Employers relocating employees often help those who are moving. No company wants to see its employees failing in a new area. What’s more, employees see the financial help as a benefit. To ensure a fair stipend, most employers use a relocation compensation calculator of some sort. How do these calculators work? What factors go into their calculations and how can you determine a calculator’s worth?
Relocation Compensation Calculator
Relocation compensation calculators are generally based on a cost of living index using one of many methodologies. There are a few options, and none of them are “official.” Not being official doesn’t mean it can’t be trusted. It simply means you have plenty of options, each with their own perspective and skew. What you shouldn’t trust, without asking, is how up-to-date the data behind the calculator might be.
Chances are, you found this by typing “Relocation Compensation Calculator” or “Cost of Living Calculator” in a search engine. And, search results promised helpful tools that promised the cost of living calculation you’re looking for. If only it were so easy. The issue is, you cannot dig into the data behind most of these resources. Let’s look at an example.
Free Cost-of-Living Calculator
Toby is being promoted to VP of Human Resources! Congratulations Toby! This new role will relocate Toby to the Atlanta office. Before sending him off with a nice new watch, the company will be providing him with a relocation package. After a thorough scan of the top results on Google’s first page, the team finds their tool. Toby receives a financial benefit calculated by the tool and he’s off. Only, even before his final move, Toby finds himself digging into his savings to make ends meet. What happened?
Unbeknownst to the team, their relocation compensation calculator wasn’t the solution it was cracked up to be. Instead of using data from the past year, or even five years, the calculator’s cost-of-living index is from the 90’s. Unfortunately for Toby, a lot has changed since that time, and what might have been a good relocation package 30 years prior didn’t do him much good today.
Your Relocation Compensation Calculator Solution
Regardless of employee position or destination location, when the company relocates someone they should use accurate data to do so. Luckily, our platform pulls data that is both current and reliable. Whether you’re interested in a cost of living comparison, a lump sum allowance or more, our data means you can provide employees with fair and accurate stipends. Interested in learning more? Check out Location Solutions.