Based on the 2004–2005 WSI works council survey, which covers up to 2,000 private sector companies with at least 20 employees, the threat of relocation allowance is more widespread than relocation itself, for workers in Germany. It also indicates that work councils are under pressure to agree to cutbacks connected to working conditions such as time and pay. But the fact still remains that for most people, the idea of a new home out of state is exciting. The idea of moving, the money involved, and all other tasks that relocation includes, is not. Just thinking about all the preparation can already be overwhelming.
Whether you are moving to a nearby community or to the next state, a mile away or hundreds, this is still usually the case, because it is a chaotic and very challenging, especially when you are forced to be moving because your new job requires it. A lot of things can go wrong, but employers would naturally want the move to go as smoothly as planned, if they do not like disappointing the talent they have acquired, especially when they have promised to be as helpful as possible, so much so that relocating and the new job would be something that a new employee can look forward to.
Most businesses that need to assign some of their employees, whether new or old, offer incentives so that they can be motivated enough for the move and doesn’t see it as a major setback in any aspect of their lives. Even with a higher pay guaranteed an employer needs to consider that an employee is not just an employee but maybe a provider too. Or a sister. A mother or a father who invested so much in a place he called home, only to be asked to move miles away and make some sacrifices.
Relocation packages offered often includes adjustments for cost of living, in cases where the employee is moved to a company branch in the city where the cost of living is so much higher. Relocation bonus also helps, as well as providing duplicate or temporary housing, which became a popular incentive back in 2009, even though this was due more to the condition of the real estate market at the time, which would have caused employees selling their former homes, as a bad decision. Because house value dropped a new low, loss-on-sale protection for former home sales was also an offer on the table for relocating workers. You may also see sample agreements.
Obviously, incentives are important to ensure worker’s cooperation for the move since a great percentage of companies relocating their workers stated that incentives were on top of the list of priorities for the employees’ decision on making on the prospect of moving to another place to fill a job post. For smaller businesses, the offer is often temporary housing and bonuses as the primary incentives for relocation.
Companies that are neither small nor large tend to offer loss-on-sale protection for employees former homes. Global companies, on the other hand, are expected to add a cost-of-living adjustment incentive compared to the rest who are operating locally or nationally, for obvious reasons. You may also see free sample agreement templates.
Relocation for employees have increased gradually since 2010, based on the latest survey results from Atlas Van Lines which has been conducted every year since 1967. Atlas vice president, Ryan McConell explained “Lots of companies are struggling to put the right talent in the right places, and moving someone you know is often less risky than bringing in someone new.” He also added that you cannot just force an existing employee to move to another location for their job, that is why new employees tend to agree to relocating than the tenured ones, since the idea of moving after staying on the same location for the job for so long, is not at all attractive for them.
As a response to the recent economic downturn, it was necessary for most companies to rethink about the policies they have in place for employee relocation and any need for redesigning was done to save money while also saving chances of acquiring talents that are good enough to fill the posts away from where they live. Many companies arranged limitations such as placing caps on relocation benefits, re-discuss agreements with suppliers and business partners and also secured loss-on-sale and other requirements involving rel estate.
Compared to national companies, international companies went as much as re-negotiating moving supplier contracts and arranged alternative options for workers like commuting allowance and extended travelling expenses, instead of the complete relocation.
Transitioning employees sometimes feel forced to agree on terms set to them when a company gives little option to their advantage. It is important that as an employer, you should know this will pose financial risks to both you and the employee. The options offered (or lack thereof) may include asking the individual to fill another position that is oftentimes lesser than the one he currently holds. This is not good idea and could damage the relationship between employer and employee on a grand scale, because this shouldn’t be the issue that needs addressing in the first place. The next option for an individual is to look for an employer willing to meet him halfway when it comes to geographical adjustments, in case relocation is necessary.
The company who first found this employee to work for them, then risks losing the talent to a competitor, which could have been a good addition to their team. This also just cost the company money in making arrangements before the agreement was signed. Regardless as to this being a real situation or just an example that isn’t likely to happen, it can have a detrimental effect on performance and confidence on both sides. You may also like simple agreement templates.
Offering attractive benefits for relocation can work in a business’ favor, when done right, because it will attract the right individuals who are young, hungry and driven, making a company choose the best candidate for the position, making the company choose from a pool of only the best individuals that seeks to fill a post. Even if it’s not a potential member of the team, you can still motivate people who are good enough to embrace change and accept the best opportunities that relocation can bring them. Even if it is an old member of your team looking for a change of environment but not of organization.
It would save you work and too much adjustment for the whole process, resulting in smart goals being met earlier than expected, and the company’s operations being in full swing, with little interruption. It also gives the current or future employee a sense of being valued and recognized, so much so that he or she will feel determined to deliver and impress, for the new task ahead, thereby making driving the team performance, and the company forward.
Essentially, you need to make sure that employees, or future ones are informed of the potential setbacks of relocation while telling them that you, as an employer will do what you can to help make it easier. Lack of communication, or anything being held back can hurt not only their motivation, but your credibility as well. Make all efforts to give them the assistance and resources they need, and this can turn into an exciting part of the employees’ life. The more support and the smoother the moving process, the higher chances of the transition being a success.
You can also manage this well, by finding a reputable moving contractor who will help the employee and his or her family with their stuff. When the employee feels that they are not left to tend to their own, especially when they are still new and knowing that the company they will be working with and for, is with them every step of the way, gives them a felling of security and makes them trust their employer more. It makes them feel that they aren’t asked to sacrifice more than what they can bargain and prepare for, more than they are willing to. You may also like sample agreements template.
Once an employee has completed the move, make sure the support continues. Your assistance does not just stop once they are settled in their new location, because living in a new city, town or country, can feel different and at times scary for some people. Give them company contact lists, the HR department if necessary, should they need immediate support or even just some helpful advice while adjusting to their new office location.
The process of relocation can be tiring, sometimes stressful. That does not mean you will not be able to manage it. In fact, it might just open a new set of opportunities in many areas of your life, be it at business, or at home, what with the new colleagues you will meet, the new neighborhood and everything else there, that’s worth giving a try. With the right management of the process, relocation can become the exciting, hopeful experience it should be.
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