Shyft is the latest startup to join the crowded employee relocation space. Focused on a model where a flat dollar amount is provided to employees to then spend in a marketplace for their relocation, their aim is to provide a better user/employee experience and streamlined workflow for employers. This model will largely limit them to the SMB segment where relocation dollar values can be small. The tax implications of one time payment for relocation to employees, while providing an ease of use at the time of relocation doesn’t look so fun at tax time where it can sometimes be taxed like 1099 income in the U.S. The SMB is a large market segment, but if they have any plans to scale they will probably find the need to branch into other delivery models.
With Shyft, the employer allocates a certain amount of money for employee to use in their relocation; the employer then downloads the app and they will be connected a move coach, who essentially acts like a personal concierge…
Source: VatorNews | Shyft raises $15M to simplify employee relocation