It’s another regular day when an email arrives in your inbox about a new internal job opportunity. The HR is really selling this role to you. The only caveat? It’s in another state or even country. But, you shouldn’t be worried, the email says, our company offers a great relocation package.
What is a Relocation Package?
A company relocation package is a combination of services and/or financial arrangements like cost reimbursements and various allowances new hires receive when moving for a new role. In simpler terms — it’s an extra employer perk to compensate for the inconveniences and costs of changing zip codes.
According to an Atlas Survey, the most common groups of workers who receive relocation offers include: Executives and tenured professionals. But a good fraction of entry-level employees and new hires in large companies also get lump-sum assistance.
Source: Atlas Survey
Overall, 53% of companies offer at least some relocation support to employees (e.g., covering one specific cost like finding a new rental), Another 44% offer flexible use of full relocation benefits covering a range of services and allowances.
What Does a Relocation Package Include?
Most relocation packages are usually customized to the employee in question. For example, homeowners may have concerns over their mortgage or require help with selling a property. Employees with families may require spousal visa assistance. People at entry-level positions or interns, sometimes get offered a housing stipend at a new place.
That said, a typical relocation package usually includes:
- Relocation cost coverage or reimbursement
- Real estate assistance with renting, selling, etc.
- Temporary housing for the first month
- Visa sponsorship for the family
- Cost of living adjustments
- On-site assistance for faster integration
The above can be offered either as a one-time lump sum payment. It can be either capped (e.g., all moving expenses up to $ 15K) or allowance-based (e.g., up to $ 10K in miscellaneous real estate costs, up to $ 3K for temporary housing, and so on).
Similarly, an employer may offer different tiered relocation packages with different cost structures for entry-level, mid-management, senior, and executive staff. Some employers may also add some extra incentives like a sign-on or retention bonus, guaranteed buyout or buyer value of an owned home, or loss-on-sale protection.
Source: Atlas Survey
Relocation Package Examples
The give you a better idea of relocation package options, let’s look at several examples from large, multi-national corporations.
Amazon
Amazon is said to offer substantial relocation support for its staff that includes:
- One-time payment of $ 20,000-$ 40,000
- Reimbursement of all moving and travel costs
- Temporary housing in the new location
- Visa assistance for all family members
- Cost-of-living adjustments for salary
The company also pairs the relocating employee with a dedicated assistant in the new location, who helps with finding new accommodation, navigating local bureaucracy, and otherwise getting all settled.
General Electric (GE)
GE also provides extensive assistance to its relocating staff. As mentioned in the company’s U.S. Relocation Program Standard Homeowner Policy, they’ll cover:
- House hunting expenses
- Temporary housing
- Moving and storage
- Vehicle shipment
- New home closing costs
In addition, the company will provide home sale assistance, spousal assistance, and tax assistance, which helps employees offset the tax liability for receiving these relocation benefits.
Uber
Uber also actively promotes its support for relocating staff. As shared in a recent company update, the company partners with a network of professional relocation companies to ensure a silky-smooth transfer.
Each relocating employee has a dedicated assistant (on top of the cash incentives) who helps with the following:
- Immigration paperwork
- Moving logistics coordination
- Cultural integration and more
Each relocation package is tailored to the employee’s needs. For example, one person had all their veterinary expenses reimbursed during a move from Mexico City to Chicago. Another one moving to Denmark with the family really appreciated help with getting his children enrolled in the local educational system.
How to Negotiate a Relocation Package
Just like your salary, a relocation package can (and should be!) negotiated to an extent. Talent shortages are still real (especially in the tech industry), so many employers will be willing to give you some extras.
Here’s our best advice on negotiating a good relocation package.
1. Decide What Would Make Relocation Worth It For You
The concept of moving to another city, state, or even a country can sound really exciting on paper. But the reality of uprooting your life is far less glamorous — house hunting, packing, and cultural adjustments can be quite rough. It’s not surprising that 75% of people regret their move.
So before you enter the negotiations, consider what exactly makes relocation a good deal for you. Think about how this move will impact your career prospects. Is it a step up? Are there further opportunities for growth in that division? What if things don’t work out, will you be able to easily land a new job at the new place?
If you’re in a relationship, have children or other dependents, consider the impacts on their lifestyle. Will your partner be able to find a new job or will you live on a single income? How will the children or your furry babies handle the transition?
Lastly, weigh in on the quality of life you can gain for the offered money. If you’re moving to an HCOL area, will the new salary compensate for that? Similarly, think about how your commute may change and what the implications will be for childcare.
Going through relocation can be a lot of work, so you need to be really certain that this is the right decision for you at this time.
2. Establish Your Key Criteria
Let’s say you’ve got an average relocation offer from your employer. It seems generally decent, but something is bugging you. Perhaps, you feel like you’d rather want a storage allowance, than as much support with moving costs as you’d want to travel light. Or you don’t mind paying your own airfare in exchange for the company covering an extra 2 weeks of temporary housing?
Look through all the included items in your relocation package and mark them on a scale from one to five in terms of importance. Then jot down the things you’re missing or not fully content with.
Once you have a better idea of what a better deal might look like, present it to your boss and HR. Most companies will be willing to make personalized adjustments to better match your demands.
3. Highlight How Ceratin Benefits Will Aid the Company
Relocation is going to be stressful, and that means you won’t be in your top productive mode for quite some time. It’s in the best interests of the company to reduce the transitionary period to the shortest possible period.
So when you’re negotiating your relocation package, appeal to that desire. Explain how a specific benefit could benefit both you and the company — streamline your integration or increase your productivity. For example, you can state that a bigger temporary housing with a home office would mean you could start working from home at first. Similarly, assistance with a home sale could move to the start date sooner.
Conclusion
Relocation is a great way to try something new, both in your personal and professional life. Relocation packages are there to entice you. But beyond financial costs, it’s also important to account for the emotional costs of moving. You may be forced to leave some important people and pastimes behind. So always approach this decision carefully!
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