Relocation Packages 101: Your Gateway to New Beginnings

What is an employee relocation package?

Employee relocation packages are financial aid provided for employees to help move from one place to the next when the job demands them. These types of support occur more frequently at certain locations. LinkedIn and Spotify often offer relocation benefits. If businesses are comfortable hiring workers in local locations, they should not worry about employee relocation. But if a company has to hire employees in another geographical area, such a proposal may attract a great candidate.

Are relocation packages common?

During the last few years, relocation assistance had almost exclusively been available to senior employees. Today the demand for skilled workers is even greater and smart companies also take advantage of the relocation benefits. A recent DSJ Global report showed that the number of employees shifting to another place has increased over time. 69% of the people who relocate to a better job are motivated by their professional development.

Tell me the difference between relocation packages.

A company that has long-term employment within more than 60 miles of its current office site can provide a relocation package. The employee generally has reasonable travel and job expenses covered in an effort to reduce their costs for moving. The employee relocation package is designed for the employee who is looking to move in and provides confidence and encouragement to accept the opportunity.

Types of relocation packages

Lump-sum relocation packages

A fixed-amount relocation package is where the employer pays a certain amount to reimburse an employee for their relocation costs.

Reimbursement relocation packages

The employer reimburses the employee for relocation-related expenses that have been pre-approved and are incurred by the employee.

Home sale assistance relocation packages

The employer buys the employee’s home and the employee repays the employer over time through payroll deductions.

Rental relocation packages

The employer provides a lump-sum payment to cover the cost of relocation and temporary housing.

How much does employee relocation cost?

Moving a worker may prove to be costly. Average relocation packages are priced between $19,090 and $24216 for renters and around $82,677-97116 for homes, according to the American Relocation Network. This is dependent upon the number of employees he has hired or is already employed. Although employee relocation expenses vary, it’s a good way to calculate or decrease the total expenditure of an employer. As companies prepare the budget for relocation, the costs of the relocation will depend on the costs of employees such as these.

How to negotiate your relocation package

If you are offered a job in another location, you may be able to negotiate your relocation package. Here are some tips:

– Do your research: find out the cost of living in your new location and compare it to where you currently live. This will give you an idea of how much more or less money you will need to cover your expenses.

– Consider your needs: think about what you will need in order to make the move, such as help with finding a place to live, transportation, or storage for your belongings.

– Be prepared to negotiate: have a relocation package in mind that you feel is fair and be ready to explain why you deserve it.

– Don’t be afraid to ask for what you want: remember that you are in a position to negotiate and the worst that can happen is that your employer says no.

What to do if your employer doesn’t offer a relocation package

If your employer does not offer a relocation package, there are still ways to make the move easier on your finances. Here are some tips:

– Look for relocation assistance: many companies will offer relocation assistance, even if they don’t have an official policy. Ask your HR department if this is something that is available to you.

– Get creative with your finances: there are many ways to save money when moving, such as using a relocation loan or finding creative ways to ship your belongings.

– Ask for help: don’t be afraid to ask family and friends for help with the move. They may be able to help you with transportation, storage, or even just moral support.

What are the drawbacks of offering employee relocation packages?

If you are an employer, you may find that the biggest drawback of offering relocation benefits is the potential cost. The high price tag is a significant concern for companies. Other drawbacks include:

-The process of managing and executing a relocation can be time-consuming and disruptive

-There is a risk that the employee will not stay in the new location long-term

-The relocation package may not be enough to cover all of the employee’s relocation expenses

Overall, offering an employee relocation package can be a great way to attract and retain top talent. However, it is important to carefully consider the costs and potential risks before making a decision.