A recent study conducted by IBIS World stated that in the last five years, the Employee Relocation Industry has had a growth of $13.9 billion, which is at 0.4 percent annually. It is believed that the impetus for this growth is due to the rising economy and corporate profit. The other factor that boosted the Employee Relocation Industry is the housing market’s positive trend in the last few years. A substantial share of the revenue for the Employee Relocation Industry is generated from the real estate market.

As a result, the study concluded that in 2021 alone, the growth in the economy and house pricing index likely contributed to about a 7.8 percent increase in the Employee Relocation Industry. Unfortunately, this improvement came at a time when the industry is immensely affected due to the COVID-19 pandemic. 

While some employees refused to relocate due to health issues, and with a drastic loss of employment in parts of 2020 and 2021, the Employee Relocation Industry suffered. But with work-life coming back to normal, the relocation of employees is picking up. Furthermore, with the new trend of the Great Resignation, companies and employers are looking to hire talent beyond domestic boundaries. However, the incentive offered to talent doesn’t end here. The existing employees can rise vertically or horizontally within the company to ensure they are retained. 

In such a scenario, where real estate plays an important part in relocation, we need to see how it affects an employee. In many situations, the employee needs to sell a property before relocation and/or purchase a new property in the new location. In this article, we will investigate the effects real estate has on the relocation of an employee and how an employer can help. 

Perspective of an Employee 

For many employees, buying and/or selling their house is critical for relocation, hence understanding their experience would help the employer to prepare and offer a better relocation outcome. 

Low-Inventory and High Prices 

Across the country, many home buyers are facing difficulty with purchases because of the record-high prices in the real estate market. While that bodes well with any employee selling the house for relocation, there is another issue. When the same employee searches for the house in their new destination, they are looking at a price that can be higher than expected. They can also be in the situation of losing out on multiple bids or they may feel rushed to buy an overpriced property. Given such a situation, there are ways the employer can help the relocating employee. 

Employer Can Help to Relocate an Employee 

If you are still wondering why there should be a relocation program for the current real estate market, the answer is simple. The last thing you would want is for your employee to leave your company because of a tough home purchase experience. Furthermore, without a mobility or relocation program in place, you are in the position to lose out on more money. You may lose time, for example, if the employee is outbid by others for a new home, thus delaying their relocation time. You also might receive more exception requests, for example, if the person is moving into an expensive real estate market.  

So, how can an employer help an employee with the relocation program? 

Extending the Corporate Housing Benefits 

If you already don’t have one, you should provide your employee with corporate housing benefits. In case you already have the benefit in place, it is time to extend the benefit longer. Corporate housing offers the transferee a short stay in fully furnished accommodations until they find a new place to call home. But this stay cannot be for an indefinite period. With relocating employees having a hard time finding a house in this real estate market, extending the stay should be an option when applied for by the employee. 

Extending the Timeline 

The high-priced real estate market, with delayed enclosures, travel bans, and the introduction of an air-bubble due to the pandemic resulted in employees failing to utilize the relocation policy within the stipulated time. As a result, some people failed to relocate within the required timeline and had to forgo the benefits. Employers should evaluate existing relocation policies. The impetus is on employers is to identify the areas where they can extend timelines and offer the benefits to the relocated employee, mainly when it comes to real estate. 

Final Words 

One of the best ways to execute an employee relocation assistance program is to work with an experienced Relocation Management Company (RMC). An RMC can help your employees with relocating, finding the right house/closing, plus the many other steps needed in an employee’s relocation. An RMC can also design a cost-effective relocation policy that serves transferees’ needs while still saving your company money.

The global economy is changing, and while it is here to stay, it is time for companies to develop their hiring and employment structures to think beyond domestic borders. Employers should be able to give their employees the right position within the company irrespective of the location.

1. Deploying Talent in the Market

The speed to market is more cut-throat than ever before in this technology-driven era. However, the failure to put the right talent in the market first means you are opening up space for your competitor, thereby giving them visibility and improved market share. 

As an employer, this isn’t something you would want; therefore, you need a global mobility plan with a cohesive process where your employee gets all the necessary support in relocation, payroll, taxes, immigration, and more. Establishing a proper mobility initiative is essential in creating a global brand.

2. Mitigating the Risk 

If you do not have a mobility program within your business, it doesn’t mean the organization cannot have mobile employees. You can deploy the right resources in new locations and markets without a concise plan, but there is always the chance of entry being denied in case of international mobility. 

