While 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. The 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 is in your best interest to allow a sufficient budget for your employee relocation costs to satisfy all employee needs at their new destinations, which could account for all sorts of 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.
After your relocation programme has been running for a few years, you will become more accustomed to how much budget is standard for overseas relocation. It might be that you are finding 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 circumstances, your global team should be able to identify where this is unreasonable.
A good way to ensure not too much budget is being spent on unneeded areas 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 be retained by employees.
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 male 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 to save where you can without depriving employees of the support they need.
Though it might create more work on a regular basis, you should always know you aren’t spending more than you should be. Putting this in terms of employee relocation costs, your global team must ensure you are getting the best prices from your destination and relocation suppliers. Get bids from different suppliers to check you are not being taken advantage of. You might even be able to condense costs by finding companies offering multiple services for a reduced fee. Remaining on top of competitor prices is key, as margins and profits can change on a regular basis.
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. Either by outsourcing to a professional relocation company or by hiring a specialist to join your global team, compliance with international laws can save both time and money during employee relocations.
Professional Relocation Companies
Utilising the services from a professional and experienced relocation company can help you cover all these areas and more. Knowing how to choose a corporate moving company can be a challenge, but our blog is here to provide vital tips for your decision. Gerson Relocation offers an expense management service to ensure all employee relocation costs remain under control and under budget. If you want to make your expense management simple, get in touch with us today or request a quote for our services.