What Is Corporate Relocation?

By Author: Relocation Coordinates International
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Corporate relocation comes with several definitions, depending on who you ask. It is a common business practice, an employee benefit, and a whopping $25 billion industry. At a basic level, corporate relocation can be an employer facilitating the move of an employee, subsidizing their costs, and covering any related services.

Corporate relocation aims to move an employee, their belongings, and their family from one location to another. This may be from one city to another, one state to another, or even from one country to another. The focus is to make the move painless, fast, and affordable. The aim is to ensure that employees can become productive in their new role quickly, benefiting your business in the long run.

Corporate relocation is a talent acquisition tool, an effective management tool used by employers to optimize their business. Employers offer this service to benefit existing staff, interns, and new employees. It is an effective hiring tool and a great way to fill positions internally for those employees that have proven themselves, offering them the promotion that they deserve.

The two types ...
... of corporate relocation are domestic, moves taking place inside the United States, and international, which are moves that involve an employee or new hire moving from one country to another.

There are five main components associated with a corporate relocation that is included in the relocation package when offered to an employee. The first is to move the employee and their family to the new location, the second to move their household goods, the third to help them find a home, the fourth provides short-term housing, and finally, to help the employee get to know their new area.

Some corporate relocation policies are strict on how they determine the benefits based on the activities, though modern and competitive packages are flexible, giving the employees flexibility in how they use the benefits, which means they can tailor their relocation based on their specific situation. This provides a positive relocation experience for the employee and a happy employee is a productive staff member, along with the increased chance that they will remain loyal to the company for a long time moving forward.

There are three common corporate relocation packages and while they are constantly evolving, these remain the top choices. A lump sum package is a basic package where the employee receives a set amount to use as they need without any support services. The full covered relocation package is the preferred package, usually used for high-level executives, where all the related relocation costs are paid, providing a relocation consultant to assist with the move.
Then there is the managed budget package, a popular alternative, where employees receive a set amount with the support of a relocation specialist, helping them manage their finances more effectively.

Most companies used a tiered package system, which involves benefits based on the level of the employee. Each package has its benefits and disadvantages based on the employee's experience.

Some companies handle the relocation of an employee internally, though most will employ a third party company, known as an RMC, this is because relocations are labor intensive, which saves on valuable resources.

A traditional RMC runs with people and is done on paper. Employees are assigned to a specialist to assist with their love. Traditional RMCs can be on the expensive side, due to the number of hours they need to put in. Tech-based RMCs are growing in popularity, providing employees with access to a portal where they arrange their details online and all forms and receipts are managed digitally, this is cost-effective, easy, and reliable.

About Us: Relocation Coordinates International is a leading domestic, international and commercial relocation specialist based in San Diego, backed by more than thirty years of experience. The company provides a complete service from pre-decision through to departure with international relocation experts and an extensive network of service providers, who have been hand-selected based on their proven performance. The company manages worldwide relocation services with personalized and customized solutions while offering flexibility and keeping costs in check. Relocation Coordinates International assists with costs, area tours, temporary housing, purchasing and rental assistance, visa support, taxation assistance, home sales, and property management. Visit https://www.relocationcoordinates.com to find out more.