International relocations can be one of the most challenging aspects for HR to manage, especially as many companies are looking to keep costs as low as possible while ensuring successful placements.
Although preparations and advice can go a long way to settling an individual in a new city or country, there will always be financial concerns. Supporting employees as much as possible is vital to ensuring a successful corporate relocation. This is where financial benefits and rewards come in.
Removing any concerns about finances can play a major role in organising a successful employee relocation, which can go on to provide considerable advantages to your company. This means that employee relocation costs are a natural part of the process. A relocation expenses list can include, but is not limited to:
- Removal expenses and benefits
- Acquiring new accommodation
- Storing belongings
- International transport
- Acquiring necessary household goods
- Local destination services
It’s crucial to allocate the right budget for employee relocation costs, ensuring that you are catering to a diverse range of needs in various circumstances. However, there are ways to ensure you are not spending money where you could save. We’ve collated some top tips for saving on your relocation expenses list.
1. Introduce Caps
After your relocation programme has been running for a few years, you will become more accustomed to the typical budget that is required for overseas relocation. However, you might be finding that one or two items on your employee relocation expenses list are costing your company considerably more than you anticipated, or that some employees are taking advantage of certain allowances. While this might be permittable in some situations, your global team should be able to identify where this is unreasonable.
A good way to ensure not too much budget is being spent unnecessarily is to introduce expense caps. These will ensure that exceptions do not become the norm and standard guidelines are reflecting the average employee. You should, of course, revise these with changes in destination prices and conditions. It may also be possible to revert leftover funds to the company budget rather than them being retained by employees.
2. Tailor Each Experience
Work, particularly when it comes to global relocation, is not ‘one-size-fits-all’. It may be simpler for administrative purposes to give all relocating parties the same guidelines, budget, and supporting services. However, a young, single employee will not require the same destination services as an older individual supporting a family with young children. At every step of international relocation, there are choices to be made and, with experience, your global teams will learn which options are vital for which employees. Tailoring your relocations with different benefits packages will help you save where you can without depriving employees of the support they need.
3. Shop Around
Before finalising any arrangements for an international relocation, shop around and get quotes from multiple service providers. This applies to all aspects of the move, such as shipping, transportation, and housing. Gathering multiple quotes allows you and your internal team to compare costs, services, and terms offered by different vendors and build a global supply chain. Not only does this competitive analysis help secure more favourable rates but also ensures that you are getting the best value for your budget. By obtaining multiple quotes, you can make well-informed decisions that contribute to a cost-effective and efficient relocation process.
4. Ask for Employees’ Input
Get valuable insights from your employees by involving them in the relocation decision-making process. As they are the ones moving, and potentially changing their life for the company, it is important to encourage open communication about their preferences and concerns regarding the move.
By actively seeking their input, you can gain a better understanding of their needs and tailor the relocation package accordingly. This collaborative approach not only enhances employee satisfaction but also allows for a more efficient allocation of resources, preventing unnecessary expenses. Regularly engaging with employees ensures a smoother relocation experience while maintaining a cost-conscious strategy.
5. Offer a Decluttering Service
As removal companies often charge based on volume, minimising the number of items being moved can significantly reduce costs. While employees may have limited control over what gets relocated, employers can encourage downscaling the move by offering a decluttering service. This proactive approach not only aids in downsizing possessions but also assists employees in evaluating what is essential for their relocation.
For temporary assignments, consider suggesting the use of storage units rather than transporting belongings. This can be a more cost-effective solution, allowing employees to store items during their assignment without incurring additional relocation expenses.
6. Use AI Technology
Incorporating Artificial Intelligence (AI) technology into the international relocation process can streamline operations and make placements more cost-effective. There are many AI-powered tools out there, covering everything from expense tracking to data analysis and logistics planning.
These technologies can help save time by automating repetitive tasks, optimising resource allocation, and identifying potential areas for cost savings. Organisations can not only improve the efficiency of their relocation programs but also stay at the forefront of innovative solutions in the global mobility landscape when using AI.
7. Ensure Compliance
Employing individuals from all over the globe can bring a wide range of fantastic benefits to your business. Meanwhile, it can pose some brand-new administrative challenges. If your employees are working from different countries, tax regulations and immigration laws can provide continuing obstacles if not properly dealt with. This can not only provide barriers to employees settling into new locations but failing to comply with financial regulations in a new place can be a costly mistake for your business. By prioritising tax compliance, you can mitigate risks and contribute to a smooth and financially sound international relocation process.
8. Use a Professional Relocation Company
Utilising the services of a professional and experienced relocation company can help you cover all these areas and more. International relocations are intricate processes that can become costly if not executed correctly. One effective way to ensure a successful relocation is to partner with a company that specialises in global mobility.
Companies such as these can manage various aspects, ranging from school placements to visa applications. They provide valuable insights to your HR team, enhancing their understanding of the international relocation process. This can then equip your team to better support employees, not only in the current move but also in future relocations.
By collaborating with a professional relocation service provider, your company not only streamlines the relocation process but also gains expertise to address potential challenges, ultimately contributing to the success of international assignments while managing costs effectively.