Attracting and retaining the best leadership is pivotal to any organization’s success. That’s why offering a comprehensive executive relocation package is crucial. However, executive relocation needs differ from standard employees’.
When an executive moves to a new job or assignment, a full-service relocation is essential. Executives’ time is extremely valuable. Any energy a leader spends managing their family’s relocation can negatively impact the entire company’s efficiency.
A lump sum for relocation would add stress to the executive’s family and decrease the executive’s satisfaction with the organization. Failing to offer a top-notch relocation package can make or break the acceptance of a job offer or the likelihood that an executive will accept an assignment that requires relocation.
Therefore, anything less than a full-service executive relocation package is inefficient and sends the wrong message to the executive about their value to the company.
It’s crucial to budget for executive relocations. Executive relocation services include all the bells and whistles and a higher level of service. Moreover, the executive’s lifestyle, including their home value and family size, will be the biggest cost driver. For these reasons, an executive relocation package requires a separate policy tier and a bigger budget than a standard employee move.
An executive relocation policy will contain the same corporate relocation services as the standard policy, plus additional services and bigger spending in most relocation service categories.
To ensure your leadership feels valued and focused on their important work, consider hiring executive relocation companies to manage the move from top to bottom. NRI Relocation is an executive relocation company that moves hundreds of CEOs and C-suite employees every year.
Here, our relocation consultants will explain the specific areas where executive relocation packages deviate from the standard and provide examples of executive relocation packages, services, and budgets to consider for an executive relocation policy.
Additional Executive Relocation Services & Benefits
Transportation or Driver
Spousal & Family Support
Tax and Legal Assistance
Standard Executive Relocation Package Inclusions
Include a Guaranteed Buyout Option in the Executive Relocation Package
A guaranteed buyout option (GBO) is more common in executive relocation packages. In this scenario, an executive would sell their home directly to the relocation company based on an appraisal price. The relocation company would then market the home, find a buyer, and sell the home.
The GBO home sale allows an executive to sell their home immediately, providing the finances and freedom to move on to their destination quickly. It also removes the burden of real estate expenses from the executive.
Executive Relocations Require More Expensive Real Estate Transactions
The home sale and purchase price has the biggest impact on the entire relocation cost, and executives tend to own the highest-value homes.
First, employee relocation is significantly more expensive for homeowners versus renters. As executives tend to be at a later life stage and make bigger salaries, they are likely homeowners.
In addition, the commission and closing costs are a percentage of the home value. Executives are higher earners and, therefore, own more expensive homes. Consequently, the cost of an executive’s relocation will be significantly higher.
Executives may also require more extensive real estate support, including home finding, staging, furnishing, and marketing.
These major differences in the relocation’s real estate transaction will increase an executive relocation package budget.
A Full-Service Relocation is Expected For Executive Moves
An end-to-end corporate household goods move will include packing, art crating, specialized third-party services, car transportation, movers, and unpacking.
Executives are more likely to need storage services to store their belongings while abroad or before their destination home is ready for move-in.
Keep in mind that the home size and number of family members will drive the scope and costs of the move. As executives tend to have larger homes and a family, executive relocation household goods moves are expected to be more expensive.
Executives Require More Temporary Housing Benefits
Therefore, companies should include allowances for a longer and more expensive temporary housing stay in their policy’s executive tier.
Increase the Executive Relocation Package’s Miscellaneous Allowance
Employees use the miscellaneous allowance to pay for relocation expenses not explicitly included in the package, such as furnishing, pet transportation, travel, and more.
Budget For Executive Relocation Packages
We’ve established that executive relocation services are more expensive than standard employee relocations, but how much do executive relocation packages cost?
All relocation costs are extremely variable. The origin and destination, family size, and home type will significantly impact relocation costs. A global mobility relocation requires many more services than a domestic move. Different industries may have different standards for spending on leadership moves.
Executives are more likely to be homeowners, and according to a Worldwide ERC® study the average relocation costs for homeowner employees are $97,000. At NRI Relocation, we see that most executive relocation packages start at $80,000, with the real costs dependent on the aforementioned factors.
Executive Relocation Package Examples
The document will include a sample executive relocation package for a domestic move and an example of a global mobility executive relocation package.
Download an Executive Relocation Policy Sample
How Executive Relocation Companies Manage C-Suite Relocations
NRI Relocation specializes in managing executive relocations. We work directly with the executive, their families, and executive assistants to coordinate every detail of a complex corporate relocation. Our relocation specialists understand the importance of seamless service for a company’s leadership. We will work with your organization from planning and budgeting to execution and tracking results.
An Encompassing Executive Relocation Package is Key to Attract & Retain Top Talent
During major transitions, a relocation package can boost an executive employee’s loyalty, commitment, and engagement with the company.
Work with NRI Relocation to craft an executive relocation policy that’s a competitive advantage for your company.
Contact an Executive Relocation Company
If you’re ready to initiate or revise an executive relocation package, contact the relocation specialists at NRI Relocation. We will help determine the relocation policy tiers and benefits that fit your company’s goals and budget.