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. In doing so, a company covers most, if not all, moving expenses. But not all moving packages are the same. In some cases, the company will pay the full cost of the move.
In others, you may be given a fixed dollar amount to cover your expenses. Once you and the company agree on a compensation package for your relocation expenses, be sure to record that agreement in writing. There is no need for a formal contract, just a simple signed letter detailing the assistance provided and at what time. In addition, some employers offer a relocation bond, also called 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 a one-time deal and, in most cases, must be returned if the employee leaves the company before a certain period of time. 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.
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.