Relocation Payback Agreement Sample

application. It is simply not appropriate to apply the policy in some situations and not in others, says Arouh. “If the agreement is a standard document for businesses and is used as a standard document for businesses, which means that most companies need to sign the document before preferring moving costs, it should be used consistently.” communication. Problems can be minimized, experts say, if the company informs employees early on of its depreciation policies. Marriott employees receive this information via the company`s intranet, through the offer stage and in the letter of offer. In addition, transferred staff members are invited to sign the agreement. In particular, say relocation experts, make sure that any depreciation policy you pursue is clearly communicated to employees and that it is applied and applied consistently. Before setting up a depreciation contract, consider the ease or difficulty of recruiting and retaining qualified staff for your company and industry. The more difficult your recruitment efforts are, the less likely you are to opt for a depreciation clause. Arouh: “These agreements are more often used in companies and sectors with high fluctuation rates” – those where workers do not hesitate to leave jobs for more demanding or better-paying jobs. These sectors, he says, include high technology, science, aerospace and communications. The company invested heavily in moving management to Seattle, and it could have lost that investment.

But it will recover some of these expenses because, like a growing number of employers, it includes a depreciation clause in its moving contract. However, some companies decide not to enter into repayment agreements, fearing that they will turn against them. Jim Schriner, who heads the New York-based firm of Deloitte`s Fantus Corporate Real Estate Solutions, says the companies he works with are constantly looking for ways to encourage employees to relocate and are waiving depreciation provisions because they could be considered “deterrents.” Each company must decide for itself the value of a depreciation contract, says Snodgrass. “They need to do what they think is right and right in their organization to adapt their culture, achieve their financial goals and achieve their personnel transfer goals.” Runzheimer International, a profit compensation company in Rochester, Wis., says that companies are increasingly incorporating depreciation clauses into the relocation policy, “often because of the considerable financial benefits for transfer recipients who move to expensive sites.” In addition, says the company, in the last two years, it has become more common for companies to impose clauses.