How exactly do we define a “hidden cost” of relocation? It’s not a non-disclosed cost buried in the supply chain—although those can be hidden and lead to surprise last-minute expenses if you don’t have a relocation services company looking out for your company’s best interests.
But the real hidden costs of global relocation lie in stressed-out transferees, lost productivity and even transferred employees who leave the company shortly after a relocation.
If you eliminate loss-on-sale benefits for transferred employees who own their own homes, how much stress are you creating for your employees? If you don’t offer spousal support, what will that do for the morale of your transferred employee? Stress leads to sick days, personal days and dissatisfied employees—all resulting in lost productivity and lost dollars for your company.
When you limit or eliminate moving expenses as part of a relocation package, how many more days will your employees need to line up moving companies, find the best prices or move themselves? How many days of productivity will this cost your organization?
Studies show a direct correlation between poor retention and changes in corporate global relocation policies. It costs much more (in real dollars, employee time and productivity) to hire and train a new employee than it does to retain a quality worker.
In today’s workplace, we know that every dollar counts. But before cutting costs by reducing benefits on employee relocation packages, make sure to measure the hidden costs of relocation.
