Paid relocation is not mentioned nearly as often as other common benefits like paid time off, medical and dental coverage, parental leave and flexible working hours, but perhaps it ought to be. Because if your company were to officially offer relocation benefits, in some cases it would make a significant difference in landing top talent who otherwise wouldn’t consider your job opportunity; we now have some job relocation data to back that up.
Here are some of the surprising findings about job relocation benefits from one study, which surveyed 1,000 people who relocated for work:
What the research says
According to an employee relocation study conducted by moving company Allied, candidates are often open to relocating for the right company and the right position. Here are the key findings from that study:
- The size of the company doesn’t bear much weight on the candidate’s likelihood to relocate; in fact, 22% of relocated workers moved for an organization with less than 50 employees
- Nearly half of all employees who relocate do so for career advancement or more money
- Young professionals are the most likely to relocate; in fact, almost 70% of those polled were under 34 years of age
- Of the organizations that provide relocation assistance, most provide assistance with moving expenses, while some provide additional benefits like help with living expenses, miscellaneous allowances, lump-sum packages, and pre-move house-hunting trips
- While workers care about the amount of time they’re given to move, most employers (70%) provide less than 60 days
- The distance workers moved was somewhat equally yoked; they’re slightly more likely to accept positions within 200 miles
Why relocation matters
Now that we’ve seen some highlights from that study, what does that mean for your talent strategy? What difference would adding a relocation package to your benefit offerings really make for your recruiting efforts?
Well for one, the most effective organizations are those with a diverse, talented workforce, but very few companies are able to find the talent, experience, and diversity they need in a single geographic region. Expanding your search to include nationwide or worldwide candidates is critical to improving the quality of your applicants and the success of your final hire, but that candidate will have to be able to afford (or be willing to shoulder the costs) to move to your area. Providing these out-of-area candidates with relocation assistance can ensure that the financial burden isn’t a reason for them to reject your job offer.
Secondly, offering relocation offers a myriad of benefits to your hiring strategy overall. It gives you a more diverse candidate pool, increasing your chances of finding the right candidate with the right qualifications and right fit. It increases diversity among your workforce by pulling from different geographic regions, which bring unique socioeconomic backgrounds, work experiences, races, religions, perspectives, and more to the table Further, it speaks volumes about your organization’s care and concern for the candidate by saying, “We care about your transition. We care about your financial security. We care about your comfort.” Finally, it increases your competitive edge, making it easier to secure top talent even if you’re competing against other offers and other organizations.
The bottom line is: offering job relocation benefits helps you cast a wider net for recruiting, it helps get more of the right candidates eligible for and interested in your job offerings, and it makes you a more supportive and attractive employer overall.
How to build your relocation package
A relocation package for companies should be used as a helpful resource for new employees to move to a new location. Relocation should have parameters that pay for moving, packing, and
as well as accommodations while that employee is completing their move. Companies should decide what their budget will be and then determine circumstances where additional expenses
may be applied. You can use the following steps to make this program work:
- Collect receipts and reimburse for moving expenses
- Partner with a moving company who will do the work and bill your company
- Find a hotel chain or property owner who will rent space to your for lodging for a reduced rate
- Allow the employee freedom to choose their move dates
When your company is setting up your relocation plan, it might be helpful to offer a gym membership, have an office gathering in honor of the new hire, or have a few staff members take the new employee and their family a tour of the city. All of these things work together to make the move easier for everyone involved and help your employees feel valued and welcomed, which we all know is important for employee engagement and employee retention.