Relocation assistance can be a game changer if your new job requires you to move to a new city, state or country.
It sounds fairly straightforward, but exactly how can this benefit make relocation less stressful and more affordable for those accepting high-paying roles?
In this article, we will explain exactly what relocation assistance is, the types of relocation packages that exist, and how you can benefit from assistance when weighing up a move.
What is Relocation Assistance?
Relocation assistance is the support provided by an employer to help cover the costs of a move for an employee.
When a move is required to be able to accept a role (or be transferred), employers need to make the relocation financially viable for the employee. Following a successful interview process, negotiations for these types of benefits begin.
Employers might offer relocation assistance for a number of reasons. These include expanding operations to new regions, hiring top talent from out of state or country, or promoting existing employees to a position in a different office.
Relocation assistance will make the move more feasible and less stressful, increasing the likelihood of role acceptance and facilitating a successful transition for both the employer and employee.
Types of Relocation Assistance Packages
Relocation assistance can vary greatly depending on the employer, the job role, and the specific circumstances surrounding the move. Comprehensive packages are typically more common for high-paying or senior roles.
Here are a few common types of relocation assistance.
1. Lump-Sum Payment
One of the most common forms of relocation assistance is the lump-sum payment. This is a fixed amount of money provided to the employee to help cover any moving costs.
Employees can use this amount however they see fit, covering anything from moving supplies to temporary housing expenses.
This type of package is flexible, giving employees the freedom to choose how to spend the money. However, it does put the responsibility on the employee to manage the funds and budget for the move.
2. Reimbursement-Based Assistance
Some companies prefer to offer relocation assistance on a reimbursement basis. This means that employees pay for moving costs out-of-pocket and submit receipts to the company, the company then reimburses them.
This method can cover a wide range of expenses, including transportation, moving services, packing materials, and travel expenses. Employees will need to clarify what is covered so that they can properly recoup costs.
This type of package ensures employees are reimbursed for actual moving costs rather than just receiving a fixed amount of money, but it leaves employees with the stress of covering their moving costs initially.
3. Full-Service Relocation Package
A full-service relocation package is the most comprehensive type of relocation assistance. It typically includes all moving-related expenses, such as professional movers, travel costs, temporary housing, and sometimes even home-buying assistance.
Full-service packages may also include help with settling into the new location, such as finding schools, a new home, or sorting out utilities.
These packages are often offered to senior-level executives or high-value employees, as they are quite expensive for companies to provide. They also may be more common in industries where hiring top talent is more difficult or scenarios where the location is perhaps not as desirable.
4. Home Sale Assistance
For employees who own homes and need to sell them as part of the relocation, home sale assistance may be included in the relocation package. This may cover the costs of hiring a real estate agent, covering the difference between the home’s sale price and the outstanding mortgage balance, or assisting with the logistics of selling the home quickly.
What Costs Are Covered Under Relocation Assistance?
Relocation assistance can help with a wide range of moving-related expenses. While not all packages are the same, here are the most common costs typically covered:
- Moving Costs: Expenses for hiring professional movers, renting a moving truck, or hiring moving services.
- Travel Expenses: This can include transportation costs (flights, car rental, gas) for the employee and their family.
- Temporary Housing: If the move requires temporary living arrangements, the company may provide funds for hotels or short-term rentals.
- Storage Fees: If you need to store your belongings temporarily, this cost can be included in your relocation package.
- Real Estate Assistance: Companies may offer to help with selling your current home or assistance with purchasing a new one.
- Visa and Immigration Fees: If you’re relocating internationally, your employer may help cover the costs of visa and immigration paperwork.
- Spousal Job Search Assistance: For employees relocating with a spouse, companies sometimes help with finding a job for the spouse in the new location, including costs associated with this search.
- Family Support: This could involve covering expenses related to finding schools for children or assisting with daycare.
How to Negotiate Relocation Assistance
If you’re considering a job offer that includes relocation, it’s important to properly review the details of the relocation assistance package carefully.
The terms of relocation assistance can vary greatly depending on the company and position, and there may be room for negotiation.
Understand What’s Included
Make sure you fully understand what the company is offering in terms of relocation assistance. Are they covering the full cost of the move, or are you expected to cover some expenses yourself? Knowing exactly what is included helps you decide if the offer is fair and worth the move.
Consider Your Needs
Consider your needs and the costs that you’ll incur during the relocation. If you have a family, you may need additional assistance with schooling or housing. If you’re moving internationally, you might need visa assistance or help with the local language.
Be Clear About Expectations
Discuss and set clear expectations with your employer about the timing of the move and what costs they will cover. It’s important to ensure that the relocation process is smooth for both you and the business.
Don’t Be Afraid to Ask for More
If the initial relocation package isn’t quite enough to cover your expenses, it’s worth asking for additional support. Like you might negotiate for salary, you can negotiate for other benefits. Employers may be willing to negotiate if they see that you’re a valuable asset and are committed to making the move work.
About the author
Mollie Buttery
Writer | SEO | Articles & Blog Posts | Social Media
Mollie supports ULTMECHE through website growth, social media, SEO, and also other digital marketing tricks. She has 10+ years experience of in house and freelance marketing experience in industries such as Finance, Law, SAAS, Automotive, Building Services, Commerce, and more. Some of her favorite writing topics consist of sports and finance. Mollie has been key to the growth of ULTMECHE’s SEO and digital marketing efforts.