Global Employee Relocation: A How-To Guide by INS Global

The Guide to Global Employee Relocation

The Guide to Global Employee Relocation

August 12, 2022


Picture of INS Global



Picture of INS Global



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Key Takeaways

  1. Problems during the relocation process can negatively affect performance and satisfaction
  2. Relocation employee can be time-consuming and contain multiple hidden costs
  3. A professional relocation service can be a way to streamline and simplify the process

Global employee relocation is when an employer moves staff from one company location to another. It can be for management reasons because their talent is needed on the new site. It also places the worker in a different position on the team to use their skills better.

In the case of global companies, moving employees can include a long-term transfer to new countries or continents.

Successfully relocating employees is paramount to long-term global mobility. Failure to adequately provide for the employee during relocation can quickly result in low retention rates and cost the employer time and expenses spent retraining and relocating the worker.

In this article, we outline some essential factors to consider when relocating an employee like relocation benefits. We also offer a way to make the entire process happen smoothly and with minimal risk.

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What Does Employee Relocation Involve?

Relocating an employee is much more than moving a worker from one location to another. There are all associated costs, and the process becomes much longer and more complicated if you are relocating an employee globally.

We have compiled a list of needs to consider below:

  • Housing assistance, both to pack up their current home and to set them up in the new one (including potential temporary housing at first)
  •  Transportation services, including transportation of furniture, pets, and other personal things.
  • Airfare for international relocation
  • Hotel costs in the new location before they can find a new housing
  • Living expenses during the process
  • Vehicle rental fees so the employee can move around efficiently while getting set up
  • Language and cultural training for international relocation
  • Human Resource management in the new market
  • Visa, work permits, and other paperwork fees for international relocation
  • Taking any other additional relocation expense that occurs on a day-to-day basis

This list is by no means fully comprehensive. Your specific situation and employee requirements will have their own personalized requirements. Different companies offer a range of different relocation packages with a variety of potential options based on employee needs. However, these needs are essential to ensure you reduce the chance of relocation turning out badly.

A disorganized and poorly executed relocation plan will quickly make your employee feel overwhelmed and dissatisfied. This then creates a poor start to their work in the new location.

Hiring Checklist to Improve Your Recruitment Process

Employee Relocation: How Much Does It Cost?

It’s important to know what expenses will be incurred during the relocation process not to overspend.

Depending on the distance the employee is being moved and their personal and family situation, many factors can change the final amount spent.

Relocation costs vary according to the position of the employee but typically cost at least USD5000 and can go to as high as USD24000/

A relocation package is standard practice for employee relocation, and this may involve a full service professional relocation management company. This offer should be appealing and take care of all the employee’s needs. This includes both when leaving their current work location and acclimating to the new one.

A thorough relocation benefit package will mean better employee retention and commitment to the company.

There are four commonly used types of relocation packages:

La guía global para la reubicación de empleados

1. Lump-Sum

This is when an employer gives the employee a fixed amount of money to cover all expenses throughout the relocation.

This can cause problems, however, if the lump sum ends up being insufficient to cover all the employee’s costs.

It also doesn’t give the employer oversight over how the money is being spent and if the employee might be using it for costs outside of the company.

2. Reimbursement

This method asks the employee to spend their own money first, and then the company will reimburse them for all costs after relocation.

It requires a lot of filing and record-keeping, which can take up a lot of time.

Additionally, the employee may not have enough funds on their own for the entire relocation process.

3. Direct Billing

When an employer hires a moving company to handle the relocation, the moving company bills the employer directly for all costs.

If you choose this method, you want to be sure that you hire a reputable moving company that doesn’t overcharge for corporate relocation.

4. Outsourcing Relocation

This option is to hire a third-party company to handle every aspect of the employee’s move, including HR services, taxation, and legal requirements, if applicable.

Hiring a company to take care of all employee relocation services can complete the move much faster and in full legal compliance.

Global PEO

How INS Global Can Help Your Employees Relocate Smoothly

Big changes are stressful for everyone involved, and employee relocation is no exception.

The complexity of moving across the world can create pressure and tension for both employer and employee. Being able to complete the transition swiftly and problem-free benefits all parties. It helps your employees start work in their new location feeling satisfied and well-cared for by a company that understands their needs.

INS Global provides international expertise and experienced staff to aid in your relocation projects. With our established global network, we can work with local providers worldwide, so you get the best service for the lowest cost.

Our legal experts support and guide you through an individual relocation program, offering legal expertise and a local entity structure.

By outsourcing the relocation to INS Global, you’ll be able to focus on the impact of the move on your company and how it affects your market goals. At the same time, we take care of every small detail and help ease your employees into the new location with a smooth, simple relocation process.

Secure customer service makes a world of difference and allows your employees to hit the ground running.

Contact us here today to learn more about fulfilling all your global relocation needs.


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