There are a lot of challenges associated with relocating employees, especially when you are talking about moving workers to major metropolitan areas. One of the main reasons? Extreme increases for common expenses.
Cost of living allowances are on the rise from hiring companies, according to a recent article from Jennifer Connell, Weichert’s Consulting Services group, “Bright Lights, Big City (and Big Costs).” And sometimes they aren’t the traditional relocation packages we have become accustomed to.
Companies certainly feel that this can be a deterrent to mobile employees, which is why cost-of-living allowances are on the rise, Jennifer Connell, North American Practice Leader Weichert Consulting Group
For example, some companies are offering mid-level transferees and college recruits lump sum payments instead of full relocation benefits, and then leaving the transferees on their own to find homes and rentals.
Lump Sum Management Tools
Fortunately, we are seeing the successful roll-out of many intuitive and powerful lump sum management tools that provide easy access to neighborhoods analysis, rentals, real estate, schools and lifestyle.
When used in concert with sound relocation counseling, transferees are in the enviable position of maximizing their lump sum allocation. This helps to alleviate some of the discomfort that comes with moving to a big city and finding accommodations.