Key Corporate Relocation Considerations For HR Departments

Psychologists say that relocation is one of the most stressful activities persons and their families can be subjected to. Changing jobs also figures around the top of this list, and given that most people end up relocating due to this reason, you can only imagine just how much more stressful relocation becomes. Relocation comes with a fair of subjective and objective concerns, ranging from personal to financial implications, which makes it harder to decide on whether to move or not.


The financial implications of relocating can be measured through the analysis of various factors. From an employer’s perspective too, such an analysis is extremely beneficial and would ensure that the relocation decision made was ideal for the business. Some of the benefits of this analysis include:

- Potential cost savings by relocating an employee from a location where the cost of living is high to a place where it is relatively lower.

- When moving an employee from a low cost location to a high cost one, careful analysis will help the company identify the right amount of remuneration during such a move. This way, companies can calculate ideal salaries and avoid any additional expenditure.

- When moving an employee from a higher cost of living location to one with a lower cost of living, employers can use analysis to convince reluctant employees about the higher savings they would realize in the new location.

- The analysis can be used to illustrate the benefits of relocation to employees directly and find the optimum living conditions in the new location.


Financial changes during relocation impact not just the employee, but his/her entire family. When performing such an analysis, ensure that it is comprehensive and includes all aspects and concerns of the employee. The following are a few factors that can be included during the analysis of financial implications of relocation:


- Compare the old salary of the employee with the change in overall wages earned by the entire family. Also include the changes in taxes between the two locations and projected change in income when moving with a spouse, assuming the spouse/partner is unable to find employment within the first year after relocation.

- Compare the changes in automobile expenses incurred by the employee in the two locations, including distance to drive, motor insurance charges, tolls and/or parking charges, taxes, etc.

- Compare the changes in benefits you would be offering to the employee, e.g. insurance plans, day care costs, etc.

- Compare the changes in housing costs – this is one of the most important factors to consider during relocation. Compare the rent, real estate taxes, mortgages, etc. of same sized houses in the two locations.

- Calculate the cost of moving household items and traveling to the new location. Also include the cost of temporary lodging and food expenses for the entire family until the employee finds a new house.

To know about how to reduce the stress of Corporate Relocation, please visit our Corporate Relocation Services page.

This entry was posted in Employee Mobility and tagged corporate mobility, corporate relocation. Bookmark the permalink.

Comments are closed.