Employers often offer relocation packages, when they need their trusted employee to transfer to another city. If your company offers to move to a distant state from Florida with a great job opportunity, you should read this and take notes. Employer relocation packages are not a common theme. Remember, your boss does not have to provide them. But if you fight for yourself, you can get a valuable incentive to relocate to a new city and keep working at your company.
If you are an employer, one of your top priorities should be to provide employer relocation packages for your best workers. Ensure that your employee has a smooth transition during their relocation.
Providing an employer relocation package
Corporate relocation is on the rise, and maybe your business will benefit from relocating a hard-working employee to another city. The average cost of employer relocation packages is not final. It can range from $20,000 to $100,000. Note, though, that your employees will appreciate all the support you can provide. Smaller companies, of course, provide less valuable packages.
What does an employer relocation package include?
It is actually difficult to know the specifics of the package until you know the employee and the specific line of work. You should have a clear idea of what you want your employer relocation packages to include. Here are a few examples of things typically included in relocation packages.
- Orientation trip: Some employees sometimes travel to a new location to investigate the area and accommodation options. The orientation trip costs usually include hotels, meals, airfare and ground transportation.
- Transportation and moving costs: Companies can sometimes reimburse travel expenses to the new location including airfare, cost of gas, or train tickets. Cross country movers and even full-service moving expenses could also be part of the package.
- Looking for a place to live, hiring movers and flying to a new destination are all things that only add to the stress of an employee’s relocation. Expert movers, like Purple Heart Moving Group, help smooth out this process. Relocation management software can also help in your internal HR department.
- Any costs associated with either purchasing a new home, selling of the current home and even breaking a lease may be included as part of a higher-tier relocation package.
- In some higher-level employee moves, if the employee is married, the employer relocation packages include spousal support. These can include helping the spouse find a job or start their own business.
Full packing/unpacking package:
- When the company fully covers the expenses and logistics of the move, movers will be sent to pack up your household goods and transport them to your new home, where they will unload, and in some cases unpack, the boxes where you wish.
- Benefits provided in the employer relocation package vary depending on the assignments, company or employer.
- Before you make arrangements to move, double-check specifics of your relocation package with your employer. That way you will know exactly for what expenses you can ask reimbursement. You don’t want to get stuck with expenses for items that you thought you wouldn’t have to pay, but no w have to.
Reimbursement for your employer relocation package
- Get reimbursed for any expenses associated with your physical move: packing and moving, storage of your belongings for a period of time in the destination city, short-term lodging in your destination city, meals and transportation costs.
- Reimbursement for move-related property transactions. Fight for yourself. Get your new employer to cover the commission for the real estate agent who sells your place and any other costs associated with that transaction.
- A company may give you a lump sum to pay for relocation or ask you to keep all receipts for reimbursement. Ask for specifics beforehand.
There is a relocation package bonus?
Additionally, some employer relocation packages have a relocation bonus. These bonuses exist as an incentive for the employee to agree to relocation. Sometimes it is added if the cost of living is higher in the new location. Look into your moving contract thoroughly. Relocation bonuses often have conditions: they will have to be paid back if the employee leaves the company before a certain period of time.
Even the most well thought out employee relocation package may need a little intervention
You will not know what your employee needs until it’s time for them to move, so you have to be willing to negotiate and adjust the package accordingly.
Most employers choose to negotiate relocation packages instead of salaries. So employees should investigate which method of relocation expense reimbursement to use.
There are three primary ways in which corporations provide money to relocating employees: lump sums, capped allowance plans (also known as a direct bill), or a core/flex program.
- Capped allowances set a limit as to how much the employee can spend on a relocation. The employer usually pays for these expenses by way of the direct bill. If there happens to be any extra money, the employee does not get to keep it.
- A core/flex plan includes a combination of both direct bill and lump sum. This means companies have a policy that has some expenses covered through a direct bill, like temporary housing. As for things that can’t be direct bills, the employee gets reimbursement or a lump sum.
Tips for negotiating a relocation package from your employer
- Ask questions. If the company does not provide full moving expenses, they may want to reimburse some expenses.
- Know your numbers. If the company usually offers relocation packages, they certainly have a sense of the general costs. If that is not the case, it will be up to you to give the employer an idea of how the move will affect you in terms of time and money spent. As well, review the various relocation services that employers provide above. This will help you know what you want, and make a specific, detailed request.
- Get all the details in writing. As with any employment-related benefit, it’s important to have all the details in writing. That way, both you and your employer will be clear on expectations and coverage.