How to Create a Relocation Policy

In today’s job market, attracting and retaining top talent is a key priority for many businesses. With employees increasingly interested in global mobility, and corporate relocations on the rise, it’s crucial for organizations to have clear relocation policies in place.

Let’s explore what a relocation policy is, why it’s important, and how to create one for your organization.

What is a Relocation Policy?

A relocation policy is documentation explaining how employee relocation works at your organization. It typically lists the relocation benefits that the company offers, the eligibility criteria for employees to get these benefits, and any additional details about specific relocation programs. Often, these benefits are formatted as relocation “packages”, which may include financial help, logistical support, and other resources to make it easier for employees to move to their new location.

It’s important to have all of this information clearly stated in the form of a relocation policy to avoid miscommunications, support transferees, and help inform employees who are considering a relocation.

It also ensures that the relocation process is consistent across the company, reduces confusion, and decreases the chance for a  dispute. Without a set policy, relocations can easily be mismanaged and misunderstandings can arise.

Key Elements to Include in a Relocation Policy

The first component of a relocation policy should be a clear description of the benefits available and any eligibility rules.

The policy should explain exactly what is covered as a part of their relocation package, such as travel expenses, logistical expenses, and temporary housing.

It’s equally important to indicate anything that is not included or any eligibility restrictions. For example, different benefits may be offered based on:

• Employment Status: The policy should clarify if it applies to full-time, part-time, and/or contract workers.
• Job Level: The company may offer different relocation benefits based on a person’s position or seniority.
• Relocation Distance: More benefits may be available for employees moving farther distances, or to a different province or country.

Implementing a Relocation Policy

The first step is to clearly define and document your organization’s relocation policy and get senior management support, but what’s next? Typically, Human Resources departments are tasked with implementing the policy and communicating the details to potential transferees.

It’s important to put the relocation policy into action, ensure employees have easy access to it, and follow its guidelines. 

However, a relocation policy is just the starting point. Employee relocations are not one-size-fits-all, and each individual relocation should have a specific plan that the transferee can refer to, including:

• The relocation timeline
• The tasks and duties of both the employer and the employee
• The resources and support available to support the employee

HR can also gather information on an ongoing basis to evaluate the success of the policy. They may consider how long relocations are taking, employee satisfaction rates, and costs. 

Frequently Asked Questions

How to write a relocation policy?

Writing a clear, comprehensive relocation policy is crucial to avoiding confusion and ensuring consistency across all employee relocations. A well-written relocation policy should reflect your company’s values and needs, while also ensuring a smooth experience for the employee. 

Start with the following sections to write your relocation policy:

• Define the Scope of Coverage: Start by determining who is eligible for relocation benefits—whether it's full-time employees, executives, or employees at certain levels. Be clear about how and when the policy applies.
• Outline Benefits and Services: Specify the types of support provided, such as housing assistance, moving services, travel expenses, and temporary housing. This is the core of your policy and should be detailed.
• Set Clear Financial Parameters: Define whether the company offers lump-sum payments, reimbursement, or direct billing with service providers. Transparency about financial responsibility prevents misunderstandings later.
• Include a Timeline: Set deadlines for when relocations must occur and outline the process for requesting benefits, submitting expenses, and scheduling key milestones.
• Clarify Exceptions and Flexibility: While it's important to have a consistent policy, some situations will require flexibility. Make sure there’s room to accommodate special circumstances or high-priority moves.

What should be included in a relocation package?

A relocation package should cover more than just the basics of a move. To truly support an employee, the package should address both logistical needs and personal comfort. With a comprehensive relocation package, employees feel supported throughout their transition, which can positively impact morale and retention.

Here are some key components that should be included:

• Pre-Move Management:  Professional support to ensure all arrival components are taken care of such as required visas, bridged healthcare benefits, and more.
• Moving Expenses: Coverage and/or limitations for professional movers, packing, and transportation of household goods. Organizations should include specific limitations such as container size or maximum moving costs. This will allow transferees to decide if they should move their household goods or start over in the new location.
• Housing Assistance: This can include help with selling a current home, finding a new one, temporary housing, and securing rental agreements.  Some employers cover other expenses including legal expenses when selling a home, or a guaranteed sale price.
• Travel Expenses: For moves that require long-distance travel, covering transportation costs for both the employee and their family is crucial.
• Settling-in Services: Offer support in finding schools, childcare, healthcare providers, and local amenities. This personalizes the experience and helps employees and their families adjust faster.
• Spousal and Family Support: Helping a spouse or partner find employment or navigate the job market in a new location can be a major factor in a successful relocation.
• Tax Assistance: Moving can trigger tax implications, especially for cross-border or international relocations. Including professional tax assistance can help employees navigate these complexities.

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At New Roots Relocation, we support both employers and employees at every step of the way. We work together with organizations and HR representatives to build their relocation policies or fit our bespoke services to the policy in place. To learn more or have a consultation with our relocation experts, contact us today!