Companies that relocate employees know that employee retention rates drop after a relocation. Employees find themselves in a new city with new opportunities, and sometimes those opportunities draw them away from their former employer. Sometimes the stress of the move itself, or conflict arising between the employee and employer resulting from the move, can also drive employees away. When an employee is willing to relocate, this does not prove that the employee has a high level of commitment to the company.
Improving Relocation Packages
There are a few additions to your relocation package that can help improve employee retention after relocation. Here are some ideas:
- Determine the employee’s level of commitment to the company before the relocation. Find out why they want to relocate, what they plan to do in the new city, and so on.
- Send the employee and family on a trip to the new location to look at homes, neighborhoods, and so on, to make sure they will like the new location.
- Obviously, be willing to cover as many usual moving expenses as possible. These include hiring movers, storage, hotel expenses, vehicle and school registration fees, and so on.
- Include a loss-on-sale provision when the employee sells a home. Falling real estate values can cause employees to take a financial hit when selling their home. Also consider offering down payment assistance on a new home.
- Have the employee sign a contract where the employee agrees to repay the company for moving costs if the employee leaves the company within a certain time frame.
- Hire a relocation company to handle the details of the relocation. The amount of considerations involved in a relocation are enormous, and conflicts between employee and employer can easily arise if an issue is not handled responsibly.
- Provide a relocation moving guide to your employee that outlines the considerations of a big move.
- Go the extra mile to show your employee that your company cares. Don’t hesitate to offer bonuses in your relocation package if the employee’s situation would be improved by it. A little up-front cost could save a lot of loss later if the employee abandons the company.
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