Is your company purposefully using Global Mobility to attract and retain talent?
Are employees willing to go for flexible programs?
Is this approach beneficial to businesses?
Following our recent blog on flexible working and how to introduce it effectively in the workplace, we take a look at the continued rise in flexible and hybrid working and the different ways businesses can offer relocation opportunities.
Flexible working continues to benefit both organisations and employees, by allowing for a better work-life balance, increasing job satisfaction and productivity.
Studies have shown that employees who have flexibility in their work arrangements are more likely to be satisfied with their jobs and are less likely to leave the organisation, leading to improved staff retention and recruitment.
Flexible working arrangements can also have a positive impact on health and wellbeing. By allowing employees to work from home, for example, they can avoid the stress and strain of a long commute, which can have a major impact on mental and physical health. Furthermore, flexible working hours can help employees to manage their own schedules in a way that suits their individual needs and priorities.
In terms of inclusion and diversity, flexible working arrangements can help to break down barriers and provide opportunities for people who might otherwise struggle to balance work and other responsibilities. This can lead to a more diverse and inclusive workforce, which can bring a range of benefits to an organisation, including fresh perspectives, new ideas, and increased innovation.
With over 50% of the workforce possessing some form of flexibility within their role, the benefits to this style of working environment are now unsurprising and as the trend towards flexible working continues to grow, it is important for organisations to embrace this change and meet the needs of their employees. By doing so, they can reap the benefits of a more productive, satisfied, and diverse workforce.
Relocation Policies – Which option is the best for you?
It’s clear that companies are recognising the need for more flexible and adaptable relocation policies to meet the changing needs of their employees and the business. With a diverse and global workforce, companies need to offer a range of options that cater to different situations and personal circumstances.
The ability to customise these policies with the help of technology solutions and data insights makes it easier for companies to provide a comprehensive and personalised approach to employee relocation.
Businesses are moving away from traditional, one-size-fits-all relocation policies, towards more flexible and tailored solutions to support the needs of their employees. This shift reflects the changing demographic of the workforce and the need to be more adaptable to support employee mobility and retain top talent.
Provision of options is key, but try not to confuse!
Many businesses are opting for one or a combination of the options below;
The Cash Lump Sum Policy
The lump sum approach to mobility policy offers a straightforward and cost-effective option for companies looking to support their employees with relocation. By providing a pre-determined amount of money, employees have more control over the moving process and can make their own choices regarding the expenses they incur. This approach is often used for entry-level employees or new hires and can be fixed or tiered based on different factors.
However, there are also some risks associated with this approach. Employees may not make the best decisions or work with the most qualified partners, leading to delays and additional costs for the company. To mitigate these risks, companies can use lump sum management technology to provide guidance and support for employees during the moving process. This technology can also provide insights into employee needs and preferences, helping companies make informed decisions about their mobility policies.
In conclusion, the lump sum approach to mobility policy can be a good option for companies looking for a simple and cost-effective solution. However, it’s important to be mindful of the risks associated with this approach and consider the use of technology to support employees during the relocation process.
The Managed-Cap Policy
The managed-cap program is a type of relocation policy that sets a maximum amount for benefits provided to employees. This approach offers a structured and controlled approach to relocation, providing employees with a pre-determined quantity of benefits to apply to different services that meet their needs. The benefits can be determined based on various factors such as job tier, location, or family size.
One advantage of the managed-cap program is that it has the potential for greater tax efficiencies compared to the lump-sum model, depending on the jurisdiction. By working with pre-determined, trusted, and experienced service partners, the managed-cap program can also provide a higher level of care and support for employees during the relocation process.
However, one disadvantage of the managed-cap program is that it may offer less control or independent choice to employees over the services and partners they work with. It’s important for companies to weigh the benefits and drawbacks of the managed-cap program and determine whether it’s the best fit for their employees and business needs.
The managed-cap program is a structured approach to relocation that sets a maximum amount for benefits provided to employees. While it may offer greater tax efficiencies and a higher level of care and support, it may also limit the control and independent choice of employees over the services and partners they work with.
The Core/Flex Model
The core/flex model offers the greatest level of customisation and flexibility to employees, and it enables organisations to adapt to the unique needs of their employee population. The core benefits provide stability and peace of mind to employees, while the optional “flex” services provide the opportunity to enhance their relocation experience with additional support and benefits. In addition, the core/flex approach often leads to a more efficient use of mobility budgets, as employees have the option to opt-in for services that meet their specific needs, rather than being offered a one-size-fits-all approach. This allows for a more targeted allocation of resources and can lead to cost savings for the organisation. The key to success with a core/flex model is to have a strong, flexible technology platform that can easily manage and track the multiple service options and levels, while providing clear guidance and communication to employees. A well-designed and managed core/flex relocation policy can provide employees with a positive, customised relocation experience, while providing organisations with a cost-effective, scalable and efficient mobility program.
Hybrid Relocation
As organisations strive to offer a high level of customised relocation support while controlling expenses, the lump-sum, managed-cap and core/flex models can be blended to find the best solution.
For instance, a partial lump-sum payment can be utilised for some services, while core elements remain fixed.
Thanks to advancements in technology, tracking and visibility into options and costs are now more accessible for both employers and employees. The ideal relocation policy will be determined by the company’s culture and goals, balancing personalisation and positive employee experiences with supporting the business’s talent strategy.
Download an easy to use PDF table that shows the pro’s and con’s of each approach.
PDF Download: https://f.hubspotusercontent20.net/hubfs/8772929/sl/documents/Flexible%20relocation%20policies%20at%20a%20glance.pdf