Designing a relocation policy that balances employee needs, business goals and cost efficiency is crucial, and a tiered approach offers flexibility to provide tailored support while maintaining fairness and control.

Designing an effective relocation policy requires balancing your employee’s needs, business goals, and cost maintenance. A tiered approach to relocation policies provides you with the flexibility to offer different levels of support based on key factors such as job level, homeowner status, or relocation type. This structure ensures your employees receive tailored benefits while your organization can guarantee equity across your workforce. 

What is a Tiered Relocation Policy?

A tiered relocation policy categorizes employees into distinct groups, each receiving a specific package of relocation benefits. This approach ensures that employees are provided with appropriate support based on their unique needs and circumstances, while your company can control costs and streamline their relocation processes. 

Tiered policies may also be referred to as “cafeteria” or “traditional” policies.

• Cafeteria Policies: These allow employees to choose from a menu of benefits within their assigned tier. This customization ensures employees receive prioritize benefits most relevant to their move, such as temporary housing, childcare assistance, or storage.
• Traditional Tiered Policies: These provide a predefined package of benefits for each tier, offering clarity and consistency for the company and its employees. While this approach is less flexible than cafeteria policies, it allows for the administration to easily advise employees on exactly what to expect.

Here’s an example of how a tiered approach could look:

Tier 1: Executive and Senior Leadership

• Home Sale Assistance (full coverage of costs and BVO/GPO )
• Home Purchase Assistance (up to a certain amount)
• Temporary Housing (up to 60 days)
• Destination Services (5 to 7 days)
• Shipment of Household Goods (storage and high-value items)
• Cultural and Language Training (for international relocations)
• Miscellaneous Expense Allowance

Tier 2: Mid-level Management

• Home Sale Assistance (partial coverage)
• Home Purchase or Rental Assistance (up to a certain amount)
• Temporary Housing (up to 30 days)
• Shipment of Household Goods (weight limit applied)
• Destination Services (3 days)
• Miscellaneous Expense Allowance
• Cultural and Language Training (for international relocations)

Tier 3: Entry-level Employees and New Hires

• Lump Sum Allowance for Relocation Expenses 
• Shipment of Household Goods (limited to essentials) 
• Limited Temporary Housing (up to 14 days) 

Why Consider a Tiered Approach?

The tiered structure enables companies to:

1. Manage Costs: Tailored benefits prevent overspending on unnecessary perks.
2. Enhance Fairness: Employees receive support proportionate to their role and circumstances.
3. Improve Employee Experience: Personalized benefits meet unique needs while keeping employees focused on their roles during a transition.

A tiered approach to relocation policies provides the flexibility to meet diverse employee needs while controlling costs. Standard frameworks don’t always capture the unique requirements of every company’s needs. That’s why MovePlus Mobility offers a bespoke solution, leveraging innovative technology to design policy configurations specifically tailored to your mobility goals. From refining existing tiers to creating a fully adaptive program, our tools empower you to optimize each relocation with precision and efficiency.

Looking to enhance your relocation strategy? Schedule a complimentary policy review with our experts. We will analyze your current program, uncover areas for improvement, and help align your approach with industry best practices. Let’s build a policy that delivers measurable results—reach out today!