RELOCATION PACKAGE: Definition, Examples & Negotiation

Relocation Package

Preparing to relocate for work necessitates extensive communication with your employer about your needs and concerns. You can properly approach your employer and negotiate the terms of your package to best suit your needs by reviewing the contents of your relocation package and identifying areas where you require additional assistance. In this article, we will look at what items are typically included in a job relocation package using an example, the various types of reasonable relocation packages you may be offered, and negotiating the terms of your package with your employer.

What is a Relocation Package?

A job relocation package is a financial incentive provided by companies to aid prospective and current employees in transferring from one place to another due to the job requirements. This type of assistance occurs more frequently in some fields than others. For example, tech companies such as LinkedIn and Spotify typically provide a relocation package.

A small business does not need to worry about an employee relocation package if it is comfortable developing its team locally. However, if a company is looking for qualified employees outside of its geographic area, this type of offer may entice a great candidate to relocate. Businesses can attract candidates from all across the country or even the world with a suitable job opportunity and the right employee relocation package.

What Does a Job Relocation Package Typically Include?

What does a reasonable relocation package include, you may be wondering? You may see an example of a typical relocation package below, which includes temporary lodging, pack/unpack services, and miscellaneous expenses.

To make the prospect more appealing, an employee relocation package can include a range of advantages. These are some important factors to consider.

#1. Relocation reimbursement

Relocating is expensive, so businesses can assist employees by providing financial reimbursement for expenses such as moving services, mover’s insurance, and transportation. While some companies may only send funds when the transferring employee produces necessary expenditure reports, others will provide a single lump sum upfront.

#2. Flexible start date

Typically, new hires start work two weeks after accepting a job offer. Yet, if the new employee is required to relocate, it may take them longer to establish themselves. Businesses should ask employees how much time they require when creating a relocation package. Companies that work with new hires from the beginning build a more realistic schedule for the transition and can take the first steps toward developing a solid working relationship.

#3. Free visits

In certain cases, companies allow relocating employees to visit the area to acquire a feel for the place before making the big move. This usually entails regular excursions to the new site at the cost of the business so that the employee can hunt for accommodation and learn more about the place.

#4. Temporary housing

Companies can consider giving or sponsoring temporary lodging if the employee needs to start by a certain date. Businesses can avoid expensive hotel bills thanks to the advent of house-sharing programs like Airbnb, albeit that option remains available. Temporary housing can assist the employee in adjusting to their new surroundings in a month or two. Companies frequently cover utilities in addition to leasing charges for those few months.

#5. Familial support

When you hire someone and urge them to relocate closer to your office, keep in mind that they most likely have individuals who rely on them. In some circumstances, it may make sense to assist the migrating individual’s family with acclimating. Sometimes this entails assisting a spouse or partner in obtaining other employment, as well as providing child care and assistance in locating the best school for the employee’s children.

#6. Real estate cost assistance

In many cases, employers can make relocation more enticing by subsidizing the costs of buying or selling the employee’s house. Companies frequently do this by assisting in the marketing of the employee’s previous residence or by buying the property to resell later. If an employee is a renter with a lease agreement, the company can resolve the issue by covering any costs incurred as a result of breaching the contract.

#7. Pay adjustments or bonuses

The cost of living differs from one city to the next and from one state to the next. Some companies give corresponding pay changes or relocation incentives to assist cover the shortfall as an additional relocation incentive. This is especially beneficial in states with high tax rates.

#8. Payback clause

Companies must see a return on investment from the relocation process. Businesses could consider including a payback clause that stipulates that if the moved employee leaves within a certain period, they must refund the company’s relocation fees.

What Types of Job Relocation Packages Are Offered?

There are almost as many different types of job relocation packages as there are people who require relocation assistance and the companies that hire them. A typical relocation package will usually cover the costs of moving and storing furnishings and household goods, assisting with the sale of an existing home, expenditures associated with house-hunting, temporary housing, and all travel expenses incurred by the employee and family to the new site.

Job candidates and new hires may have a bit more bargaining leverage when negotiating a relocation package, as it often costs far less to relocate an employee than to pay a higher salary. Aside from the coverage itself, there are many methods for administering the package:

#1. Direct billing

The transferring employer hires and directly pays for a moving company, as well as the fees associated with selling an existing house and all other services required to assist the employee and family in relocating.

#2. Lump sum

A predetermined sum of money is paid directly to the employee to cover moving and related expenditures. For tax purposes, the government deems this to be income and thus taxable, thus employers frequently reimburse for those in the form of a gross-up, which frees up the whole amount of cash for the move. Another potential disadvantage is that it may be difficult to accurately predict overall costs upfront owing to unforeseen out-of-pocket expenses.

#3. Reimbursement

The employee pays for everything upfront and is reimbursed by the company after the move. This necessitates meticulous record-keeping by the employee, including the tracking of all expense receipts. Furthermore, employers will almost certainly impose a limit above which they would not reimburse.

#4. Third-party (outsourced) relocation

In this scenario, all moving logistics, including real estate or rental costs, are outsourced to a third party that coordinates a wide range of services. Some of these may include the marketing and sale of an existing home, spousal employment aid, household goods storage, and rental assistance.

