A relocation fee is a sum of money a company offers to an employee who needs to
relocate for work. The amount of the package varies by employer and industry, but
can include funding for a rental or home purchase as well as travel expenses.
Companies may also reimburse employees for moving expenses and provide a
stipend to help with other miscellaneous costs.
Relocation packages are common among larger employers. They can be a great
incentive for highly qualified candidates to accept jobs that require them to move
and can help reduce the financial burden associated with such a transition. In order
to maximize the value of a relocation package, an employee should review the
terms of the agreement and consider any potential areas that aren’t covered.
Some of the most common items included in a relocation package are packing and
moving services, rental or home purchase assistance and temporary housing
allowance. This helps employees cover the costs of the move, so they can focus on
settling in their new location and getting to know their coworkers and the
community. Other common costs reimbursed by relocation packages include a home
inspection or appraisal, the cost of breaking a lease or selling a previous home and
mortgage loan application fees.
It’s important for businesses to understand the value of offering a relocation
package and how it can attract and retain talent. A good relocation package can
ease the transition for a new hire, allowing them to start their job sooner than they
might have otherwise. In addition, a strong relocation package can mitigate the risk
of an employee leaving early and potentially hurting the company’s return on
In addition to the above, companies can also offer a number of other benefits to
their employees who need to relocate for work, such as child care and elderly care
assistance, home sale and lease assistance and transportation costs. In some cases,
employers will even pay for a new spouse’s job search. These types of incentives are
often a big factor in attracting talented candidates to work for a business and can
improve retention and overall workforce quality.
A relocation package can cost between $21,327-$24,913 for renters and $61,622-
$79,429 for homeowners. These figures are based on averages of what large
corporations spend and vary by employer, executive and new hire. To determine the
value of a relocation package for your employees, start by reviewing what your
competitors are offering and how it compares to your own company’s policies. It’s
also important to discuss the details of a relocation package with an HR
representative to ensure you are clear on what is and isn’t covered. You can then
tailor the benefits of a package to your specific needs and company budget. This will
increase its value in the eyes of your top candidates. umzugsvergilch