Relocation packages: A guide for employers
Explore how to leverage relocation assistance to appeal to a global pool of talent.
Did you know that 63% of the global workforce are open to relocating for work, 23% of which are actively looking to relocate?
These findings are among the most significant from the Global Talent Survey, a landmark piece of research from Totaljobs and our partners in The Network, a global alliance of more than 50 leading recruitment websites, alongside Boston Consulting Group (BSG), one of the world’s leading management consultancies.
By leveraging the knowledge and perspectives of over 150,000 workers across 180 countries, the GTS explores trends and evolving talent preferences, thereby uncovering insights to help employers hire candidates from across the globe.
In this article, we’re going to focus on relocation packages, specifically what the findings of the GTS tell us about their importance and how your organisation can leverage these packages to appeal to highly skilled global talent.
What is a relocation package?
A relocation package is the assistance employers offer when a new or existing employee relocates for professional reasons.
The managing director of Agile HRO, Jamie Haerewa, previously told Totaljobs that relocation packages are “the secret weapon that helps businesses stand out from the crowd and attract the very best candidates”. These packages can be made up of the various things that ease the transition of moving location for professional reasons, including:
- Practical advice
- Financial support
- Temporary housing
- Real estate assistance
- Family support
Comprehensive support with relocation forms an important part of the onboarding process for relocating workers. “By providing a smooth transition and minimising disruptions, these packages create a positive work environment that fosters productivity and engagement,” according to Haerewa.
Appealing to a global workforce
Employers in the UK have a unique opportunity when it comes to hiring international talent. The GTS found that London is the most attractive city in the world for workers looking to relocate, while the UK comes in at fourth in the country rankings.
Whilst these findings demonstrate the advantages employers based in the UK have when it comes to appealing to global talent, relying on location alone isn’t enough. For example, 46% of GTS respondents said that a smooth relocation and onboarding process would help them choose a certain company from another country, and of this group:
- 79% expect some sort of housing assistance
- 69% want specific support with relocation
Relocation assistance and international hiring
Given the findings of the Global Talent Survey outlined above, it’s clear that relocation packages should play a central role in the hiring strategies of UK employers looking to appeal to a global pool of talent.
But how else can employers’ benefit from offering support with relocation costs and onboarding overseas talent? Let’s take a look at the outcomes your organisation can expect by offering packages that cover the cost of relocation.
Increase talent pool
Providing support with relocation, whether that’s a lump sum or on an ongoing basis, allows employers to significantly expand the pool of talent available to them when recruiting for an open role.
Where previously organisations have relied on a workforce based nearby to their location, tapping into a global workforce, and attracting top talent with the help of relocation assistance, significantly expands the potential candidates to fill a role.
Appeal to jobseekers open to relocation
Having a strong relocation offering is important when trying to appeal to an international talent pool. And it’s worth considering that there are increasing numbers of international workers who are willing to relocate for the right opportunity.
The Global Talent Survey shows there has been a 1.2% increase in candidates who are open to relocating since 2021, which means more opportunities for UK employers to bring in overseas talent.
Align with candidate expectations
Offering a strong relocation package isn’t just about competing with other organisations for international talent. It’s also a basic expectation on the part of candidates considering moving from abroad for work.
The GTS found 84% of respondents want housing support from their prospective employer when relocating to the UK, a figure that is too high for employers to ignore. Providing this and other types of relocation support is therefore central to meeting international candidates’ expectations.
Become an employer of choice
By providing relocation assistance in line with candidate expectations, organisations can quickly build a positive reputation for themselves and enhance their employer brand. This is particularly true in the world of social media, where international candidates can easily connect with other workers in their industry from around the globe and share their experiences.
Furthermore, with the Global Talent Survey showing that 46% of candidates choose one country over another due to a smooth relocation and onboarding process, UK employers that facilitate this experience can further align with candidate preferences regarding relocation.
Plug skills gaps
As outlined above, with a strong relocation package organisations can appeal to more candidates within a global talent pool and build a reputation that helps them stand out from the crowd and attract top talent.
As a result, UK employers should find it easier to overcome skills shortages, as access to a global talent pool makes it possible to source a considerable number of candidates with the desired knowledge and experience.
Increase diversity
Hiring globally and providing strong relocation packages is likely to lead to an increase in hires from different backgrounds, experiences, and viewpoints, working to produce a far more diverse workforce.
This increase in diversity can have an important impact on an organisation’s bottom line. Boston Consulting Groups Migration Matters report shows that organisations with higher levels of global diversity tend to generate profits that are 2.2% higher and are much more likely to be world-call innovators.
Types of relocation assistance
As outlined above, there are various ways UK employers can provide relocation assistance to potential employees and thereby provide an attractive offer that can tempt them to move from abroad. Here are some of the key types of relocation assistance employers can offer in more detail.
Financial assistance
There’s no way around it – moving is expensive. Asking someone to move to a different country for work is therefore potentially asking them to take on various associated costs. It can also take up a lot of their time too, which is why providing some financial assistance can be a key part of sweetening the deal.
Whether it’s for moving costs, travel expenses, or a bonus for making the effort to relocate, cash can be a crucial motivator for international talent.
Housing support
As we’ve seen, some 84% of respondents to the GTS expect housing support from their employer when relocating to the UK. House hunting – either for the short-term or long-term – can be a stressful experience, so easing this burden is a great way to appeal to international talent.
A common way to do this is by providing relocating employees with support for temporary housing, giving new hires time and space to settle in and find a new permanent home themselves.
Transportation agreement
Support with transportation can form part of the relocation assistance employers offering new starters. This can include support with the costs or logistics of transportation, or both.
For example, by reimbursing employees for their flights and the transportation of their belongings to a new location, employers can reduce the financial strain of moving and ensure new starters get off to a smooth start in their role.
Family relocation services
Finally, for many international employees getting their family settled is a key priority when it comes to relocation. While 18% of GTS respondents cited a family-friendly environment as an extrinsic factor behind relocation, many more will expect some level of support with getting their family set up.
This can include helping to:
- Find and contact local schools for their children
- Set up their spouse or partner with employment opportunities
Leveraging relocation packages for talent acquisition
As employers increasingly look to tap into a global pool of talent, offering relocation packages is crucial to appealing to candidates. However, relocation assistance can also help UK employers appeal to domestic workers, with previous research from Totaljobs suggesting that almost two-thirds of UK workers would be open to relocating to a different area, with those aged 18 to 34 the most open to relocating.
So, by recognising and catering to the needs and preferences of both international and domestic workers, employers can enhance their appeal and create a more robust approach to hiring.