We often hear that companies don't have to provide relocation agreements, and there is no legal obligation for employers to cover the moving expenses of their employees. However, in a competitive job market, employers are willing to do whatever it takes to recruit and retain quality staff. Before signing your employment contract or letter of agreement, it's important to read the company manual or human resources guide to see if they offer relocation packages. Relocation packages were traditionally offered to high-level employees and managers, but with the shift in international assignments and the willingness of younger employees (millennials) for international experience, relocations are now available to a wider range of employees.
The typical relocation package ranges from a couple thousand dollars to many thousands of dollars more for high-level executives (who often successfully negotiate for their new company to buy the house they are vacating). HR departments need to maintain control of relocation costs and ensure that all employees who relocate receive the support and information they need throughout the process. Companies can estimate and reduce these costs by providing a relocation grant - a sum of money that an employer is willing to pay to an employee to cover, or contribute to, certain relocation costs. It's also important to provide mental and emotional support during the relocation period.
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, offering a relocation package can be more cost-effective than a possible dismissal procedure or a negotiated exit when an employee objects to relocation. A relocation package is an investment in you as an employee. It can be a smart and cost-effective contracting tactic for businesses, as they can attract candidates by mentioning on job lists that relocation services are available.
Employers may also put you in touch with their subcontracted companies who specialize in relocating new employees. Although Cartier-style relocation packages and direct purchases of high-demand employee housing are rare nowadays, there are still relocation benefits that are worth asking for and negotiating before taking a job out of state. Trial relocation periods should be carefully considered before being offered to employees, especially if there are large numbers of employees moving. Negotiating a relocation package is sometimes easier than negotiating a higher salary as it is a one-time cost to a business. 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.
