What Relocation Costs are Factors to Consider for Employees?

Employee Relocation within the US

With the constantly growing and ever-changing job market, it is no longer uncommon for people to relocate for work. Oftentimes, job seekers are more than willing to move if they’re early in their career and see relocation packages as benefits to them when signing on with a new company. However, it’s also important that to keep in mind relocation might not be ideal or the easiest for families or international employees. We’ll cover a few commonly considered factors when it comes to individuals relocating within the US (from one state to another)!

• Relocation Cost #1: Moving

  The cost of moving can include all the monetary and time costs from packing, loading, and transporting all the household goods. For individuals who tend to move around often, this might not be as much of a bottleneck; however, for those who have never moved out of their parent’s house, it might seem like a big decision for them!

• Relocation Cost #2: Housing

  Surprisingly,30% of Americans’ budgets went toward housing. The housing cost can differ depending on whether you’re a homeowner or a renter. For homeowners, you might consider selling your house and purchasing a new one in the new city, or perhaps you can rent out your existing property while renting or purchasing a new property in a new location. Regardless, it will take some time for the process and usually the decision has a long-term impact on your life so it’s good to think thoroughly.

• Relocation Cost #3: Living Expenses

  The cost of living is associated with the location you’re moving to, so it is essential to do your research prior to accepting an offer and relocating to the city. For example, the average annual salary in big cities like New York City is usually higher than the national average averaging $74,870 in 2023; however, the living cost is also significantly higher averaging at $8,430 monthly. On the contrary, for emerging cities like Phoenix, you’re expecting a lower monthly living cost per family of four at $5,665, with a lower annual salary medium of $58,620. Therefore, it’s essential to thoroughly investigate the city you’re moving to and ensure your offer is going to be enough for the cost of living as well as aligned with your long-term financial goals. Here is a useful cost-of-living calculator you can utilize!

Relocation Tips for International Employees

Other than these basic cost factors to consider when relocating for your current or new employee, moving to a new country for work involves even more unique challenges and considerations.
Here are some tips to help international employees navigate the process:”

How to Obtain a Work Visa in the US

• Consult with HR: Work closely with your company’s HR department or legal team to understand the visa requirements for your destination country.
• Gather Required Documents: Prepare all necessary documents for the visa application, such as employment contracts, sponsorship letters, and personal identification.
• Seek Legal Assistance: Consider consulting an immigration attorney who specializes in work visas to guide you through the application process.
• Stay Informed: Stay updated on visa processing times and requirements, as these can vary by country and may change over time.

How to Find Housing in a New Country

• Research Housing Options: Explore different housing options, such as apartments, houses, or corporate housing, based on your preferences and budget.
• Location Considerations: Consider the location of your new home in relation to your workplace, schools, and amenities like grocery stores and public transportation.
• Local Assistance: Utilize local real estate agents or relocation services that specialize in helping expatriates find suitable housing.
• Prepare Financially: Be aware of any upfront costs, security deposits, or rental agreements required in your destination country. Currency exchange rates may also affect your budget.

Relocating internationally can be a life-changing experience, and thorough planning and research are key to a successful transition. By addressing these important aspects, international employees can better prepare themselves and their families for a smooth adjustment to their new home abroad.

Relocation Tips for Families

Relocating with a family adds an extra layer of complexity to the moving process. Here are some essential tips to help families navigate the challenges:

How to Choose a New School for Your Children

• Research Schools Online: Start by researching schools in your new area. Consider factors such as school ratings, curriculum, extracurricular activities, and proximity to your new home.
• Visit Schools: Whenever possible, visit potential schools with your children. This gives them a chance to see the environment and get a feel for the new school.
• Consult with School Officials: Reach out to school administrators, teachers, and counselors to discuss your child’s needs, any special considerations, and the enrollment process.
• Consider Extracurriculars: Look into extracurricular activities and clubs that may interest your children. This can help them make friends and feel more connected in their new community.

How to Find Childcare in Your New City

• Research Online Options: Explore childcare options in your new city, including daycare centers, preschools, and in-home childcare providers.
• Check Licensing and Accreditation: Ensure that any childcare facilities you consider are licensed and meet safety and quality standards.
• Seek Recommendations: Ask for recommendations from your neighbors or colleagues who are familiar with the area or friends whom you can trust in the area
• Plan Ahead: Start your childcare search early to secure a spot for your child and alleviate stress during the move.

How to Help Your Spouse Adjust to Moving

• Open Communication: Encourage open and honest communication with your spouse about the move. Address any concerns or anxieties they may have.
• Research Opportunities: Assist your spouse in researching job opportunities in the new location. Connect with local job networks and organizations.
• Build a Support System: Encourage your spouse to build a support network by joining local social groups, clubs, or associations that align with their interests.
• Explore the New Area Together: Take time as a family to explore the new area, discover local attractions, and engage in community activities to help your spouse and children feel more connected.

