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Is sponsoring corporate relocations worth the cost?

Is sponsoring corporate relocations worth the cost?

Corporate relocation isn't free, that's true.

So is it worth the cost?

Telecommuting has expanded in recent years, even as a perk for employees who live in the same metro area where they work. Given the prevalence of remote work, it may be tempting to see the price tag associated with relocation costs, and the extra expense of maintaining office space, as something totally expendable.

If that's the case, why do companies keep curtailing remote work policies?

It turns out, there are benefits to being in the office environment, and shelling out the dollars it takes to relocate employees can provide a return on investment.

Corporate relocation costs money. Is it worth the expense?Corporate relocation costs money. Is it worth the expense?

Recruiting top talent

Perhaps most obviously, corporate relocation enables companies to hire the most skilled individuals, regardless of where they currently live. Casting a wider net can be a huge boon to organizations that aren't in the largest metro areas as long as they can boast good quality of life indicators.

Our research found that, for eight years running, the main external reason companies relocate employees is because they lack the talent they need in their own backyard.

Employers should not assume that the best employees want to work remotely. Individual employees may view remote work as one opportunity for expanding the range of their options, but they might not find it beneficial. Given the choice between two equally attractive organizations, one of which only allows a long-distance candidate to work remotely, while another would sponsor relocation if the candidate so chose, moving to a desirable destination could prove preferable for the applicant.

It's all about giving the best candidate a range of options and showing them that they have your support.

In fact, though corporate relocation has more obvious upfront costs than remote work, the long-term payoff could be well worth the outlay of cash.

Why?

It has to do with engagement.

Future Workplace and Virgin Pulse found that two-thirds of employees who always or very often work remotely were not engaged at their jobs.

Lower engagement means reduced productivity and higher workforce churn. There's real value in face-to-face interaction. Corporate relocation can help mitigate that risk.

Developing a unified culture

If workers who are in the office are more engaged, then corporate relocation can be an essential tool for retaining top performers as they grow in their careers.

Sponsoring relocation costs for employees who have demonstrated their aptitude and advanced to new positions in the company demonstrates the employer's belief that these individuals are part of the family. This is especially important in today's workplaces, where offices are spread across several time zones.

Relocating a manager to a different field office can help them share the values of the company to ensure that all elements of the organization are connected to the company's guiding principles and operating with good morale.

Paying for relocation costs as individuals advance also demonstrates a commitment to workers' career trajectories. If an employee starts out in the field office but doesn't see any on-ramps to the corporate headquarters, then they'll look to outside opportunities for advancement.

If you believe corporate relocation can help your company attract and retain top talent, get in touch with us today so we can handle the moving details.

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