How much do companies typically pay for relocation?

Your company should partner with a packing service whose job is to make all the necessary packaging for you so you don't have to worry. Your company must not only hire your services, but also pay for them on your behalf. They must also pay for the unpacking service once you arrive and settle in your new location. Another area that a company could cover in a relocation package is temporary housing for a transferred person.

If an employee is unable to find their own accommodation within the time allotted to them prior to the relocation, your company can pay and provide temporary accommodation for a period of 30 days. This allows transferees a month to find more suitable housing once they move in. You may be able to cover the packing service yourself if your company can cover the cost of airfare. Or maybe your company can help you reimburse your child care costs.

Be sure to negotiate within reason and understand that not all relocation packages will be negotiable. Other expenses that could be included in a relocation package include school relocation assistance for employees' children, temporary storage of household items that cannot be transported immediately, or payment of state driver's license fees. Fortunately for new employees, companies can generally arrange higher relocation packages because they don't have to pay for hiring as much of a higher salary. While the final cost of an employee relocation package varies widely, there are ways companies can estimate and reduce these costs.

An employee relocation package is a benefit that companies use to help new and current employees move from one location to another because work requires it. Companies always use their lawyers to add policies with protections in case you find yourself in problematic situations, so be sure to consider a few things in the fine print before finally accepting a relocation package. Believe it or not, but most companies will also add fantastic benefits, such as temporary housing, relocation bonds, and even loss-on-sale protection if you plan to sell your home. Reimbursement relocation packages allow transferees to pay all moving expenses with the idea that their employer will reimburse them a specific amount of money after the relocation.

When an employee is offered a promotion in another city or the perfect candidate lives somewhere else, companies often offer a relocation package. Today, with a more global economy and a better-educated workforce, competition for talent is stronger than ever; as a result, smart companies are joining the relocation benefits bandwagon. Employers have lost the ability to use relocation as a tax deductible, and employees have to pay taxes on any relocation benefits received. It's just a clause that requires you to sign a reimbursement agreement in which if you leave the company to go to work for another within a certain period of time, such as a year or so from the start of your new job, you will have to pay the full or partial cost of your relocation.

But for a rough figure, we estimate that the typical relocation package ranges from a couple thousand dollars to many, many thousands of dollars more for high-level executives (who often successfully negotiate for their new venture to even buy the house they are vacating). Often, the employee will keep relocation costs low and the rest of the pay will be pocketed; this can lead to a bad move and many companies are moving away from these packages. Since relocation packages are not a legal obligation, what is included may vary by company and even between employees. If companies discover that they are losing talent, especially as part of a transfer process, a review of their relocation policies and strategies may be undertaken to keep up with the changing face of the modern workforce.

Companies are realizing the fact that having a strong and attractive relocation package makes excellent business and brand sense, and it becomes a reality to be competitive in today's marketplace. . .