Employee relocation refers to the entire process of moving one or more employees from one location to another for business reasons. Effective employee transfers and household relocations become successful through the financial and administrative provisions and support typically contained in an organization’s relocation policy.
An employee relocation policy outlines the guidelines and benefits a company offers its workers when they need to move across different geographical locations for work-related purposes. Kenya’s corporate landscape is characterized by a stark disparity in relocation support. The workforce as a whole is drastically underrepresented in executive-level relocations, which are painstakingly planned and carried out. Relocation policies are only formalized in 5% of businesses, and a startling 65% of HR managers are not aware with them. Employee mobility is often neglected, which not only makes it more difficult to attract and retain talent but also impedes organizational expansion and productivity.
Under Kenya’s fair labor practice laws, certain protections are available to employees regarding arbitrary corporate transfers to minimize the risk and emotional hassle of moving and easing their settlement.
Employers should address the subject of relocation either through their HR policies or employment contracts to avoid legal and ethical non-compliance and minimize the risk and stress involved with the process. In Kenya, employee relocation policies are slowly gaining traction with the signing of the Employment (Amendment) Act of 2019, which saw Kenya join employers worldwide with laws on the automatic transfer of employees.
Key Components of a Relocation Policy
A comprehensive company employee relocation policy covers the eligibility criteria, scope, and details on the benefits and costs. Policy development is a critical stage in the employee relocation process, along with planning and communication, execution of the actual move, and additional support.
Essential factors to highlight in a relocation policy include;
1. Eligibility Criteria
It defines which employees qualify for relocation support. New employees expecting an internal transfer or any move on behalf of the company should know from the policy document whether they are eligible for benefits and if their families are covered. By clearly defining qualification parameters such as relocation distance, employment role, and status, employees and corporate relocation companies can set and manage proper expectations and reduce employee confusion.
For instance, a business may determine that full-time workers and recent hires are entitled to relocation compensation if their new workplace is at least 100 kilometers from their home with payable benefits.
2. Relocation Costs and Benefits
The cost coverage specifies what the company covers and any caps or limitations of the package. Much of the equity held by cash-poor but house-rich employees is invested in their homes. This implies that they might not have enough cash on hand to cover all of the moving-related incidentals.
One way to lessen the financial burden of moving locations is for employers to cover closing costs and legal fees. This also provides an excellent opportunity to combine your relocation and talent management strategies since it might be a worthy investment for maintaining valuable talent in the company.
The supports and services provided among the benefits include travel allowance, housing assistance, moving expenses, and temporary storage. This is particularly true if employees are required to find a new tenant, sell their current residence, or give their landlord sufficient notice.
Closing up business in their former city is easy, but finding a new location might not be as simple, especially with heavy machinery and equipment being moved in a downsizing move.
A Step-by-Step Approach to Crafting the Perfect Relocation Policy
1. Recognize the needs of the business.
Management should have a thorough understanding of the demands of the firm before creating a policy. Good areas to start include factors like the frequency of relocations, the positions that generally relocate, and the destinations involved.
2. Analyze and compare.
Observing the actions of other businesses can always be beneficial in gaining a sense of where to start. Focus on industry norms or rival policies to learn about shared advantages and ways to differentiate the business from rivals.
3. Work together with the stakeholders.
A good policy incorporates feedback from the management, HR, finance, legal departments, and the employees themselves especially. For instance, numerous Kenyan employees recount tales of inadequate consultation on the selection of housing and the overwhelming stress they have to endure finding the spacious rooms for the family members they relocate with. Their input guarantees the policy is thorough and aligned with the company’s objectives.
4. Specify terms and conditions clearly
Companies should avoid ambiguity to prevent malfunctioning procedures. Instead, clarify what costs are covered, what paperwork is needed, and any other requirements that staff members must know.
5. Regularly review and revise.
Periodically review and modify it to account for comments and evolving company demands. Different replication regulations may apply depending on the location. Companies that relocate employees outside their nation of origin will require a different moving checklist from those that relocate within a city or major town.
International Employee Relocation
There are extra levels of complication involved in moving personnel abroad. A few things to think about are:
1. Cultural training: Making the transition easier for staff members will be achieved by providing them with information about the new customs, language, and manners.
2. Tax ramifications: Educating staff members about possible tax obligations in their new country and their home country aids in their financial preparation for the transfer. Global mobility-related tax concerns must be resolved to ensure a seamless relocation.
3. Insurance and healthcare: Guaranteeing workers access to high-quality healthcare in their new location benefits businesses and employees.
4. School search and education curriculum alignment: Considering educational preferences such as when relocating employees is crucial. Essential factors to explore include curriculum alignment, employee preference between local and international schools, and cost. Understanding the curriculum difference between the home and host countries is also critical cosndiering aspects such as transferability of credits, graded subjects, and test and exam standards.
5. Neighborhood orientation and house search: A relocation can policy can significantly impact the international relocation of an employee. When selecting the right neighborhoods for international employees, it is essential to consider factirs such as safety, cultural atmosphere, amenities with the employee’s preferred cultural atmosphere and housing options can significantly impact the overall experience.
Benefits of a Sound Relocation Policy
1. A sound relocation policy provides the kind of financial and administrative support that encourages employees to new territories to achieve organizational goals if requested.This is likely to boost productivity and ultimately improve a company’s profitability.
2. A relocation policy assigns a knowledgeable and experienced point-person within the organization or a moving expert who can advise or manage the entire process, including immigration applications, house and school searching, utility connections, and medical registrations.
3. Employee relocation strategies are essential to address skill gaps within industries by allowing oragnizations to cast their nets wider in search of talent that could be further away from company headquarters.
4. They promote fairness in the organization by ensuring employees in the same grade receive the same relocation benefits to avoid financial inequality and discrimination. This helps to avoid any unhappiness or disputes and guarantees that every employee who is moving receives the same amount of support.
5. Legal and compliance concerns, such as those pertaining to employment regulations, tax ramifications, and visa and immigration requirements, may arise when personnel relocate. A relocation policy can assist in ensuring that the business complies with these obligations and stays out of trouble with the law or faces penalties.
6. The cost of relocation is guaranteed to be fair and within the organization’s budget by a relocation policy that includes appropriate controls and restrictions on allowances. In the absence of such a policy, moving expenses may rise dramatically.
Professional Relocation of Employees
Policies regarding employee relocation should be dynamic. The most comprehensive policies will incorporate best practices, current legal considerations, and bureaucratic processes, allowing for flexibility in light of dynamic laws, budgets, markets, talent, and other factors.
Corporates in Kenya need to put employee welfare first and make the investment in relocation plans that work for all organizational levels. HR divisions need to take charge of this important task and start advocating for employee mobility. Companies may cultivate a culture of employee caring, improve talent recruiting and retention, and ultimately propel corporate success by establishing friendly relocation frameworks.
With Nellions Kenya, businesses can focus on expansion while the software takes care of the bureaucracy, providing worldwide immigration, legal, and compliance expertise. Nellions Kenya is a business’s one-stop shop for international employee relocation, handling everything from logistics and transport to additional support services. Contact us for a quote today!
