Why You Need an Employee Relocation Policy

Any organisation that wishes to relocate talented employees to new work locations for recruitment, development, knowledge transfer, or group moves should have an employee relocation policy.

Without a policy, the relocation process can be difficult, stressful, and time-consuming for the employee, their family, and the HR team managing the relocation.

Employee Relocation Policy

Group of workers discussing around the table.
Photo by Smartworks Coworking on Unsplash

By creating a formalised relocation policy, all relevant stakeholders can collaborate to ensure that corporate relocations are handled efficiently, fairly, and in accordance with organisational objectives. Here are some reasons why your company should consider a policy for employee relocation:

  1. To attract the right talent: If your company operates in an industry with a skills gap, it may be difficult to recruit the most talented employees. An employee relocation strategy can address this barrier by allowing your organisation to cast a wider net in search of qualified candidates who do not live near the business.
  2. To encourage your employees to relocate: If an employee does not receive adequate support for corporate transfers, they are unlikely to relocate. This can have a knock-on effect on their productivity, which may take months to reveal itself, ultimately affecting your organisation’s success.
  3. To ensure your employees get the right support: A relocation policy can provide access to knowledgeable and experienced personnel within your organisation or a relocation company that can provide advice and manage the entire relocation process, including immigration applications, home finding, school search, as well as medical registrations and utility connections, for example.
  4. To ensure fairness: A defined and clear relocation policy ensures that employees of the same grade receive the same relocation benefits, avoiding unnecessary financial hardship.
  5. To ensure consistency: A relocation policy establishes the right level of support, both in terms of cost to the organisation and relocation benefits made accessible to employees. This ensures that all relocating employees receive the same level of support and helps prevent any discontent or conflicts.
  6. To control costs: A relocation policy with suitable controls and caps on allowances ensures that the cost of relocation is reasonable and within the organisation’s budget. Without such a policy, the cost of relocation can increase significantly.
  7. To adhere to compliance and legal requirements: Relocating employees can involve legal and compliance issues, such as visa and immigration requirements, tax implications, and employment laws. A relocation policy can help ensure that the company complies with these requirements and avoids any legal issues or penalties.

Crafting an Effective Policy

To develop an effective employee relocation policy, it is essential to involve all relevant stakeholders, including HR, finance, and potentially representatives from different business units. Doing so ensures that the policy is comprehensive, fair, and aligned with the organisation’s goals and budget.

In addition, it is essential to regularly review and update the policy in order to maintain its relevance and effectiveness in an ever-changing business environment.


In conclusion, a well-designed employee relocation policy not only enhances talent mobility but also contributes to an organization’s overall success. By ensuring that employees receive the necessary support, maintaining fairness and consistency, and controlling costs, an employee relocation policy is an indispensable tool for businesses seeking to expand, attract the right talent, and cultivate a positive workplace culture.

If you would like any assistance in creating your relocation policy, please contact one of our experts today.

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