A well-crafted domestic employee relocation policy will improve the transferee experience, control costs, meet your employees’ needs, and help you win and retain new talent. Improving the employee experience means reducing stress so that employees can focus on work roles in their new locations.
Offering a comprehensive suite of relocation services is crucial in crafting a relocation policy that effectively benefits both the company and the employee. A holistic approach not only supports employees in managing the complexities of relocating but also streamlines the process for the company, helping to maintain productivity and reduce the administrative burden.
Regularly reviewing and updating the policy to reflect current market trends and cost-of-living adjustments contributes to overall employee satisfaction and ensures competitiveness.
The 8 essential relocation benefits should be a part of your policy strategy:
1) Home Sale Programs
2) Rental Assistance
3) Destination Services
4) Household Goods
5) Lump Sum
6) Cost of Living Assistance (COLA)
7) Policy Exceptions
8) Policy Tiers vs Core Flex Benefits
8.5) Compliance
1) Home Sale Programs
Offering a competitive home sale benefit can provide significant advantages to both the company and the relocating employee. By offering a standardized home sale process, companies can ensure a consistent and controlled relocation experience, reducing the risk of dissatisfaction or failed relocations.
ギャランティード・バイアウト（GBO）またはバイヤーバリューオプション（BVO）
- Offering a GBO can be risky for your organization since it guarantees employees a home sale based on appraisal value,
but if the home is not sold then your company takes the home into inventory and must resell it. - 一方、BVOは、従業員が外部の買い手を確保した後に、貴社が従業員の自宅を購入するため、GBOに見られる組織的なリスクを大幅に軽減することができます。
- 企業によっては、役員にはGBO、非役員にはBVOを支給しているところもあります。
GBO
Some policies offer a Guaranteed Buyout Program (GBO), where the company or a third-party relocation service purchases the home if it does not sell within a certain period. This ensures the employee can move without financial strain.
長所
- Tax advantage for your company and the employee.
- Employees are not required to attend closing.
- Professional appraisers ensure your company is offering a competitive market price.
- 保証付きオファーにより、移転プロセスを迅速化し、移転者の移転を早めることができます。
短所
- The company carries the risk of owning and maintaining the home until it is sold.
BVO
With the Buyer Value Option (BVO) program, the employee is responsible for marketing and selling their home on the open market, but once they secure a bona fide offer from a buyer, the company or a third-party relocation service steps in to purchase the home at the agreed-upon price. This approach allows the employee to sell their home at fair market value, while the company handles the closing and resale, streamlining the process and minimizing the employee’s involvement in the transaction after the offer is secured.
長所
- 貴社と譲受人に税制上のメリットがあります。
- Employees are not required to attend closing.
- 買い手は社員が確保するため、会社のコストを最小限に抑えることができます。
- 適切なマーケティングパラメータを設定するために、2人の不動産業者によるブローカー・マーケット・アナリシス（Broker Market Analysis）を実施。
短所
- If home sale falls through, homes go into corporate owned inventory.
- Employees remain financially responsible for their home until an outside offer is accepted which might delay their move to the new work location.
DR
A Direct Reimbursement (DR) home sale benefit offers a flexible, cost-effective alternative to BVO and GBO programs, providing employees with the opportunity to sell their home independently while receiving financial support for key expenses such as real estate agent commissions, closing costs, and legal fees.
長所
- Lower financial risk since your company does not have to bring unsold homes into inventory and employees are responsible for selling their home and paying closing costs/commission fees up front.
短所
- 会社にも従業員にも税制上のメリットがない。
- 貴社はグロスアップのコストを追加で負担することになります（グロスアップを提供すると仮定した場合）。
- 従業員は、すべての費用を前払いする責任があります（クロージングコスト、コミッションフィー、検査など）。
ホームインスペクション
Most companies require a full home inspection for a GBO and BVO program. The home inspection is ordered by the Relocation Management Company (RMC).
An inspection helps reduce risks of the company purchasing a home with unknown significant defects.
The transferee is required to complete all necessary repairs before moving forward in a BVO or GBO program.
Some companies want to avoid being too picky about required repairs, so an alternative to a full home inspection would be a major component inspection.
- あの
- セプト
- ラドン
- シロアリ
- スタッコ
- HVAC
- 屋根
- 内装の配管や電気
- 構造・基礎
ホームセールスボーナス
住宅販売ボーナスは、従業員が自分の家を早く売るためのインセンティブになります。
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- GBOを提供すれば会社にとって有益、BVOプログラムでは提供されない。
- この手当の上限をどこに設定するか、また、従業員の役割に応じて上限を変えるかどうかを決めます。多くの企業では、販売額に対するパーセンテージをベースにしたり、希望する期間内に家を売ることができた場合には、より高いボーナスを提供したりしています。
- 今日の不動産市場では、需要が在庫の供給を大幅に上回っているため、住宅はすぐに売れてしまうので、このようなことは必要ありません。
売却損
Some companies offer a loss on sale, whereby the company provides an additional benefit to employees selling their homes for less than the original purchase price.
