Providing your employees with a lump sum payment to facilitate their relocation sounds like a quick and easy fix - they get on with their move and you get on watching that ever-increasing profit margin. However providing a lump sum rather than offering them relocation assistance, which is where we come in, will prove to be surprisingly expensive in terms of hidden costs, employee stress and lost productivity.
The real cost of an employee, derived from the benefits they bring to the company, their support network and such like is calculated to be at least three times that of their direct employment costs (salary, taxes and benefits). Factoring in the lost productivity these costs increase to a figure nearer to four and a half!.
Every hour the employee spends managing their own relocation will cost the company at least four times that of their job value. Assuming a relocating employee earns £90,000 per year and it takes them just four hours to sort their driving criteria of licence, insurance, vehicle lease etc (it will without doubt take them much longer), the real cost to the company based on job value is actually about £830. If we’re realistic and increase this to three full weeks spent over a couple of months to deal with all the intricacies of the relocation the true cost including the lump sum payment (usually around (£10,000)) escalates to over £33,000
You will, without doubt, be delighted to know that here at Radstones our fees for a full "end to end" relocation, including expense and tax management, are considerably less than £31,000 and the employee remains totally productive throughout. Also once assigned a consultant there is availability 24/7 !