September 30, 2014
Businesses can control costs associated with employee relocation. Some ideas:
- Household goods transport is a large ticket item in the relocation process and, while movers are always eager to quote national and international move business, local move rates are fiercely competitive. Companies can cut costs by establishing direct relationships with local movers without upsetting their primary national and international sources. Look into using the local Preferred Move Provider for your office moves or for your employees at discounted rates.
- Before establishing a Corporate Relocation Policy, review your approach with a tax specialist. The company may save money by paying directly for those portions of the relocation costs which can be expensed, rather than reimbursing the employee. Certain non-expensed items will be considered taxable compensation to the employee, resulting in the need on the part of many companies to "bump-up" salary to adjust for the negative tax consequence.
- Document and track all relocation expenses, including administrative costs, in order to measure overall effectiveness of your corporate relocation policies in relation to success of assignment and retention of relocating employees.