How a Cost of Living Comparison Can Affect Your Relocation Policy
Moving employees, new or seasoned, are as much a staple of any business as paychecks and budgets. As with any other facet of business, there are many wrong ways to go about the relocation process and a few right ones. A standard first step that a lot of companies miss? A thorough cost of living comparison.
Why a cost of living comparison?
In every state and every city there is a different standard of living. Cost of living isn’t limited to how much housing costs. While it does play a factor, groceries and other essentials also play a large role in a cost of living calculation. Your employee’s life based in their current city may not be sustainable in their future city at their current salary. Which means, as a company, you have some important questions to think over. Namely, how do you want to address the moving process going forward?
An accurate cost of living comparison
If your first thought is to use the first cost of living calculator Google sends you to, you might want to think again. These calculators are only as good as the data they use. Whether you’re looking for cost of living comparison by state or to compare cost of living between cities, you’ll want the most current information. Most calculators are out of date. Even more fail to take into account potential areas of living based on the incoming employee’s salary.
Unlike other available calculators, our data is now. We constantly and thoroughly research areas throughout the U.S. and Canada to gather information specific to each location. Why opt for the precise information? It can save your company thousands of dollars with each relocation.
Using a cost of living comparison, you may have a good idea of how your employee’s expenses change. The move is still a factor. Your employee will still need to visit their new city to determine their new housing. According to our report, most companies offer their employees financial help when exploring the area for housing and the final move. Want to offer the best package for both your employee and your company? You may want to take the Lump Sum approach.
Options Going Forward
Relocating your employees doesn’t have to be complicated. The easiest way to offer the best option begins with a cost of living comparison. You can find our accurate tool here. From there, it’s about taking action. If your calculation is accurate, you can offer the right salary along with a lump sum to help your employees through the moving process. You can find out more about our lump sum process here. Have questions beyond these? Reach out to us! We’re happy to help.