This benefit is more prevalent with executives versus non-executives (usually at a capped amount).
2) Rental Assistance
Employees at different life stages have varied housing needs. Rental assistance benefits ensure that the company’s relocation policy is inclusive and supportive of diverse situations, such as younger employees or those relocating to urban areas where renting is more common.
Additionally, providing rental assistance helps minimize the stress of moving and eases the transition into the new work role. An essential component of this benefit is helping transferees with early lease termination.
If you choose to offer rental assistance, consider the following:
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- How many days of rental search you want to provide.
- Placing caps on rental assistance ensures your company is containing costs. If an employee exceeds the cap, decide whether to provide an exception benefit on an individual basis.
- Encourage employees to negotiate with landlords to insert a diplomatic clause into the lease that reduces future lease break fees.
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3) Destination Services
Relocating to a new location can be an overwhelming experience for employees. Destination services play a crucial role in easing this transition by providing support that helps employees settle in more quickly and comfortably. Essential destination services include temporary housing, home-finding assistance, settling in services, among others.
By offering comprehensive destination services, companies can significantly reduce the stress associated with relocation, allowing employees to focus on their new role and become productive sooner. A well-supported transition not only enhances the employee’s experience but also contributes to their overall satisfaction and success in their new position.
Essential destination services for a US Domestic relocation include: Home Finding including temporary housing or house hunting trips and destination closing costs.
仮設住宅
Relocating to a new location can be an overwhelming experience for employees. Destination services play a crucial role in easing this transition by providing support that helps employees settle in more quickly and comfortably. Essential destination services include temporary housing, home-finding assistance, settling in services, among others.
By offering comprehensive destination services, companies can significantly reduce the stress associated with relocation, allowing employees to focus on their new role and become productive sooner.
A well-supported transition not only enhances the employee’s experience but also contributes to their overall satisfaction and success in their new position.
Home Finding/ House Hunting Trip
旅行一時金を支給することで、手続きが簡素化され、社員が家探し旅行の予約・支払いをすることができます。
See below for more details on lump sums
渡航先でのクロージングコスト
多くの企業では、この払い戻しを役員に対して行う場合と、非役員に対して行う場合があります。
- この課税対象となる福利厚生にかかる費用を抑制する方法として、特に会社がグロスアップを提供している場合は、キャッピング・サポートが有効です。特に、グロスアップを支給している場合は、この課税対象となる手当のコストを抑制することができます。これは、従業員を高コストの住宅地に移動させる場合に特に有効です。
- 典型的なクロージング・コストの払い戻しのみを許可することは、貴社が標準外の項目を払い戻すことがないようにするために推奨されます。
雇用主によっては、現在賃貸している人が転居先で住宅を購入する際に、決算費用を援助するところもあります。
- この福利厚生を提供することを決めた場合、誰がその資格を得るかを決めます。新入社員だけか、既存社員だけか、役員だけか、それとも職位に応じてか？
- Although it is not the most commonly offered benefit, an incentive to rent can provide your company with potential cost savings on future relocations.
- 転勤の多い従業員にとって、同じ従業員が何度も転勤する場合、住宅購入のための費用を会社が負担することを避けることができます。
4) Household Goods
The HHG move is one of the most stressful stages of a relocation. Covering the cost and logistics of household goods shipping significantly reduces this stress, helping employees focus on transitioning to their new role.
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- Make sure your RMC is proactive in their communications and provides opportunities for employees to give live feedback so that any issues can be addressed immediately.
- Verify that the RMC provides transparent pricing, detailed tracking of expenses, and comprehensive insurance coverage to mitigate risks.
- Most companies will provide tax assistance with HHG moves, especially since the Tax Cuts and Jobs Act (TCJA) of 2018 was passed.
車両出荷
移動距離に応じた車両台数の設定により、コスト削減を実現。移動距離が500マイルを超える場合は最低でも1台、1000マイルを超える場合は最大2台の車両を提供するのが一般的です。これにより、社員と家族が別々の車で長距離を移動しなければならないストレスを軽減することができます。
一時保管
多くの企業では、定住先が確保されるまでの間、従業員の家財道具を一時的に保管するサービスを提供しています。
- A well-defined policy that includes temporary storage provides clear guidelines for both the employee and the company, reducing ambiguity and potential disputes over what is covered during the relocation process.
- コスト削減のため、個人的な理由、例えば、自宅の改装中、作業が完了するまで品物を保管しておきたい場合、または従業員が休暇を取るためHHGの配達に立ち会えない場合は、この特典を提供しないでください。
5) Lump Sum
Decide if you want to offer a partial or full lump sum policy to transferees. Some employees may enjoy the freedom of being able to use their relocation money as they see fit.
Pros for providing lump sums include the following:
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- Cost containment
- Easy budgeting and administration
- Market competitiveness
- Great for employees with less to move
- Internship programs
There are three main types of lump sums discussed below:
lump sum only (no counseling); managed lump sum (with counseling); and lump sum (in addition to other benefits).
