What is a reasonable relocation package?

Relocating an employee can be a costly task for companies. For each moving expense that is covered, ask if there is a specific amount allocated for each item or if there is a lump sum that will be fully reimbursed as the amount of the relocation package. Common relocation packages include a lump sum, refund, direct invoice, and third-party relocation. Moving can be an expensive experience, but if you know what to order and what to expect from common employee relocation packages, it will help you feel more comfortable with your final decision.

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. 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. Typically, companies have a relocation package set up as part of their policy, but some may allow the employee to choose or customize the option. You can place a magnifying glass on your relocation bill and see what you went wrong, or you can take a step in the right direction and hire the right company to handle this on your budget.

Shyft combines the logistics management of relocation technology with the personalized service you can only find with concierge companies. In a GBO, the relocation company buys the house from the employee at fair market value, before later selling it to an outside buyer. A great relocation management company can offer you tips and best practices for defining your tiered benefits in a way that pleases employees, saves employers money, and keeps things simple for everyone. A strong relocation package is a hiring tool that can attract quality candidates and keep your company competitive in the global job market.

Relocation packages may vary depending on your experience, the size of the company you will be working for, and your living situation. 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. It's an approach sometimes used when hiring a third professional company to help with relocation management. 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.

Once you have a clear understanding of how much will be covered as part of the relocation program, you can cross that item off your relocation checklist and start budgeting accordingly to make the most of the money being spent. But perhaps more important than saving you money, a relocation package is a recruiting benefit that your company offers as an investment in you. Your new company or relocation specialist will contact you to discuss the entire process and this will include how expenses are managed. Today, with a more global economy and a better-educated workforce, competition for talent is stronger than ever; as a result, smart companies are jumping on the bandwagon of relocation benefits.