Ideas to Reduce the Costs of Your Business’ Corporate Relocations

Changes in legislation have significantly eased the setting up of businesses in different local and international locations. To this end, companies are opening branches in several areas. Staffing these branches is nonetheless no easy feat.

You might, at times, have to move employees from one branch to another to boost profits and your overall productivity. Companies have corporate relocation packages governing the assistance they will offer employees in these instances.

One element that should form part of your corporate relocation program is the right professional movers for long-distance travel. A large portion of your relocation expenses will be spent on moving an employee’s possessions to another location.

With long distance movers, you will not need another company to handle international relocation or moving to another state. This contract will be far cheaper compared to hiring a new mover each time you need to move your employees.

Moreover, there will be less red tape involved, and you are guaranteed the highest level of customer service. Here are the other ways of reducing the expenses of corporate relocations.

Break Down the Costs

Most companies will offer a blanket package for the relocation of their employees. This might seem hassle-free for you, but it might be expensive in some cases and insufficient for your workers in other cases. The best choice for reducing your expenses is to break down the costs included.

These include storage and moving expenses, kids’ tuition, and loss of home equity and spouse’s income, among others. When you break these down, you will know where you can reduce the allocation without affecting your worker’s move.

Have a Standard Relocation Policy

The first item you should have in place when opening new branches is a relocation policy. This will detail the terms of relocation and what employees should expect depending on their job grade. The plan you will have should be based on employee satisfaction, research, long-term profits and stability.

This will help you plan for expenses and reduce complaints of discrimination among relocated workers.

Cap Certain Expenses

Computing expensesWhen establishing your policy, you should cap some expenses to avoid over-payments. One of the costs you should cap is the loss-on-sale for homes. This is one of the most expensive elements of corporate relocation.

You should place a limit on the loss percentage, the property’s purchase price or have a flat amount for this cost. The cap should be clearly worded in your policy to avert misinterpretation.

Rethink Expense Reporting

Some companies opt for expense reporting rather than a lump-sum payment. Most employees with run unnecessary expenses when they know they will be reimbursed provided they have receipts for them. A lump-sum payout will be cheaper than expense reporting for your company.

This is because an employee will aim to minimize their costs as much as possible to remain with some cash.

Corporate relocation need not run your business into losses. It, on the other hand, should not affect your employee’s family life and make him/her stressed out and thus less productive or looking to resign. The above tactics will guarantee that an employee has a stress-free relocation, and the effects of the same on your company are minimal.

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