#5. Expatriation assistance

This is supplementary relocation support provided by multinational corporations to employees relocating outside of the country, in addition to the standard scope of household goods and real estate assistance. Covered services examples are overseas trips to look for suitable housing and assistance with acquiring spousal work visas, discovering and selecting schools for employees’ children, and navigating a foreign city. Adjusting to the new culture and its practices, language, and cultural assimilation instruction provided as part of a relocation package helps employees feel more at ease and confident.

What is a Reasonable Relocation Package?

If you’re considering your current (or potential) relocation benefits, you might be wondering if they’re any good. If you don’t have a lot of experience using it, you might not be able to differentiate the good from the bad, just like with any other aspect of your benefits package. Not every company is going to have to cover the entire expense of your move, but that doesn’t imply those that can’t aren’t providing decent benefits. What, then, constitutes a reasonable relocation package?

There are numerous types of relocation assistance. The issue with defining a “reasonable” relocation package is that each company’s benefits offerings will differ, and the size of the company, as well as the size of your move and your role with the company, will all have an impact. Every move is unique, and because relocation fees can range from $100 to $15,000, what an executive receives is unlikely to be the same as what a new hire receives.

How to Know if You Have a Reasonable Relocation Package

As a result, while what is reasonable will depend on your scenario, we can look at some averages to see how your benefits compare. Who knows, you might even be able to use the material in negotiating your relocation package.

One of the most popular types of relocation assistance you’ll receive is a lump sum. Lump sum payments can be applied to all or a portion of your moving expenses. According to the 2018 Atlas Van Lines Corporate Relocation Survey, 54 percent of firms use lump sums to impose a cap on relocation expenditures, so you may find yourself with a limited budget.

Employees across the country receive an average lump payment of $7200. Sixty-six percent of employers provided lump sum relocation assistance for travel expenditures. 44 percent reported using lump amounts to cover the total expense of the relocation. The majority of those businesses provide between $2,500 and $4,999.

Negotiating Relocation Package

There may be aspects of your relocation experience that are not included in your relocation package that you think to be vital. In this circumstance, you should be able to properly negotiate your needs with your company. The section that follows discusses how to negotiate your relocation package with your employer effectively:

#1. Examine your relocation package to see what’s included.

Identify what is already available to you as part of your relocation package before negotiating your individual relocation needs. During the relocation process, go over what is covered, how you will be compensated, and what type of insurance coverage is available. You might identify prospective areas that you believe your firm is not sufficiently covering by reviewing the terms of your relocation package.

#2. Identify any necessary items that are missing.

Consider other products that may be useful during your relocation. If you are given one paid trip to look for housing but there are no childcare reimbursement options, you should discuss this with your employer so that you can be reimbursed for the cost of someone babysitting your children while you are house hunting.

#3. Examine the offerings of your local competitors.

You can now compare relocation packages provided to employees by industry competitors after examining what your firm provides in your relocation package and identifying extra items that would be beneficial to your situation. Do they count childcare as a reimbursable expense? Evaluate what they provide that your company does not, and build a list of these items to bring up in a conversation with your boss.

#4. Inform your employer about your special needs

If there are any special needs you have that aren’t covered by the present relocation package, please let your employer know. Ask them if there are any places where you may receive refunds or if certain aspects of your existing package could be replaced with something more beneficial to you.

If your company can cover the expense of flying, you might be able to afford the packing service yourself. Or perhaps your employer will reimburse you for childcare costs. Negotiate within reason, and keep in mind that not all relocation packages are negotiable.

What Does the Relocation Package Include?

A typical relocation package will usually cover the costs of moving and storing furnishings and household goods, assisting with the sale of an existing home, expenditures associated with house-hunting, temporary housing, and all travel expenses incurred by the employee and family to the new site.

How Much is a Typical Relocation Package?

An average relocation package costs between $21,327-$24,913 for a transferee who is a renter and $61,622-$79,429 for a transferee who is a homeowner. Of course, this figure is an average of what larger corporations spend on employee relocation; relocation costs can range from $2,000 to $100,000.

How Much Should I ask for the Relocation Package?

The average relocation package costs between $19,309 and $24,216 for renters and between $72,627 and $97,116 for homeowners, according to American Relocation Connections (ARC), a corporate relocation group.

What is a Typical Relocation Package in the UK?

A relocation package should cover your travel, furniture removal, transport, and storage costs. Your employer should help you find a new home and provide you with temporary housing. The value of the package depends on where you are moving from, but on average, expect around £8,000.

Does the Relocation Package Include Visa Sponsorship?

Yes.  Organizations offering relocation provide financial assistance/reimbursement for moving to a new place of employment where you can work lawfully.

Do Employers Pay for Relocation?

A relocation package may be offered when a company offers an employee a long-term position more than 50 miles from their current work location. To relieve the employee and their family of the economic burden of relocation, this normally pays the employee’s reasonable moving and other work-related expenses.


There are many issues with moving, but it’s all worthwhile if you’re relocating to acquire your ideal job and have a good relocation package. While many organizations may offer various relocation packages, you must negotiate a decent offer for yourself.


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