What is a relocation package?

A relocation package is an important incentive for a company to use both when they are seeking new employees and when offering a current employee a transfer. What the relocation package includes depends on the position, whether the employee owns his home and the size of the company. Negotiations can always be made to include something that the employee needs that is not offered.

Just what is included in a standard relocation package?

1. Finding new digs – The employer should be willing to pay for at least two trips to find the best community for the new hire. Costs covered usually include air fare, a rental car, and hotel expenses for about three or four days per trip. Doing some research beforehand about the school systems, crime rates, and basic information about the communities before the actual house hunt will make the decision a lot easier.

What is a relocation package?

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2. Moving expenses – Generally, the employer will cover all moving expenses, except for hard to move items like watercraft and other pleasure craft, pets, and outdoor play equipment. Costs include packing belongings, moving the possessions, transporting one car, and unpacking at the new destination. Insurance is provided for all items that are moved.

A standard relocation package will also provide about two months storage if the employee’s home is not ready by the start of employment.

3. Temporary expenses – Most employers will provide the first month’s worth of living expenses, for food and lodging, to give ample time for the employee to set up their new home. More often than not, the employer will provide these expenses for the whole family, not just the employee. The relocation package should also include provisions to cover the family’s travel costs to get to the new destination, including mileage, food, and hotel.

4. Miscellaneous expenses – A relocation package will also include a lump sum that can be used for the assortment of items that are needed when setting up a new home. This money can be used for driver license fees, items for the new home such as new drapes or carpets, security deposits, cleaning fees, or any other expense needed by the employee. The miscellaneous amount often is equal to about one month’s salary, minus taxes.

What Is A Relocation Package?

A relocation package should be negotiable

The employee should always know just what will be needed for a relocation package, and be ready to negotiate if all his needs are not met. They are a standard part of the total employment package and should not be overlooked when accepting a position.

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