Over the past few years, more and more companies have been embracing the idea of corporate relocation; companies selecting a professional moving company, such as Atlas Van Lines, to handle the relocation of employees and allocating a relocation allowance to cover expenses.
According to data from the 2023 Atlas Corporate Relocation Survey, in 2022, the number of employees being relocated by companies saw a significant increase, with 68% of companies reporting higher relocation volumes, surpassing initial predictions.
Additionally, 64% of companies allocated a larger budget for relocations, indicating a growing focus on relocating employees.
The COVID-19 pandemic led to the rise of remote work but many companies are eager to return to in-person operations. As workplaces continue to change, companies must review their relocation policies to ensure they are reflecting the needs of companies and employees.
Here are 5 benefits to consider as you decide if relocating employees suits your needs.
1. Addresses Shortages When There Are No Qualified Employees Found Locally
A shortage of skilled workers in a particular location is one of the most common reasons companies relocated employees. In 2022, 27% of companies stated that finding qualified employees locally greatly impacted relocation.
Relocating current employees to address these shortages is often less expensive and more efficient for the company in the long term. Moving a worker who already has the skills and experience necessary to jump right in limits the time and money spent training new people. This way, companies can promote from within, while ensuring each location has the necessary skills and workers it needs.
It is critical to support top performing employees if they are being asked to transfer to another location. The Great Resignation led to the normalization of job-hopping with the Global Workforce and Fears survey reporting that 1 in 5 employees were “extremely or very likely to find a new employer in the next 12 months”. If relocating a skilled employee benefits the company, the relocation experience should also benefit the employee being asked to transfer.
Assistance policies and relocation incentives should address the most critical employee needs, relocation costs, partner/spousal support, and childcare.
2. Provides Employees the Opportunity to Live Where They Want
In 2023, 39% of companies expect an increase in permanent voluntary relocations. Many of these employees are seeking a lower cost of living, access to a different lifestyle, or closer proximity to their family.
Employees may have had the opportunity to experience new locations while working remote and discovered new places they would like to call home in the process.
As more companies return to in-person operations, more employees may be looking to transfer. Rather than quitting their job and starting from scratch in a new place, it can be mutually beneficial for companies to offer relocation assistance. This allows the employee the opportunity to have support and stability through their voluntary move and allows employers the opportunity to retain an existing employee rather than having to hire someone new.
3. Fosters an Environment of Upward Mobility
Companies that are known to offer relocation or even national relocation packages, can offer more opportunities for career advancement. Employees may feel limited with the promotion options at their location but feel empowered by the opportunities to be promoted in a different state or even country. This cultivates an environment where employees seek promotions, making them motivated to work hard and go above and beyond.
4. Allows for Knowledge Transfer and Skill Enhancement
Relocating employees to a different location offers a valuable opportunity for knowledge transfer and skill enhancement within the company. When employees from various offices or branches are relocated, they bring with them their expertise, experiences, and best practices. This facilitates the exchange of knowledge and the sharing of insights across different teams and locations.
Knowledge transfer was the top internal factor impacting corporate relocations in 2022, cited by 29% of companies.
By relocating employees, companies create a platform for employees to collaborate and share their unique perspectives. This collaboration fosters a sense of teamwork and can lead to the development of innovative solutions to challenges faced by the company. Employees from different locations may have different approaches to problem-solving, which can broaden the overall skill set of the organization.
Relocation often involves employees working closely with new colleagues in different locations. This interaction provides an opportunity for employees to learn from each other, gain exposure to different work cultures, and understand industry dynamics specific to those locations. They can acquire new skills, techniques, and strategies that may not have been prevalent in their previous work environment.
5. Increases Cultural Diversity and Innovation
Relocating employees across different regions or countries has the potential to introduce cultural diversity into the workplace. When employees from diverse backgrounds come together, they bring with them a wide range of experiences, perspectives, and ideas. This diversity can spark innovation, creativity, and fresh approaches within the company.
Cultural diversity fosters a rich and dynamic environment where individuals from different cultures and traditions collaborate and interact. It creates a melting pot of ideas, beliefs, and practices, challenging conventional thinking and promoting a more inclusive and open-minded work culture.
This cross-pollination of ideas encourages creative thinking and can fuel innovation within the company. Cultural diversity also enhances adaptability and flexibility within the organization. Employees who have experienced different cultures and work environments often possess a greater ability to navigate and respond to changing market dynamics. They bring with them a global mindset and a capacity to embrace new challenges and opportunities.
What Companies Can do to Facilitate a Successful Relocation
If you have determined that relocating employees would benefit your company and employees, it is important to now review your relocation benefits to ensure you are taking the needs of your company and employees into account.
Relocation policies must support the relocation of spouses, children, and residences, offering robust resources to help guide employees through the relocation process with lump sums or flexible policies.
Companies can consider building more spouse/partner, childcare, and eldercare policies or resources to reflect the complex needs of relocating employees and help address pain points that may lead to declined or unsuccessful relocations.
According to the 2023 Corporate Relocation Survey, the top three incentives offered by companies were salary cost-of-living adjustments, relocation or sign-on bonuses, and extended temporary housing benefits. 84% of companies reported that offering nonstandard incentives did help encourage relocations.
The first step in a successful relocation process is choosing the right moving company. Atlas is a powerful and knowledgeable resource that can help your employees go new places in their careers.