What are Core or Flex Relocation Policies? How are they Structured?
13th October, 2017
The core flex relocation policies encompasses both the standard relocation benefits which is the “core” component whilst also including having optional or flexible components that are more tailored to the specific needs and requirements of the relocating employee and family.
Some companies allow the remuneration and benefits or HR teams to select the core/flex elements or in some instances these items may be negotiated with the employee.
One size does not necessarily fit all, core/flex relocation policy offers flexibility and can be easier to implement and manage. You can alter based on seniority/levels, multiple levels and tiers within the organisations.
- Provides customised relocation benefits that more closely meet the needs of both the company and employee
- Controls relocation costs
- Eliminates or significantly reduces the number of policy exception request
- Provides flexibility
- Engages employees in the cost of the relocation expense
- Appeals to millennial employees
- Increase in employee satisfaction
- Can aid in the recruitment and retention of talent
- Creating and implementing a new customised program and policy counselling can be time consuming
- Budgeting can be more challenging because of the variables
- Ensuring your relocation provider has the ability to track your programs and provide metrics for costings
- Can have some discontent among employees that are not offered a benefit another employee may receive
- Relocation programs have to be cost-effective and manageable but they also have to remain attractive to the employees. Flexibility is the key to achieving this
Example Core/Flex Domestic Policy (Singles or Couples)
- Core components: Pre-assignment travel to the potential host location; economy flights, temporary accommodation for pre-assignment duration; transfer of the household goods; transfer of pets or vehicles.
- Flex components: Home search program; spousal or partner career support; temporary accommodation; relocation allowance for incidentals
Example Core/Flex International Policy (Singles or Couples)
- Core components: Pre-assignment travel to the potential host location; economy flights, temporary accommodation for pre-assignment duration; sea & air freight allowance; cost of living and or relocation allowance; visa & immigration services; tax equalization.
- Flex components: Home search programs; spousal or partner career support; cross cultural training; home sale/home purchase assistance; mortgagee assistance; miscellaneous allowance; transfer of pets; language training; preview trip to host location, property management.