While we don’t provide specific amounts, this guide explains how relocation packages work, outlines the expenses you should account for, provides tips on choosing a moving company and offers advice on negotiating your package with your employer. Once you apply the above information to your personal situation, you’ll be ready to plan your move.
How Does Relocation Assistance Work?
A relocation package is a financial benefit employers offer to cover the costs of moving for a job. These packages can vary widely depending on the employer, your position and the distance of the move. Some packages reimburse specific expenses, while others offer a lump sum payment. Below are the common moving-related costs that you’ll want to consider in your relocation plan.
Sample Relocation Package Expenses
1. Moving Company Costs
- Packing Services: Whether you need full-service packing or help with fragile items.
- Transportation Fees: The cost of moving your belongings, typically based on distance and load size.
- Specialty Items: Extra charges for moving pianos, artwork or oversized furniture.
2. Travel Expenses
- Flights or mileage for you and your family
- Lodging during the journey to your new location
- Meals and incidentals en route
3. Temporary Living Costs
- Short-term rentals or extended-stay hotels while you secure permanent housing
- Deposits and fees for new leases or utilities
4. Home-Related Expenses
- Realtor fees or marketing costs to sell your current home
- House hunting expenses
- Closing costs, property taxes or mortgage fees for a new home
- Lease-breaking fees, if you’re renting
5. Vehicle Shipping
- If you’re moving cross-country, ask for reimbursement for auto transport services.
6. Miscellaneous
- Professional cleaning services for your old home
- Storage unit rental fees
- Pet relocation costs, including vet appointments and transport
- Spousal job assistance
- Childcare expenses
Finding the Right Moving Company
Calculating your relocation costs depends on finding the right moving company and getting an accurate estimate. Follow these steps to find the right fit:
- Research Reputation
Look for moving companies with excellent online reviews and a history of reliability. Verify their licenses and insurance to avoid scams or mishandling of your belongings. - Request a Detailed Estimate
Insist on an in-home or virtual walkthrough of your items for an accurate quote. Ensure the estimate covers:- Total weight or cubic footage
- Labor and transportation costs
- Additional fees for packing, storage or special items
- Compare Services
Get estimates from multiple moving companies. Be wary of any bid that seems especially low. It could be a sign that they are a rogue moving company looking to take advantage of you once they have your possessions in their truck.
Additional Relocation Considerations
Relocating for work is more than just packing and unpacking. Before you submit your assistance request, consider these additional factors:
- Tax Implications: Some relocation costs may be taxable, while others are deductible. Consult a tax advisor to understand how your package will affect your finances.
- Timing Your Move: Moving during off-peak seasons—fall and winter—can save money and offer more scheduling flexibility.
- Cost of Living: Research the cost of living in your new area to ensure your salary and benefits meet the demands of the new location.
- Family Needs: Consider schools, daycare options and job opportunities for your spouse or partner.
- Settling-In: Some companies now offer settling-in services like unpacking or furniture setup. These can save time and energy during the hectic first days in your new home.
Tips for Negotiating Your Employee Relocation Package
Now that you understand the expenses involved, it’s time to assemble your budget and present it to your employer. Use the tips below to successfully negotiate your relocation package. When you do reach an agreement, make sure you get everything in writing.
1. Research the Standard for Your Industry
Reach out to peers, browse online forums or use resources like Glassdoor or LinkedIn to get an idea of standard benefits. Having this information on hand allows you to make reasonable and informed requests.
2. Be Clear About Your Needs
Every move is unique, so assess your specific situation to identify your must-haves. For instance, if you’re moving a family, temporary housing or help with school-related expenses might be essential. If you’re relocating long-distance, emphasize the need for vehicle shipping or additional travel reimbursements.
3. Highlight Mutual Benefits
When negotiating, frame your requests in a way that demonstrates how they benefit both you and the company. For example, relocating seamlessly and starting your new role without delays or stress allows you to be more productive sooner.
4. Ask for Flexibility
If the company offers a basic relocation package or lump sum that doesn’t align with your needs, ask for flexibility. Many employers are willing to adjust, such as substituting certain benefits (e.g., more temporary housing assistance instead of lump-sum cash). Discuss your unique situation openly and suggest solutions.
5. Don’t Overlook Lump Sum Payments
If your employer offers a flat relocation allowance, ensure the figure aligns with your estimated expenses. Be prepared to present a detailed budget that includes moving costs, travel expenses and other relocation needs.
6. Consider Taxable vs. Non-Taxable Benefits
Relocation packages can include a mix of taxable and non-taxable benefits. Taxable lump sums might seem attractive, but direct reimbursements for specific expenses (like moving services) are often tax-free. If possible, negotiate for more non-taxable benefits to maximize the value of your package.
7. Involve a Relocation Specialist or Moving Agent
Some companies work with relocation specialists to help employees manage their move. If this service isn’t offered, ask your employer to provide one. These experts can assist with everything from finding housing to organizing moving services, making the transition smoother for both you and your employer.
Make the Most of Your Relocation Reimbursement
Relocating for work doesn’t have to be overwhelming. A carefully negotiated relocation package and the right moving company can make all the difference. At Bekins, we specialize in corporate relocations with a seamless and stress-free move for you and your family. This includes low-interest financing options through our partner at Enhancify. See our financing page for more details.
Contact your local Bekins agent today for a customized quote and see how we can take the hassle out of your next move.
