Congratulations on having a new job offer or a new home! But relocation can be expensive. The hidden costs of the relocation can make your savings devastated especially when if you are not well prepared. Luckily many options help you in estimating the relocation package before your move. So, before you ask for a relocation package from a company, it is recommended you to do your research before.
Considerations: When a relocation package is offered, ask if you are expected to meet the upfront costs of the relocation. While some companies will pay you when you submit the receipt lists of the move cost. But if they pay for upfront then you have to make a budget which is completely a different thing. Remember that if your child is in between the school grade then consider it before accepting the relocation package. No matter what is the package, make sure that it is right for your child and family.
Total expenses: Housing and transportation are the two main expenses for relocation. You should also ask for your agent to pay agent fees and closing costs of the home. You can also ask for another utility bill, school admission fee, housing costs and all other charges that you don’t need to pay if you don’t move. If you are moving on short notice, don’t have enough time and energy to pack items or don’t love packing then you can hire full service moving companies. Full-service movers include packing and unpacking of items, loading, and unloading of items and all other related tasks of moving.
Some other considerations: Apart from moving and transportation costs, you also have to consider a few other costs that are not related to moving but you have to pay just because you have relocated. Charges such as car registration, insurance and so on, like, if you need to sell your home then the company can appoint you an employee who will help you in selling your home and so on.
Price negotiation: Make a list of all the hidden costs that you want to get paid from your company. Though you should ask for everything that you need to be because of relocation but don’t expect to get everything. You can also talk to the other employees of the company and can get what kind of relocation packages they have received. Ask about all the moving costs until you don’t get justified.
How Much Does Relocation Package Cost On An Average?
Average relocation packages come from modest to comprehensive packages that might include the selling of your home. According to a study, the average relocation cost for a current employee who is a homeowner that a company has to pay is $90,017 while for the new hire is $67,000. It is cheaper for companies to move renter employees as compare to home owner-employees. The average cost the company has to pay for a current employee living on rent is more than $20,000 while it is lesser for a new hire employee which is $ 17,000.
Relocation package for apartment dwellers: An apartment dweller who will be renting requires several expenses including packing and transportation of the home belongings, breaking of the current lease, and the transportation cost by air, road or any and another miscellaneous cost. Additional expenses include utility hookup, car registration, restocking the refrigerator and so on.
Relocation package for homeowners: Such employees need help in the sale and rental of their homes. Apart from that, expenses like packing, unpacking, and transportation cost, cost to search for a new home for your family and you and some other miscellaneous costs.
Expatriates: Moving internationally either for short or long term is highly expensive as compared to the domestic move. In such a case, the company does not only have to pay the moving cost but as well as the housing cost of an individual. As the cost of living in the US is very higher.
Other considerations: Companies need to spend millions of their dollars around the world to relocate their employees. Many companies have eliminated these costs by hiring local employees.
What Are The Key Components of a Typical Relocation Package?
When you get a new job offer, some companies pay you the complete cost of relocation while others will offer you a flat dollar amount for relocation.
Things included in a typical relocation package!!!
Most relocation packages offer a few or all of these services. Have a look at what relocation package includes:
Home finding: A trip in search of the home including hotel transportation costs to find a suitable home for your family should be paid.
Job search help: In some relocation packages offered by companies, job search assistance for your partner or spouse has been offered.
Home selling and buying assistance: The cost incurred in selling and buying a new home is also included in relocation packages. The cost includes the real estate commissions, closing cost of a home and all the expenses incurred in buying and selling a home.
Transportation cost: Companies have to pay traveling expenses no matter whether you have to move to a new location via train, airplane, and automobile.
Moving cost: The cost of the moving truck, as well as Lancaster moving companies, should be included in the typical relocation package offered by a company.
Documentation cost: The cost of work permits, documentation, and visas associated with your move are also included in relocation cost.
Temporary housing: If you are limited in storage, then rental housing of a hotel for a specific period should in included in the relocation prices. Utility fees, as well as rent, should also be included in the relocation price.
Shipment of a vehicle: If you are embarking on a long-distance move or you don’t want to drive your car on your own then shipment of a vehicle also includes in the relocation package. Your vehicle will be transferred to a new location where you want to.
Miscellaneous expenses: Miscellaneous expenses include a lot of costs such as driver’s license fees, cleaning service at the new home, pet registration expenses, utility hook up bills and so on. A typical relocation package should include all these features.
These are certain things that are included in a typical relocation package. Though not all these services are included in the relocation package while in some, all these are included.
How Much Do Companies Pay For Relocation?
Either the company pays before or after the relocation. Certain companies offer relocation package as you show them moving receipt while in others, they make a budget and offer you a complete relocation package. The relocation package depends upon various factors, therefore, the cost varies. No one can tell you that how much amount a company offers for relocation package because it completely depends on the company policies but usually, it includes the cost of transportation along with all other costs related to moving.
What is a Reasonable Relocation Package?
The Relocation package offered to one can be different from others. A company usually provides attractive offers to retain its employees. To check whether a relocation package is fair or not, you have to weight it on certain criteria. Have a look:
Assign with experience and position: Usually, companies offer services according to the responsibilities and position of the employee. The lower level position requires fewer responsibilities on employees and certain skills only. On the other hand, employees who have reached certain levels in the company are more valuable to the organization so high services are offered to such employees to retain those in the organization. Therefore more robust packages are offered to employees such as managers, professionals at the executive level and so on.
Examine the existing life status of the employee: In certain cases, employer status is one of the key factors to consider what should be included in a relocation package. The employees that have their own homes need to be offered some additional services. They also require assistance in selling and buying a home. On another hand, the employee who lives on rent requires less assistance.
Apart from that, the family is another most important factor that needs to be considered when it comes to a relocation package. Those who have children are more resistant to relocation as compare to those who are single employees. So, companies need to offer more attractive relocation options to those with families.
Culture and corporate policy are the two major factors that also let you know what a relocation package includes. For some companies, finance is the bottom line while others keep the finance on the top. It is the responsibility of the human resource management of a company to set the right criteria to offer a fair relocation package to all its employees.
No one can say whether a relocation package is fair or not because these are the factors that change the relocation package. Overall a relocation package includes the moving cost and all the costs related to the moving. In some cases, it also includes housing costs as well.