Many companies offer to pay a fixed dollar amount to help with moving expenses. 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.
There is no obligation on the part of the employer to cover the moving expenses of new or current employees. Getting a new job offer is exciting. But when accepting that offer means moving to a new city or across the country (resulting in large moving expenses and potential logistical headaches), it can be a little discouraged. Some employers often deal with relocating new employees and may put you in touch with their subcontracted companies.
Although most companies have a relocation package mostly resolved by the time they offer a job, employees may have individual needs or requests to make the move as simple as possible. Often, the employee will keep relocation costs low and the rest of the pay will be pocketed; this can lead to a bad move and many companies are moving away from these packages. Companies are more willing to help you with the relocation if they think it will be a valuable addition to the team. To cover their bases, companies should consider adding a reimbursement clause, which states that if the relocated employee leaves before a set period of time, he will have to reimburse the company's relocation costs.
Employers have lost the ability to use relocation as a tax deductible, and employees have to pay taxes on any relocation benefits received. 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. Many companies have a standard relocation assistance policy that explains what they will offer and how it works. Companies are realizing the fact that having a strong and attractive relocation package makes excellent business and brand sense, and it becomes a reality to be competitive in today's marketplace.
Reimbursement relocation packages allow transferees to pay all moving expenses with the idea that their employer will reimburse them a specified amount of money after the relocation. Shyft combines the logistics management of relocation technology with the personalized service you can only find with concierge companies. Technology employees in leadership positions are encouraged to move to companies that are not willing to extend generous relocation packages that meet their family's needs. 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. Today, with a more global economy and a better-educated workforce, competition for talent is stronger than ever; as a result, smart companies are jumping on the bandwagon of relocation benefits. If companies discover that they are losing talent, especially as part of a transfer process, they may have a review of their relocation policies and strategies to keep up with the changing face of the modern workforce. While the final cost of an employee relocation package varies widely, there are ways that companies can estimate and reduce these costs.
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