What is a Reasonable Relocation Package?
If you’re looking at your current (or potential) relocation benefits, you might be wondering, is this good? Just like with any part of your benefits package, if you don’t have a lot of experience using it, you might not be able to tell the good from the bad. Not every company is going to be able to cover the full cost of your move, but that doesn’t mean that the ones who can’t aren’t offering good benefits. But what is a reasonable relocation package, anyway?
Relocation assistance comes in many different forms. The problem with defining a “reasonable” relocation package is that every company’s benefits offering is going to be different, and the size of the company along with the size of your move and your role with the company is going to have an impact as well. Every move is different, and since relocation costs can range from $100 to $15,000, what an executive receives likely won’t be the same as what a new hire receives.
How to Know if You Have a Reasonable Relocation Package
So, while what’s reasonable is going to depend on your situation, we can take a look at some of the averages to see how your benefits compare. Who knows, you might even be able to use the information to (negotiate your relocation assistance. link to how to ask for relocation assistance cluster)
One of the most common types of relocation assistance that you’ll receive is a lump sum. Lump sums can be applied to the entirety of your moving costs, or a specific portion of them. According to the 2018 Atlas Van Lines Corporate Relocation Survey, 54 percent of companies use lump sums to set a cap on relocation costs, so you might run into a situation where you only a set amount of money to work with.
Across the nation, the average lump sum that employees receive is $7200. 56 percent of companies offered lump sum relocation assistance for travel expenses. 44 percent said that lump sums were used to cover the entire cost of the relocation. Of those companies, most companies are providing anywhere from $2,500 to $4,999. If the company was going to cover the entire relocation, they’d offer anywhere from $10,000 - $14,999. So if your company is going to offer you a lump sum, you should expect to see somewhere within that range. Remember, though, that smaller companies are going to fall toward the lower end of those ranges, and the large companies will trend toward higher amounts.
Across the board, small, mid-size, and large companies estimated that around half of employee relocations were either partially reimbursed or paid by lump sum in 2018. In most situations, companies are going to be more willing to give more relocation assistance to an existing employee than a new hire. 36 percent of companies provide full reimbursement for new hires, and 64 percent provided full reimbursement for relocating employees. 56 percent will provide a lump sum payment for both relocating employees and new hires.
When it comes to outsourcing, three in four companies will use a third party to manage their relocation benefits, which means that you could be working with someone outside of the company to manage your relocation process. Most third parties will have a list of vetted moving services suppliers that you can choose from to streamline your process or even take advantage of a deal through their partnership.
You’ve Got a Good Relocation Package, Now What?
If you’re happy with the benefits your company offers, you’ll want to think about the services you’ll need to move, and then create a moving budget that accounts for your expected costs. This way you’ll be able to fully take advantage of your benefits and make sure that none of the money you receive goes to waste. Using services that can streamline the entire moving process for you are one way you can make your relocation assistance go even further.
With Dwellworks Direct, we’ll match you with a local expert who will do your home search for you, and help you find a place to live quickly and easily. Forget about scrolling through real estate sites for hours, we’ll identify the best places for you based on your needs and the location you want to be in. Ready to put your relocation benefits to good use? Learn more about what we offer here.
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