”Employee relocations” is a popular term in large corporations that have expanded their business to other locations. In this article, we will learn about employee relocation definitions, three types of relocation, and four benefits of Vietnam relocation.
What is Employee Relocation?
Employee relocation refers to the process of moving one or more employees from one location to another. This could be within the same city, to another city, or even to another country.
The relocation of employees can be voluntary or involuntary. A voluntary relocation is when the employee requests the move, and the employer agrees to support it. In an involuntary relocation, the employer initiates the move, and the employee is usually required to accept relocation to continue working for the company.
Employees are still associated with your company when being relocated. They may keep their current position or start a new one with your company, and their salary or benefits will likely increase. Financial incentives are frequently used to entice high-performing employees to consider a position with your company in a new area.
Global mobility is a key factor in successful employee relocations, encompassing the seamless movement of talent across borders to support international business operations and foster a diverse workforce
3 Types of Employee Relocation
Relocating an employee can take many different forms. Your company may relocate temporary employees, potential employees, new hires, current employees, and employees with dependents such as children or elderly family members. Relocation benefit packages may differ for each of the employees listed below.
Independent contractors
Independent contractors can receive relocation reimbursement and other benefits if a company needs workers immediately due to a lack of qualified applicants. For example, nurses and doctors who identify as independent contractors frequently move from state to state as required. Many medical providers traveled nationwide in mid-2020 to help treat COVID-19 patients in understaffed areas.
New hires
Because talented professionals are dispersed worldwide, potential employees may live far away. That is why many companies consider relocating employees who are a good fit for their company regardless of their geographical location. This is common in hard-to-staff industries where finding local talent may be difficult due to limited educational opportunities in the area.
Current employees
Current employees seek employment relocation for a variety of reasons. Some employees want to relocate to be closer to a significant person or a family member. These employees frequently want to keep their current position and do not require additional benefits or a pay raise as incentives.
Employees may also request relocation to pursue or fill a new position with the company. For example, you may have limited management opportunities in one location while another requires supervisors and executives desperately. Transferring these employees helps them achieve their professional goals while also assisting your company’s growth.
4 Benefits of Relocating to Vietnam
Vietnam is becoming a favorite destination of many expatriates thanks to these benefits:
Affordable Cost of Living
Vietnam is one of the top countries in terms of low living costs. Several expatriates claim that living comfortably in Vietnam with an income of 800 to 1000€ per month is possible. Therefore, moving to Vietnam to work with the company relocation package can ensure you have a good life.
Job Opportunities for Foreigners
The young population of Vietnam means a growing workforce and more job opportunities. At the same time, with 22% of the labor force classified as trained or skilled, there is still a high demand for expatriates and their skilled labor to help drive economic growth. Services, manufacturing and construction, and agriculture are among the industries driving growth.
Friendly Working Culture
Even though there are still forms of hierarchy in the office, such as that between the boss and the employees, the distance could have been better.
According to a study by Hofstede, the Vietnamese welcome changes and “deviance from the norm.” They also believe in investing for the future but “are restrained by social norms” and value their group opinions.
Beautiful Nature
Vietnam is beautiful and fascinating due to its history, culture, and people. Aside from the beautiful scenery and delicious food, foreigners frequently recommend working and living in Vietnam because it is a country “rich in culture and history” with distinct characteristics that reflect Vietnamese culture.
Why Should Companies Use Staff Relocation Services?
Partnering with an established staff relocation service (employer relocation service) is a worthwhile investment for your organization because relocating a high-quality employee is significantly less expensive than hiring a new one in-country.
Outsourcing your employee relocations and partnering with a staff relocation service has five significant advantages:
1. Customized Relocation Strategies
Businesses can select the level of benefits that employees will receive as part of the company’s relocation policy. Most companies will have a tier system determining the number of relocation benefits employees can receive.
Staff relocation services assist your company in developing the best relocation package structure for your demand.
2. In-country hiring and recruitment networks
Companies must have a relocation program that provides excellent incentives to employees while remaining compliant with local employment standards and regulations to recruit and hire the best professionals on the market.
Creating a relocation system that allows you to compete in the international hiring market is complicated. It requires a team of dedicated experts from staff relocation services.
3. Technological solutions
Staff relocation service’s technology systems usually include some standard functions such as:
- Help with partner or spouse relocation
- Relocation packages are organized and offered.
- The ability to view an invoice history
- Cloud-based reporting in real time
- Satisfaction ratings
With this supported technology, your company can proactively establish a relocation system that is cost-effective for your business and appealing to your employees.
4. Transparent cost structures
Companies must expect to pay specific fees during the employee relocation process. These fees include referral, service, non-compliance, and fixed expenses.
Partnering with a staff relocation service enables your company to budget for these fees and expenses.
5. Provides assistance to relocate employees
There are many obstacles for your employees to overcome while assuming their new work responsibilities, such as finding a new place to live, traveling and moving expenses, passing through customs, and acquiring the proper work visa. After moving to a new place, they must also adapt to the cultural nuances, learn a new language to navigate their new city, and find a suitable school for their children.
Staff relocation service helps allocate enough resources to support your employees during this transition period to maintain high employee morale.
Frequently Asked Questions
How do relocation services work?
Employee relocation services assist businesses in determining fair compensation for employee relocation. Real estate management, rental searches, and packing or shipping services for relocating employees are all examples of relocation services. Hiring relocation services may be beneficial if your company relocates employees more than a few times per year. While you focus on onboarding new hires or relocated workers, relocation companies can handle the paperwork and other necessities.
How much does it cost to relocate an employee?
The average employee relocation costs between $20,000 and $100,000. This rate is determined by several factors, including whether an employee rents or owns their home, the distance of relocation, and whether an employee is relocating with family or pets.
Conclusion
Vietnam immigration for work has lots of benefits for both employees and companies, but sometimes it can be complicated and costly. Therefore, employee relocations are important and hiring a professional relocation service to help your business with this process is beneficial.
