So, you've found the perfect job, nailed the interview and you're ready to start your new career. But it's out of state. Should you get your savings out and spend it on a costly move across state lines?
Or maybe you got a promotion at the job you've held for years, and it's in a different state. So now you're debating if you should make the move or take the severance?
A job relocation package can help mitigate these expenses and in some cases even pay for storing your belongings, or other costs associated with moving. But how can you get job relocation assistance from your job?
Read this article to find out.
What is a job relocation package?
An employee relocation package is a monetary benefit that some employers offer to entice newcomers or established employees to relocate to a new location.
How the company handles this exchange can differ, from a basic relocation package that includes hiring professional movers to a package that also offers real estate support or storage unit reimbursement.
An employee relocation package can be beneficial for everyone: an out-of-state employee can work for their dream company or the organization can hire candidates from all around.
Ultimately, relocation assistance is a highly competitive option for employers to attract and retain talented workers.
What can you expect from a job relocation package?
There are no one-size-fits-all relocation assistance options, so it’s essential to negotiate the terms that benefit your situation.
What should a relocation package include?
The standard package offered is relocation reimbursement, but your job may also have additional incentives. It's a good idea to know what your options are, so you can figure out what you might need beforehand for a smoother negotiation.
Here are a few examples of what your employer might offer:
A third-party relocation service handles all your moving needs. They'll find a reputable moving company, get a moving container to store extra items and everything else.
Reimbursement refers to when the company pays you back for your moving expenses. You'll have an agreed-upon maximum written into your relocation package, so the amount will vary depending on that. Keep your receipts for this type of agreement.
Lump-sum payments are paid before the move in one lump amount. You'll want to budget your expenses beforehand, so the lump sum covers everything you think you'll need before, during and after the relocation and move.
Direct bills are sent straight to your employer, so there’s no need to worry about keeping receipts.
What types of relocation packages exist?
There are many different types of relocation packages that your employer may offer, which will vary depending on company policies.
Relocation reimbursement could include packing and unpacking, renting a moving truck, or hiring a full-service moving company. This is the standard package offered and is usually the bare minimum you'll want in a job relocation package.
Expatriation assistance helps you with the costs associated with cultural adjustment and other relocation benefits, including language training, spousal job placement and other accommodations.
Temporary housing assistance may be needed if you’re visiting the city where your new job is before the job starts or if something comes up with your new home and you can’t move in right away.
Apartment or house-hunting visits are important if you want to come up before your move. Your company might include at least one house-hunting visit in your employment relocation package, but you may be able to negotiate for an additional visit if you're having trouble finding a new place.
Flexibility with your start date gives you time to pack your home and move everything to the new location. Many employees move and start their new job in less than 30 days, so if you need more time, you should consider negotiating your start date.
Storage facility fees may add up, especially if you haven’t found a home by the time you start your new job.
Real estate support can be a significant benefit if you have trouble finding a new home or have difficulties selling your old home. Help from your company could include various fees or even advertising costs to help sell your home. If you rent, this type of assistance can help you break your lease.
What is a payback clause?
A payback clause essentially states that you must pay back part or all of the reimbursement money if you leave a job within a certain period.
For example, your payback clause may require you to pay your employer back if you leave the company within 90 days. Take stock of this clause so you aren't surprised by anything in the event you decide to leave your job.
How much do employers spend on employee relocation options?
The amount that your employer pays for a relocation package can vary based on several factors:
Size of the company.
What type of relocation package you agree on.
Whether or not you’re a new hire or you’ve been employed for a while.
If you’re a renter or own your home.
According to the Atlas World Group survey conducted in 2017, an average lump sum is between $10,000 to $14,999 if your company plans to cover all your relocation expenses.
Stats and facts about job relocation
62% of employees would potentially move to a new location for a new job. [2]
An Allied Van survey found that the most common reason people relocate is to seek a higher paying job, get a job nearer to family or to relocate for some reason within their current employer. [1]
The most common challenges faced by employees relocating include finding a new residence and making new friends. [2
]In a Job Relocation survey, Allied found that 26.4% of respondents got some kind of relocation payment from their employer. [1]
In terms of relocation package type, Allied found that 15.75% or those surveyed got help with living expenses, 12.05% got a discretionary expense allowance and 8.7% got a lump sum payment. [1]
Allied also found that 41.5% of employees surveyed had to move in 30 days or less. [1]
The top five places people would consider relocating from in a 2019 survey include Raleigh, Miami, Des Moines and Charlotte. [2]
How to get a job relocation package?
An employer isn’t required to pay you anything to relocate, but it is a nice perk!
Even if you don’t think your new company offers this perk, the most important thing to do first and foremost is to ask your employer if this is something they offer.
Consider training or acquiring in-demand skills or qualifications. These could be anything from a master's degree to highly technical knowledge.
Apply for jobs that actively offer relocation assistance or consider going into a profession that is experiencing staffing shortages.
Remote jobs are more frequently offered than they were a few years ago. If you're having trouble finding a job with a relocation package, a remote job could be your answer.
Many websites that help with employment also allow you to change your location settings. This can show your job profile to multiple cities.
It’s easy to bring along your ADT security system to your new home.
ADT service technicians do all the work for you at your new address, from installing to adapting your security needs at your new location.
Frequently Asked Questions about Job Relocation Assistance
Does a company have to pay your moving expenses?
Your employers aren't required to pay a relocation package, but they may be willing to offer it if you ask. Many companies realize that providing relocation assistance is an excellent way to attract talent outside of their location and they may be willing to work with you.
Why would a company pay for a relocation package?
A relocation package is just one of many ways that a company can entice new talent into the company or keep talent within the business. It also gives your employer hiring flexibility to look outside of a specific city and broaden the search for new talent into other parts of the country
How long should a company give you to relocate?
Relocating can take anywhere from 30+ days, but the most common time frame in a survey conducted was within 30 days. It’s important to discuss your timeframe with your employers and keep communication open in the event there is a delay with selling your home or finding a home.
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