What You Should Know about Corporate Relocation
When working in the corporate world, especially over a certain salary range, the likelihood that an organization will desire for you to relocate to fill a position increases. In a day and age where country borders do not form borders to business and the world is our corporate boardroom, it is necessary to be prepared for the possibility of relocation. Preparation means being armed with all the facts you should know about relocation and what is involved so you’ll know when the question arises whether or not it is something you want to encounter.
Relocation Defined
Relocation is usually the result of two different scenarios, either a potential candidate/applicant is needed to fill a position in a location other than that in which he or she currently resides, or when an individual is already working with a company and his or her expertise in needed in another location. The latter often happens as the result of mergers and acquisitions, major change in policy or for training purposes. While from the outside, it may seem like a great opportunity or an exciting change, there is a reason why many often say that relocation is one of the five most challenging and stressful events in a person’s life.
Relocation Providers
Larger organizations are, for the most part, going to use a relocation provider. Providers serve as an outsourcing option and handle most of the components of each employee’s move from beginning to end. Once an employee or candidate has been chosen for relocation, then that individual is put in contact with a relocation counselor who guides the individual through the process from there on out. This eliminates much of the resource strain on organizations while it also provides the employee with a knowledgeable contact, someone who has more than likely been through the process before, and is available 24/7 to answer questions and concerns. This set-up is a win-win for the organization and employee.
Even if you know that an organization is not going to be outsourcing the process to a third-party provider, and will be handling the majority of the components in-house, there are considerations that should be made in either situation, including the following:
Policy Counseling
First and foremost, someone in a senior position should be sitting down with you to go over the relocation policy in detail. Policies define (or should) every aspect of the relocation including what the organization will and will not pay for and provisions regarding home sale, buying, etc., just to name a few. It is in the relocation policy that the organization should identify limitations and expectations. It is, therefore, mandatory that you read it, know it, and understand it, and if you don’t understand it, you should ask clarifying questions. The last thing you want to have happen is to get stuck in a situation that you cannot get yourself out of, and find that the organization’s hands are tied as well.
Language/Cultural Training
If you are making an international move as a part of this relocation, then it is necessary, especially if unfamiliar with the host location, that you know whether or not the organization offers culture and language training, and that you can seek to obtain it if possible. You may naturally think that an organization is going to prep with you language skills and general information about the company, but this actually is not the case. According to results of the 2007 Atlas Corporate Relocation Survey, only 51% of responding organizations said they provide intercultural and language training. Keep in mind that inability to acclimate is one of the top reasons assignments fail, so finding out whether an organization offers this training is crucial to your long-term success.
Career/Family Assistance
It is mandatory for you to find out whether or not a perspective organization with which you are considering a relocation provides services for your family’s acclimation as well. “Family concerns most often derail assignments. [In fact] family or personal circumstances was cited almost twice as often (90%) for employees turning down relocation assignments as career concerns (48%) or compensation (46%).” 1 An organization that knows how important the family unit is to the success of an assignment will offer all or a combination of the following: spouse/partner career assistance, family intercultural and language training, counseling and support groups, school-finding assistance, and connections with ongoing lifestyle maintenance resources, just to name a few.
Home Sale/Buying Assistance/Management
You should never be left out on your own to handle the selling or buying process when relocation is in question. Whether the company will take into inventory a home that will not sell is a factor that will not be the same across the board, but a company should always have assistance available for the marketing, selling, researching, and buying process.
Moving
Like buying and selling, you should not find yourself out on your own when it comes to the actual moving process. However, organizations will attack this in a number of different ways. There are either pay out scales associated with different aspects of the move when using your own third-party providers (moving vans, etc.), or a lump sum is giving to the employee to use however he or she wants to get to the host location. Another option, however, and probably the most popular, is the use of all vendors to which a third-party relocation service provider would have connections. Once each step of the move is completed, then the relocation provider charges back the cost to the organization and the expense is never seen by the employee. Whatever the policy holds in this respect, just make sure that you understand it well and ask all questions before embarking on such a journey.
Repatriation
Repatriation is the process of bringing an employee back from an assignment, usually overseas, to the former location. If you assume that an organization will always have a plan and a place for you once the relocation is complete, then that is another misconception you will need to address before you accept. According to a recent survey from KPMG, only 4% of respondents strongly agreed that repatriation is handled well and only 13% offered a formal mentoring/career coaching plan for their assignees.2 Make sure you know what the organization has in place for you in this regard so that you can plan accordingly without any major surprises, such as coming home to an organization that has no position for you.
Bottom-line
The bottom-line here is that organizations, for the most part, want to do right by their employees. However, relocation is a fairly new concept, having only become popular with growth in the practice of a global community in the last 20-30 years. Many organizations are simply still trying to catch up to the “norms” contained within the practice, and by industry standards, a good deal are still falling short. Just keep in mind that telling a prospective employer that you are not interested in a position because ABC component is missing from the policy is not a bad idea at all. In fact, your demand may be the kick that organization needs to join the rest of us in the 21st Century.
