. To make things easier, consider offering some additional paid time off of work for a week or two so workers can get everything done. This makes it easier for workers to pack their belongings and head to a new location, but it also provides time for necessary errands such as obtaining a new driver’s license or registering to vote.

 

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FAQs about relocating employees

Deciding whether to relocate current employees or hire new workers from other locations requires careful research about the pros and cons of employee relocation. We’ve compiled some questions you may have about the process so you can determine if relocating employees is the right move for your company.

How much does it cost to relocate an employee?

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The average employee relocation costs anywhere from $20,000 to nearly $100,000. Several factors determine this rate, including whether an employee rents or owns their home, the distance of a relocation, and whether an employee has family members or pets that are part of the relocation.

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How do OUR relocation services work?

Relocation services help companies establish fair compensation for employee relocation. Services for relocation may also include real estate management, rental searches, and packing or shipping services for relocating employees. If your company relocates employees more than a handful of times each year, you may find it helpful to hire relocation services. Relocation companies can handle the paperwork and other essentials while you focus on the onboarding process for new hires or relocated workers.

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How do companies handle relocation expenses?

CORP VELOCITY takes care of the details for each employee the company wishes to highlight as key to the success of relocation with the least disruption

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Relocating employees can get pricey, but think of it as an investment for your company. You may find that paying the relocation costs for a dependable, 

​employee to be high using our company however, the cost of chaos is much more expensive,