Making a relocation decision in today’s economy is not easy. For most employees relocation is a complicated scenario as multiple life aspects need calculations and adjustment.
Federal workers can be relocated to a different geographical area in line with the agency’s decision. The general idea is that the federal workforce needs to be distributed across the continental U.S.
For this reason, the majority of the federal workers are not located in Washington, DC, even though it is the seat of the government.
There are various aspects of a federal employee relocation process that deserve a detailed discussion.
Understanding Federal Employee Relocation
As in other organizations, federal workers need to move if a government agency decides that there are legitimate management reasons for it. Generally, the move is in the Government’s interests and the primary reason is to promote service efficiency.
The purpose is to place an employee in the new position smoothly and ensure efficient functioning in the new role. The main objective is to place an employee in the new position smoothly and ensure efficient functioning in the new role.
A relocation can be a temporary or a permanent change of station. Generally, temporary relocations are within a period between 6 to 30 months.
However, most federal relocations are permanent. Some federal employees may have signed a mobility or relocation agreement as a condition of service. They can be fired if they fail to satisfy the condition.
Based on the conditions of your service, the agency may pay a relocation incentive and cover the moving expenses as well. If the vacancy announcement mentions the provisions of relocation benefits, employees are qualified for the same. Relocation cannot be negotiated or decided once you are in a federal position.
HR managers face multiple challenges with such relocations and adaptation strategies are needed to help employees cope with the change. The right relocation programs can help employees to adapt quickly to a new work environment.
In reality, the effect of relocations varies considerably between employees. The satisfaction levels of relocated employees also depend on the nature of the new workplace.
Key Challenges in Federal Employee Relocation
The main objective of human capital managers is to recruit people with the right skills in the right positions. The two main challenges that hinder this objective are the aging workforce and skills gaps in the incoming employees.
At the same time, you need to attract top talent by highlighting growth opportunities, while remaining competitive with the private sector.
Keeping the workforce motivated and increasing engagement while managing relocations is no easy task. One way is to create the right relocation strategies that offer employees the necessary tools and resources.
Data-based decision-making can play a big role in this entire process. An unplanned relocation of employees with specialized skills is ineffective and harms motivation levels. Data can be used for skill optimization and to boost retention efforts as well as employee satisfaction. It can also help employees to opt for new positions and explore different functional areas.
Plus, data helps develop strategic foresight and make the best decisions about employees during relocation. Unfortunately, data remains underutilized in most government agencies. Taking help from reliable relocation specialists can help in making the timely use of data for managing relocations.
Then again, there is the need to adhere to HR compliance related to the U.S. and state labor laws. This involves prohibiting discrimination in the job listing and hiring process. Other points to keep in mind are the oversight of noncompliant interview questions and ensuring the security of employee information. Proper training and documentation skills are needed to address these aspects.
Budget constraint is another challenge that managers face when relocating a federal employee. In many agencies, the caps on the reimbursement of miscellaneous relocation expenses have remained unrevised since the last decade. On top of that, there are strict rules on the specifics of expenses that get reimbursed during relocation.
Building a Federal Employee Relocation Program
Developing an employee relocation program requires taking a closer look at the bigger talent mobility picture based on organizational needs. Then comes the type of employee relocation experience the agency wants to provide. Finally, it comes down to the question of cost control.
A lot depends on the scale of the move. The budget limitations of your agency may not matter for the relocation of a handful of employees. However, relocating a large number of employees will involve big dollars. In such cases, approvals for a higher budget need to be taken. If needed, large moves can be phased over a few months or years.
The next step is to develop a relocation incentive plan and determine the category of employees who will be eligible for it. All service agreements should be taken into consideration during this process. The necessary documentation and record-keeping requirements are also set.
Establishing a Comprehensive Policy
Once the decision to relocate employees is confirmed, it is time to develop an effective federal employee relocation policy. Unreasonably implementing the relocation process is a mistake. A relocation program needs to address the needs of employees of all levels and provide them with the necessary support.
