Things to consider when being offered a relocation package
Are you having to move for your dream job?
If so, there is a high possibility you have been offered a relocation package. Offered by companies to new employees or employees who have been transferred to a new office, relocation packages are designed to help combat some of the stresses and expenses of moving.
If you are entering a company as a new employee and having to move a substantial distance, with no relocation package offered from the beginning, you may be able to negotiate some form of agreement. While it’s good faith for a company to offer a relocation package, it’s important to note that there is no legal obligation on behalf of the employer to cover any moving expenses that may occur.
Here’s our guide on things to consider when being offered a relocation package, what you can expect and how to ensure you get what best suits you and your needs.
To begin, let’s establish what may be offered in a relocation package.
What may be offered in a relocation package?
A relocation package will usually cover some of the expenses associated with the move. While this is common practice, every relocation package is different. In some circumstances, a company may offer to cover all the expenses associated with moving, at the opposite end of the spectrum you may be offered a flat rate reimbursement. Below are some common elements that may be offered in a relocation package:
- Moving costs: The cost of the removal truck and any expenses.
- Temporary housing: Temporary accommodation is one of the more common elements offered while permanent housing is found, or refurbishment completed.
- Temporary Living Expenses
- Transportation: One of the more common elements offered. This usually covers the travel for getting to your new home country.
- Business travel insurance. For any meetings or opportunities needed to be taken.
These are some of the elements that are often associated with a typical relocation package. It’s important to remember that a company is not obliged to offer you a relocation package and there are no core elements. What is offered in a relocation package is down to the company.
Check what is being offered
It’s imperative you find out what the company is offering before you make any final arrangements. It’s vital you have a full understanding of what expenses and specifics are covered to ensure you encounter no unnecessary charges. Some larger companies will regularly deal with relocating employees and will often outsource this task to a third-party.
Most companies will publish their ‘standard’ relocation package on request. It’s recommended that you take advantage of this. This allows you to compare what is being offered by their competition, potentially allowing you to re-negotiate what is on offer. As the competition for the best employees between companies is fierce, a significant emphasis is placed on relocation packages. Use this to your benefit.
How to negotiate a relocation package
Unfortunately, not all employers will offer a relocation package and those which do may be limited in what they can offer. However, this does not mean the offer is cemented in stone. Like any business deal, there will be room for negotiation, especially if you are an existing employee. When entering a negotiation with your employer there are a series of points which need to be considered.
- Ask questions.
This may seem obvious but it’s vitally important to where you stand with your employer. This is crucial for those who do not offer a relocation package or for those who offer a limited package. Even if the company does not provide a package, they may still be able to provide some support throughout. As they say, if you don’t ask, you don’t get.
- Know how much it will cost without a relocation package.
It’s useful to have an accurate list of the expenses if you were moving without any assistance. This is your chance to provide your employer with evidence of how this move will financially affect you in the long and short term. Knowing how much it will cost will allow you to make a specific and detailed request.
- Protect yourself and get it in writing.
Once you have a deal negotiated it is vital you get it in writing. This will provide you with some protection if your employer does not meet the agreed terms.