We often say this because there is no law stating that companies have to offer a relocation agreement. There is no obligation on the part of the employer to cover the moving expenses of new or current employees. But as we've mentioned, in a competitive job market, a smart employer will do whatever it takes to recruit and keep quality employees. Before signing your employment contract or letter of agreement, carefully read your company manual or human resources guide to see if they offer relocation packages (you should read the manual anyway, of course, as part of assessing whether a job is right for you).
And the company may not offer unsolicited relocation assistance if you don't request it, so again, it's important that you do your due diligence. Traditionally, relocation packages were mainly offered to high-level employees and managers, but given the shift in international assignments and the appetite and willingness of younger employees (millennials) for international experience, relocations are now opening up to a wider range of employees. But for a rough figure, we estimate that the typical relocation package ranges from a couple thousand dollars to many, many thousands of dollars more for high-level executives (who often successfully negotiate for their new company to even buy the house they are vacating). Among the demands of HR is the need to maintain control of relocation costs and ensure that all employees who relocate receive the support and information they need throughout the process.
While the final cost of an employee relocation package varies widely, there are ways that companies can estimate and reduce these costs. A relocation grant is a sum of money that an employer is willing to pay to an employee to cover, or contribute to, certain relocation costs. Providing mental and emotional support to employees during the relocation period can be extremely helpful in maintaining a good relationship with them, as well as keeping them informed and conducting a consultation exercise with them on relocation. Most relocation contracts require you to work for the new company for a year or two, and that you pay if you leave voluntarily or get fired for just cause.
From an employer's perspective, it may also be more cost-effective and more time consuming to offer a relocation package to avoid a possible dismissal procedure or a negotiated exit when an employee objects to relocation. But perhaps more important than saving you money, a relocation package is a recruiting benefit that your company offers as an investment in you. For businesses, covering relocation services can be a smart and cost-effective contracting tactic. Employers can try to attract candidates by mentioning on job lists that relocation services are available.
Some employers often deal with relocating new employees and may put you in touch with their subcontracted companies. While the days of complete Cartier-style relocation packages and direct purchases of high-demand employee housing are past, there are still relocation benefits that are worth asking for and negotiating before taking a job out of state. However, trial relocation periods should be carefully considered before being offered to employees, especially if there are large numbers of employees moving. Because relocation expenses are a one-time cost to a business, negotiating a relocation package is sometimes easier than negotiating a higher salary.
An employee relocation package is a benefit that companies use to help new and current employees move from one location to another because work requires it. The company often places you in an executive condominium, apartment or house that is used for relocation purposes. .
