What Is Included in a Job Relocation Package (2024)

FAQs

What Is Included in a Job Relocation Package? ›

A generous relocation package covers all moving expenses and will give employees ample time to find their new home. ARC Relocation can help with various factors associated with relocation. This includes finding movers to assist with your employee's relocation, packing and unpacking services, and vehicle shipping.

Typical relocation packages usually include temporary lodging expenses, the cost of moving, job assistance for your spouse, traveling costs, and assistance in selling your home.

Some of the other expenses you can expect to cover for relocation include: Temporary Living Expenses: this is usually covered if an employee has to live in a hotel or short-term rental before moving to their permanent residence.

To create a relocation moving budget, start with the facts, such as the distance of your move, whether you plan to hire movers, the size of your move (in the number of bedrooms), and your move date. Then, you can factor in the estimated costs of each moving expense.

The RELO package will usually pay your closing costs, including real estate commission. This can be a huge savings, particularly now, with real estate prices down. In the event you must sell at a price less than what you owe, your employer may cover the loss.

A lump sum relocation package is a standard relocation package since many employees choose this package. A lump sum package is when a set amount of money is directly given to your relocating employee so they can pay for the expenses that come with moving. The government considers this as income, making it taxable.

Relocation packages can range in worth from $2,000 to $100,000. What services and the amount of money you decide to cover is entirely up to you and your company. However, keep in mind that the more you are willing to give, the harder it may be for a candidate to refuse your offer when you negotiate moving expenses!

The full costs and figures can vary depending on the individual and their package however, as an example, payments are typically between $2,000 and $100,000. How do you negotiate a relocation package?

Furniture Allowance: Not every company will offer relocation packages that provide an allowance to buy new furniture. If you aren't shipping large pieces of furniture or if you want to start from scratch, you'll have to buy new furniture in your new city.

In California, it is important to note that state law generally prohibits employers from seeking reimbursem*nt of certain expenses, including relocation expenses, from terminated employees.

Is 5000 a good relocation package? ›

The actual cost of your move depends on your personal situation. $5,000 – $15,000 is an entry level management position or similar. This is a DIY move, you will likely not be able to afford professional movers or temporary housing. These moves often have out of pocket costs, and are stressful.

1: Relocation Benefits Are Considered Taxable Income

It doesn't matter if the funds are paid upfront in a lump sum, as after-the-fact reimbursem*nts, or even if the employer pays vendors directly.

Gas, insurance and dollies can increase costs, as well. In total, expect to pay somewhere between $150 to $400 for a local move if you plan to do it yourself. Hiring a professional mover can make moving less stressful, but with prices for an average three-bedroom home costing around $2,200, it does come at a cost.

If moving for work, an employer should be able to foot the bill for temporary housing. Of course, they may only be willing to cover hotel costs or home rentals for a short amount of time. Be sure to ask how long they are willing to cover these costs before moving to a new city.

Payback clauses generally cover the first year of relocation, sometimes the first 18 or 24 months, “but I've not seen anything longer than that,” he says. At Exelon Corp., a national energy services company based in Chicago, an “expense repayment agreement” is executed when the employee agrees to relocate.

Paid relocation—aka corporate relocation—occurs when employers finance some or all of an employee's move for business purposes. That employee could be a new hire, transferee or intern.

At least 2-4 weeks is reasonable to relocate for a job that's not too far away from a current home, like in a neighboring state or a couple of states away.