Lump sum packages cover a wide range of move-related expenses during a relocation. These expenses may include temporary living arrangements, costs of selling and closing the home, breaking the lease and shipping household items. The lump sum is when a company gives a transferee a fixed lump sum payment to cover moving expenses in the best way it sees fit. 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.
While relocation is a big expense for employers, from the perspective of a worker contemplating a job offer, a relocation package can make or break the deal. Employee relocation is when a company decides to move an existing employee, a new employee, or an intern to a new location for work purposes. Together, we'll discuss what a relocation package should include and how to create an employee relocation package that guarantees you stress-free success. 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.
Employers could also deduct relocation expenses incurred when relocating their employees, which benefits both parties. Since relocation packages are not a legal obligation, what is included can vary between companies and even between employees. When you extend a job offer to a candidate and begin the relocation process, you want to make sure that the company you partner with is both an extension and a reflection of your workplace. If you are structuring (or restructuring) your corporate relocation policy with lump sum packages, benchmarking can help you establish payment amounts and a full-service corporate relocation company can help you.
While a reasonable relocation package depends on your circumstances and a variety of factors, statistics offer an idea of what an average relocation package should look like. In previous years, companies favored direct billing and outsourced relocation functions, but recently the trend has shifted towards lump sum packages, which is not surprising considering how easy they are. It's an approach sometimes used when hiring a third professional company to help with relocation management. 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.
Also, given that 20 percent of employees say they have quit a job after being denied a relocation opportunity, offering a substandard moving experience can be unpleasant for your potential job candidates, causing your company to lose top talent. Never assume that your company will offer you a relocation package that you have already guessed assistance for your needs. Relocation packages may vary depending on your experience, the size of the company you will be working for, and your living situation.