What should relocation package include

However, a different version of these items could be included in the policy:. This can be one of the most complicated aspects of a relocation package. It can cause delays to relocations, stress to employees trying to sell their home, and incur tax costs from commissions and closing fees.

ARC offers a variety of options to help with home sales as part of relocation:. While most relocation expenses are no longer tax deductible for employers, one tax protection does remain: the Buyer Value Option BVO , and this covers what is usually the highest expense in a relocation process: home sale costs. It removes the risk for the employee of selling their existing home. This can speed up relocation, as the employee does not need to wait for an offer on the open market.

In a GBO, the relocation company purchases the house from the employee at fair market value, before later selling on to an outsider buyer. The relocation company will match this offer, and then sell the home to the outside buyer, provided the higher offer is a bona fide offer made in good faith.

This saves the employee time, money and a lot of work. At ARC, to prove our commitment to our customers, we offer an Affinity Rebate on all eligible home sale transactions. The cash rebate is paid within a week of closing, as a free program to help employers maximize recruitment and retention efforts. We have a whole library of resources and information available for free on our website including:.

Our own helpful links cover all bases and any further questions you may have in mind. For the Kids. Have children or dependents that will need to be taken into consideration when relocating? A house move, especially to somewhere new can be a stressful time for them too.

We offer some resources for your children to use that allows them to have their input in the relocation process! Benefit Checklist. Check out this checklist to ensure your current and future living arrangements are catered for. Example Policies. Take a look at our examples. Real Estate and Relocation Terminology. Government resources. Government relocations can be complex and expensive. Understanding these can mean the difference between saving and losing thousands of dollars.

Want to know more about what we can do for you? You can always contact us to speak to the team. Relocation is a completely different area of Human Resources; a relocation specialist can take the lead on ensuring a smooth transition for you and your new employee.

In his role as Director of Business Development at ARC Bill oversees all aspects of the growth initiatives for both government and corporate clients, domestically and globally.

Bill graduated from George Mason University with a BA in Psychology and has been in the relocation industry since Skip to content.

This guide will cover everything you need to know about employee relocation including: What Exactly Employee Relocation is Understanding the costs Packages and Policies Resources. Contents What is Employee Relocation? Storage Unit Rental. Your new employer may pay for the cost of renting a storage unit while you get settled. Lease Break Coverage. Companies may sometimes pay fees associated with breaking your lease in your prior location.

Before you make arrangements to move, double-check specifics of your relocation package with your employer so you know exactly what will be covered or reimbursed. You don't want to get stuck with expenses for items that you thought would be covered but aren't. Some employers frequently deal with relocating new employees and may connect you with their sub-contracted companies.

Others may give you a lump sum to pay for relocation, or ask you to keep all receipts for reimbursement. Ask for specifics beforehand. Because relocation expenses are a one-time cost for a company, negotiating a relocation package is sometimes easier than negotiating a higher salary.

For companies, covering relocation services can be a smart, cost-effective recruitment tactic — employers may try to attract candidates by mentioning in job listings that relocation services are available.

Paying moving expenses may also help employers retain internal candidates, which is often cheaper than paying the costs of hiring and training a new employee. Ask Questions.

Begin the process by asking if the company provides relocation services and what the company typically provides. Even if the company does not provide full moving expenses, they may be willing to reimburse some costs. Know Your Numbers. If the company typically offers relocation packages, they may have a sense of the costs. Otherwise, it's up to you to provide the employer with a sense of how the move will affect you in terms of time and money spent. As well, review the various relocation services that employers provide above.

Find salaries. Upload your resume. Sign in. Starting a New Job. Why is it important to know what's in your relocation package?

What can be included in a relocation package? Packing service. Moving company and insurance coverage. Home-selling assistance. Paid-for house hunting trip. Temporary housing. Auto travel reimbursement. Other relocation expenses. Types of relocation packages. Third-party relocation. Direct billing. Expatriation assistance. How to negotiate your relocation package. Review what's included in your relocation package Identify necessary items that are not included Look at your local competitor's offerings Address your specific needs to your employer.

Review what's included in your relocation package. Employers know that employee retention rates drop after relocation. Employees who adapt well find themselves in new locations with new opportunities that can draw them away from the employer. Employees whose moves go badly, or who conflict with their new bosses or clash with their new locations, can end up leaving the jobs they moved to take. Human resources departments frequently manage organizations' employee relocation programs.

Relocation is no longer a matter of human resources or a hiring manager approving moving expenses. Relocation now requires a strategic focus on the company's business and finances to ensure that the relocation program advances the company's strategy. HR must work with other parts of the organization to ensure relocations are managed consistently. Human Resources must consider the total program strategically, financially and operationally. As with any human resources program, evaluations and metrics are essential to proving the program's strategic value.

Written policies establish clear rules to ensure that all employees are treated consistently and fairly. A written policy prevents favoritism and pressure from managers to provide different treatment for their own hires or preferred employees.

A policy also lays out information so that employees who relocate know exactly what is included and can make informed decisions. Relocation policies generally have three levels of coverage, depending on the group to which an employee belongs:.

Employers adopt policies to fit their circumstances and could have policies for all three levels. Employers want to offer attractive relocation packages to executives and high-level employees, but are faced with the high costs associated with such packages. The key question is whether the financial gain of hiring or transferring an employee will outweigh the cost of the relocation.

There is considerable pressure on HR to trim costs and tweak polices so employees can still be relocated to where they are needed. More companies are offering flexible relocation packages to contain costs by offering core relocation benefits and optional benefits based on employee need according to Aires, a relocation company.

There is no magic formula when it comes to relocation packages, but organizations must consider certain elements when constructing a domestic relocation program. Relocation monetary incentives are generally the "tipping point" in convincing employees to relocate. The health of the job market will influence what incentives employees need to make the decision to move.

Cost-of-living adjustments and relocation bonuses are common. Organizations in states with high tax rates may need to use these incentives to lure employees to relocate.

Relocation programs usually allow site visits so the employee and possibly a spouse can see the new office, tour the community, and learn about schools, housing and other local services. Policies can set the lengths of these visits, but a minimum of two days is common. Employer relocation programs include help with marketing a home an employee needs to sell or with arranging for purchase of the employee's house if it does not sell by a specified time.

Other help that policies can offer include legal and financial help for canceling leases or assistance with getting an employee pre-qualified for a mortgage. These incentives may make the difference between an employee accepting or rejecting the relocation offer. More about the impact the economy has on housing and relocations is in the subsection "Housing markets. Employers may offer reimbursement for expenses like house-hunting, temporary living expenses and transportation of household goods.

Some organizations forego reimbursement and instead provide lump sums, paid upfront to relocating employees to cover all expenses. Employees keep whatever might be left over or pay any expenses the lump sum does not cover. Lump sums mean human resources does not have to haggle over expenses or keep detailed records of an employee's every receipt.

Organizations invest a lot on relocations and frequently lose those investments when employees leave shortly after a move. A growing number of employers include a payback clause in relocation agreements to recoup those costs. Under a payback clause, a relocated employee agrees to reimburse the organization all or part of the employer's expenses for the transfer if the employee leaves the organization within a specified period, usually a year to 18 months.

Industries with high turnover rates tend to use these clauses more frequently. Some employers choose not to include payback clauses, fearing the clauses may be a disincentive to relocate. Employers must confirm that state law permits payback clauses before implementing this practice. Families relocating need plenty of support from the employer. Organizations should not assume that an employee's excitement to move to a new office and new residence will offset the stress of the move for the employee and his or her family.