Corporate relocation is a popular way for corporations to keep employees from moving abroad.
But a recent report suggests that some companies are not only not offering enough compensation, but they’re also using relocation to further extract valuable assets.
The report, which looked at corporate relocation compensation for corporate trust and professional services companies, found that the compensation was significantly lower than compensation from similar organisations in other industries.
In other words, companies are paying for the benefits of their relocation, but also extracting valuable assets from them, the report found.
The findings were published on Monday in the British Journal of Industrial Relations.
The study, funded by the Department for Business, Innovation and Skills, found an average of $1.5 million in relocation compensation was paid to relocation firms per company for the 12 months to June 2015.
Of that, $2.1 million was paid by the relocation firms, which was “significantly less than compensation that would be paid in other sectors”, the report said.
The average compensation paid by relocation firms in the 12-month period was $2,092, according to the report.
But the report highlighted the fact that many relocation firms also extracted assets from their clients, such as shares and real estate.
The report also said that relocation compensation firms were not using the information they received from their relocation clients to help them make better decisions about their investments.
“As a result, the compensation of relocation compensation providers may not be reflective of the value of the assets they extract, or the assets that the providers will actually invest in,” the report concluded.
The move to relocate overseas The move to move overseas is not a new phenomenon, but it has come in the last few years, with many companies choosing to relocate staff overseas, including those in the energy, construction and financial sectors.
The government recently announced a number of measures to boost the domestic economy and boost employment, including a reduction in the age of eligibility for tax credits and the introduction of a new tax credit for overseas workers.