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Why Relocation Services Should Include Spousal & Partner Support

The Importance of Providing Spouse & Family Support for a Successful Relocation Process

Relocating for a job can bring many new opportunities to one’s professional career. But moving to a new destination for a job can also mean uprooting a partner, or even an entire family. When a candidate accepts a new position and agrees to move for the job, many negotiate to get relocation costs covered by the new company. Companies that are regularly involved in the talent mobility process work with relocation management companies (RMC) to construct relocation packages that are enticing and helpful to employees. 

But do these relocation benefits ever include any support for the transferee’s spouse or family? Any modern RMC representative would highly recommend including partner/spousal support and family support offerings to recently hired employees. There are many reasons companies should be happy to help ease the transition for their new employees’ families. For example, if the employee knows their family will have an easier time moving, they are more likely to accept the position. Finding the right candidate quickly cuts down on the time of the job search. Also, knowing their family will be taken care of during the relocation process because of special relocation benefits, the employee can have their mind on their work. 

There is no one size fits all relocation package. Each talent mobility assignment is different and should be treated as so. With that being said, there are numerous relocation services that RMCs can provide to moving employees’ spouses and other family members. Let’s look at some of the more common programs worked into the relocation process.

Area Orientation Trips

Orientation trips are a relocation benefit that tends to get overlooked. Many RMCs would recommend that companies cover at least one or two (if not more) orientation trips for the employee and their partner/spouse. The main reason to add this into a relocation package for the employee to utilize it as a house-hunting trip. Including this service helps the employee and their family get somewhat familiar with the lay of the land for their new destination. These trips can also be used to check out different schools and activities for those relocating with children. Taking a tour of a local school might help the family decide which neighborhood they might want to settle in. If the transferee’s kids play sports or participate in other after-school activities, then take advantage of the trips to meet and greet with coaches and directors so that they are not starting from square one once arriving in the new city. Area orientation trips can give kids and spouses a new, exciting spin on the move if a dream house is discovered while house hunting.

Spousal Career Services

Another perk that should be included in relocation packages is career services for the moving employee’s spouse or partner. It’s not unusual for a domestic partnership to make up a dual-career household; this means if the family is moving for one person’s job, there is a chance the other will have to quit or alter their career. But there are ways that companies can work with RMCs to include spousal career services in their talent mobility benefits. These programs can offer comprehensive career assistance along the lines of: 

  • Quick Start Job Search Preparation (marketing tools, job search assistance manual)
  • Job Search Assistance (market information, access to searchable data)
  • Personal Branding (online profiles, personal website, blog, video)
  • Partnering Services (online courses for job search execution)
  • Resume Writing Services (resumes, cover letters, LinkedIn profile)

Spouses who are moving with their partner can use this time to their advantage. Some people hold off on a career change, but right after a relocation could be a perfect time. If the moving spouse has to resign from their current position anyway, then it could be a new beginning they need to switch industries or positions, maybe even start their own business. In very lucrative relocation offerings, there may even be grants and financial support benefits for the employee’s spouse to get special training for a new job. And sometimes, some RMCs might even work in entrepreneurial opportunities for relocating partners.

Language Training

For international relocation services, language training might be one of the most essential benefits needed. Those who relocate to a new country with a spouse and children will more than likely have to learn a new language. Learning a new language can be difficult if the family has not been preparing for it for a few years leading up to the move. Companies that plan to interview, and ultimately hire, global candidates should seriously consider covering or reimbursing for classes and tutoring for the employee and their family members to learn the language of their new home. Language training programs give the spouse and family a better chance of adjusting and liking their new surroundings making it more likely that the employee can succeed at their new job as well.

GMS Offers Relocation Services with Spousal Support

For international relocation services, language training might be one of the most essential benefits needed. Those who relocate to a new country with a spouse and children will more than likely have to learn a new language. Learning a new language can be difficult if the family has not been preparing for it for a few years leading up to the move. Companies that plan to interview, and ultimately hire, global candidates should seriously consider covering or reimbursing for classes and tutoring for the employee and their family members to learn the language of their new home. Language training programs give the spouse and family a better chance of adjusting and liking their new surroundings making it more likely that the employee can succeed at their new job as well.

