When planning a business relocation, the best way to plan is to understand the statistics of the industry. The way you spend on a relocation, in fact, the way you utilize your funding is what determines the success of the process. Understanding the areas where you can spend or the ways you can save your money is pertinent for a successful move. Leading moving companies associated with movingapt.com state that businesses that move to cross country need to be very observing when it comes to finances.
They must ensure that the spending on the moving process aligns with the company’s relocation policy. The money spent on relocation annually is no small thing for a business. And, the industry statistics say a lot about the costs associated, which a business should never ignore. The more you know about the relocation statistics, the better you can frame a relocation policy the works for the business as well as your employees.
Annual expenditure stats of the industry
The relocation industry is one of the most prominent industries in the USA. Annually, a grand amount of $25 billion is spent by the industry. As far as the average annual cost of a company’s spending is concerned, it is calculated at around $16,229,125. While the numbers may be different from one business to another, the more important aspect is how businesses utilize this money in the most optimum manner. It requires a little research on your hand and the right guidance for you to understand that the money you put into the relocation process is spent most efficiently.
Understanding the average relocation cost
The cost of relocating employees is something every business must be concerned about. The stats suggest that the cost of relocating homeowners and existingemployees is way more than relocating renters and new hires. Since 20147, the industry has experienced a spike in the relocation costs. It was calculated that on the relocation of a homeowner, businesses spend $97,166 annually, whereas, on new hires and renters, this amount is calculated to be $72,627 on an average.
What is the breakup of the employee relocation cost estimate?
Whether you are relocating the current employees or the new hires, the cost associated with it important to understand, along with its breakup. On average, you will have to spend thousands of dollars on relocating your employees. Even if you can manage the expenditure, it is very crucial that you handle the process with due efficacy. If you fail in the handling, you might have to lose some beneficial employees as well as change the service provider.
What is the process of relocation of employees?
It is usually a rule of thumb to provide the employees with a formal transfer letter and a period of two weeks to accept it. While as an employer you may think it as a long period, the employees think otherwise, considering it to be a very short period to decide for such a big change in life- remember they have to uproot themselves and get started at a new place.
However, it is possible to make this time beneficial for boththe employee and the employer. You must provide the employees with every bit of information you can share about the relocation. This gives the employees more power to make an informed decision and ensure that the step is for their own good.
Once the employees accept the letter of transfer with all the terms, it is justified to provide them 4 weeks to make the relocation and report at their new job. This is the most generous time you could be provided to an employee who has to move with its family. Even when relocating alone, there are many arrangements that the employee has to make and this time frame is justified. All the while, you must act as a respected employer and ensure that you provide whatever facility you can to your employees.
If you are moving a business, you surely will need professional help. The assets of a business are too crucial and exposing them to any type of risk is the last thing you would want. Besides, you might also feel obligated to extend relocation aid to the employees. Make sure you choose the right company to fulfill this requirement and offer you a package at the most justified price.
Business relocation is a positive change. However, a good experience can anytime turn sour if you are not able to manage the process efficiently. Ensure the right information channel is maintained and also that you know the associated costs of moving. This way you will be able to move to the new location swiftly. From getting estimates from the moving company to internally communicating about the transfer, make sure you are the best at handling all aspects of the business relocation.