Relocation packages are a great way for companies to help their employees move from one location to another. They typically cover the costs of moving and storing furniture, household items, assistance selling an existing home, costs incurred with the search for a home, temporary housing, and all employee and family travel costs to the new location. In addition, some companies may offer reimbursement relocation packages, which 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 it comes to paid relocation, companies usually give a transferee a fixed amount of money to help with moving expenses. The assignee is then responsible for using that money to purchase a moving service, transportation and any other expenses that may be necessary.
It's important for the employee to decide what is the best use of the amount of money they receive.In addition to the fixed amount of money, businesses may also consider 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 the new place in a month or two. Along with the rental costs for those two months, companies usually cover utilities as well.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.
But for a rough figure, we estimate that the typical relocation package ranges from a couple thousand dollars to many, many thousands more dollars for high-level executives (who often successfully negotiate for their new company to even buy the house they are vacating).By taking the time to review the terms of your relocation package, you can identify potential areas that you feel your company is not adequately covering. It's also important to remember that companies may not offer unsolicited relocation assistance if you don't request it. Therefore, it's important that you do your due diligence and advocate for your company to adapt to your specific needs in order to relocate with minimal stress.Overall, relocation packages are a great benefit that companies use to help new and current employees move from one location to another because work requires it. With the return of employees to the office or relocation after the pandemic, these packages have gained more importance.
For businesses, covering relocation services can be a smart and cost-effective contracting tactic. Employers can try to attract candidates by mentioning on job lists that relocation services are available.