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The Core-Flex Employee Relocation Model Explained

How Core-Flex Policies Work

When relocating for a new position, a company may offer relocation benefits to help the employee with moving expenses and to help ease the relocation process altogether. Oftentimes, larger companies will have several tiers of relocation packages to offer their new employee, depending on the employee’s level, the size of the move, and if family members are involved. A relocation policy type that is becoming more popular with companies is the core-flex model. Core-flex relocation policies incorporate a core relocation benefit section, along with a list of flexible, optional benefits that can be used depending on the relocating employee’s needs. 

Core-flex relocation programs do not give relocating employees free range on moving expenses as most lump-sum global mobility packages do. However, core-flex options eliminate some of the stress from the relocating employee. For example: the hassle of hiring suppliers, service quality, expense, and tax overruns.

What Should a Core-Flex Policy Include?

While each relocation management company (RMC) will help companies customize and construct different relocation packages, the main, or “core”, components of a typical U.S. domestic relocation policy might include: 

  • Relocation coaching – a certified relocation specialist is assigned to each employee who is moving to help guide them throughout the entire process. 
  • Home-sale assistance – typically included in most relocation packages, RMCs usually help transferees sell their current house with a range of home disposal options that include the Buyer Value Option (BVO), Guarantee Purchase Offer (GPO), direct reimbursement, and home marketing assistance.
  • Corporate housing options – also known as short-term or temporary housing options. This benefit gives the transferee the opportunity to stay in a furnished apartment or townhome for 30, 60, or 90 days while they adjust to their new area and are on the hunt for a new place to call home. 
  • Travel expenses – Most times, companies will cover a variety of travel expenses for the employee and their family as they travel to the final destination to begin the new position or promotion.
  • Shipment of household goods – this one seems like the most obvious. This generally includes the packing and shipping of household goods and is usually included in relocation packages.

Flexible add-ons that can enhance a Core-Flex policy include, but are not limited to:

  • Home purchase assistance
  • Storage of household goods at the destination
  • Spouse/partner career transition assistance
  • Mortgage assistance
  • Child/elder care assistance
  • Miscellaneous allowance
  • and more

Advantages of Core-Flex Relocation Policies

A major advantage of core-flex policies is that they give the employee just enough decision-making ability to feel like their needs are being met. Making a new or current employee feel valued and heard goes a long way when trying to attract the best person for the open position. 

It gives the employee more freedom, which in turn can make the relocation process go quicker. The employee can select from a menu of services that are provided by competitive and vetted vendors, empowering the employee and providing them the flexibility to put the mobility process in motion on their own.

There is also a huge potential for cost savings using the core-flex approach when relocating employees. In most standard relocation packages the company might try to utilize a “one size fits all” approach. This could mean that there are benefits that employees either won’t utilize or might not even need. With core-flex policies, the company can better align relocation benefits to each employee while putting a cap on flexible benefit spending amounts. 

Constructing Solid Core-Flex Relocation Policies

GMS has been helping companies put together the best relocation packages since 1987. Our highly experienced team can assist in the moving of new or current employees in any industry. Team members at GMS have over 50 years of combined experience helping companies create and benchmark their core-flex relocation policies. GMS specializes in and is happy to help companies construct competitive core-flex relocation policies that offer both employee choice and company control. Reach out today with any questions regarding the core-flex model for relocation benefits.

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Common Employee Relocation Packages

A Look at Typical Relocation Packages

Relocation packages, also known as relocation benefits, are policies and support that companies offer employees who are transferring to a location for a position. Each company will have different needs when it comes to relocation benefits, and it can be difficult for companies to know exactly what should be covered in these policies and what the employee should be responsible for on their own. In order to make the chosen candidate a qualified and competitive offer, it’s always a good idea to have a competitive and comprehensive relocation package to offer moving employees. 

Companies typically have the ability to tailor relocation programs based on each hiring situation. Some companies choose to have their HR department handle employee transfers, but if the company is looking to be consistent with their relocation packages on each hire, it’s probably a good idea to use a reliable relocation management company.

What Does A Standard Relocation Package Include?

