The corporate relocation industry is booming, as companies seek gains in productivity and efficiency as well as cost cuts for consolidations or mergers and savings on labor force, space, and utilities expenses. Additional reasons for the growing phenomenon of corporate relocation include large tax incentive packages from state and local governments and the ability to compete on an international level.
Not only are employee relocations on the rise, but relocation benefits are increasingly enticing as well, making the new corporate landscape a win-win scenario for employers and employees alike.
Statistically, corporate relocations have been on the rise since 2010, with companies strategically placing their talent in the right places in order to decrease the risk of bringing in someone new and to facilitate either a business expansion or consolidation. Whatever the reasons, almost all major companies currently have formal relocations policies in place, offering diverse relocation benefit packages for employees at different level of command. For example, there are relocation packages tailored to the executive level, middle manager level, skilled professional level, and other level of employees.
For employees, the benefits of corporate relocation programs are multi-fold. There is the allure of moving to a foreign country (temporarily or permanently) and all that entails – such as being exposed to a new culture, mastering a foreign language, enjoying a milder climate, and gaining new experiences and valuable skills that ultimately increase employees’ marketability in today’s global economy.
There is also the fact companies are increasingly willing to ‘up the stakes’ when it comes to enticing and rewarding employees for moving miles away from home. Not only do relocation benefit packages pay for the flight and temporary housing in the new location, but many now offer “loss-on-sale protection,” which means the company will reimburse employees if they sell their current home for less than they owe on it. Besides finding schools for employers’ children and helping the entire family settle into their new surroundings, most major companies provide incentives such as relocation bonuses, payment for cost-of-living adjustments to employees who move to higher-priced neighborhoods, and cash upfront to cover moving expenses.
Given that the global market is on the move and that relocation abroad or even 50 miles away from home can be riddled with challenges for employees and their families, it is more essential than ever that companies provide their staff with the right guidance and support, including up-to-date immigration information, assistance in speeding up the visa application process and obtaining a visa, help with understanding taxes and pension plans, reimbursement for foreign language lessons, and more.
Why are corporate managers and business owners going to all of this effort? Business growth and success in the 21st century increasingly demands expansion into overseas markets, as well as moving closer to customer bases, improving efficiency in the chain of command, and enhancing the fluidity of the supply chain. The recent relocation trend has allowed many companies to achieve faster turnaround, meet increased demand for products, save time and money on transportation costs, and provide a higher quality service. Furthermore, corporate relocation decisions are also spurred by the desire to save on office space by cutting the amount of space required by employees (in other words, reducing a firm’s total space requirement).
Whatever the motivations, corporate relocation is clearly on the rise – and that’s good news for everyone involved.
Einat Mazafi is the owner of NY International Shipping, an International Shipping and moving company based in New York. She is also a specialist in providing the best relocation solutions to clients worldwide.