Relocations within Canada would benefit by taking a page from the global assignment policy handbook
Ted and Diane are sitting at the kitchen table of their Winnipeg home, studying a new business opportunity for Ted. He has been offered a promotion, which involves a move to Switzerland.
Ted is excited by some of the opportunities this will give them. Diane is doing her best to listen and be supportive, but her mind is racing. She is thinking about their children’s schooling, Ted’s ailing mother, her own position at the bank, adapting to a new city…the relocation.
How different would this scenario be if the destination were Toronto instead of Geneva? How about Montreal?
Relocation has been cited as one of the most stressful situations a person could experience. The stress level isn’t dependent upon distance or final destination. No matter where the employee relocates to, he and his family will still experience a great deal of stress.
Relocating a family from one province to another can involve many issues: home sale and purchase, increase in house prices and cost of living, loss of spousal employment, changes in schools for children, breaks in family ties and cultural differences to name a few. How productive the employee is will greatly depend on how well the employee and family settle into the new location. Corporations can help eliminate stress and ensure the family is settled as quickly as possible by providing employees, and their families, the necessary tools and relocation policy entitlements.
Although international relocation costs far outweigh those of a domestic relocation, many of the challenges are the same.
Destination and settling-in services
Once a service provided only for international relocations, destination and settling-in services are fast becoming a standard in domestic relocation. Finding that “right” house in the “right” community is likely the most important thing for the employee and family. City orientations are invaluable; they give employees some basic facts about the new location and help them zero in on activities and amenities that they need.
Destination services are especially helpful for the growing number of employees who are considered part of the “Sandwich Generation” — those with school-aged children and elderly parents to look after.
Spousal assistance
Unlike an international relocation, a domestically transferred spouse is still able to work at the destination location. However, a number of concerns may still arise. How long will it take to find a new job? Will it be within the same field? Will it be at the same salary? When can the search start — now or when the family arrives in the new city?
Having to look for a new position is always challenging. In the midst of relocating to a new city, it can overwhelm. Without professional assistance during this stress-filled time, partners can end up in a new location with no job, no idea where to start looking and a rapidly diminishing savings account.
Spousal assistance is not yet a standard policy entitlement within domestic relocation policies. However, potential loss of spousal employment continues to be a significant factor when employees resist relocation.
Housing
For many relocating Canadians, moving from one province to another involves selling a home and purchasing a new one. The stress of not knowing when a home will sell and at what price, along with the hassle of finding a new one in a very short period of time, can be overwhelming.
Many corporations offer a guarantee to the employee, which is a minimum amount that the employee will be paid for the home left behind. In turn, finding that perfect new house can be extremely challenging in an unfamiliar city.
Offering professional guidance and support during the selling and purchasing of the family home can offset some of the challenges an employee will face.
Cost of living
International relocation policies have traditionally addressed the issue of increases in cost of living. With the continuing cost-of-living increases in Canada’s major cities, this type of assistance has come to the forefront of domestic relocation. Many transferring employees find it impossible to manage the increases in housing, taxes and other goods and services when relocating to a major centre like Toronto or Vancouver.
A cost-of-living allowance or a mortgage interest subsidy helps offset these increases in cost. Allowances can be reduced over time, giving the employee time to adjust to the new location costs.
Cross-cultural training
In the past, cross-cultural training has been exclusively an international relocation policy entitlement. Corporations should consider this within a domestic relocation policy framework, especially if employees are moving between different regions of Canada.
A family moving from Halifax to Vancouver will likely experience some form of culture shock. Business dealings, politics and local culture are just a few areas that may prove a challenge for relocating employees. Giving employees and their families the tools that allow them to recognize culture shock and to learn how to address it will ensure that they have a positive attitude about the relocation and their new city.
A domestic relocation can be just as stressful as an international one. While HR departments have done an excellent job in providing the necessary assistance to employees and their families in an expatriate situation, we may be underestimating the complexity of domestic relocation. Perhaps the time has arrived to revisit domestic relocation policies and ensure that both business objectives and the employees’ well-being are properly addressed.
Making sure Ted and Diane have the same amount of support and guidance for Toronto as Geneva, is fundamental to a successful relocation both for the corporation and the relocated individuals.
Carolynn Moakler is manager, domestic relocation services, Canada with relocation firm TheMIGroup in its Mississauga, Ont., office. She can be contacted at (905) 813-9600, ext. 5092 or [email protected]. Gail Reinhart is a senior consultant in TheMIGroup’s Calgary office. She can be contacted at (403) 730-1616, ext. 223 or [email protected].
