Relocation Package Guidelines for Clients

Relocation is a common factor with many recruiting efforts.  Qualified, local candidates are usually not available for most of our clients.  As such, we have prepared a few guidelines to help our clients through the decision process of preparing a relocation package.

1. Candidate Perception
   Relocation is often a major downside, even with an exciting new opportunity.  Many candidates have stable homes and are well connected within their local communities.  Even though it is a positive stressor, moving a candidate and their family can be an ordeal.  A reasonable relocation assistance package can help to minimize the downside of the opportunity.  This is especially true if the candidate has a spouse and children at home. 

2. Candidate Expectation
   Management-level compensation packages commonly include a stipend for relocation expenses.  Candidates know and generally expect this stipend to be a part of any compensation package for a job requiring a move.

3. Candidate Enthusiasm
   Even the highest quality candidates do not operate in an emotional vacuum.  The negotiation of compensation packages, including relocation, can be a tense, emotionally charged process.  At the end of the hiring process, we feel it is critical that our clients are excited to be hiring the candidate and also that the candidate is enthusiastic about the opportunity.  A reasonable relocation assistance package can provide you with one less obstacle to recruiting that superstar who will meet and exceed your expectations.

Even in this "buyer's market" for talent, it may be unwise to try and minimize cost by eliminating a relocation assistance package from the offer you make to your chosen candidate.  We advise our clients to consider relocation assistance to be "given" and then simply select someone who is worthy of the expense.  The right candidate will multiply that investment back to you many times.

Relocation is an especially difficult situation if the candidate has a spouse and is unable to sell their house quickly.  Normally, the deal is dead if the candidate is unable to sell their home.  However, we have seen many successful placements in which this issue was overcome by offering interim living expenses to the candidate.  In this situation, the candidate would relocate to your area and would travel back home frequently (e.g. for weekends) until the candidate is able to sell their home and move their family.  This interim living expense situation is also a good tool when you would like to hire someone whose children need to finish the school year before they can move.

The offer letter typically includes detail about the relocation package if it is offered.  Here is a sample relocation package based on a recent offer letter:

“ABC Supply Company will pay for the actual cost of your move to the area, including packing expense.  For allocation purposes, we ask that you obtain a minimum of 3 bids from independent movers.  ABC Supply Company will pay for one trip for your family to the area ($1750 maximum) and will pay $300 every two weeks for travel to/from the area until your family is able to join you permanently (3 month maximum).”

You should review the details and possible scenarios of all of your options before making a final decision on a relocation package.  We've found that a modest relocation package can help someone over the emotional "hump" of making a move, but there is no foolproof method for making sure your ideal candidate accepts your offer.  However, if you eliminate the negative financial consequences of relocation, you are one step closer to a “yes."