The ROI of Relocation: Why investing in a strong relocation package pays off for employers
With 65% of UK workers open to relocating, employers can expand their talent pool by providing support with relocation costs. In this article, we delve into the concept of relocation packages, the benefits they provide, and how you can create an offering that attracts the candidates you need for long-term success.
Both skills shortages and a record number of vacancies have resulted in a fiercely competitive recruitment landscape, with employers seeking new and innovative ways to fill gaps and attract the candidates they need. As a result, relocation packages have become a powerful tool for companies serious about attracting top talent.
Let’s take a closer look at what relocation packages are and how you can leverage them effectively in your recruitment strategy.
What is a relocation package?
A relocation package should form part of an employer’s overall benefits package, offering new and existing employees support that covers the cost of relocating for work. These packages can consist of different components depending on the company, role, or location, but often include assistance with moving expenses, finding accommodation, and/or temporary housing.
“In this highly competitive environment, good relocation packages give companies a competitive edge,” explained Haerewa. “They attract top talent by offering financial assistance, personalised support services, and transparent communication. By providing a smooth transition and minimising disruptions, these packages create a positive work environment that fosters productivity and engagement.”
What ROI can a relocation package have?
Relocation packages should be viewed as investments. While they incur upfront costs for employers, if effectively deployed, they can provide an excellent return on investment (ROI). The ROI can include:
Reaching and attracting new talent pools
“A well-crafted relocation package can serve as a powerful magnet, drawing in top-tier talent from far and wide,” said Haerewa. Offering a strong relocation package means you no longer have to rely on the talent available in your company’s immediate area. Instead, you will be able to land the best person for the role by enticing workers from anywhere in the country or even beyond.
Building employer brand and reputation
Employers who are known to offer great benefits often attract the best workers – and that goes for job relocation benefits too. Tech giants like Google and Amazon top the list of prospective employers for many talented workers who know that if they need to relocate for their dream job, they will be well supported by the company.
Standing out in a competitive market
In an increasingly competitive recruitment landscape offering benefits is one way a company can stand out from the crowd and entice workers. Benefits such as relocation packages are increasingly factoring into employees’ decision-making, alongside salary and flexibility.
Reducing turnover and boosting retention
Hiring is an expensive process, which is why it’s crucial to retain high-performing staff. A good relocation package helps candidates to settle in and hit the ground running in a new job, reducing potential worries around finding accommodation and affording to move.
In addition to this, our research found the cost of living is increasingly causing workers to look for new roles with higher salaries, so any relocation package that can address those issues will help to reduce staff turnover.
Increasing employee productivity and engagement
Reducing the stress and anxiety caused by moving allows new employee to focus on their work, leading to increased productivity and engagement from the start. A good relocation package shows the employee that you care about their success in their new role, and that you support them and their future development.
What does a relocation package usually include?
So, we can see the potential importance of offering attractive relocation packages – but what are they usually made up of? Jamie Haerewa gave this advice:
- Professional moving and packing services: The employer can cover some or all the costs of moving, and this relocation assistance ensures employees have the support of experienced movers and packers. “You could even include additional perks like insurance coverage to protect against any potential damage or loss of items during the move,” she said.
- Temporary housing: This gives an employee a guaranteed place to live for a limited time, which is useful when they cannot secure permanent accommodation before their start date. Most packages offer at least 30 days of temporary housing.
- Transportation costs: Reimbursing the costs of transportation is standard in relocation packages, said Haerewa. “Recognising that transportation is necessary during the relocation process, employers typically reimburse costs such as gas, plane tickets, train fares, or bus fares incurred as part of the move.”
- Real estate assistance: If the employee needs to buy, rent, or sell a home as part of their move, the package could include assistance such as paid advertising for their home, covering early lease termination fees, and other appropriate forms of support.
- Family support: Candidates may be moving with their family, so employers should consider the needs of the family too. “Whether it’s assisting with school enrolment for children, providing resources for spousal employment, or offering support for finding local amenities and community connections, family-centric considerations are essential,” added Haerewa.
Steps to creating an attractive relocation package
Relocation packages can be costly, so it’s important to work out what you need to include to get the return on investment you’re hoping for.
Understand your companies needs and objectives
What are the specific goals and desired outcomes of offering relocation packages? How do they tie in with your organisation’s overall talent acquisition strategy? Thinking about this and understanding how relocation packages can support the overall strategy is the best place to start.
Research and customise the package
Look at the types of relocation packages your competitors are offering and what the industry standard is. Things are changing quickly at the moment, and that goes for employee expectations too. Try to find out what your target employees might be expecting, and tailor the package to these candidates. Also don’t forget to tailor the package depending on what your location or city has to offer.
Determine the package components
You’ll likely want to include the essentials mentioned in the section above, such as housing assistance, transportation costs, and information on tax savings. Then consider additional offerings based on your research, such as child care.
Highlight your relocation package during the recruitment process
This could be a big factor in attracting the best candidates for a role, so don’t forget to showcase the benefits and eligibility criteria of your relocation package to prospective candidates. This can be done in job advertisements and throughout the recruitment process.
Provide ongoing support
There should be a dedicated point of contact to help guide candidates through the relocation process. After all, the point of the package is not only to attract talent but also help to ease the process of moving company and home.
How to evaluate the ROI of your relocation packages
Once you’ve researched, constructed, and offered your relocation packages, it’s vital to evaluate their ROI to see if the package is effective. Jamie Haerewa insists there is much more to this than “crunching numbers and conducting complex calculation”.
Let’s take a look at the ways the ROI can be evaluated:
- Attraction and retention rates: Track how many candidates joined the company thanks to the relocation package and monitor the retention rate post-relocation. If candidates are staying in the job after relocating, it’s a sign the package is working.
- Employee satisfaction and engagement: Use regular surveys, feedback sessions and open discussions to measure the relocated employees’ satisfaction levels.
- Performance and productivity: Monitor whether relocated employees are hitting their targets and contributing to the company’s success. Compare these metrics across relocated and non-relocated staff. What patterns emerge?
- Your company’s brand: As we mentioned above, some companies are well-perceived by talent due to their benefits. Monitor your brand perception to see if it’s being boosted by the relocation assistance program you’re offering.
Remember, you may find that your relocation package needs adjusting to remain competitive and meet changing candidate demands and expectations.