One of the most important tasks of building a strong company is acquiring the right talent. Without strong talent with the expertise your company needs, your business won’t be able to achieve its full potential. Recruitment is important.
Recruitment also can be very expensive. The average cost to hire an employee is $4,129 per new worker. If you need to hire a lot of people, this can add up quickly. One of the biggest expenses of hiring new employees is relocation. Relocation costs can be huge. However, there are ways you can avoid them. Below are four strategies for lowering relocation costs for new employees.
Lessen the Cost of Relocation Packages
Many potential employees aren’t willing to sacrifice too much for a new job. A long career at a new employer of course is not always a guaranteed thing. 10 percent is the average employee turnover rate. This is only the average of course. It can be much higher. Let’s also not forget that most people only stay with one employer for 4.6 years on average.
This is why relocation packages are often needed to persuade people to take on such a large burden for employment. Relocating requires a lot of expense. It includes a lot of sacrifices as well since a person’s non-nuclear relatives, friends, professional contacts and more will not move with them. It can be especially hard to uproot children out of a school and neighborhood.
However, relocation packages can be expensive. Some of the most expensive items in such a package typically include things like temporary housing, moving expenses, household goods, pet moving costs, real estate costs and lease-break expenses. If you want to lessen the cost of relocation, lower the expense of what is covered in your relocation packages. However, if you trim too much, you might not be able to attract top talent.
Consider Different Payment Strategies for Relocation Packages
Overall, relocation is so expensive in part because relocation packages aren’t always managed with cost in mind. If you want to get these costs under control, you may want to rethink the ways they are paid out to employees.
For example, instead of paying for multiple different expenditures, you may want to offer a relocation package as a single lump sum payment. This could bring down costs under certain circumstances. You may also want to limit the period for which relocation costs are paid. For example, you could offer payment for expenses for the first six or eight weeks only. You could also place benefit caps on how much your company is willing to pay for certain benefits such as temporary housing or moving expenses.
Allow Employees to Telecommute
Another solution to bring down relocation costs is to allow certain employees to telecommute. Certain employees need to be physically present in an office workplace. However, others do not need to be. This is especially the case in the modern era when the internet allows anyone from anywhere to exchange information, files and data. For example, a website administrator does not really need to have direct contact with other employees to do his or her job.
Lastly, if you want to slash recruitment costs entirely, you may want to consider simply outsourcing certain business functions to an outside third party. This way, you won’t have to spend any money or resources on either recruitment or relocation at all.
For example, outsourcing payroll and customer phone support can be done easily. Certain business tasks can even be outsourced via software such as the case with implementing mobile printing solutions. Overall, there is a lot that can be outsourced. In many cases, you don’t actually need to hire more employees yet alone pay for them to relocate.
Recruitment is expensive. These expenses can balloon even more when relocation costs are involved. Thankfully, there are some strategies you can use to bring those costs down.
Bio: Jeremy is a tech and business writer from Simi Valley, CA. He’s worked for Adobe, Google, and himself. He lives for success stories, and hopes to be one someday.