Relocation assistance can cover a wide range of areas, from packing and unpacking services to transportation and moving costs, temporary accommodation, arranging a residence, acquiring a new residence, mortgage assistance, cultural training and language training. Your company should partner with a packaging service that will do all the necessary packaging for you, and they should pay for the services on your behalf. They should also cover the cost of unpacking once you arrive at your new location. You may be able to cover the packing service yourself if your company can pay for your airfare.
Or maybe they can help you reimburse your child care costs. It's important to negotiate within reason and understand that not all relocation packages are negotiable. If the employee needs to start on a certain date, companies may also consider providing temporary housing. Thanks to the rise of shared hosting programs like Airbnb, companies can avoid hosting someone in an expensive hotel, although that option is still available.
Temporary housing can help the employee adjust to their new place in a month or two. Along with the rental costs of those two months, companies usually cover utilities as well. If a relocation company is used to purchase the home through a GBO and a third party buyer offers a higher price, an AVO (modified value option) can be used. The relocation company will match this offer and then sell the house to the outside buyer, provided that the highest bid is a bona fide offer made in good faith.
This saves the employee time, money and a lot of work. The objective of the relocation policy is to provide financial and administrative assistance for relocation in order to maximize performance and minimize inconvenience during relocation.In a GBO (Guaranteed Buyout), the relocation company buys the house from the employee at fair market value before selling it to an outside buyer. While this may seem attractive to companies that don't have the time or experience to calculate and manage a relocation package, it does have some drawbacks. Your new company or relocation specialist will contact you to discuss the entire process and this will include how expenses are managed.
It is an approach that is sometimes used when hiring a third professional company to help with relocation management.With employees returning to work or relocating after the pandemic, relocation policies have become increasingly important. Shyft combines the logistics management of relocation technology with personalized service that only concierge companies can provide. More often than not, many of these items are included in a single relocation package managed by an accredited relocation partner. Another area that could be included in a relocation package is temporary housing for transferred personnel.Employee relocation is when a company decides to move an existing employee, new employee, or intern to another location for work purposes.
There may be certain aspects that you consider important for your relocation experience that are not included in your relocation package. 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. Employers could also deduct relocation expenses incurred when relocating their employees, which benefits both parties.And if you don't request it, your company may not offer unsolicited relocation assistance - so it's important that you do your due diligence. But more importantly than saving you money, a relocation package is a recruiting benefit that your company offers as an investment in you.
