A company that asks you to relocate for your job will usually incentivize the move with a relocation package. A relocation package is a collection of benefits that helps you cover the cost of moving and allow for a smoother transition into your new location. These benefits may include transportation and moving assistance as well as spouse assistance if your spouse needs to find a new job. If you have children, the package may help make the move easier for them as well.
While a relocation package seems to mainly benefit the employee, it usually poses significant benefits for the company as well. It is a one-time fee for the company, whereas hiring and training a new employee may become more expensive in the long run. In effect, an employee who receives a job relocation package is a high-quality, valuable worker. This employee then has some bargaining power if he or she wants to negotiate a better relocation package.
What is covered in the moving portion of a relocation package?
Making the move easier for you is oftentimes the largest component of a relocation package. The incentives for moving might include some or total coverage for the cost of a moving company. As a result, you may not have to worry about packing, transporting or delivering any of your belongings to your new home. Certain companies will sometimes give you the option of buying new furniture at your new home and then covering that expense instead. New furniture often costs the company the same amount as moving old furniture, if not less. This is especially true if you must ship your belongings over a long distance.
Additional expenses associated with the move, such as plane rides or other transportation fees, may be covered as well. In some cases, the company may even cover the cost of transportation to and from your family, if you move before they do. These moving benefits may ease the stress of the relocation and make it a fun experience for you and your family.
What is covered in the housing portion of a relocation package?
The housing portion of a relocation package usually has several components. It may include help finding a home, partial or total coverage of a temporary home or hotel accommodation and assistance buying a new home. To help you find a new home, you may receive a list of excellent neighborhoods in the area. If you are unable to find a home before your start date in your new location, your company may pay for temporary housing. This will give you the means to scout out potential homes in the area.
Learn About Family Benefits in a Relocation Package
Oftentimes, relocation packages will include perks for your family as well. Your spouse, for example, may receive help from your company in finding a new job in the area in the form of a job relocation service. A job relocation service will assist your spouse’s search by coaching, developing his or her resumé and cover letters and establishing connections. Your company may also provide lists of daycare providers in the area if you have children. If you care for an elderly parent or relative, you may receive a list of nearby nursing homes. In special circumstances, the cost of certain care for your children or relatives may be covered.
About International Relocation Packages
If your company wants you to relocate to another country, your relocation package will be significantly higher in value. It will usually cover housing assistance when finding a new home, temporary housing, transportation fees, moving fees, advice on the country’s banking systems and more. If you have children, you may receive additional help placing your kids in new schools. Because relocating to a new country may be an enormous change, especially with a family, you will likely have even more power to negotiate the terms of your package.
What to Do When You First Get Your Package
When you first receive a document detailing your relocation package, make sure that you have a general idea of what types of packages your company offers to its employees. This will allow you to compare your offer and determine whether it is below average, average or above average. If you do not think the package will provide you with a smooth enough transition into your new office location, you may renegotiate. Keep in mind during the negotiation that you must think of solutions that will benefit your company as well. If you work together, you may achieve a more agreeable outcome.