Ted is excited by some of the opportunities this will give them. Diane is doing her best to listen and be supportive, but her mind is racing. She is thinking about their children’s schooling, Ted’s ailing mother, her own position at the bank, adapting to a new city…the relocation.
How different would this scenario be if the destination were Toronto instead of Geneva? How about Montreal?
Relocation has been cited as one of the most stressful situations a person could experience. The stress level isn’t dependent upon distance or final destination. No matter where the employee relocates to, he and his family will still experience a great deal of stress.
Relocating a family from one province to another can involve many issues: home sale and purchase, increase in house prices and cost of living, loss of spousal employment, changes in schools for children, breaks in family ties and cultural differences to name a few. How productive the employee is will greatly depend on how well the employee and family settle into the new location. Corporations can help eliminate stress and ensure the family is settled as quickly as possible by providing employees, and their families, the necessary tools and relocation policy entitlements.
Although international relocation costs far outweigh those of a domestic relocation, many of the challenges are the same.
Destination and settling-in services
Once a service provided only for international relocations, destination and settling-in services are fast becoming a standard in domestic relocation. Finding that “right” house in the “right” community is likely the most important thing for the employee and family. City orientations are invaluable; they give employees some basic facts about the new location and help them zero in on activities and amenities that they need.
Destination services are especially helpful for the growing number of employees who are considered part of the “Sandwich Generation” — those with school-aged children and elderly parents to look after.
Spousal assistance
Unlike an international relocation, a domestically transferred spouse is still able to work at the destination location. However, a number of concerns may still arise. How long will it take to find a new job? Will it be within the same field? Will it be at the same salary? When can the search start — now or when the family arrives in the new city?
Having to look for a new position is always challenging. In the midst of relocating to a new city, it can overwhelm. Without professional assistance during this stress-filled time, partners can end up in a new location with no job, no idea where to start looking and a rapidly diminishing savings account.
Spousal assistance is not yet a standard policy entitlement within domestic relocation policies. However, potential loss of spousal employment continues to be a significant factor when employees resist relocation.
Housing
For many relocating Canadians, moving from one province to another involves selling a home and purchasing a new one. The stress of not knowing when a home will sell and at what price, along with the hassle of finding a new one in a very short period of time, can be overwhelming.
Many corporations offer a guarantee to the employee, which is a minimum amount that the employee will be paid for the home left behind. In turn, finding that perfect new house can be extremely challenging in an unfamiliar city.
Offering professional guidance and support during the selling and purchasing of the family home can offset some of the challenges an employee will face.
Cost of living
International relocation policies have traditionally addressed the issue of increases in cost of living. With the continuing cost-of-living increases in Canada’s major cities, this type of assistance has come to the forefront of domestic relocation. Many transferring employees find it impossible to manage the increases in housing, taxes and other goods and services when relocating to a major centre like Toronto or Vancouver.
A cost-of-living allowance or a mortgage interest subsidy helps offset these increases in cost. Allowances can be reduced over time, giving the employee time to adjust to the new location costs.
Cross-cultural training
In the past, cross-cultural training has been exclusively an international relocation policy entitlement. Corporations should consider this within a domestic relocation policy framework, especially if employees are moving between different regions of Canada.
A family moving from Halifax to Vancouver will likely experience some form of culture shock. Business dealings, politics and local culture are just a few areas that may prove a challenge for relocating employees. Giving employees and their families the tools that allow them to recognize culture shock and to learn how to address it will ensure that they have a positive attitude about the relocation and their new city.
A domestic relocation can be just as stressful as an international one. While HR departments have done an excellent job in providing the necessary assistance to employees and their families in an expatriate situation, we may be underestimating the complexity of domestic relocation. Perhaps the time has arrived to revisit domestic relocation policies and ensure that both business objectives and the employees’ well-being are properly addressed.
Making sure Ted and Diane have the same amount of support and guidance for Toronto as Geneva, is fundamental to a successful relocation both for the corporation and the relocated individuals.
Carolynn Moakler is manager, domestic relocation services, Canada with relocation firm TheMIGroup in its Mississauga, Ont., office. She can be contacted at (905) 813-9600, ext. 5092 or [email protected]. Gail Reinhart is a senior consultant in TheMIGroup’s Calgary office. She can be contacted at (403) 730-1616, ext. 223 or [email protected].
