Globalization plays an influential role in today’s candidate-drive market. This makes finding top talent locally difficult. As a result, hiring managers are extending recruitment efforts beyond states and sometimes even internationally. Relocation packages are valuable recruiting tools. They give the impression that the company is a place that values great employees, pays for performance and takes care of its people. Here are a few things you need to know if your company is offering or is considering offering relocation packages.
Be aware of what other companies are offering
Whether it is lease break coverage, home sale/purchase assistance, spousal job support, temporary housing, whole-house pack and transport, or even child care (to name a few) make sure you know what is standard in your location and industry. But, be realistic when considering what your organization is prepared to offer by outlining a specific percentage point you’re willing to cover.
Be prepared to negotiate
You may know what is standard for your location and industry, but that does not mean your potential hire will agree to your terms. It is normal to go back and forth when running relocation package numbers. Remember to assess all risks and costs associated – weighing all pros and cons. Have multiple options prepared in advance and make sure the candidate is clear from the beginning about what their expectations are for support.
Having said the above, sometimes negotiation does not work or you cannot seem to diminish the inability to offer a similar package as your competition. Do not let this inability stop you. Consider all your options. Cannot offer child care? Offer a sign-on bonus to give extra assistance to help the family afford child care. You can even consider great work life flex benefits to ease any stress from moving.
Be sure to document everything
Agreed on specific terms for a relocation package? Make sure you get everything in writing. Add in a non-compete clause, a confidentiality agreement, buy-out provisions and any reimbursement metrics. Relocation is typically a stressful experience. Contracts will eliminate any potential miscommunication while keeping communication between both parties transparent. They also and allow your organization to potentially retrieve a return on its investment.
At the end of the day, unpredictable things can always happen after you have agreed on a relocation package. Your new hire could get home sick, be a bad performer or even attempt to pursue new job opportunities after relocating. So, before offering a relocation package, make sure the candidate you are investing in is worth the investment.