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Employee Relocation Made Easy- The Ultimate Guide

Monday, March 27, 2023
A happy man moving into his new workspace after being relocated to new city

The world is a huge place, and the idea of employee relocation is not a new one. However, it is a trend that has been growing throughout the years. The idea is that companies send their employees to work in different locations in certain parts of the world. But, preferably, they have to be the ones to organize the relocation process. As well as help the employees get settled into their new job location and working home. This is where RMCs (relocation management companies) step up to the plate. 

The Types of Relocation Packages

When it comes to relocating employees, as you know, different types of relocation packages can suit businesses’ needs. Four main relocation packages are either offered by the in-house relocation team or by a third-party relocation company.

Lump-Sum Relocation Package

Two co-worker sitting side by side with drinks in their hands celebrating their job relocation

A relocation package that has been around since the 1980s is the Lump-Sum relocation package. This is known as the “cash only” option. This means that the business grants the relocation funds to individual employees so that they can do their work-based move. The idea is that the cash that is left over the employee gets to keep for their troubles. 

However, there can be instances where some employees try to pocket as much of the cash as possible, often leading to a poor moving experience, where items can be broken during transit. Or they may accidentally fall for moving scams hoping to get a cheap moving option. Furthermore, moving companies are getting away from these types of relocation packages.

Tiered Relocation Packages

The next item on the list is known as Tiered Relocation Packages and these come in three, well, tiers. They are viewed as being more cost-effective for businesses looking to relocate their employees. Therefore, they are quite popular. These relocation packages are dictated by the level of seniority as well as the moving circumstances of individual employees. The three tiers are usually as follows: 

  • Tier 1 is for entry-level employees or interns who do not have a mortgage, as well as often being viewed as private tenants. 
  • Tier 2 are those individuals who fulfill mid-level management roles or long-serving professional ones. They can either be private tenants or have a mortgage to pay off.
  • Tier 3 are the high-level and senior managers of the businesses.  

This relocation package also takes into account domestic or international moves as well as if the employee has a family, and whatever else their living arrangements are. 

Managed Budget Relocation Packages

Woman sitting in front of her colorful laptop working from home

A capped allowance or a managed budget relocation package is when businesses have a limit on how much they can spend on an employee’s relocation fund. To work out such a relocation fund it would be a wise idea for businesses to hire a third-party service provider to give a ball-park figure of the cost of moving. 

Fully Covered Relocation Budget

If the employees are very high-level ones and a business can afford it, they may opt for a fully covered relocation plan. It is often used for high, and unpredictable costs that may come up. Furthermore, this is where a relocation manager can come in to work out the risks involved as well as to make sure that the expenses are not used on unnecessary items. 

What to Include in Relocation Policies?

A co-worker explaining to another about the relocation policy while pointing at a laptop to relocation costs

When it comes to relocation policies, businesses need to know what they are getting. Plus, every relocation policy depends on the individual which should be made clear to all the employees and the businesses. Usually the typical relocation package, and what they can expect, covers: 

  • Cost of the work-based move.
  • House/ apartment hunting costs.
  • Temporary homes.
  • Storage for furniture and other items.
  • Travel costs not only for the employees but their families too.
  • Getting the employees settled in their new communities.
  • Helping with the breaking of a lease agreement or aiding in the financial cost of selling a home. 

Therefore, businesses must know who they want to relocate as well as all that goes with them, pets included.

Relocation and Taxes

Three co-workers sitting around a boardroom table where one of them explains relocation packages

Something that businesses have to keep in mind which RMCs should remind them about is taxes. While taxes are common, it may be a bit confusing for new business owners who are not sure how to offset tax liabilities. For starters, if a business decides to go with a lump sum relocation package then the government will consider this an income, making it taxable as all incomes are. 

However, there are methods that businesses can employ to help stretch the relocation funds for their employees. Such as a business can opt for a tax gross-up with the lump sum relocation fund since this method can free up the full amount of the fund after-tax deduction. A tax gross-up means a business increases the amount of payment to allow taxes to be covered. Therefore, the fund will look higher than the employees can use, but that is because it will be taxed.  

Therefore, it is important for RMCs to be clear when it comes to how the taxes for the relocation packages will work. As well as that the businesses have a clear understanding of it, such as how much to pay, why, and when. Relocation packages are taxable and businesses need to be made aware of this fact.

