Here are a few examples of typical relocation expenses commonly paid for by the employer through relocation assistance: Moving company costs/shipment of household goods: Professional movers, packing & unpacking services, U-haul rentals and other moving-related expenses like boxes and tape are often the #1 part of a relocation package. This includes any amounts you incurred to move the employee, the employee's family, and their household effects. Therefore, some companies will instead offer a signing bonus. While employers are not obligated to provide relocation packages, it can incentivize a valuable employee (or potential employee) to relocate to a new city and help retain them. These type of moves occur when you provide an employee with a single lump-sum payment after he or she moves to a new area after corporate relocation. November 12, 2018 Top 4 reasons companies offer lump sum relocation packages Lump sum relocation programs are nothing new, but they continue to increase in popularity. Lump sum moves are a relatively new concept, but they have become increasingly popular in recent years. While traditional RMCs largely deliver their services through live specialists—just as they’ve done for decades—tech-based RMCs balance user-friendly software platforms with the support of live specialists. If you have questions about the topic, this is a great place to start. Travel to the final destination: Companies often times pay for the travel expenses to the new location including airfare, cost of gas, or train tickets. Ask for what you want, including all the services and compensation you’ll need for your move.

Successful assignments and transfers depend on competitive, comprehensive relocation packages. Global mobility professionals often view this as a simple way to … However, the actual cost to relocate an employee depends on a number of different factors: Ultimately, your employees will appreciate any support you can provide. How far are they moving? A negotiated lump sum payment that allows you to keep whatever you don’t spend is a popular benefit, but you could get stuck with unexpected out-of-pocket expenses. If you choose to work with a relocation management company, you can elect to go with a traditional relocation management company or a tech-based RMC. According to MoveBuddha, 31 million Americans moved house in 2019, that’s almost 10% of the population! SUBJECT: GSA Relocation Allowances (Full PDF Format) 1. Lump sum relocation packages allow employees to prioritize needs and expenses according to the money available to them in the package. If you have the offer, then it is in their interests to make the relocation package as attractive as possible. Relocation Payment Packages. How much you want to spend on an employee relocation package is entirely up to you and your company. Employee relocation tends to fall on human resources and recruiting teams, as they are on the front line when it comes to connecting with current and future talent. Everything You Need to Know About Lump Sum Moves in 2019, The Future Of Corporate Global Relocation. Yet, multi-national companies have still seen the advantages of having key employees physically on location. As the name implies, a lump sum is when the company gives you a set amount of money to spend however you want in order to Typically, employees who are relocating further away receive higher payments than those who don’t. What an employer will pay and what they won't pay a … These type of moves occur when you provide an employee with a single lump-sum payment after he or she moves to a new area after corporate relocation. Others may give you a lump sum to pay for relocation, or ask you to keep all receipts for reimbursement. The orientation trip costs generally include hotels, meals, airfare and ground transportation as well as the cost of the destination tour guide. If your employee has a large vehicle or fragile items, lump sum movers can take care of these items safely and securely, too. To learn more about what typical relocation assistance costs, check out How to Maximize Your Relocation Program Budget: 5 Insider Secrets for Doing More with Less. There are advantages and disadvantages to using a lump sum, the various methods of calculating the amounts and other relocation components that may be covered with a lump sum. An average relocation package lump sum will benefit employees if they cannot claim back moving expenses. Some small companies offer highly competitive packages. That means an employee will go out to their new location before they move to familiarize themselves with the area and investigate accommodation options. Lump-sum relocation packages are popular with some transferees too, but there are downsides, one of which is the gross-up. Let’s look at an example: Your salary is $75,000 per year, but when you recently relocated for work your employer gave you $10,000 to cover moving expenses. Provide an employee with a company credit card. A recent SHRM survey on employee benefits found that lump sum payments are the single most popular relocation benefit offered by the surveyed companies. If a relocation package isn’t discussed with your offer, you’ll need to start the conversation yourself. That is, the physical placement of employees in strategic business environments globally. I was a Fortune 500 HR SVP for 10 million years, but I was an opera singer before I ever heard the term HR. Consider your company culture. Of those companies, most companies are providing anywhere from $2,500 to $4,999. Spousal support: In some higher-level employee moves, if the relocating employee is married, a company will provide spousal support.

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