For the last two years, pandemic challenges and the ever-changing economic landscape have driven companies to adjust their relocation policies with more frequency. Despite the pandemic leveling out, the practice of revising policies remains, especially when companies strive to stay competitive in the talent market. Benefits like temporary living, global assignments, household goods and house hunting are among the policies most adjusted, with home purchase and mortgage assistance currently on the rise. Will making these policy adjustments help in the long run and how will they impact a relocation program overall?
To put these questions in a broader context…Is it a good idea to be constantly adjusting the benefits included in relocation policies just because the market is wildly fluctuating?
No, not necessarily.
Why?
A disruptive market presents loads of variables – inflation, interest rate increases, supply chain issues, housing imbalances, labor shortages…all trends that companies should take seriously and monitor closely. On the flip side, it’s virtually impossible to create relocation policies that rectify all these challenges, especially when the market behaves in such an erratic way. In fact, undergoing a policy overhaul during such an unpredictable market can sometimes create new issues, such as confusion and discord for employees. Shifting away from knee-jerk adjustments to more permanent solutions can provide immense help to employees during a volatile market.
What CAN you do?
Home buying is becoming one of the most common areas where employees need the most help. The following solutions, done on a case by case basis, could alleviate some of the issues employees encounter without the employer completely changing the policy:
- Allow for one-off adjustments to individual policies. For instance, unexpected circumstances can lead an employee to request an additional 30 days in temporary living. Instead of revising the company’s policy to accommodate this, it’s easier to grant an exception in this case.
- Policy addendums can be used to address the need for additional services within the policy without completely revising it. For example, a loss on sale option could be added to the policy to mitigate a particularly difficult housing market.
Is there a way for companies to be preemptive in their policies to account for a volatile economic climate?
Yes, there is.
Adding a Core/Flex policy to a relocation program can decrease the number of exceptions often sparked by market trends. Designed with flexibility in mind, a Core/Flex policy guarantees the employee the benefits they need the most, while offering a wide range of secondary benefits they can select as needed. This type of policy can also be a great asset during a company’s hiring endeavors as it reflects their commitment to supporting the varying needs of their newly hired employees.
When is it a good time for a company to revise their relocation policies?
Policy reviews are conducted regularly by an RMC throughout the life cycle of a relocation program, taking the long view of the market, tracking the trends, and pinpointing the problems that aren’t improving. This data is used to update the policies, accounting for the ebb and flow of the market, and safeguards against future market disruptions. During the process, it may be wise to convert less flexible policies such as Lump Sum or Tiered plans to a Core/Flex model.
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