Relocating an Employee to Another Region: How Much Do Companies Pay for the Privilege?
Do you need to relocate one of your employees to another location? It costs you more than you realize. Below I have a small breakdown of the average costs and other things you should know before you take the leap.
The Relocation Costs: The Numbers That Might Surprise You
Did you know that it costs more to relocate someone than it does to hire new staff? Some of the numbers might be a few years old, but they are pretty much on target in today’s economy.
It costs close to $100,000 to move one of your employees to a new location but stay within the company. A recent study finds that new hires who own a home will pay about $20,000 less.
What Makes the Cost to Relocate an Employee So Expensive?
Employers will cover rent costs of less than $24,300 while their employee finds a new place to live. That is money coming out of the corporate account.
We can compare that to hiring someone new. The money it takes to hire someone new is less than $20,000. What happens when the person does not work out? The company has to spend the same money by repeating the process over again. Ironically, it still less than the rent a company pays while their staff looks for a new residence.
The one thing that could improve a company’s finances is to outsource if needed, with the help of Chicago relocation management companies or others.
How Long Does the Process Take Once the Person Is Approved for the Relocation?
The numbers might vary a little bit, but on average, there is a two-week process to accept the offer. Now some can argue that two weeks is not enough time. However, when you take into consideration every step of relocating, two weeks is more than fair. Some employees get less.
The person will usually get about a month to make the move. According to professional researchers, this is more than adequate. Employees need to use this time wisely.
What About Payments?
Payment in full is the preferred way to go. It saves the company on filing and keeping track of what money has gone in and out. Your payment is dependent on your job situation, where you are moving to, and how much your expenses will be.