What can relocation allowance be used for?

Relocation assistance can cover many areas, including packing and unpacking services, 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 whose job is to do 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.

Maybe you can 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. If the employee needs to start on a certain date, companies may also consider the possibility of 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. Temporary housing can help the employee adjust to the new place in a month or two. Along with the rental costs of those two months, companies also usually cover utilities. If a relocation company is used to purchase the home through a GBO and a third party buyer offers a higher price, a modified value option (AVO) 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. It is provided to a salaried employee to maximize their performance and minimize their inconvenience during relocation.

In a GBO, the relocation company buys the house from the employee at fair market value, before later selling it to an outside buyer. While this may seem attractive to companies that have neither the time nor the experience to calculate and manage a relocation package, it does have serious 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 the return of employees to the office or relocation after the pandemic, the relocation policy has gained more importance. Shyft combines the logistics management of relocation technology with the personalized service you can only find with concierge companies. Increasingly, however, many of these items are included in a single relocation package managed by an accredited relocation partner. Another area that a company could cover in a relocation package is temporary housing for a transferred person.

Employee relocation is when a company decides to move an existing employee, new employee, or intern to a new location for work purposes. There may be certain aspects that you consider important to 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 the company may not offer unsolicited relocation assistance if you don't request it, so again, it's important that you do your due diligence. But perhaps more important than saving you money, a relocation package is a recruiting benefit that your company offers as an investment in you. .