What Is a Relocation Fee

A relocation fee is a sum of money an employer agrees to pay for an employee’s

moving expenses. The amount is often dependent on a number of factors, including

the size of the company and its financial resources, how long the job will be for and

whether the employee is a homeowner or renter. A typical relocation package

includes funding for the cost of a move and storage, assistance with selling an

existing home, house-hunting costs, temporary housing and transportation costs to

the new location. Companies may also offer additional non-financial support such as

language and cultural assimilation training.

Relocation packages can vary by company, and can include different tiers

depending on the salary of the position being filled. The higher the salary level, the

more likely an employer is to cover relocation fees. Some employers will even

reimburse an employee for their travel expenses to interview for a position.

A standard relocation package includes funds for the hiring of a removal firm,

transportation to and from the new location and deposits for utilities and other

services in the new area. Other expenses that may be covered by a relocation

package include the cost of purchasing a car in the new country, breaking a lease

and other penalties that may be associated with terminating a rental contract early,

and the costs of finding suitable housing for an employee and their family.

Many companies will also cover the cost of arranging a mortgage in the new country,

as well as providing help with obtaining the necessary visas to allow spouses to join

employees on a work assignment abroad. For employees who are being relocated to

a country where they do not speak the language, linguistic and cultural assimilation

training is usually included in the relocation package.

It is important for an employer to set out a clear policy on the type of relocation

assistance it will provide. The policy should clearly outline who will pay third party

suppliers, how reimbursements will be made if the employee pays out of their own

pocket and any other relevant details about the scheme. It should be available to all

relevant employees at all times, and should be stored in a central place such as

Asanify HRMS for easy access by managers and HR staff.

Relocating for a job is a huge undertaking, but it can be incredibly rewarding too.

According to a survey of over 3,000 people who’ve been relocated for work, 71%

report enjoying the experience, 51% say it put their career on a better track and

40% found a community they like more as a result of their move. As such, it makes

sense for a company to be prepared to go the extra mile and offer a generous

relocation package to encourage qualified candidates to take up their positions.

However, not all businesses will be willing to do this. Cash packages can be a

tempting option for smaller, more budget-conscious companies, but this approach

can have serious disadvantages for both employees and the business. umzugsvergilch

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