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Relocation: What is the real cost?

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When an employee relocates to an overseas office, employers not only have to think about the financial cost to the company, they must also consider the emotional cost to the employee, says Anthony Robinson, managing director of Robinsons International.


One of the first considerations for a company contemplating the relocation of an employee overseas is the cost. But, this doesn’t just mean the direct costs for the employer, such as the physical relocation of the employee and their family, cost of their replacement, or overseas remuneration package. Equally as important is the emotional cost to the employee, which can have an adverse impact on a company if the relocation doesn’t work out.

So perhaps the question we should be asking is “what is the cost of not doing it properly?” It is essential that companies acknowledge that all job-related relocations, particularly those overseas, have a profound effect that goes beyond the employee concerned and their workplace.

There is also the question for the employer of who is the best person to relocate? Should it be a single, young graduate with no family ties, keen to gain some international experience in order to climb the career ladder; or a more experienced person with a family? Is it actually cost-effective to relocate your employee to another country, or would regular trips be more economical? And how will the relocation affect the dynamics of the team left behind?

Good economic sense

Once these questions have been answered and the decision made, HR managers need to provide support to each individual’s circumstances and take into consideration the needs of the whole family unit, if appropriate. This not only makes sound HR sense but good economic sense as well. An employee that does not receive the appropriate support could end up returning to the UK prematurely or resigning from the company entirely.

According to the Centre for Future Studies, one and a half million Brits will emigrate for work each year by 2020, six times as many as today. So in the future it will become even more important for employers to consider both the economic and emotional support package they offer to their global executives.

The solution lies in handling the business of relocating an employee effectively and most companies deal with this by calling in a professional relocation specialist to work alongside its own HR resource, or to take on the total responsibility of the relocation.

These specialists understand the pressures that both company and employee are under and will keep all parties advised on the progress of the relocation, without wasting their time with resolvable problems.

Consultation meetings should address not only on the itinerary and timeline for the actual relocation but also the myriad issues that surround it, particularly those which could cause concern, such as a partner’s employment needs, the children’s education or whether or not to transport the family pet.

This is where a skilled relocation company will think ahead, for example, by researching and providing the family with a fact file specific to their destination country well in advance of the move – everything from taxation and insurance to food, shopping, paying bills and social niceties. While not providing all the answers, such a fact file can help the family avoid many of the potential pitfalls that lie ahead.

Culture shock

Employee support should include an element of cross-cultural awareness-raising, which could include language lessons or a cultural awareness programme on the country the person is moving to. These can be organised for the employee, or their whole family.

An international relocation specialist will help you to do this, by taking care of the practicalities and providing information, but also taking into account the wider issues, such as the impact on partners, children and extended family. And remember, a good employer doesn’t wait for employees to raise concerns, it should offer help before it is asked for.

The prospect of living and working abroad can be exciting and invigorating for the employee and cost-effective for the employer. The process of getting there can be complex and fraught with problems but with good communications, efficient planning and the support of an expert in the international relocation field, both for the business and the individual, it can be a most worthwhile move.

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