Even within national mobility, your employees can be subjected to pay taxes for multiple locations, succumb to higher tax bills, or it may even cause your company to become taxable in the new location. By having a proper system in place for mobility/employee relocation, you can mitigate unwanted administrative burdens and unexpected costs.

3. Controlling the Costs 

Often, management groups decide not to have a mobility initiative program as part of the company policy because it costs more. But it’s time to think differently. When you have a proper and planned mobility initiative program, you will be saving more money in the long run. The simple reason is you have a plan in place that is state, federal, and internationally compliant.

4. Closing the Talent Gap 

Borders no longer define the war for talent. When you hire international employees or send your local talent to new venues, you are not only allowing them to learn something new. Your talent will use that knowledge to benefit your business in the long run. It’s time you identify employee’s potential. Help them develop and nurse their talent by relocating them with good packages and compensation benefits to manage your talent shortage.

5. Offering A Seamless Experience

Suppose you have decided to relocate your talent to a new place. Without a mobility initiative in place, the employee must figure out the relocation process on their own. They will need to figure out how they will be moving their goods. In the case of an international move they must know the immigration process, the legal implications of earning in a foreign land, taxes, and on top of all that they must learn to adjust to a new culture. 

All these hassles can impact their performance and their ability to do their job. It may even drive them to leave the company due to these high-stress situations. With a mobility program in place, you can sort all these issues out beforehand and offer your employee a positive and seamless moving experience. This will benefit your company in retaining the talent.

By integrating mobility initiatives into your business plan, you are saving time, money, and setting your business up for success. If you are looking for experts who can help you with relocation programs and strategies, contact WHR Group, Inc. (WHR).

A 2021 study revealed that 73 percent of employers in North America find it hard to attract employees. While there have been many reasons that have led to this new trend, the duty is now on organizations and employers to be agile and flexible when it comes to retaining their workforce. 

Employers need the best talent and mobility to be able to make shifts. It is also crucial that employees are given the right motivation to meet the high standards of the organization and stay on the job. One way is to build talent management into the company’s hiring system, which should also include talent mobility and relocation program management. You may be wondering why these two are important in retaining your workforce and how each of these fits with each. Read further as we unravel the entire picture for you. 

What Is Talent or Employee Mobility?

If we put it simply, the concept of talent or employee mobility is the migration or moving of in-house company employees to another place or job position. The benefit is you can bring out the best optimization of the employee’s talent for the organization. The practice of talent mobility is to warrant that the employee gains new skills by moving within the organization.

With new roles and responsibilities offered to them, the employee should not feel stagnant and more inclined to stay with the company. The process aims to develop the talent and put them in the right place in the organization, so the result is developing a successful business. 

What Is Relocation Management? 

Relocation management is the process of a provider, like WHR Global, offering expedited relocation logistics for other companies and their employees to both domestic and international places. A relocation program management company works with an enterprise or business to relocate employees in an effective and cost-efficient manner. A business hires a relocation management company to warrant a hassle-free relocation process for the employees since it is a complex process. It is also time-consuming, personally challenging for the employee, and an expensive process. Especially when left to the employee or the HR of the business.

Well-established relocation management companies will provide software along with mobile and web applications that the employee and employer can access easily to get on board with the relocation process. All the required information for a smooth transition will be available to the employees about the new place and the procedures they must undertake for the relocation. 

Single Relocation Management Platform 

Relocation management software needs to be in place when employee mobility is part of a company’s process. The relocation software should be robust enough to clearly cover the process for management, HR, and the employee who is being relocated. Additionally, a single relocation management software platform should be able to handle the vendors engaged, the key compliances, and important dates pertaining to relocation. This greatly increases accountability by all the parties involved in the relocation process for a seamless experience. 

Signing Documents 

A talent relocation management company like WHR has the technology so that the employer, the employee, and HR can access the same relocation management platform for signing the necessary documents required for relocation. The automated service of sharing the data and documents with the signees makes the process smoother. It ensures all the documents are in place, and each one has their own copy without the possibility of missing any, which can happen with paper documents. There are numerous variables and a relocation management platform can help.

Summary

By integrating relocation management software and service into talent mobility, your company is preparing a better experience for your relocating employees. All the while ensuring you save money in the process. WHR Global, as a relocation management provider, offers a comprehensive relocation management program with years of experience in the field. You can trust that you and your employees are in good hands.