Dear Stumped:
The best place to start is to determine the objectives of the relocation program. For example:
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Is the objective to enhance the recruiting process, or to minimize the chances of relocation getting in the way of hiring the preferred candidate?
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Is the relocation philosophy designed to “keep the person whole” economically for the move, or to merely assist with personal cash-flow needs?
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Should changes in the local cost of living affect the compensation or relocation package? If yes, for what period of time?
Consider how much the employee will have to spend on trips to the new location to research the local housing market. Also factor in moving expenses, temporary housing costs, differences in local tax rates, support for spousal career transition and other expenses.
Many relocation companies maintain comprehensive databases with benchmark spending levels for relocation packages. The larger relocation companies can cut their data by industry, company size, geographical area and employee level.
Cross-border relocations are significantly more complicated than domestic relocations and usually require outside expertise to plan and deliver the benefits. Special issues include tax equalization, immigration approvals and work permits, children’s education, retention of home-country residences and visits back home.
SOURCE: Carl Weinberg, principal, PricewaterhouseCoopers HR Services practice, New York City, October 20, 2003.
LEARN MORE: Moving Employees to Hot Housing Markets Is a Tough Sell.
The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.