Relocating Employees Easily with Shyft

Make Employee Relocation Simple

Co-workers standing around a laptop smiling while looking at their new office they are going to relocate to

Businesses and RMCs have the same goal of making sure that employees get to their new work home in high spirits so that they can do their jobs well. One of the ways to make sure this happens is by preparing the employee for the moving process from the start to the end.  

The most common way to get the ball rolling is by keeping the whole relocation process simple. And, this includes relocation policies as well as all the details that come with the move. Regarding relocation policies, easy to understand language is the key here as well as avoiding industry jargon. Contracts and policies are often unnecessarily complex when they do not need to be. This can add a bit of stress on the employees making the work move. A relocation policy is more of a guide where the employees have to understand all that is in the document. Furthermore, it should also be made clear where to sign, and what for.  

Another important point is letting the employees have peace of mind. This is often achieved through keeping the lines of communication open. This can be more on the business’s side, but it would do RMCs well to follow suit a bit. Businesses should take an interest in the well-being of their employees pre, during and post the move. Also, giving out good advice as well as points of interest in the new location can help ease them quicker so that their level of work does not drop.

Top RMCs to Check Out

People goofing around in their new office together after relocating for job to a new state

While there are several fantastic RMCs in the world, we want to draw your attention to two of them so that you, as an up and coming RMC, know who to follow. They are:


Here we have a full-service RMC called Graebel. They strategically aid corporations and businesses around the world in relocating their employees. They offer the relocation process seamlessly with their “people-first” approach. This means that Graebel digs deeply into their understanding of what the employees’ needs are not only in terms of the moving process but also their goals, ambition, constraints, as well as desires. They design policies with the idea of meeting the previously mentioned aspects of employees. 


An RMC that has been going strong since 1981 is Aires. Their goals are and have been to create partnerships with their clients by giving them the most effective relocation programs they can master. Furthermore, they also maximize their stakeholder value by providing service that is high-quality through the RMC’s commitment to excellence, and teamwork, as well as taking accountability for their actions.

Shyft Makes Any Move Seamless

 An employee setting up his new office space while sitting down at his desk after employee relocation

Shyft is a top resource for RMCs to ensure a smooth and stress-free relocation experience. Furthermore, we are also the world's first tech-driven moving platform that specializes in organizing the whole moving process.  

Shyft ensures speed and accuracy by providing each move with a dedicated Move Coach who will oversee the entire experience and ensure that accurate inventories and pricing for the move is obtained, while following up throughout the move with pulse surveys. Move Managers are available 24/7. Check out Shyft’s Website for more information and to see just how simple the Shyft process is.

The first thing that happens after an individual books their Video Chat with a Move Coach, which is conducted through our free to download ShyftNext app. During this chat, the Move Coach will note the inventory of belongings that the individual wants to move. 

With the help of Shyft’s proprietary video estimation technology, the Move Coach will create a 95% accurate inventory list. However, we cover that lagging 5% because within half an hour from the end of the video call the list is sent to the customer for their confirmation. It is here that they can add items, remove items, as well as give notes. When we get the go-ahead from the person we take their list and their moving information to our bidding platform.  

Three employees all wearing business suits, walking down the stairs of new office building happily

It is here where experienced, verified, and licensed moving companies come to bid on moving projects. We take three or more moving quotes that are from different companies along with their information as well as what they have to offer. This is presented to the client where they can compare and pick the mover that is best for them or the business they are working for. Plus, all the quotes that are presented to the clients are fixed ones meaning what they see is what they will pay.  

This can help them with their budget to be more accurate since there are no hidden costs that they would have to account for, but not know how much to do so. Furthermore, people and businesses that have used Shyft’s services were able to save up to $600 on their moves. And, a little bonus is the Home and Lifestyle Marketplace where people can buy items, including office supplies, to be delivered directly to their new locations. Plus, there are also services such as storage. All the items on the marketplace come with a discount too.  

Employee relocation does not have to be stressful for anyone including RMCs if Shyft can lend a helping hand. Contact us today to learn more about how we can help RMCs help businesses to move. 

Group of male co-workers laughing while working together in new office space