Relocation package ranges widely depending on the position. A new grad may get different rates compared to managers. This will also affect the various components to be included in the relocation package. The relocation package has to be used in getting oneself a new location.
Again, the amount to include in a relocation package depends on the company culture. Some may have a more generous culture than others and therefore offer good packages even for first time employees. The various components of a relocation package include salary and bonus, benefits, long-term incentives and other things.
Here are some of the things the relocation package should include:
- Reimbursement of expenses associated with the physical move: These expenses will include things such as the packaging, moving, storage of belonging for a given period of time in the city of destination and costs of lodging in that city of destination.
The period of time to lodge is because you won’t be expected to buy a new house over the short period of visit. Other components will include costs of means and transportation. It will also include travel and lodging expenses of your wife.
Currently, the average relocation package cost is around $4,300, which is the cost of a interstate household move covering a distance of 1,225 miles. The average cost of an intrastate move is about $2,300.
- Expenses for move-related property transactions: An average relocation package should also include the reimbursement for payment made to the real estate agent who sells your condo. The reimbursement will also include all the related components of this transaction. However, your employer may not get involved in transactions relating to buying of a property in the destination city although they could pay part of or all of the closing costs.
- Costs of turning on and turning off utilities and services on the destination and place you are leaving.
- Cost of moving one vehicle although the employer can also offer to pay to move all the vehicles you have.
- Costs related to disruption of your life during and after move: These are costs related to other issues that are disrupted in your life following the relocation. An example is the costs related to moving from one location-bound service provider to another. This, for instance, include the cancellation fees at your child’s nursery school.
Again, one will need to consider the disruption and compare that with the amount of benefits offered by the company. If the compensation offered in an average relocation package is not able to cover or offer some consolation, then the job is not worthy the disruption. Again, if the company values you, then they should offer a good amount to cover the relocation costs. Most companies will also allow you to negotiate that package.
You might take the job for lack of other options, but also ensure to consider the amount you will be spending to have yourself settled in the new location.