HOW TO DETERMINE FAIR, TIERED RELOCATION PACKAGES

Many companies offer relocation packages to their employees in tiers in an effort to control relocation costs. Tiered relocation packages are frequently established to address a variety of complex issues, and essentially mean that what’s offered to one employee may not be offered to another. They are useful in a company’s ability to offer more attractive packages when trying to retain existing employees or attract prospective talent. Determining a fair, tiered relocation policy is often merely a matter of weighing certain criteria against its value for the company.tiers-resized-600

ASSIGN BY POSITION AND EXPERIENCE

An employee who performs high level services for a company is usually considered much more valuable than someone who occupies a far lower position with few responsibilities and little need for certain skill sets. For this reason, employees who have reached certain levels within the company (i.e. professional, manager, executive) and who are seen as more “valuable” in the grand scheme of things may be offered more robust relocation packages than others.

EXAMINE EXISTING LIVING STATUS

Sometimes, an employee’s homeowner status could be one of the key factors that plays into whether they’re offered a higher or lower tier of relocation package. Employees who own their own homes may need to be offered additional benefits, especially when considering the complexities inherent in having to sell or rent their homes to relocate. Likewise, a company may determine that an employee who rents his or her residence will need less assistance and will have fewer difficulties moving.

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