You just got the job you’ve always dreamed about. One problem though, it’s in another city. The good news is that most companies now have relocation assistance in their benefits section. This article will help you know what to expect with relocation assistance and what you may have to ask for.
What to expect:
Most companies will let you about their relocation assistance policy during the hiring process. However, some companies may leave this out of the conversation even if they do have a policy. If you think you that you will need relocation assistance, this is a topic you will need to discuss with your employer. Relocation policies vary from company to company. Read through the company policy to know the covered items and those that are not.
For most companies, both distance and coverage are the basis of the policies. There is usually a minimum distance covered in the policy. The minimum distance and circumstances differ from company to company.
For most companies the coverage may include; transportation of your belongings and your family. Many companies will cover costs affiliated in selling your old home and purchase of your new housing.
Transportation of belongings:
The company policy may discuss this in details. This may involve hiring movers and how much the company is willing to pay for. It may be trickier when you own luxury items. Some companies openly say, “We don’t cover this expensive high-risk items”. Keep in mind that the more you own, the more expensive it’s going to be to move. Boats or additional vehicles may have less coverage or none.
Costs affiliated to Housing:
Consider another important issue in the company relocation assistance policy. The more coverage you get on the cost of selling your existing home and purchasing a new home the faster the relocation process will be. Some relocation policies cover closing cost and real estate agent commission. Other cost to be aware of may involve losing your security deposit if you lived in an apartment and a fee because you are breaking the lease. However, often an apartment company will waive the early termination penalty with a letter from your company confirming your relocation.
The cost of your transportation:
This usually covers the cost of your transport. If you don’t have a car or if your car is being moved as part of your relocation. Many times, this is covered based on the distance and size of your family.
Did you know?
Often it is easier to negotiate your relocation assistance than your base salary. If you feel like you are getting less on your base salary you can make up the difference on the relocation assistance. In most companies, they are willing to negotiate on the relocation because it is a onetime expense and most of the time comes from a different budget.
You should also ask what type of relocation your company offers. Relocation packages maybe offered as:
- Lump Sum: Negotiating a fixed onetime payment is possible.
- Pros: You can spend it however you like
- Cons: It’s fully taxable like any other earned income.
- Reimbursement: This when the company reimburses all or a maximum amount of the moving expenses. You may need to save all your receipts for this one.
- Direct billing: this is when the company takes care of the moving services directly with vendors that bill your company.
- 3rd party relocation services: some companies decide to outsource the service from a relocation broker.
In general, you need to plan ahead, what it will cost and read thoroughly the company relocation policy. Be ready to negotiate, the worst that they can do is say no.