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