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Posted in Moving Preparation, Moving Tips&Tricks on November 8, 2022
Daisy Wilson

Daisy was born in Salt Lake City and in her free time, she writes about moving and watches Charmed.

Here’s All You Should Know About Employee Relocation

Running a business will most certainly, at some point, include employee relocation. But what is an employee relocation, and what are your obligations as an employer in this process? The answers to these questions depend on many factors, and we will try to go through each one of them so you can understand all there is to companies that relocate employees.

The relocation process will be different for workers of all ages and stages of life. However, establishing your own employee relocation package is the ideal starting point. What services can your company provide? We’ll walk you through how to put together an employee relocation package.

First Things First – What Is Employee Relocation

As you may already know, relocating to another state is a challenging task, and if you combine that with relocation for a job, you will get a complicated process that needs to have strict procedures in order to achieve an efficient move. But before we address this issue, let’s first explain what is employee relocation. Imagine you want to relocate to a new city, and you decide to find a new job before relocation. And if you get that job, your employer will sometimes have to deal with the employee relocation process.

Relocating an employee for work purposes is referred to as the process of shifting a new or current employee from one place to another. Relocation aid is typically considered following the formal employment offer. Relocation aid should be provided as necessary, such as when a new employee is hired, a current employee is promoted, or a worker is transferred to another office or division of the business. Relocation benefits aim to pay all or some of the moving-related expenses that employees incur.

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What Does the Employee Relocation Package Usually Include

When organizing a move of employees, companies usually offer something that is called an employee relocation package. Relocation packages are an optional benefit that employers may decide to provide. It is up to your business to decide what is covered and specify any requirements employees must fulfill in order to receive the benefit. Here are a few of the most typical extras seen in relocation packages for employees:

  • Professional long-distance moving services and packing services,
  • Temporary housing,
  • Flexible starting date,
  • Travel expenditures reimbursement.

These Should Be Relocation Policy Offerings

As was previously said, employee relocation plans are not always applicable. Employees may discuss their basic needs with their employer and may have particular wants that must be met. For example, if you are relocating with kids, you may need some extra time to make the transition. Maybe the housing option they offer is not big enough for you, and you need more time to do some house hunting. Either way, no matter what your specific needs are, you can always negotiate the terms with your employer, even refuse to relocate.

You Will Get Professional Long-Distance Movers to Help You Out

To simplify the relocation process for employees, the employer pays some or all of the costs associated with employing professional white glove moving services. This can also entail getting any insurance that pays for anything getting broken or lost during the relocation. As you know, the worst part of relocating to a new city or state is preparing for a move. Companies usually cover these expenses in every possible way, meaning they will find you a company that will do everything for you, from packing services to storage and car shipping.

Temporary Housing Option

No matter if you are relocating from a small town to a big city or vice versa, you will need some temporary accommodation. Most companies own apartments they can give to their new employees, but some companies will rent a place for you. You will probably end up in a small house or apartment, but you will have a roof over your head until you find your place to live.

Why Is It Important to Have a Flexible Starting Date

Anxiety about moving is a real thing, and you will be even more anxious about starting a new job. For this reason, most employers have a flexible starting date for people who relocate. Some people wish to start right away, while others need some more time to adjust to the change. For example, some people may suffer from adjustment insomnia and may need a couple of days to rest until they start working.

Travel Expenditures Reimbursement

One of the benefits of moving for a job is that you will get reimbursement for travel expenditures. A relocation policy should be to pay for the employee, any accompanying family members, and any accompanying pets to travel to the new site, whether by plane, car, or train. In some cases, companies offer even spousal employment assistance. Even an allowance might be given to aid spouses in finding work.

When It Comes to Relocation for Work, There Should Be Some Benefits Packages

Relocating an employee costs a lot of money – sometimes more than $60,000. People who live in rented homes can get around $24,000, while homeowners may quote costs as high as $79,000. There are different kinds of relocation packages available since there isn’t one relocation strategy that works for everyone. Here are some of the most well-liked choices.

