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There are several reasons an organization might want to relocate an employee, including promoting an internal employee to a more senior position or enticing a new employee who has unique skills.
This article will cover some tips to keep in mind if you decide to move an employee from one location to another.

Ensure there are no other choices
Relocation of an employee can be extremely expensive. Review all the alternatives such as internal employees and external local candidates. Repost the position again if necessary to make sure you’ve allowed sufficient time to find the right candidate locally.

Tax considerations
Both the employee and the employer should be aware of any possible tax issues, both positive and negative, that could result from the move such as provincial and federal tax consequences as well as any principal residence issues.
An employee moving at least 40 kilometers closer to the new work location is also eligible for a moving expenses deduction. See http://www.cra-arc.gc.ca/E/pbg/tf/t1-m/t1-m-08e.pdf for information about the tax deductibility of moving expenses in Canada.

Communicate
It’s important to ensure that the relocation is well-communicated for everyone impacted by the move. This includes:

Assign a contact person
Assign the relocating employee an internal contact person to help with the logistics for the move and ensure there is a smooth transition. This includes details such as computer related issues, movers, timing of the move, who to contact if difficulties arise, and ordering of business cards.

Use a trusted moving company
In order to save time and aggravation, use a moving company that is familiar with the type of move involved. Some moving companies only do local moves while others specialize in national and/or international moves. Ask relevant questions and check references before booking.

Who will pay the associated costs?

You need to be very clear — and have written documentation — on the answers to the following types of questions so there is no misunderstanding as to how the move will be paid for:
Who will pay for the move — the company or the employee?
What costs will or won’t be paid for by the company?
Is there a company policy on relocation amounts? Should one be written up?
When will the employee be (re)paid for expenses incurred in the move?
What happens if there is a loss on any home sale?
What happens if the costs are more than expected or there are delays in the move?
Should there be just one payment or multiple (re)payments spread over time?
Is there going to be a set amount paid to the employee for the move or will the employee submit the moving costs on their expense report as costs are incurred and be reimbursed for those expenses?
If there is a fixed amount, how is that amount calculated?
Are there any precedents for amounts paid on previous employee relocations?
What happens if the employee’s house isn’t sold by the time of the relocation?
What happens if the house is still on the market and the employee leaves your new position?
Who will pay the deposit for first and last month’s rent if a rental unit is obtained by the employee?
Will any commissions paid to a real estate agent on the employee’s house sale be paid for by the company?
It’s important to leave yourself some negotiating room in case the employee wants to negotiate any amounts offered.

Short-term living arrangements
There are several benefits for a relocated employee to live with another employee for a brief period of time. This type of arrangement would help orient the employee with the new town/city. Also, camaraderie might develop between the two employees and the existing employee could introduce the new employee to friends, all of which would help ease the transition.

Renting versus purchasing
Having the employee stay in a rental unit initially will allow time to identify the area(s) of the city he/she would like to move to before making a more permanent decision on where to live.

Document
Make sure to document everything associated with the move. This includes who will take care of what costs and the timing of the move.

Consider minimum times
You don’t want to have a situation where the employee is transferred and then leaves the company shortly after your company has paid for the move. Have a clause in the agreement stating there is a minimum amount of time that he/she needs to stay in the new position. They would be required to repay some or all of the relocation costs incurred by the company if they leave prior to the agreed date.

Minimize stress
Be aware that moving is a stressful event in someone’s life and make sure your company does everything possible to reduce this stress for the employee. This could include regularly checking in during the course of the move to make sure everything is going smoothly or providing tips on how to minimize stress during the move.

Family issues
You need to be aware of any family issues that the employee may be going through (e.g. spouse’s job/career, children involved and their school issues, family events, etc.) and how that could impact the relocation.

Conclusion
An employee relocation can be a significant investment by a company. If there is no other local option to filling the position, consider the suggestions above. What may help is putting yourself in the relocating employee’s shoes to think of how you would want the relocation to work if you were being relocated to make the move go as smoothly as possible.