Whether it’s a government agency, large corporation, or small business, employees are their most valuable asset. That’s why it’s important to keep them within the company. If you need your employees to relocate to another place, relocation incentives can eliminate all the negative effects. Sometimes, this assistance is all it needs to motivate your employees to move. And in some cases, it’s a good strategy to attract new talents.
What are the relocation incentives?
When an agency or a company needs to relocate an employee to another location, they may offer relocation incentives. Basically, it’s a sort of financial benefit a company offers to motivate its employees to move. This usually involves long-distance moving services to more than 50 miles away. Otherwise, employees will not be able to, or not willing to, to comply with relocation. In return, employees usually agree to continue to work in the company for a certain period of time. However, a relocation incentive is not the same as salary bonuses or relocation assistance. And is often offered in combination with relocation assistance.
On the other side, relocation incentives can be used in a variety of ways. Some companies are using it to attract new employees, offering them different types of incentives. Others are using it to support their employees with moving costs. With this in mind, here is a couple of most common situations to use relocation incentives:
- Relocation incentives for attracting new employees
- As assistance when relocating current employees
- When an employee is house-hunting
- Retention bonuses
Relocation incentives for attracting new employees
Offering relocation incentives to new candidates can be a good strategy to attract talented workers. For example, to attract talents to move to Miami, offer them to cover their moving costs with a reliable mover like City Movers. This will make them more interested by knowing that they got financially covered upfront. And it helps a company by ensuring workers will stay within a company for a number of years.
As assistance when relocating current employees
A relocation incentives bonus is a useful benefit if you need your current employees to move to another office. Government agencies and the military often use them so their public employees can find services designed for them. This makes the entire moving procedure fast, effective, and less stressful. While it also mitigates expenses for both government and the employees in long term.
When an employee is house-hunting
While common relocation packages help with moving costs, they don’t cover all additional expenses. This is why relocation incentives come in handy. Employees will have it easier to find appropriate housing options if their company is compensating costs. In addition, it may include covering costs for temporary housing. Especially useful for relocating families with kids.
Retention bonuses
This is particularly beneficial if your employees are coming back from international assignments. Offering your employees a retention bonus show them that the company values their worker. But it’s also a good way to keep them from switching to your competitors. To prevent misuse, and loss of talented employees, it’s best to make a contract before providing this type of relocation incentives.