Today’s job market is tough. The professionals you need in your industry with specific, desirable skills are often not in your town, city, or even state. Fortunately, these days it’s easier than ever to locate talented professionals all over the world. However, in order to compete with major companies and attract the best and brightest to come work for your business, offering relocation assistance to top candidates is a vital way to demonstrate commitment and show you care about your employees. Though employers are by no means required to offer assistance to relocate employees, it absolutely incentivizes the offer, which may make all the difference in encouraging candidates to accept.
Some form of relocation assistance is offered by all sorts of companies, from small, 10- person businesses to industry leaders that are thousands-strong. According to a survey by specialized staffing office Robert Half, approximately 70% of employers offer some form of relocation assistance. Of these, 84% of businesses offer a level of assistance that is tiered, reflecting the salary level of the candidate, with executives garnering the most generous relocation packages. In 2012, the Allied Workforce Mobility Survey found the average relocation package costs $21,033 per person.
Finding (and keeping)the best candidates to fill key roles in a company is of utmost importance to the success of any business. According to an Allied job relocation survey, almost half of the respondents stated career advancement as the reason for their move, with young professionals (aged 25-34) 40.2% more likely to move than any other age bracket. Moreover, the research by Robert Half found that 62% of individuals surveyed said they would relocate for the “right job”.
While this research clearly shows that individuals are willing to relocate their families for a job, it’s also important to note that the act of moving has consistently ranked as one of the most stressful life events, even above divorce. The other top stressor is starting a new job.
When offering out-of-town candidates employment offers, you are providing a solution for two major hassles, which undoubtedly impacts the decision of whether to accept or decline the offer. In order to retain the most talented candidates, it is essential to extend the most attractive offer. That is one that mitigates the cumulative stress associated with job relocation. For example, the Allied survey indicated that finding a new home was the biggest challenge of relocation, which is something employers can easily help with by offering relocation assistance. This way, employers actively diminish strain and make relocating for the job even more enticing and hassle-free.
Keenan Wong, Content Marketing Manager at Blueground, described his experience as an employee offered relocation assistance as a “lifesaver”. Relocating to Greece from Germany for his new job could easily have been an enormously stressful experience, however, his employer offered him a furnished apartment upon arrival, making it easier to “[adapt] to new surroundings, a new country, and, ultimately, a new job”.
With almost 57% of individuals reporting “benefits and perks among their top considerations before accepting a job”, relocation assistance can be a crucial deal-breaker for valuable candidates that should not be overlooked.
The type and breadth of relocation assistance vary by company and by candidate. However, there are a few specific types of assistance that a company may choose to offer.
Widely practiced, offering a lump sum toward relocation means you have offered the candidate a specific, agreed-upon dollar amount that the candidate may utilize in whatever way they see fit (mainly in order to cover their moving expenses). This amount may be paid upfront in cash, directly paid for through the moving company via the business, or reimbursed by the company after the fact. Offering a lump sum is often simpler for employers, as it minimizes record keeping of specific expenses, has lower front-end cost and allows the employee to have more flexibility.
Covering the cost of the move to the place of relocation. About 93% of companies report having no weight limit on shipments within the United States. Some companies also cover the cost of packing and unpacking these goods, making the move itself painless and straightforward.
Sponsoring the cost of travel and lodging to the city of relocation while the candidate searches for housing there. This often includes coverage for the spouse, and potentially the entire family.
Employers offer to cover the costs associated with selling a home and purchasing a new one, including closing costs, real estate commissions, and loss-on-sale.
Covering the rent of temporary housing post relocation, often furnished, for an established period of time. Offering candidates furnished and equipped apartments is an easy way to show that you value them, and allows them to start in their role without the extra burden of getting acclimated. An exemplary choice, Blueground apartments are located in major cities across the globe. They are all turnkey ready, easily booked, and offer tenant services via a mobile app in order to make the experience as seamless as possible. With relocation anxieties put to rest, your new hire will have more time to focus on the things that matter, which means higher levels of productivity, and a seamless transition into your business.
Employees are the most fundamental building block of any and all businesses. In order for a company to operate successfully in the global market, they must be able to attract and recruit the most talented and most qualified individuals in their fields. To do that, companies must demonstrate their investment in the candidates. That includes offering a competitive relocation package to alleviate the psychological and fiscal burdens of relocation, as well as establish goodwill and positive company culture. By offering relocation assistance, you’re investing in your employees. Doing this means companies not only secure talented candidates but also build employee loyalty and longevity, resulting in better work and a better workplace.