International Corporate Relocations:
3 Key Steps to Maximize Benefits for Employees & Employers Alike

When it comes to international employee relocations, businesses are making a strategic investment in talent. A well-structured employee relocation package can cost upwards of $100,000, making it essential to get every detail right. Whether you’re managing global mobility for a Fortune 500 or launching your first international mobility assignment, the success of your international corporate relocation program depends on meticulous planning and execution.

This guide is authored by Jeff Nadeau, Chairman of the Pan American International Movers Association (PAIMA), and John Burrows, Chairman of the International Association of Movers (IAM)—the two largest trade associations representing international moving and logistics companies worldwide. Together, these associations support thousands of relocation companies across the globe, establishing standards, sharing best practices, and ensuring seamless service delivery for both corporate clients and individual transferees. As executives at DeWitt Move Worldwide, Jeff and John bring unmatched expertise to the international mobility space—having directly overseen the relocation of tens of thousands of employees across 100+ countries. Their combined insights reflect decades of hands-on experience supporting global HR leaders like you.

In this guide, we’ll share key best practices for managing international relocation services, optimizing employee relocation packages, and reducing relocation costs—all while enhancing the relocation experience for your employees.

Let’s start by reviewing how employers benefit from successful corporate relocation programs.

Why Pay to Relocate Employees Internationally?

Given the expense associated with international employee relocations, it’s only reasonable to ask: Does it make sense for a company to pay employee relocation expenses? Can’t they hire locally? Or expect employees to pay their own moving costs?

Talent can be hard to come by in certain areas. This is especially true if the position you’re filling requires specialized expertise or significant leadership experience.
Current talent may outgrow their location. Consider a talented employee who wants to move up in the company but their current location doesn’t offer the right advancement opportunities. Rather than losing that employee to a competitor, you may choose to transfer them to another location—with relocation benefits—so they can continue their upward trajectory.
Certain tiers come with certain expectations. If you’re hiring for a senior manager or a high-level executive, covering relocation costs may simply be part of the associated expectations.
Relocation packages can give you a recruiting edge. If your competitors offer relocation packages, you may lose out on the best talent. Alternatively, if you’re the only company offering relocation benefits, you may be able to stand out and attract top talent more easily.

Now that we’ve covered some of the key reasons companies offer international relocation benefits, let’s talk about a few best practices to get the most out of this investment in your employees.

International Relocation Best Practice #1: Understand Your “Why” Corporate relocation benefits packages come in many different forms.

(More on that to follow!) If you’re creating one from scratch—or simply evaluating the one you have—it’s important to get clear on your specific goals.

Employee retention?
Employee satisfaction?
Attracting top talent?
Improving performance at your various locations around the world by bringing in new talent?

Although all of these benefits can be nice-to-haves, it’s important to focus on the top one or two goals that will really move the needle. That way, when you’re faced with the myriad decisions regarding the particulars of your relocation benefits package, your goal can guide your decision.

Even better, attach one or two key performance indicators (KPIs) to your top goal. For example, if you’re targeting employee retention, start tracking average employee tenure. Or, quantify how much it costs your company to train an employee and get them up to speed and track that spending year over year. When you compare the cost of bringing in a new employee versus retaining them via a corporate relocation program, you’ll understand the true value of that expense.

Ultimately, by choosing goals and attaching KPIs, you’ll have a quantitative yardstick to evaluate the effectiveness of your relocation benefits package—and justify the cost of the benefits you provide.

International Relocation Best Practice #2: Choose the Package That Fits Your Organization

If you’re setting up an international relocation package for the first time, start by evaluating the four standard options that most programs fall into. Consider your organization’s goals, your competitors’ packages, and your budget to help select the right package for your organization, which you can customize as needed:

Option #1: Reimbursement

How It Works: Your organization issues a list of covered relocation expenses, and your employee coordinates and manages their own move. Afterward, your employee submits receipts and documentation for reimbursement.

Option #2: Flat-Dollar Amount

How It Works: Employees are offered a lump sum to cover their various relocation expenses, and they’re expected to manage the move on their own.

Option #3: In-House Coordination

How It Works: You partner with an international moving company who can simply handle all of your employees’ relocations. You set the parameters with the moving company in terms of what you’ll pay for, so you control the costs you’re willing to reimburse.

Option #4: Outsourcing to a Relocation Management Company

How It Works: You work with a third-party RMC to handle the entire relocation process, from planning and vendor selection to move execution and post-arrival support.

Employee Relocation Programs: Tax Implications & Gross-Ups

Prior to the 2018 Tax Cuts and Jobs Act, qualified moving expense reimbursements were not treated as income by the IRS.

However, for moves after 2018, employees are taxed on 1) reimbursements for moving expenses or 2) employer relocation payments to a third party.

An unexpected tax bill can sour even the sweetest relocation package. To compensate, some employers offer tax gross-ups to cover employees’ additional tax burden.

The Bottom Line: Make sure your employees and potential hires are fully aware of any potential tax implications—and be clear how your organization will (or won’t) assist.

International Relocation Best Practice #3: Consider “Extra” Perks Aimed at Assimilation

Any relocation can put stress on an employee and their family. For some, moving is one of the most stressful life situations out there. (Even more stressful than divorce!)

International relocations come with additional challenges. Cultural differences and language barriers can leave your employee and their family feeling isolated. Homesickness and even culture shock are a real possibility.

Given all of the potential issues employees face when moving abroad, many employers supplement their relocation packages with additional benefits aimed at creating a smooth transition. After all, the sooner your employee (and their family!) feels settled, the sooner they can start making an impact in their new workplace.

For example, consider the following:

Healthcare
Cultural Training and Language Classes
Career Assistance for Spouses/Partners
Advance Visits
Transportation

Looking to Trim Some Costs?

As you’re evaluating your international relocation benefits package, there’s one area you should never skimp on: packing and unpacking services.

Here’s why:

The cost will be well worth it.
The pros know how to pack.
You’ll avoid customs snags.
You can take advantage of full replacement value protection.

Creating smooth international transitions has plenty of benefits whether you’re trying to attract new talent or retain the talent you’ve already hired, creating a smooth and simple international relocation experience can go a long way toward meeting your organization’s goals. Plus, by putting a little extra thought into your benefits package, you’ll create an easy experience from start to finish, allowing your employee to hit the ground running in their new position.

Looking for an International Relocation Partner You Can Trust?

DeWitt Move Worldwide is led by the current chairmen of IAM and PAIMA—the world’s most respected global mobility associations. We’ve spent over 30 years helping corporate, government, and military clients navigate relocations to and from more than 100 countries. Whether you’re moving one key executive or launching a long-term mobility program, we’ll help you make the transition simple, smooth, and employee-focused. Contact us to learn more!

International Corporate Relocations: 3 Key Steps to Maximize Benefits for Employees & Employers Alike