1 The Cartus Emerging Trends in Global Mobility: Policies & Practices Survey, 2007, July 30, 2007
2 KPMG 2006 Global Assignment Policies and Practices Survey
Relocation Defined
Relocation is usually the result of two different scenarios, either a potential candidate/applicant is needed to fill a position in a location other than that in which he or she currently resides, or when an individual is already working with a company and his or her expertise in needed in another location. The latter often happens as the result of mergers and acquisitions, major change in policy or for training purposes. While from the outside, it may seem like a great opportunity or an exciting change, there is a reason why many often say that relocation is one of the five most challenging and stressful events in a person’s life.
Relocation Providers
Larger organizations are, for the most part, going to use a relocation provider. Providers serve as an outsourcing option and handle most of the components of each employee’s move from beginning to end. Once an employee or candidate has been chosen for relocation, then that individual is put in contact with a relocation counselor who guides the individual through the process from there on out. This eliminates much of the resource strain on organizations while it also provides the employee with a knowledgeable contact, someone who has more than likely been through the process before, and is available 24/7 to answer questions and concerns. This set-up is a win-win for the organization and employee.
Even if you know that an organization is not going to be outsourcing the process to a third-party provider, and will be handling the majority of the components in-house, there are considerations that should be made in either situation, including the following:
Policy Counseling
First and foremost, someone in a senior position should be sitting down with you to go over the relocation policy in detail. Policies define (or should) every aspect of the relocation including what the organization will and will not pay for and provisions regarding home sale, buying, etc., just to name a few. It is in the relocation policy that the organization should identify limitations and expectations. It is, therefore, mandatory that you read it, know it, and understand it, and if you don’t understand it, you should ask clarifying questions. The last thing you want to have happen is to get stuck in a situation that you cannot get yourself out of, and find that the organization’s hands are tied as well.
Language/Cultural Training
If you are making an international move as a part of this relocation, then it is necessary, especially if unfamiliar with the host location, that you know whether or not the organization offers culture and language training, and that you can seek to obtain it if possible. You may naturally think that an organization is going to prep with you language skills and general information about the company, but this actually is not the case. According to results of the 2007 Atlas Corporate Relocation Survey, only 51% of responding organizations said they provide intercultural and language training. Keep in mind that inability to acclimate is one of the top reasons assignments fail, so finding out whether an organization offers this training is crucial to your long-term success.
Career/Family Assistance
It is mandatory for you to find out whether or not a perspective organization with which you are considering a relocation provides services for your family’s acclimation as well. “Family concerns most often derail assignments. [In fact] family or personal circumstances was cited almost twice as often (90%) for employees turning down relocation assignments as career concerns (48%) or compensation (46%).” 1 An organization that knows how important the family unit is to the success of an assignment will offer all or a combination of the following: spouse/partner career assistance, family intercultural and language training, counseling and support groups, school-finding assistance, and connections with ongoing lifestyle maintenance resources, just to name a few.
Home Sale/Buying Assistance/Management
You should never be left out on your own to handle the selling or buying process when relocation is in question. Whether the company will take into inventory a home that will not sell is a factor that will not be the same across the board, but a company should always have assistance available for the marketing, selling, researching, and buying process.
Moving
Like buying and selling, you should not find yourself out on your own when it comes to the actual moving process. However, organizations will attack this in a number of different ways. There are either pay out scales associated with different aspects of the move when using your own third-party providers (moving vans, etc.), or a lump sum is giving to the employee to use however he or she wants to get to the host location. Another option, however, and probably the most popular, is the use of all vendors to which a third-party relocation service provider would have connections. Once each step of the move is completed, then the relocation provider charges back the cost to the organization and the expense is never seen by the employee. Whatever the policy holds in this respect, just make sure that you understand it well and ask all questions before embarking on such a journey.
Repatriation
Repatriation is the process of bringing an employee back from an assignment, usually overseas, to the former location. If you assume that an organization will always have a plan and a place for you once the relocation is complete, then that is another misconception you will need to address before you accept. According to a recent survey from KPMG, only 4% of respondents strongly agreed that repatriation is handled well and only 13% offered a formal mentoring/career coaching plan for their assignees.2 Make sure you know what the organization has in place for you in this regard so that you can plan accordingly without any major surprises, such as coming home to an organization that has no position for you.
Bottom-line
The bottom-line here is that organizations, for the most part, want to do right by their employees. However, relocation is a fairly new concept, having only become popular with growth in the practice of a global community in the last 20-30 years. Many organizations are simply still trying to catch up to the “norms” contained within the practice, and by industry standards, a good deal are still falling short. Just keep in mind that telling a prospective employer that you are not interested in a position because ABC component is missing from the policy is not a bad idea at all. In fact, your demand may be the kick that organization needs to join the rest of us in the 21st Century.
1 The Cartus Emerging Trends in Global Mobility: Policies & Practices Survey, 2007, July 30, 2007
2 KPMG 2006 Global Assignment Policies and Practices Survey
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