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.
保证买断（GBO）或买方价值选择（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. - 另一方面，BVO大大降低了GBO的组织风险，因为只有在雇员找到外部买家后，贵公司才会购买雇员的房屋。
- 一些公司为其高管提供GBO，为非高管提供BVO。
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.
优点
- 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.
- 保证报价加快了搬迁过程，使受让人可以更快地搬迁。
弊端
- 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.
优点
- 对你的公司和受让人有税收优惠。
- Employees are not required to attend closing.
- 最大限度地减少公司成本，因为买家是由雇员担保的。
- 由两名房地产经纪人完成的经纪人市场分析，以建立一个适当的营销参数。
弊端
- 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.
优点
- 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.
弊端
- 对你的公司或雇员没有税收优惠。
- 你的公司将产生额外的毛利成本（假设你提供毛利）。
- 雇员负责所有前期费用（成交费用、佣金费用、检查费用等）。
房屋检查
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.
- 好的
- 化粪池
- 氡气
- 白蚁
- 石膏板
- 暖通空调
- 屋顶
- 室内管道和/或电气
- 结构/地基
房屋销售奖金
卖房奖金可以激励员工快速出售房屋。
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- 如果你提供GBO，对你的公司有利；在BVO项目中提供的较少。
- 决定你将在哪里设置这个福利的上限，以及这个上限是否会因员工的角色而有所不同。许多公司以销售的百分比为基础，并且/或者为那些能够在期望的时间范围内出售房屋的人提供更高的奖金。
- 这在今天的房地产市场上是不需要的，因为房屋的销售速度很快，因为需求大大超过了可用库存的供应。
销售损失
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.
临时住房
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
提供一笔旅行费用将简化程序，并允许员工预订/支付购房旅行。
See below for more details on lump sums
目的地结账费用
许多公司将为高管与非高管提供这种报销。
- 封顶支持是控制这种应税福利成本的一种方式，特别是如果你的公司提供毛额。在将员工转移到高成本住房目的地时，这可能特别有帮助。
- 建议只允许报销典型的成交费用，以确保你的公司不报销非标准的项目。
一些雇主为目前在新地点买房的租房者提供过户费用援助。
- 如果你决定提供这项福利，请决定谁有资格。只有新员工还是现有员工，只有高管还是基于工作级别？
- Although it is not the most commonly offered benefit, an incentive to rent can provide your company with potential cost savings on future relocations.
- 对于经常搬迁的员工来说是个不错的选择，这样你的公司可以放弃为同一个员工重复支付过户和未来的房屋销售费用。
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.
车辆运输
通过根据移动距离授权车辆的数量来创造成本节约。一般来说，如果距离超过500英里，公司会提供至少一辆车来运送，如果距离超过1000英里，最多可提供两辆。这就减少了要求员工和家人分别乘坐不同车辆长途跋涉的压力。
临时存储
大多数公司会提供雇员家庭物品的临时存储，直到永久住房得到保障。
- 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.
- 为了节约成本，不要因个人原因提供这项福利，例如，在家庭改造期间，员工可能想储存物品，直到工作完成，或者如果员工要去度假，不能在HHG交付时在场。
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)
受让人收到的是一笔一次性付款。雇员决定他们计划如何使用这些资金。
- 常用于非行政人员，包括初级雇员和发展计划中经常轮换地点的雇员。
- 通常情况下，不利用更高层次的搬迁。
- 大部分的一次性付款都低于5千美元
Managed Lump Sum
(with counseling)
允许你的公司保留对员工如何使用这笔钱的部分控制权，同时仍然允许一些灵活性。RMC向员工提供咨询，告诉他们可以通过何种方式使用他们的管理费用，并在员工产生费用或直接向RMC的供应商伙伴开具账单后，以报销的方式提供资金。
- 管理性的一次性付款更经常被用作行政人员或更高层次雇员的唯一福利，而一次性付款（没有咨询）则更经常被用于初级雇员。
Lump Sum
(in addition other benefits)
这是最经常使用的一次性付款福利类型。它运作良好，因为公司可以提供其他福利--根据个人的具体搬迁需求定制--同时仍然提供一笔雇员可以随意使用的款项。
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)
你的一些员工可能会搬到一个生活成本较低的地区，而一些人可能会搬到一个成本高得多的目的地。如果存在较高的成本，一些公司会提供一个有限期限的生活费用津贴，以弥补财务差距。支付方式可以包括按月、按季、按年或一次性付清。
- 为该福利设定一个结束时间段，并决定该时间段内福利是否会慢慢减少/缩减。
- Companies should also consider the tax implications of COLA payments and ensure clear communication with employees about how the adjustment is determined.
最好是只向那些迁往高成本目的地的员工提供这项福利。如果你的员工从一个高生活成本的地区搬到另一个地区，考虑扣留这项福利。通常情况下，雇主会设立一个门槛（通常是一个百分比），以提供这项福利。还有一些雇主会确定特定的地区/城市，只向迁往这些预先确定的地点的员工提供福利。
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.
一些常见的政策例外请求可能包括以下内容。
- 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.
除了雇员的职位级别，其他可能影响雇员所处层次的因素可能包括他们是房主还是租房者，或者是新雇员还是现有雇员。
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.
总结
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.
