By Rachael Stinson of Digman Land in Canada
Denver Relocation buyers flock to the Mile-High city. Because, the Denver economy is booming. However, when employees learn that their company is moving to a new location, employers can suffer corporate relocation pitfalls.
Employee relocation happens when a company chooses to move employees from one location to another. This process is called “Corporate Relocation”. And, both companies and employees can avoid corporate relocation pitfalls.
The company will often entice employees with benefits to make the move smoother. Common concerns employees face about corporate relocation include:
- Quality of life in the new destination
- The housing market
- Spouse employment opportunities
- Proximity to quality schools and hospitals
- The cost of moving
- Availability of recreational facilities
- Availability of quality health care.
Companies involved in corporate relocation usually attempt to help address the issues employees are worry about. Also, the benefits of transferring to a new location should also be confirmed in writing.
If the transferee’s spouse is employed in the current location, then the employer of the transferee might share job opportunities that would be available in the new location. Or, the employer might do research and get job opportunities for the transferees’ spouse. If an employers addresses this concern, those employees tend to be more comfortable in the transition.
The availability of quality health care for all ages is often a concern. Transferees with children are also concerned about the quality of education in a new location. Companies are likely to provide useful information to address these concerns.
Home Sale or Assistance Benefits
Companies can offer help with the sale of an employee’s home or help with the funding of a new home to cut the employees fears of real estate prices, mortgage availability and population diversity. Reimbursement is offered in some form to employees so that they can help cover the cost of relocation. This might even include a “guaranteed buy-out” in which the employer or a relocation company actually purchases the transferees home.
When a company changes location, there are consequences for their employees. Consequences mostly depend on the reasons for the change in location. Company relocation can have positive or negative result for employees. Sometimes, there is a drop in employment. It could result from cutbacks or from employee disgruntlement.
Employers often offer relocation packages when employees need to move to another city. Relocation packages offer incentives an employee to relocate to another city to continue working for the company.Sometimes, the packages are offered by the Company though the human resources department. In addition, a third-party national relocation company can be engaged by the transferring employer.
Companies are likely to give a comprehensive relocation package to improve company morale and retention of employees during the move. One of the priorities of an employer is to make sure that the employee has a smooth corporate relocation and a safe landing. Usually, time-frame to receive benefits is given to employees for completing their personal relocation.
Relocation Tips to Companies
If a company wants to relocate it should think about relocation packages for the employees. Employees tend to appreciate whatever support companies provide during the relocation process. Relocation packages often include:
- Orientation trip: Some employees travel to the new location to know about accommodation options and know more about the area. Packages for orientation trips include hotels, meals and transportation.
- Moving costs: Companies may reimburse transportation expenses to the new location. Some companies may hire professionals to move the employees properties.
- Home sale/buying a home/breaking a lease: All costs associated with breaking a lease, selling a current home or purchasing a new home are sometimes included in the relocation packages.
- Spousal support: Sometimes the company may give spousal support if the employee is married and the spouse needs to find a job or set up a business.
- Pre-decision counseling: Employees are counseled on whether the move is the right one for them and the benefits of a move to the new location.
Relocation packages might include relocation bonuses, pay adjustments, storage facilities, legal assistance and language training.
Relocation benefits depend on the employer, employee and circumstance. So, both employers and transferees need to pay attention to possible tax implications of these benefits too.
The three primary ways in which corporation disburse relocation money to employees are lump sum, capped allowance plan or a core/flex program.
Usually, the Human Resource department of a company is involved even if a national relocation Company is hired for the move. They usually inform employees about relocation updates. Most importantly, they can help with personnel morale during the Denver relocation.
Denver Relocation Pitfalls
- Giving a short time-frame for relocation: If a company gives an employee a short time-frame to relocation then there is a high probability that the employee will not relocate at all.
- Forgetting the spouse and/or children. Remember, an employee may not be obliged to move.
- Requiring expense documentation: A company should not require that employees write everything down. Or, that transferees provide reciepts for every expense.
Why Employees Resist Corporate Relocations
- Relocation is complicated
- Relocation is expensive
- Employees do not believe the employers promises of favorable work conditions.
- Adapting to a new environment is daunting.
- The pay is not worth moving to another location.
- They do not want to affect family lifesytle by relocating.
About The Author
Rachel Stinson works on behalf of a Canadian Land Company, Digman Land.