Lump sum packages are a great way to cover a wide range of move-related expenses during a relocation. These can include temporary living arrangements, costs of selling and closing the home, breaking the lease and shipping household items. Companies typically provide a fixed lump sum payment to cover moving expenses in the best way they see fit. Employees may have individual needs or requests to make the move as smooth as possible.Relocation is a big expense for employers, but from the perspective of a worker considering 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. In this article, we'll discuss what should be included in a relocation package and how to create one that guarantees stress-free success. You can take a step in the right direction and hire the right company to handle this on your budget.Employers may also deduct relocation expenses incurred when relocating their employees, which benefits both parties. Since relocation packages are not legally required, 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 what constitutes a reasonable relocation package depends on your circumstances and various 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 an inadequate 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 meets all your needs. Relocation packages may vary depending on your experience, the size of the company you will be working for, and your living situation.