Before you start, make sure to understand the relevant employment laws and contractual obligations before framing the policy. Here is a closer look at the three main components of a relocation policy.
Eligibility for relocation benefits
The first step is to clearly define the criteria that qualify new hires and employees for relocation benefits. A common question employees have is “Who is eligible for the relocation benefits?” Clear guidelines help remove any doubts that they may have and reduce the number of queries that your team needs to address.
Determining the benefits offered
Once the eligibility criteria are established, it is time to focus on the details of the benefits and services offered. This section states how employees can use the components of a relocation package and the process of claiming reimbursements. The reimbursements can be in the form of lump sum relocation benefits or based on the actual expenses.
A process for the review and approval of relocation incentives and payment methods is to be set. Address the role of the employee in the relocation process and the details regarding the involvement of a third party.
Another major benefit to offer is help purchasing a home and identifying ways to save money on that purchase. This is where the ARC Realtor Rebate comes in. Your employee can save thousands of dollars on closing costs by signing up for the realtor rebate.
Fill out the form below to learn more.
The tax implications
Thirdly, it is important to let the employees know if you are providing any tax assistance for the relocation benefits. You may decide to provide partial tax assistance or no assistance at all. Whatever the option provided, the goal is to communicate the same to the employees, to prevent any shocks at tax time.
An unexpected tax burden will create a poor employee experience, leading to employee turnover. Clearly outlining the tax implications in the initial stages will allow employees to plan.
Budgeting and Cost Management
No matter how you look at it, relocating employees is expensive. When the employees need to move beyond state lines costs can add up. Here are some cost components that you can cover in your relocation package.
- Travel costs to the new location
- Packing and moving service
- Moving insurance
- Temporary storage solutions
- Family support
- Housing assistance
- Tax benefits
Since every employee has different needs, a one-size-fits-all policy is not the right option. A flexible relocation package will be more effective in managing employee priorities while trimming costs. Such a package can include some core relocation benefits and a set of optional benefits.
Employee Support and Communication
Surprises can be fun – but not when it comes to relocation. Besides a well-thought-through relocation plan, you need to develop a robust communication strategy. Making the employees aware of the strategic benefits of the move at an early stage can help them accept the change more willingly.
Communicate the details of the relocation process and the key dates for the move. When only a specific group of employees is moving, make sure to communicate with the right people. The communication should be clear and authentic at every stage. This helps in building transparency and minimizing relocation-related stress.
Leveraging Technology and Tools
Presently, the relocation industry is going through multiple tech-driven transformations. As expected, AI is being leveraged to assess housing options, manage logistics, and calculate costs. Not only can this enhance the overall process, but can also cut down the costs.
Effective use of data can provide real-time insights and help you make informed decisions. In addition, there are powerful communication tools and platforms that can be used for effective employee communication during relocation.
The use of a centralized platform is another effective way to manage the entire process from a single dashboard. The platform can provide personalized support, automate administrative tasks, track expenses, and provide employees with real-time status of their move.
Why ARC Relocation is the Ultimate Solution
American Relocation Connections (ARC) is a relocation industry leader with a solid reputation in terms of customer experience. We offer a full spectrum of relocation services to effectively reduce the stress of the employees and their families during a relocation.
Our focus is on a technology-driven relocation process through proprietary software platforms. For a smooth customer experience, we have a “single point of contact” service model that fits the exact needs of the client.
The ARC team has particular expertise in serving multiple US Government agencies as well as the US military in the past years. In fact, we have worked as relocation service providers to federal agencies that are regulators of the relocation industry. Our comprehensive range of services and the culture of accountability make us a reliable partner for all federal relocations.
Final Thoughts
No matter the type of relocation, your goal is to keep employees motivated and maximize productivity.
So, a federal employee relocation program should be able to make the employees comfortable in their new positions while keeping an eye on the agency’s needs and budget limitations. Needless to say, the role of an HR manager is crucial in managing the entire process.
If you are looking for a reliable federal employee relocation specialist, look no further than ARC Relocation.