Lump-sum Package

A lump sum relocation package functions as its name would imply. An employee will receive a certain sum of money to use on their relocation, with the option to keep any extra money.

So when planning a move, do not use the amount granted to you to pay for expenses unrelated to the move because this package demands you to establish and adhere to a rigorous moving budget tailored specifically for the transfer.

Tiered Package

With a tiered package, an employee’s level of experience, circumstances, such as if they have children, and the right relocation package are all taken into account. These offers are made with the employee’s financial needs in mind. Since there is a tiered package option for everyone at all business levels, it is frequently a preferred relocation choice.

Tier one might, for instance, provide a relocation package to an entry-level worker, such as a recent college graduate who rents privately and doesn’t have a mortgage. A tier two package may be good for mid-level employees who have mortgages or rent. High-level workers like VPs and senior executives would receive aid with relocation packages under tier three.

Reimbursement Package

All relocating costs must be covered by the employee, who will then be reimbursed by their new job. Talk to your employer about how much you intend to spend on the move before you choose a white glove moving company. Because the company will have certain budget limits you will not be reimbursed for. So make sure you do the calculations before taking any relocation steps.

Fully Covered Relocation Package

As you can guess, a fully covered relocation package means all your relocation expenses will be covered by the company. This is usually a package given to senior employees who have expensive moving costs.

Understand Employees’ Rights Before the Move

You probably wonder can a company force you to relocate or if there are any company relocation employee rights. Well, relocation rights are usually determined by employment contracts in the so-called “mobility clause.” As long as the employer complies with the clause in a “fair” manner, employees who have a mobility clause in their contracts are typically forced to relocate.

Employers should think about things like the distance the employee must drive to the new site, how long it will take them to get there, how much notice they were given, and the employee’s seniority and position when assessing whether to use this clause. Basically, any relocation that causes the employee’s quality of life to decrease could be deemed unreasonable. And if the company decides to exercise a mobility clause in an unreasonable manner, employees may take legal actions to protect their rights.

People signing documents
All the rights are defined in the contract

Employees Should Have Questions About the Relocation

No matter if you are relocating for the first time or you have done this already, you, as an employee, need to ask your employer questions before you even take a job position. The point is that you don’t end up in a new city and state completely unprepared both mentally and financially.

Are Relocation Packages Taxable?

The answer is yes. Employees will have to pay taxes for all relocation expenses. One way to get around this and maintain the affordability of relocation packages is to gross up the benefits to account for the higher taxes that employees pay.

How Much Time Do Employers Give You to Relocate?

The majority of businesses offer a one-month transition period, which is long for the company and quite constraining for the employee. After all, relocating to a new home in such a short time frame can be quite challenging. So make sure you find the right white glove movers to help you with your relocation even if it is a last-minute move. A good moving company can provide you with all the services you need and which one you will take depends on your relocation package.

How Much Money Is Given for Relocating?

This fully relies on the role, amount of talent, kind of motion, and contract. An employer will give you the budget for your relocation once they have added all the expenses and financial benefits. For example, a current employee that owns a house will get $95,000, while renters will get $25,000. New employees with a house will get $27,000, while renters will get $19,000.

Two people counting money
Do the math before you start the relocation process

With the Right Plan All Will Go Smoothly

As you can see, there are a lot of things to consider when asking for a work transfer and if you are an employer you probably already have some policies in your contracts. However, if you are an employee who is relocating for a job, you need to understand the whole process and know what kind of package you have so you can hire the right movers and get reimbursement for that.

One of the best parts of relocating for a job is that you get to hire a white glove moving service to help you through the whole process. Keep in mind when choosing a company to pick the one that can provide you with all the services you need, so you don’t end up hiring different kinds of companies to help you with this process.

With the help of reliable long-distance movers, your big transition can be stressful and hassle-free. These experienced professionals know how to properly and efficiently pack and transport your belongings so you can start enjoying your new home as soon as possible. If you’re planning a move, don’t go it alone – let the experts lend a helping hand.

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