What is Reimbursement Relocation and How Does it Work?

Reimbursement relocation packages are a great way for companies to cover the costs of moving for their employees. This type of package allows transferees to pay all moving expenses with the idea that their employer will reimburse them a specific amount of money after the relocation. In some cases, the company will pay the full cost of the move, while in others, you may be given a fixed dollar amount to cover your expenses. It is important to record any agreement between you and the company in writing, so that there is no confusion about what assistance is being provided.

In addition to reimbursement relocation packages, some employers also offer a relocation bond, also known as a lump sum or miscellaneous subsidy. These cash amounts are often paid as an incentive for the employee to agree to move or as a way to help with miscellaneous costs incurred during the relocation. Relocation bonds are usually a one-time deal and must be returned if the employee leaves the company before a certain period of time. For businesses, offering relocation services can be a smart and cost-effective contracting tactic.

By mentioning on job lists that relocation services are available, employers can try to attract candidates. A growing number of companies recognize that in order to facilitate the transition of new employees, relocation assistance is necessary. Shyft combines the logistics management of relocation technology with the personalized service you can only find with concierge companies. 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.

When an employee is offered a promotion in another city or the perfect candidate lives somewhere else, companies often offer a relocation package. Technology employees in leadership positions are encouraged to move to companies that are not willing to extend generous relocation packages that meet their family's needs.Some employers often deal with relocating new employees and may put you in touch with their subcontracted companies. While the final cost of an employee relocation package varies widely, there are ways companies can estimate and reduce these costs. Although most companies have a mostly resolved relocation package by the time they offer a job, employees may have individual needs or requests to make the move as simple as possible.

To cover their bases, companies should consider adding a reimbursement clause, which states that if the relocated employee leaves before a set period of time, he will have to reimburse the company's relocation costs.