If you’re an employer recruiting offshore, a clear relocation policy is essential.
A relocation policy outlines the terms and conditions under which the company will provide financial and other support for employees moving to New Zealand.
In this article, we outline how to create a relocation policy that works for both the company and its employees, and is consistent with what other Kiwi businesses are offering.
Step 1: Decide what type of relocation and resettlement packages you’ll offer
There are typically three types:
Lump sum: The employer provides a fixed amount of money to the employee to contribute to the cost of the move.
Managed budget: The employer provides a claimable budget for the employee's relocation expenses.
Full-service: The funds all aspects of the relocation.
New Zealand employers often provide a mix of these options - for example a managed budget to cover travel, shipping and temporary accommodation with full service direct funding of essentials like immigration advisory and resettlement services.
Step 2: Determine what expenses the relocation policy will cover
Common expenses include:
Travel costs, eg airfares
Temporary housing, eg hotel or short-term rental.
Moving costs, eg shipping or air freight
Resettlement support for newcomers eg bank account and IRD set up, city orientation, finding housing, schooling, spouse employment etc
Step 3: Provide clear communication and support to employees
A key component of candidate care for international hires is guiding them throughout the relocation and resettlement process. This includes:
Providing a relocation package summary to employees before the relocation process begins.
Offering pre-arrival support to help employees navigate the practical and emotional aspects of relocation and life in New Zealand.
Providing ongoing targeted resettlement support to employees when they first arrive in New Zealand.
Step 4: Review your policy annually to remain competitive
At Mobile Relocation we work with Kiwi businesses and organisations hiring thousands of expats and migrants. Our Annual Report on Relocation Costs and Budgets has just been released to our corporate clients.
Below are the key trends we’re seeing in relocation policies:
A greater spread in relocation budgets than in 2022, with a slight increase in maximums. Employers continue to prefer making a contribution towards relocation costs, rather than fully funding.
Increasing numbers of candidates are forgoing shipping. Particularly singles and couples are choosing not to ship personal items to NZ due to long delivery times and cost. Some are opting for unaccompanied airfreight which is quicker and relatively cost efficient.
Employers are updating pre-2020 relocation policies and budgets as they are no longer fit for purpose for the following reasons:
- costs are higher
- stress levels of candidates and nervousness about international relocation has been enhanced by COVID
- talent shortages and increased competition to attract skilled workers to NZ
- The AEWV programme’s mandatory settlement information requirements has set a new baseline of support that employers must provide for all newcomers to NZ
A well-designed relocation policy can help companies attract and retain top talent while providing a seamless relocation experience for employees.
By following the above steps, employers can create a policy that is both comprehensive and flexible enough to meet the needs of their business and employees.
If you’d like a briefing on the results of our 2023 Annual Report on Relocation Costs and Budget, message me now and we’ll set up a time.
———————————————
If you are a recruiter or HR Professional bringing international talent to NZ Mobile Relocation has a range of settlement support services to suit your candidates and your business - from baseline support to meet Immigration New Zealand’s AEWV Accreditation requirements through to personalised programmes to support your most valued international employees.
To book a demo of our AEWV Resettlement Portal, or to better understand how Mobile can help you to ensure you are offering the right resettlement services for your candidates and your business, contact our Principal Bridget Romanes.
Bridget is a New Zealander who has lived and worked as a diplomat in Singapore and India. After experiencing all facets of the relocation experience, she founded Mobile to work with private individuals moving to NZ and leading local and international businesses bringing in offshore talent.