Most relocation policies outline some sort of reimbursement or coverage for many of the common needs of moving. Relocation benefits often include full packing and unpacking services along with a quality and reliable moving company to get the employee’s household goods from point A to point B. 

On top of moving expenses, home sale assistance is another common benefit offered to transferees. This can include selling programs using vetted real estate agents who specialize in the relocation process to help assure a quicker and more successful home sale for the moving employee. Some policies may offer lease-breaking assistance for those employees who rent, in the event that the employee has to pay a penalty for breaking a lease early. House-hunting trips can also be included in the real estate portion of the relocation package. This means the company might cover a trip or two for the moving employee to scout out their new area and tour some homes or apartments before making the full move. 

Corporate housing options, or temporary housing, are usually included in most relocation policies. This gives the employee a place to stay short-term after they’ve moved in order to find a full-time home in their location, without having to miss their desired start date for the position. 

Many companies also offer transportation coverage or reimbursement in their relocation offerings. This might cover airfare for the employee and their family or expenses for driving across state lines. In some instances, companies will cover the employee’s vehicle transportation as well.

What Expenses Are Typically Covered During Relocation?

While not an exhaustive list, the below are common relocations costs for which many companies provide support to their relocating employees:

  • Corporate housing options 
  • Household goods transportation (HHG)
  • Storage facility (temporary storage of the HHG shipment
  • Miscellaneous expense allowance
  • Home sale costs
  • Spousal employment assistance
  • Travel-related costs, such as airfare, meals, hotel nights

As every company has different goals and objectives for their relocation program it is common to see many relocation policies that are tiered, offering different levels of support for each employee. 

Here is a breakdown of the most common U.S. domestic relocation policy tiers per GMS research:

 

chart of relocation policy tiers

What Types Of Employees Receive Relocation Packages?

This aspect will depend upon the company’s need for each position and how important it is to get that employee to the new location. The best practice for relocation programs is to build a tiered system based on employee level. These tiers are commonly built around entry-level employees, professionals, directors, and vice-presidents. Additionally, many companies have executive relocation packages to cover most executive-range employees. For some companies, they may also have international relocation package examples for employees moving globally.

Common Methods to Address Costs in Relocation Packages

Different policy tiers within your relocation program may necessitate different strategies for paying for your employee’s relocation costs. It is important to understand the advantages and disadvantages of these common methods.

Direct Billing: On your behalf, the relocation company sources, coordinates, and directly pays the vendors used in the relocation of your employee. Invoices are audited, consolidated, and then passed through to you for payment. While potentially more costly, this method ensures that your employee is getting the most out of their benefits and is able to make it to their new destination on time without the need to stress over the costs of the move. 

Expense Reimbursement: The employee pays for the cost of moving expenses up front and the company cuts a reimbursement check toward the end of the process. While not generally intended to be used to cover an employee’s entire move (few families have the cash on hand to pay tens of thousands of dollars for a move), reimbursements are commonly used for miscellaneous expenses as outlined in the company’s relocation policy. Typically, reimbursements are used for items such as travel costs, or other related items.

Lump Sum: As opposed to an expense reimbursement, a lump sum is commonly used as the primary financial benefit provided to a relocating employee. In a lump sum policy, a set amount of money is given upfront to the employee so that they can handle the moving expenses as they see fit. 

Generally provided to entry level or lower level employees, the lump sum itself is commonly the only relocation benefit provided. While the lump sum is seen as an excellent cost control tool for companies, it places additional burdens on the employee as they are left to their own devices to manage their move. This is in addition to the lump sum typically qualifying as income which is taxable. Employees who receive their relocation benefits in the form of a lump sum should be sure to note the payment for tax purposes. Employers should consider adding a tax gross up to the lump sum to help mitigate the effects of the income tax on the employee’s benefit.

Ready to Set Up Relocation Packages for Employees?

Global Mobility Solutions is a full-service relocation management company who specializes in assisting companies in creating comprehensive relocation packages that benefit both the company and the employee. For more than 30 years, GMS has helped companies get their new employees situated in a new place, assuring the process is seamless for the transferee. If you’re ready to set up or update your relocation policies, reach out to us today

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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