Canadian HR Reporter

CANADIAN HR REPORTER October 17, 2016 8 NEWS METRO TORONTO CONVENTION CENTRE Register Today For 140+ learning sessions; 8 inspiring keynotes; 200+ trade show exhibitors; 20 industry panel discussions; 2500+ delegates & peers. Canada's Premier Human Resources Conference Save $275! Register By Oct 16, 2016 hrpa.ca/AC2017 #HRPA2017 locations" and for furniture al- lowances, and various exceptions are provided for executives, said CERC. Per diem expenses, too, can depend on how senior the employee's position is, although 48 per cent of those organizations surveyed said they offer a fixed amount to every employee. Of the organizations that of- fered an allowance to relocating employees (one that's outside spe- cific, allocated moving expenses), 84 per cent said it's paid in a lump sum and no receipts are required. With respect to the two federal employees in the spotlight this summer, much of the scrutiny was aimed at the "personalized cash payouts and incentives" they each received. Technically, those payments were entirely above board, and right in line with what happens in private business. "The government does have relocation policies that are com- petitive with industry," said Cryne. However, in the case of public service employees, what's allowed can be in conflict with what's acceptable. "We were eligible to be reim- bursed for a bunch of costs that we don't feel comfortable about," said Butts and Telford on Facebook. "While the rules were clear and we followed them, we both know that's not always enough." Telford said she will repay $23,373 and Butts will repay $20,799 for "personalized cash payouts." Butts also said he'll re- turn part of the land transfer tax for his new home in Ottawa. Many ways to pay Beyond a lump-sum allowance, the number of organizations giv- ing a lump-sum amount to cover all moving expenses is on the rise, found CERC. Lump-sum payment structures continue to represent an estab- lished trend, with almost two- thirds of organizations reporting use of this approach. And a growing number of com- panies allow employees to keep the unused portion of lump sum payments or spending accounts. "In the last three to five years, there's been a shift in the market- place and an increasing number of employers are looking at more flexibility for their employees," said Rob Stone, vice-president of client relations at relocation man- agement firm eMIGroup. A more flexible package, he said, could come in the form of a core/flex package, customized to suit an individual. Or it could be a cash allotment for some or all of her budgeted expenses. "Then the employees really have the discretion within some set of boundaries and policy pa- rameters to expend that amount however their family requires or sees fit," said Stone. Changing demographics are at least part of the reason. "A lot of the younger individu- als are looking for more control over their costs," he said. "ey're ready and willing to do a lot of the research themselves (rather than allocating budget to hire some- one else to do it) and often times they're online looking at houses and searching for information about neighbourhoods." Flexible relocation programs can also benefit the hiring orga- nization, with lower overall pro- gram costs, and a simplified inter- nal administration and budgeting process, said Stone. Bumps in the road When there's conflict over ex- penses, it often means a policy isn't detailed or succinct enough. "Where companies can go wrong is in neglecting to make everything clear," he said. "ere are so many things that can come up and get in the way." Inaccurate cost estimates, for example, can send budgets off the rails quite quickly. "ere can be a lot of confusion around the budget, and whether or not some of the information is realistic and based on hard empirical data," said Stone. "We often find housing costs, for ex- ample, can be an area of concern when we're talking international relocations. Setting some realistic ranges is crucial." Underestimating can happen at other turns, too. A relocating fam- ily of five, for example, will require additional expenses. "Often that's where we see some concern raised and some pushback from families with re- gards to budgetary concerns," he said. "e size of the family and home host location are key drivers for the household goods (pack- ing, storing, transporting) cost. Having a set budget or standard- ized approach can create some problems for individuals when they're outside of that standard demographic." However, the varied costs of liv- ing in different cities don't present much of a challenge. "Most companies are pretty good at getting third-party data that's updated quarterly or semi- annually to address the cost-of- living differentials so we don't see as many issues around the cost of living," said Stone. "Generally, that's pretty well-managed." Staying competitive Relocating people can be both challenging and costly, but it's of- ten necessary in the name of busi- ness, said Cryne. With respect to Telford and Butts, "(Finance Min- ister Bill) Morneau had the right perspective, that you need to get these people in place," he said. "We have to recognize that moving home and family is ex- pensive, and people are very re- luctant to move," said Cryne. Relocation is a stressful time with people trying to navigate all the issues with kids and spouses and whatnot, said Stone. "I tend to think of relocation as a problem waiting to happen," he said, " but companies that take the time to create a solid policy have a huge advantage." Melissa Campeau is a Toronto-based freelance writer. Lump-sum allowances on the rise RELOCATION < pg. 1

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