Lump Sum Only Benefit
(no counseling)
譲受人は一時金を受け取ります。この資金をどう使うかは、社員が決めることです。
- 新入社員や育成プログラムの社員など、勤務地が頻繁に入れ替わる非幹部社員によく使われる。
- 通常、上位互換では使用しない。
- 一時金の大半は5千ドル以下
Managed Lump Sum
(with counseling)
社員が一時金をどのように使うかについて、貴社が部分的にコントロールしながらも、ある程度の柔軟性を確保することができます。RMCは、従業員が管理された一時金をどのように使用することができるかについてカウンセリングを行い、従業員が費用を負担した後、またはRMCのサプライヤーパートナーのいずれかに直接請求された後に、資金が払い戻される。
- 管理型一時金は、役員以上の社員に対する唯一の福利厚生として利用されることが多く、一時金のみ（カウンセリングなし）は新入社員に対して利用されることが多くなっています。
Lump Sum
(in addition other benefits)
これは、最も頻繁に使用されるタイプの一時金給付です。一時金を支給しながら、各人の転勤ニーズに合わせた他の福利厚生を提供できるのが特徴だ。
This type of benefit will also allow your company to control costs, and it adds some additional flexibility for the employee.
Cost of Living Adjustment (COLA)
従業員の中には、生活費の安い地域に引っ越す人もいれば、もっと物価の高い地域に引っ越す人もいるかもしれません。物価が高い場合、企業によっては、経済的なギャップを埋めるために、一定期間の生活費を支給することがあります。支給方法は、月払い、四半期払い、年払い、一時払いなどがあります。
- この特典の終了期間を設定し、その期間中に特典が徐々に減少/先細りになるかどうかを決定します。
- Companies should also consider the tax implications of COLA payments and ensure clear communication with employees about how the adjustment is determined.
この手当は、物価の高い地域に引っ越す従業員だけに提供するのが最善です。従業員が生活費の高い地域から別の地域へ引っ越す場合は、この給付金を差し控えることを検討してください。多くの場合、雇用主は、この給付金を提供するための基準値（通常はパーセンテージ）を設定します。また、特定の地域や都市を特定し、これらの地域に転居する従業員のみに手当を提供することもあります。
7) Policy Exceptions
Decide how you want to handle policy exceptions and make sure you and your RMC are in sync. Develop a well-defined process for requesting and evaluating exceptions, including who is authorized to approve them and under what circumstances exceptions will be considered. Even though you may have a great employee relocation policy, it is not always one-size-fits-all! Individual cultures, specific needs and family dynamics may create the need for exceptions. Make sure your RMC is tracking all requests/outcomes. Regularly review the types and frequency of exceptions requested to identify patterns or gaps in the current policy, which may indicate the need for policy adjustments.
一般的なポリシー例外要求には、次のようなものがあります。
- Extended temporary housing or household goods storage
- Additional crating of items, vehicles to be shipped or other services for a household goods move
- Home listing parameters / Qualifying home requirements
- Additional reimbursements for travel
- Repair Requirements
- Benefit extensions
8) Policy Tiers vs Core Benefits
Policy Tiers
With policy tiers, the company selects which employees receive specific benefit packages. Often, policy tiers categorize employees into different levels (tiers) based on factors like job level, seniority, or relocation distance, with each tier offering a predefined set of benefits.
For example, relocation benefits provided to an executive might be different than benefits provided to an entry-level employee. While a tiered policy allows a company to be selective regarding which benefits are offered to each level of employee, some benefits may be offered in all packages.
In other words, a HHG move could be offered to all relocating employees, but the cost of the move could have caps for lower-level employees. Some companies will only offer home sale assistance to higher level employees, but all other benefits may be the same regardless of role/job level of the employee.
従業員の役職レベルだけでなく、持ち家か賃貸か、新入社員か既存社員かなど、従業員がどの階層に属するかに影響を与える可能性のある要素も含まれます。
Core Benefits
Core Flex benefits offer a more tailored solution by providing a core set of essential relocation benefits to all employees while allowing additional flexible benefits that employees can choose based on their specific circumstances.
While Core Flex offers greater customization and can enhance employee satisfaction, it requires more complex administration and careful communication to ensure employees understand their options.
8.5) Compliance
Compliance is an essential consideration when developing a U.S. domestic relocation policy, as it ensures that the company adheres to all relevant laws and regulations. This includes understanding tax implications, employment laws, and real estate practices that vary by state. Creating a policy that prioritizes compliance helps mitigate risks, avoid potential legal issues, and ensures that both the company and the transferee are protected.
おわりに
In crafting an effective US domestic relocation policy, it is crucial to consider a variety of best practices that address both employee needs and organizational goals. Regularly compare your policy with industry standards and competitors to ensure it remains competitive and effective.
Consider partnering with a good RMC who can help write your policy, benchmark it regularly, and administer it cost-effectively.
For more best practices, get our 2024 Global Mobility Benchmark Report.
