For many businesses it is important to keep team members in the same physical location. This often results in new hires to be asked to relocate to a different location.
Moving might also become necessary if the company has bought or built new premises in a different area. This could be in a different region or a completely different country.
However employees may not always want to, or be able to move. There are many reasons employees give for not accepting a relocation. A survey conducted by Atlas World Group found the following reasons given for declining a move:
1) Housing and mortgage concerns. 95% of employees who decline to move due to housing concerns said that the main problem was that they wouldn’t want to sell their home. According to psychologists, moving home is among the most stressful events that can occur for an individual or a family.
2) Family ties or issues. Many people have close family ties, or have people who depend on them. This would make moving a difficult or impossible proposition.
3) Spouse’s employment. Moving away for work must also take into consideration a spouse’s or partner’s situation.
4) Cost of living at a new location. Living costs can widely vary from location to location. If the new area is not to the expectations of the employee, then they won’t want to move.
5) Personal reasons. Some respondents had personal reasons which undisclosed.
6) No desire to move. For some people, they simply don’t have a desire to move to a different place and deal with all the complications that come with the move.
Moving Employee with Incentives
To encourage more relocation, many companies offer extra incentives to actively encourage the employee to make the move. Incentives can include:
- Extended duplicate or temporary housing benefits
- Bonuses for moving
- Loss-on-sale protection
- Salary adjustments for cost of living at new location
- Telecommuting option to curtail the commuting costs
- A guaranteed employments contract if the move is accepted
Surveys have found that companies offering incentives greatly improve the chances of the employee accepting a job at a new location.
Another important factor is giving the employee enough time to make a decision and to adjust to the new setting if they accept moving. Typically companies give around two weeks notice for a move to be accepted, plus an additional month to report to work at the new location.