A comprehensive relocation package can give you access to top talent from around the world, but not every company sees the need for one. However, assigning one of your employees abroad is no small decision, as it involves a lot of financial backing and internal resources.
The most common reasons relocation fails are usually the same: family, unknown expectations, and a lack of local support. Your business can hire a relocation specialist to fix these issues.
What is a Relocation Specialist?
A relocation specialist is someone who handles employee relocation for you. Relocation specialists will help your employees cover some of the total cost of moving, store their goods, hunt for houses, set up travel details and dates, and assimilate them into their new community.
Why do you Need a Relocation Specialist?
Although a relocation specialist will handle every aspect of your employee’s relocation, you may be asking yourself how much this all costs. Relocation specialists charge by employee and by the complexity of the move. If the employee has a family, they will also charge to move them.
While those numbers add up quickly, it’ll cost more for you to complete the process on your end.
1. Lack of HR Staff or Dedicated HR Staff
Most companies don’t have HR staff, let alone an HR team that can offer both the employee and their families support before, during, and after the move. Will they be able to provide a culture or language training service? Offer mentorship? Give insight on the best schools or markets?
Probably not. Even if they can muster up enough knowledge to provide the support they need, this staff member has to dedicate themselves to your relocated employees only.
2. Initial Employee Screening Prevents Failed Relocations
While long-term support is essential, proper employee screening can save you a lot of trouble.
If an employee has a health condition that prevents them from getting the medication they need overseas, the relocation will fail immediately. If the employee tends to get homesick but avoids sending over the family to save costs, they’re likely to go back home in under a month.
Relocation specialists can help you find the right candidate for relocation.
3. Failed Relocations Cost A Lot of Money
The financial aspect, falling primarily on the employer, includes international flights, transportation costs, short-term and long-term accommodations, shipments, school fees, and more. At the end of the day, employee relocation can cost $75,000-$400,000 per person.
Salary costs account for most (60%) of the total cost of a year-long assignment. If the assignment is cut short, it’s likely company objectives weren’t meant, meaning the rest of your spent costs deliver nothing to the organization. By saving money, you’re actually losing money.
4. Productivity Dips Can Be Even More Expensive
Some disenchanted employees will still stick it out until the end of their relocation, which can lead to productivity dips. It’s common for all employees to feel like a fish out of water when they arrive in a new country. In fact, it can take 8-20 work days for employees to adjust.
Without ongoing support, family problems, lack of motivation, depression, and low-self esteem can occur in your employee’s life, but the penalties are even harsher on family members.
5. Families Account for Most Relocation Failures
Hearing that, you may want to avoid sending an employee with a family overseas. However, relocated employees are more likely to stay if they have familial ties with a location.
That doesn’t mean “don’t send singles,” but it does suggest that there’s a benefit to keeping families together when they move. However, if families aren’t given cultural or language training ahead of time, spouses and children will feel like they don’t fit in with their peers.
A relocation specialist can provide endless support to families who are struggling with relocation. They can even talk families out of a move by offering counseling or training.