What is Relocation Assistance?
When an employer helps employees with moving expenses for work, it's called relocation assistance.
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History of Relocation Assistance
As companies began to expand nationally and globally in the mid-20th century, many realized the need for top talent in various locations. Instead of hiring and training an all-new staff at each site, it became popular to encourage experienced employees to move to a new location. To ease the burden of moving, companies would provide financial assistance.
Relocation assistance began in industries like oil and gas, manufacturing, and large corporations, where specific expertise across various locations was needed. It has understandably grown in popularity in the globalized 21st century, spreading to sectors like technology, healthcare, education, and more.
Relocation assistance is when an employer helps employees with moving costs for work purposes. This could include covering the cost of hiring a moving company, providing temporary housing, or even assisting with the sale of the employee's current home. This benefit has become popular across industries as businesses have globalized.
Benefits and Challenges of Relocation Assistance
Relocation assistance is a powerful tool that allows employers to cast a wider net in their search for talent. It not only increases the chances of finding exceptional candidates but also provides a lifeline to employees. It opens up new horizons and significantly reduces the stress of a major financial burden, making employees feel deeply supported during a significant life transition.
For small businesses, however, it can take a lot of work to foot the bill for an employee's move. This can include not only the direct costs of the move but also the time and effort required to coordinate the logistics. Additionally, relocation assistance isn't just covering the moving costs but also helping with logistics like movers, supplying an apartment, etc. Small businesses should consider the scope of the aid they can provide and communicate it clearly to employees.
Relocation assistance expands employer talent pools and eases employee financial stress. However, businesses must carefully consider their ability to cover these costs and be transparent about the extent of assistance they can provide.
The Future of Relocation Assistance
Relocation assistance has expanded in the 21st century, but the lasting impacts of the recent pandemic may change the way employers view the benefit. For example, the increased acceptance of remote work allows employers to still recruit from a global talent pool but save the costs associated with relocation assistance by accepting virtual rather than in-person work. However, for larger organizations, especially when opening new locations, relocation assistance is likely a benefit that's here to stay and will probably become more personalized to meet individual needs.
Although relocation assistance offerings may change due to trends like hybrid working models, they will likely continue to be provided, especially by large organizations.
Best Practices for Small Businesses
While it may not seem financially feasible for small businesses to offer relocation assistance, relying on experienced employees when opening new locations can be an excellent idea. Clearly define what your business can afford to provide regarding relocation assistance and communicate transparently about the offering. Consider providing different packages for different needs. Finally, consider using third-party tools like relocation service providers to relieve some administrative burden.
Expanding small businesses should consider offering clearly defined relocation assistance packages, potentially using third-party providers to help.
Relocation assistance helps employers attract and retain great workers by easing the financial burden of moving for work. This benefit is great for employers and employees and ultimately improves employee satisfaction. However, it can come with significant costs and logistical upkeep. Small businesses should carefully consider whether to offer it and, if implemented, clearly define the scope or offer tailored options for some flexibility.
About the author
Casey Pontrelli
Casey Pontrelli is a multi-talented professional with a background in content creation, branding, and social media marketing. Whether writing for a newspaper, eCommerce website, B2B startup, or a marketing agency, she has taken her strong background in journalism and turned her focus to SEO and content marketing. She’s written about everything from boutiques to cars to small businesses, and enjoys most when she knows her writing has had an impact. When she’s not writing up a storm or creating attention-grabbing social media posts, Casey enjoys hanging out with her partner and three cats, Eddy, Larry, and Marcus, going on long walks in the Green Belt, and, predictably, reading.
