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Four Reasons Why You Should Tier Your Relocation Policy Now!

January 23, 2015:

1. Align your program with best practices in the industry: The most common policy type in the Relocation industry is tiered. Some 55% of companies have tiered policies based upon recent research done by the Canadian Employee Relocation Council (CERC). The idea of a tiered policy is not new – just think of how this concept applies to many other HR, compensation and benefit related issues. Salaries are tiered with different levels based on job category, experience, etc., as well as certain other employee benefits.

2. Create a tiered policy for fiscal reasons: It is no secret that there is concern about the Canadian economy and particularly western economies. Budgets are tightening up, there have already been oil industry lay-offs and all companies are watching their costs. With the average domestic relocation costing $53,500 and the average cross-border relocation costing $73,800, it is simply prudent to review your policy for reasonable cost savings. With a tiered policy you can more readily tweak components and create savings.

Differentiate between Executive, Management and Professional with each higher level receiving progressively enhanced benefits. For instance, take a look at things like the number of vehicles an employee can move. Perhaps allow the Executive and Management levels to move 2 vehicles, the Professional level only one vehicle and the New Hire, none. The Miscellaneous Allowance is another benefit which should be reviewed. Some policies differentiate between the expenses incurred by homeowners vs. renters. A homeowner may get one months’ salary for miscellaneous expenses while a renter may get 2 weeks’ salary.

3. At All Points we are big proponents of controlling your policy lest it control you: Be proactive and start looking for savings in your relocation program now so that you are prepared when/if the CFO slashes your relocation budget. Ask your relocation provider to review your policy for you.

4. Align relocation policies to career development: Corporate relocation has always represented greater career paths for many employees. Company policies that align lower tiered policies for younger demographics (who view relocation as part of their career path), while aligning higher tiered policies for senior executives whose relocation represents less career path than benefit to the company, are creating practices that are both appropriate and defensible.


55% of Human Resources Professionals can’t be wrong! All Points recommends that you take action before you are caught unprepared. It is always best to have a plan ready and waiting to be implemented.

Posted on January 23, 2015 in Relolert

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