Explained: What is Corporate Relocation and It’s Benefits

Corporate relocation is a strategic business practice in which employers assist employees in moving to a new location by covering costs and providing support services. 

Whether you're an HR professional, a business owner, or an individual planning a move, it's essential to understand how a corporate relocation company operates.

How Does a Relocation Company Work?

So, these companies assist individuals in relocating and oversee every aspect of the process. Here's how they manage each aspect of relocation in the process:

Planning the Move

The moving company would be in close cooperation with the client regarding their special needs and requirements. The movers create a detailed plan regarding the timeline, logistics, and resources involved in the move.

This would also include coordination with various service providers, like movers, real estate agents, and transporters.

The relocation firm may assist in obtaining a new home, especially if the customer is relocating to a new region. They will consider his tastes, budget, and any special needs he might have.

They can present a choice of alternatives, arrange viewing appointments, and help negotiate the lease or purchase agreement. In finding the correct home for the client, their knowledge of the local real estate market can be invaluable.

Temporary Housing

Sometimes, clients may need temporary housing during the process of their relocation. Temporary accommodation can be arranged through a relocation company in the form of furnished apartments or extended-stay hotels.

They will consider the needs of the client, his/her preferences, and the duration of the stay to find suitable options.

Storage Solutions

If there is a need to store goods while the relocation process is underway, then the relocation company will provide storage solutions in which items are stored safely in secure facilities.

This comes in handy in situations where there is a time difference between moving into a new location and moving out from the current one, or when one has excess goods to store.

Settling In

Upon arrival at a new destination, the relocation firm can assist with some more settling-in services. Some benefits may include orientation tours in the area, information on local amenities and services, administrative support for setting up utilities or getting documents processed, and advice on schools, health institutions, and other basic services.

Overall, a relocation company becomes a one-stop solution for clients who seek help in every area connected with the process of relocation. They handle logistics, coordination, and execution of several tasks for the successful relocation of the client.

What Does the Relocation Expense Policy Cover?

This is a typical relocation policy included:

• Eligibility criteria: This applies to new hires, existing employees, as well as specific roles and levels within the company.
• Covered expenses: This includes moving, housing, temporary housing, storage fees, and travel expenses.
• Types of relocation packages: Employees may be eligible for lump sum payments, fully-covered relocations, or managed budget packages.
• Procedures and documentation: Employees are required to submit receipts, invoices, and relocation forms.
• Timeline: There are specific deadlines for submitting requests and receiving funds.
• Tax implications: This section clarifies how relocation benefits are treated for tax purposes and whether employees are responsible for any tax implications.
• Exceptions and special circumstances: This section addresses any exceptions to the standard policy that may require additional consideration.
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Overall, the guidelines and procedures may differ. For example, some companies have rigid definitions for covered items, while newer relocation programs offer more flexibility, aligning with the goal of corporate relocation.

Types of Corporate Relocation Packages

Lump Sum Package

The company will provide the employee with one sum for the relocation expenses. The employees are left to spend the money as they wish, be it on moving, temporary housing, or other expenses related to relocation.

Fully Covered Relocation

In the case of a fully covered relocation package, it is the firm or the company that bears all expenses associated with an employee's movement. Normally, this includes packing and shipping household goods, transportation, temporary housing, and even assistance when finding a new home.

Managed Budget Package

In this managed budget package, the company has a stipulated budget for the employee's relocation and manages spending therein. While there might be some room to make choices on how to spend the money, largely, one is expected to move within the budget set by the firm.

Packages will vary from company to company and by employee level. Employees should be aware of the components of their relocation package and any limitations or requirements that may apply.

Benefits of Using a Relocation Company

Efficiency and productivity: the relocation company has probably learned how to go through the relocation process through experience. The company would do many activities like packing, moving, and unpacking efficiently.

This would save the company and its employees lots of time and energy. Hence, employees would keep working and maintain their productivity.

Cost Management can help the business manage relocation costs adequately.

They would know all the best practices for saving money and time, such as bargaining with vendors and trying to understand the least expensive means of transferring. The company could use its expertise to ensure reduced costs and stay within the budget.

Employee Satisfaction and Retention: Employee relocation is a very high-stress affair. Businesses can support and help their staff simply by using a relocation company.

This can help reduce the stress and anxiety employees experience while moving, leading to higher rates of employee satisfaction and retention. When relocating employees feel supported, they are more likely to have a positive experience and remain committed to the company.

So, How to Choose the Right Moving Company?

Overall, a relocation service is a win-win for employers and employees. Getting multiple quotes, comparing services, and reading reviews is important to ensure you choose the right company.