When it comes to relocating an employee, there is a lot that goes into the process. Thankfully, with corporate relocation services, the process can be somewhat streamlined to ensure a smoother transition.
The thing to keep in mind is that there are more than a few different employee relocation packages that a company can pick from. They are not one size fits all, which means determining which of these packages makes for the smoothest relocation possible.
1. Tiered Packages
Perhaps one of the most popular of the relocation packages, they are considered to be the most cost-effective on the business side of things. That is because this type of package is matched to the employee, their seniority, and their individual circumstances.
The three tiers are generally tier one being for interns or entry-level employees, tier two being for mid-level managers and any long-serving professionals that have a mortgage or are private tenants, and tier three being for senior managers or high-ranking executives. Each comes with its own costs and responsibilities but can help companies determine how to allocate those assets properly.
2. Lump Sum Packages
Another of the corporate relocation services is the lump sum package, which also goes by the name of “cash only payment.” It is the simplest relocation service there is but it isn’t necessarily the best fit some of the time.
This is meant to assist employees with their move, leaving them to keep any cash that might be left over. It isn’t necessarily the most cost effective solution there is, but can be seen as a positive thing for employees. That said, it also fosters cutting corners to pocket more money, which can lead to bad moving experiences.
3. Managed Budget Packages
These also go by the name of “capped allowances.” For smaller companies in particular, this is a way to limit what gets spent on the move. Most of the time, this package is used when going with a third-party relocation service.
The goal here is to provide the relocation service with a budget for that relocation. It can mean having a better understanding of what the various services garnered are and what those costs will look like. Having a fixed cost can be great for recordkeeping for small businesses that can’t just throw money to relocate an employee.
4. Fully Covered Packages
These are quite common as well and are typically meant for higher-level employees. This can also be the most expensive option given that there are unpredictable, often times higher costs than some of the other packages offered.
Having a relocation manager helps to mitigate the potentially out-of-control costs associated with this type of package. It also limits the risk to the budget and for any of the benefits being used for any kind of unnecessary or improper expenses. This package is also typically reserved for the high-ranking executives in a company, so the budget can be quite a bit higher as well.