Companies relocate their employees abroad for many reasons. It is essential to bring experienced leaders into new offices to maximize efficiency and increase the level of service provided to the existing workforce. Rapid growth can necessitate relocating highly skilled staff to exotic locations worldwide.
By relocating long-term employees, the company can cut down the time it takes to attract top talent from competitors by offering robust relocation incentives to entice top talent to stay put.
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Some companies have decided to temporarily limit employee mobility benefits, such as the ability to transport employees’ items internationally (OR, if they are transferring within the United States, they cannot take the goods with them), to save money. It may appear like a win for the company’s bottom line in the short run, but the long-term implications could be disastrous for the company and the transferees.
Alternatives Don’t Measure Up
There may be alternatives to shipping employees’ household goods overseas, but you should only eliminate benefits if you can send them, as described in this article.
- Living facilities and furnished accommodations are becoming harder to obtain as demand for these services keeps outpacing supply.
- Furnished temporary housing with provided rental allowances is also challenging to obtain for a variety of reasons:
- Rental furnishing is hard to find because of shortages in the market.
- Ordering furniture from outside the country is difficult because of the supply chain crisis and costs more.
- If an assignee has a pet, that could further limit or even prevent availability completely.
- Traveling with lots of extra baggage is not allowed, and companies still have to pay tax if they don’t correctly gross up expenses such as food and drink.
- Some warehouses are nearing capacity and offer minimal space. The costs of providing temporary living space are higher because demand is more significant than the supply of available space.
Household Goods are Important
Many managers have considered eliminating benefits because of the hardships that relocation can cause employees and their families. It can be challenging to adjust to a foreign country; having items in a new country helps the relocating employees’ families adapt to their new environment.
Some of their employees say, “Our teenagers struggle with making friends with new people. They just wanted to hang out with other people.” It was tough for our family to adjust to the new location, and all we thought was positive were the things we did not like about the new place. We felt freezing and foreign when our new furniture and belongings came into our new home. When the kids inherited their parents’ homes, they started to feel more connected to the new place. Having things we knew around us helped us feel more at home in our new home.
Impacts on Talent Recruitment
Relocating employees’ houses could cause them to be unhappy with their jobs or cause them to fail to accept international assignments. It may also limit your ability to recruit top talent by reducing the number of willing employees to take duties abroad.
It costs an excess to hire and train new people because the costs of relocating and training employees are high.
Standard benefits of relocation with Relo.ai:
- Save time and money on your relocation.
- Get help from a team of experts who know the city inside out.
- Emotional benefits:
- Relocate with ease and confidence, knowing you have a support system in place.
- Enjoy exploring your new city and making new friends!
Make it Easier for Everyone
Some professionals going on short-haul assignments may be willing to leave their personal belongings behind; however, it’s unlikely that more seasoned professionals will be ready to accept a job abroad without taking their belongings with them.
It’s easier to relocate people efficiently when you partner with a company that’s proven to relocate people efficiently. When you partner with a professional relocating company, you will be able to improve the morale of your staff and support their efforts when it comes to recruiting. Tell our team how we can help you and your staff relocate their belongings more efficiently.