Frequently Asked Questions on Relocation Support

Why do companies relocate staff?

Relocation of personnel is driven by business activities & market needs, and represents a major financial investment for the sponsor company. It usually involves key staff whose expertise is needed in another area or facility. Therefore, the move may be for specific period to transfer key knowledge to the local staff, or to build up a certain capability in the local facility. Alternatively, the company may recruit staff with specialised skills and locate them in the local operation on a long-term or permanent basis.

Who pays the cost of staff relocation?

In general the cost of relocation of staff (airfares, temporary accommodation and car hire, meal allowances etc.) is borne by the sponsor company, although there are plenty of exceptions to this rule. Needless to say, there is a huge variance in company policies as to what specific costs different companies will meet in relation to the relocation of staff. Increasingly, large multi-national companies will fund the cost of providing professional relocation support as they have seen the value of smoother relocations of staff members and their families.

Why do companies engage professional relocation agents?

A smooth and effective relocation requires knowledge of and contacts in the areas of accommodation, utilities, services, education, leisure facilities as well as experience and a focused appreciation of the needs of individuals and families on the move - what is important to know about when moving into a new area, community, culture etc. Where all these aspects of a move fall neatly into place, the employee will be well settled and focused on work more quickly, which is essentially the purpose of the exercise.  By taking this approach, they can have confidence that someone is working on their behalf, that does not have a vested interest in the landlord, property owner or service provider.

While a company could build up this specialised support capability internally, it would be expensive to create and even more so to maintain given the sporadic nature of staff relocation. Therefore, it is more effective for the company to outsource the relocation support and liaise with the relocation company and their employee as appropriate.

What is the role of the company in the relocation of staff?

Inevitably, the relocation of staff requires significant co-ordination effort with the company (very often via the Human Resources Department), and inevitably involves disruption for the employee. The relocation agent will provide support on the ground with the sourcing and pre-selection of accommodation, arrangement of utilities etc. However, there is still a lot of work for the company representative to do. They will need to define or interpret policy, set the expectations for the employee, determine what expenses will be bourne by the company, agree budgets and sign cheques for deposits, leases etc. as the various expenses arise.

What does relocation support consist of?

Relocation support consists of a number of services in the areas of pre-travel support, accommodation, utilities, education, personal development, orientation and settle-in. To simplify the picture for customers these are typically rolled up as a set of packages or products appropriate to for instance individuals on a short-term assignment or to families on a long-term or permanent move etc. All packages can be tailored in scale and cost to suit specific needs and policies.

What is a Destination Service Provider?

Destination Service Provider is the technical term used to describe the person is familiar with the local area and who provides relocation support at the destination itself. The term Relocation Agent is often used interchangeably with Destination Service Provider, but strictly speaking, the term Relocation Agent is a more general one that denotes the person who procures or organises relocation support which may then be delivered directly by the relocation agent, or may be subcontracted to multiple service providers such as destination service providers, cultural trainers, educational consultants, etc.

Is it cost effective to engage the services of a relocation consultant?

In a word - yes! The motivation for companies to engage the services of a relocation consultant are typically to provide a greater level of focused support to their employees (and families) on the move, while at the same time not put demands on their own Human Resources staff that they are not equipped to cope with. Companies will typically discover that in addition to providing the relocation support as agreed, the use of the relocation consultant will bring financial savings, directly in terms of reduced number of hotel nights or reduced rental amounts, and indirectly in terms of a faster focus by employees on their work assignments.

What is the difference between a Relocation Consultant and a Rental Agent or Estate Agent?

The relocation consultant has an extensive background in working with non-nationals and newcomers to the locality, and is focused on meeting the overall needs of his/her client - housing, utilities, schools, settling in to community, lifestyle needs etc. - and not just those pertaining to the choice of living accommodation. While all professionals working in the area of real estate are in a position to provide valuable information to newcomers to Ireland, it is important to remember that the relocation consultant is the only one engaged by the client (or their employer) to understand and represent their interests first and foremost, where the primary responsibility of the rental agent or estate agent is to the landlord or owner who has engaged them to rent or sell their property.