When you’re recruiting top talent into your agency, chances are good that competitors of yours are also interested in the same candidates. According to the 48th Annual Atlas Corporate Relocation Survey released in April 2015, there has been a significant uptick among U.S. companies relocating employees since 2013 [1]. Recruiting nationally means that you need to have a competitive edge to your offer of employment.

While most candidates are looking at the hard numbers of their potential annual salary, they’re also increasingly interested in softer parts of an employment offer, such as vacation time and paid relocation expenses. Consider these pros and cons to offering relocation benefits:

Reasons to Offer Paid Moving Expenses

If you’re located in New York City and the candidate you’re trying to recruit grew up and just graduated from a university in Seattle, that person may not want to leave the area without a strong impetus to do so. Offering relocation expenses is one way to inspire such a candidate to make the leap and cross the country to join your organization. A new graduate may not have the funds to move across the nation, rent an apartment and get set up for a new job. People who live in housing markets that continue to be poor might feel as if they cannot afford to move for a new job. In this type of a situation, paying the person’s moving expenses can ease the financial burden of just starting out in a career or making a transition to a new organization. Employees who have their relocation expenses paid feel a sense of loyalty to the employer and are more likely to stay on the job for a longer period of time. This can lower your organization’s future recruiting costs.

Pitfalls of Offering Relocation Expenses

Paying for relocation expenses may seem like an empty investment, especially if you’re in an industry with high turnover, such as technology. If you’re offering a generous salary and benefits package, paying for relocation expenses may not be necessary. When your organization is recruiting many new employees, the costs of relocation expenses may be burdensome to your corporate budget.

Whether you are just starting to write a relocation policy or are re-evaluating your current policy, keep in mind that every relocation policy should answer: who is eligible for relocation benefits, what relocation benefits are offered, and what the tax implications are [2]. It’s important to evaluate your current strategy to make sure communication is clear as it’s critical for a relocating employee to understand if they’re eligible for relocation benefits, what they qualify for, and how to use them.

[1] http://www.helioshr.com/2015/08/top-5-considerations-in-writing-the-best-relocation-policy-for-your-business/

[2] http://www.urbanbound.com/blog/3-components-every-relocation-policy-should-have

When recruiting talented professionals from around the country, offering paid moving expenses may make the difference in whether or not the candidate selects your job offer. Hiring talent from a long-distance location is a considerable risk for that new employee, and paying for some of their relocation costs can help make their transition smoother. Consider these types of moving costs and whether or not your company should cover them when hiring talented individuals who live a long distance away from your location.

Packing and Transportation of Belongings

Paying for the packing, crating and transportation of the new employee’s belongings is a basic part of relocation expenses. Some firms choose to offer a flat-rate reimbursement for these costs while other firms directly pay the moving company for these services. This expense usually includes the employee, their spouse and their children’s belongings and furniture, and it includes insurance in case the moving company damages belongings while they are in transit.

Automobile Shipping

For a cross-country move, your new employee may wish to have their car or truck shipped to their new location. The employee and his or her family may take a flight rather than spending a week driving across the country. The costs of shipping their vehicle may be a reasonable expense for your company to reimburse due to the long-distance move.

Lodging, Flights and Meals

Your new employee may incur thousands of dollars in expenses for lodging, flights and meals while in transit between their original location and where they are moving in order to work for you. Paying for the employee’s airplane ticket, hotel room and meals is a wise step in recruiting a highly talented professional. You might consider giving the new employee a voucher for these costs, or you might have the new staff member submit their receipts and then get reimbursed from your human resources or payroll department.

Offering paid moving expenses is a gesture that your human resources division can make when recruiting top talent. This benefit may help to increase the loyalty of the professionals you hire.