The Cost of Corporate Relocation – The Facts & Figures

Corporate relocation is like an investment in terms of time, money and human efforts. When an employee is considered for relocation by a company, than the company should also be ready for a bigger investment for the person, in order to share their knowledge and efficiency of working with another office. The reasons for relocation of an employee may be different. It might be that the company needs to use the person as a resource in the new location or they want to give an opportunity for a deserving employee to bolster their experience with relocation. However, the cost of corporate relocation is the most important factor considered to decide which candidate is right for the job.

According to the survey conducted by Mobility Magazine, here is graphical representation of average relocation cost after considering all facts:

                                                                                                                                                        

Let us take a scenario for better understanding –

Relocating a Senior Executive with his family of five people would require higher investment. Whereas, relocating a new hire who recently graduated, unmarried and who can live in a one-bedroom apartment, will cost less.

Tips to breaking down relocation cost

·         On an average, relocating an existing employee who is a homeowner costs $90,081 as the existing employee homeowners generally have larger homes and have more stuff to ship using a movers company that increases the price of relocation.

·         For relocation of new hire employee who is a homeowner costs $69,020. However, if we compare it with current employee homeowner, the cost is quite less because the new hire may not always need the full array of benefits.

·         Cost of relocation for current employee renter is $23,497 who is living on a rent. The cost of existing renter employee is much less than current homeowner employee because there is no need to offer them benefits related real estate. Moreover, renters have less household stuff that also reduces the cost of shifting.

·         To relocate new hire renter cost just $20,168. However, the scope of benefits are little narrower or riskier for as compared to others.