 

Typical Company Relocation Packages

When it comes to employee relocation, various packages are available, each catering to different needs and circumstances. Understanding these different types of relocation packages can help both employers and employees make informed decisions:

• Lump Sum Packages: This type of package gives the employee a lump sum of money to cover the cost of their relocation. The employee can then use this money to pay for things like moving expenses, temporary housing, and home sale/purchase costs. Lump sum packages provide flexibility for employees to manage their move according to their preferences and priorities.
• Tiered Packages: Tiered packages offer different levels of benefits based on the employee’s length of service and salary. For instance, a new employee may only receive a lump sum of money, while a more experienced employee may also be eligible for assistance with selling their current home and finding a new one. This approach recognizes the varying needs of employees at different career stages.
• Managed Budget Packages: With this type of package, the employee is provided with a set budget to cover the cost of their relocation. They then work closely with a relocation company to plan and execute their move. Managed budget packages are ideal for employees who prefer to delegate the logistics of their move to professionals, reducing the stress associated with relocation planning.
• Fully-Covered Relocation Packages: These comprehensive packages cover all the costs associated with an employee’s relocation. This includes moving expenses, temporary housing, home sale/purchase costs, and even travel expenses for the employee and their family. Typically, fully covered packages are reserved for high-level executives or employees relocating to areas with a high cost of living.

Relocation Policy Template

If you’re an employer looking to create a relocation policy for your company, it’s essential to have a well-defined policy in place to attract and retain top talent. On the other hand, if you’re offered relocation assistance at your new job, it is essential to know what is typically included and what are elements that you care about the most. Here are some key components that should be included in a relocation policy:

• Moving Expenses: Define what moving expenses your company will cover. This should encompass packing, loading, and transporting the employee’s household goods.
• Temporary Housing: Specify whether temporary housing will be provided, and if so, for what duration. This might be crucial for employees who need time to settle in their new location.
• Integration and Cultural Assistance: Consider offering assistance to help employees acclimate to the new location and culture. This can include language classes, cultural orientation programs, and local community resources.
• Home Sale/Purchase Assistance: Outline the level of support your company will provide for selling the employee’s current home or finding a new one in the new location. This might include covering closing costs, real estate agent fees, or relocation assistance. Integration and cultural assistance: This may include help with acclimating to the new location and culture.
• Travel Expenses: Explain the company’s policy regarding travel expenses for the employee and their family during the relocation process. This could include reimbursement for house-hunting trips and visits to the new location.
• Spousal Employment Assistance: Consider offering support for finding employment opportunities for the employee’s spouse in the new location. This can be a significant factor in the employee’s decision to relocate.
• School Location Assistance: If your employees have children, provide guidance on finding suitable schools in the new location. This could involve information about local schools, enrollment processes, and educational resources.

Here’s a sample relocation policy template that you can use as a starting point for creating your company’s relocation policy.

 

Employee Relocation Assistance

Employee relocation assistance plays a pivotal role in ensuring a smooth transition for both the employer and the employee. Let’s delve deeper into what it entails and why it’s beneficial.

What is Employee Relocation Assistance?

Employee relocation assistance refers to the support and resources provided by an employer to help employees successfully move to a new location for work-related reasons. It encompasses financial support, guidance, and services aimed at reducing the challenges and stress associated with relocating.

Benefits of Employee Relocation Assistance

• Attracting Top Talent: Offering relocation assistance can make your company more appealing to potential hires, especially if they need to move for the job. It demonstrates your commitment to employees’ well-being and career development.
• Reduced Turnover: Employees who receive support during the relocation process are more likely to feel valued and stay with the company longer. This can lead to reduced turnover and the retention of skilled and experienced employees.
• Enhanced Productivity: Relocating employees can focus on their new roles more quickly when they don’t have to worry about the logistics of the move. This leads to improved productivity and faster integration into the company.
• Cost Savings: While providing relocation assistance can incur some upfront costs, it can ultimately save your company money by reducing turnover and ensuring that employees are ready to contribute to the organization sooner.

How Can Hotfoot Recruiters Help You in your Relocation Process?

Hotfoot Recruiters specializes in staffing but we are no stranger to making employee relocation as smooth and successful as possible for both our client and candidate!  Here are some strategies and assistance we can provide the company and candidate throughout the process

• Set Up the Right Candidate Expectation
  We work with you to communicate the relocation package clearly to potential candidates, ensuring that they have a realistic understanding of the benefits and support they’ll receive.
• Ensure Candidate Cultural Alignment
  We take into account the cultural fit of candidates with your company culture. This alignment is crucial for their long-term satisfaction and success in the new location.
• Explain the Relocation Package Clearly
  We provide comprehensive explanations of the relocation package, addressing any questions or concerns candidates may have. Our goal is to make the process transparent and stress-free.
• Be the Guide for Candidates in General
  We serve as a resource and guide for candidates throughout the entire relocation process, from the initial offer to settling into their new roles and locations.

Whether you’re an employee embarking on a new chapter or an employer aiming to attract and retain top talent, relocation is a significant milestone. By gaining insight into the associated costs, understanding the benefits, and exploring different types of relocation packages, you can confidently navigate this journey. A well-structured relocation policy and the support of experts at Hotfoot Recruiters can significantly enhance your chances of a successful transition. Keep in mind that, with the right planning and guidance, relocation can be a positive opportunity for personal and career growth.

 

 

Follow HotFoot Recruiters on LinkedIn or book an intro session with HotFoot Recruiters to learn more about how we can be your temporary quick staffing partner! If you’re a candidate interested in working seasonal positions, please call 480-633-3392 and ask to speak with a recruiter or apply today online!