A well-developed executive, with plenty of experience and lots of successful projects under their belt, is invaluable for a company. Therefore, it is easy to understand that most business owners will agree to claims that may seem outrageous to the regular folks.
In addition, such a reliable and experienced employee is a great asset for companies looking to conquer new markets. These are the people you can trust with opening and leading a new branch, regardless of the location. But you have to convince them first, which may be rather difficult if they already have families and other personal responsibilities.
So, it is important to approach the situation with consideration to their needs and struggles. And, if they are open to the idea, a well-designed relocation package may help tip the balance in your favor. Therefore, below we will discuss the two most important aspects of a well-designed relocation package for executives.
Include their Needs
When you’re creating a relocation package for an executive, you have all the necessary information at hand. After all, we are talking about an older employee, who has been with your company for a few years (at least).
Therefore, you should know if they have a family if they pay a mortgage or if they have elderly parents under their care. Therefore, before you even consider putting together an offer, have someone in HR create a list of how this relocation will impact the person’s life. This will allow you to better understand the type of package to put together.
And, if you need guidance on how to approach each situation, have a look at this page on executive relocation services for more details and specialized information.
Don’t Be Stingy
Even if the person you want to relocate doesn’t have a family or dependents, this doesn’t mean their lives won’t be uprooted. After all, an unplanned move is stressful enough without the added worry of how your loved ones will adjust to the idea.
Studies show that Americans are among the less willing people to take this step as they usually select their job based on proximity from home and family. So, to convince them, companies like LendingClub or GE offer a large compensation package, added incentives, and even policy exceptions. Otherwise, there is the risk of losing a valuable employee, as the company signals their needs are not important.
And, just to get an idea of how large a relocation package should be, Preston & Partners offered a $100,000 relocation allowance plus a $50,000 signing bonus for a vice president from a smaller company to join their team (in 2018).
In the end, it is true that we all have a price, so it’s important to keep this in mind when devising offers and putting together relocation packages. It also helps to have a strong HR team that can help with the process and can make the executives feel comfortable with the idea.
In summary, a good relocation package must be in concordance with the employee’s value and the tasks they are supposed to overtake at the new location. If the compensation doesn’t fit the responsibility, you risk losing valuable people and business.