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Relocating for work can be a good move for your career. If you’re planning to relocate, it’s important to remember that not every company offers relocation assistance. Understanding what to do if it’s not included in your signing offer or benefits package can help you find other ways to make your move easier to afford. In this article, we discuss what relocation assistance is, review what the package typically includes and give suggestions for approaching a situation where a company doesn’t offer this assistance.
What is relocation assistance?
Relocation assistance is a potential item in a business benefits package. It offers compensation to help an employee move to a new city, state, or country to work for a specific company. Organizations may offer relocation assistance to employees who are a good fit for the company but may have to move away from their current homes to join the team.
Companies may try to pay as little as possible for this type of assistance while still providing the necessary compensation to help an employee live near the office and get settled in a new place. Only certain items may fall under the acceptable expenditures for relocation assistance. These can vary depending on what type of move you’re making.
When to ask for relocation assistance
Situations where it’s acceptable to ask for relocation assistance from an employer include:
If you’re moving to a new city
To qualify for most in-state city-to-city relocation assistance packages, your new city must typically be over 50 miles, or over an hour’s drive, from your current location using highways or toll roads. If both cities have connecting public transportation, such as subway systems or bus services, you may not be eligible. It can still be appropriate to ask for assistance in a city relocation situation because it may cost the company less than moving someone across the country, and they may be more willing to hire someone closer to the job.
If you’re moving to a new state
Moving to a new state for a job requires logistical planning and strategy to make it happen. It may also cost more than moving within your current state. Consider asking for relocation assistance in this situation to help offset the costs of your move. As with a city-to-city move, there may be some exceptions to this situation.
For example, those working in a place like New York City, which offers direct train and light rail transporting to other nearby states like New Jersey and Connecticut, may ask for transportation assistance instead. Another exception may be employees who live near state borders, working in one state but living in another. People near the Pennsylvania, West Virginia, and Ohio borders may do this and have less than a 50-mile commute, even if they cross state lines.
If you’re moving to a new country
Moving to another country is one of the biggest moves you can make for work. It requires not just travel costs for you and your family but also shipping costs of personal possessions, such as cars. Ask for relocation assistance in this instance. You may try to get more than just monetary payments from the package. Consider requesting help with services such as securing visas or coverage of travel visits to explore your new country before the move.
If you have a quick start date
If the company asks you to start your job in a new location less than a month after your interview, it may be appropriate to request relocation assistance. This is because there are many steps that go into moving, including selling your current home or getting out of a lease, packing and shipping your possessions, and securing a new place to live. It may take longer than one month to complete the full process.
Consider sharing these concerns with the company’s human resources (HR) department. They may either provide relocation assistance or delay your start date to give you more time to complete moving tasks.
What does relocation assistance typically include?
The exact details of a relocation assistance package may vary by company and the type of move you’re making. Some potential items in your package could include:
· Reimbursement for moving costs
· Temporary lodging, such as hotel payment
· Travel expenses, such as airfare or payment for a rental vehicle
· Home sale help for a current residence
· Classes to learn a new language
· Loading and unloading of moving trucks or shipping containers
· Visa application guidance
· Travel, home, or moving insurance
· Full packing services
· Storage
· Spousal employment assistance
· Rental guidance
· Pre-move visits to your new city, state, or country
Lump sum
A lump sum is a one-time payment provided by the company for moving-related expenses. You negotiate this amount with HR before your move. You can decide where and how to spend the money based on the type of move you’re making and the services it requires.
Reimbursement
A reimbursement is when the company pays you back for moving expenses you charge to your own accounts. You pay for the services initially, then receive payment from the company after you’ve completed the move. Most organizations cover a reimbursement up to a certain dollar amount. The HR or finance departments may ask for receipts, proofs of purchase, and other documentation of services rendered to approve the reimbursements.
Direct bill
With a direct bill, the company pays for some or all of the relocation expenses without your intervention. Moving companies and services send the bills to the company’s accounting department instead of coming to you. Another way an organization may cover direct billing is by providing you with a company credit card to charge travel expenses. Some may also combine direct billing with a lump sum or reimbursements to cover more of your moving expenses.
Third-party relocation
With third-party relocation, the company hires an outside organization to provide all your relocation assistance. This advisory team coordinates with you to set the logistics for the move. It also coordinates with your company to receive payment for services.
Tips for what to do if a company offers no relocation assistance
There are several actions you can take if your company does not initially offer relocation services. Here are some tips to consider:
Request it
If a company is used to hiring employees within its geographic area, the HR department may not consider that you’d like relocation assistance unless you ask. Be polite but direct when speaking to a company representative. Be clear about how you’re excited to work for the company, but that you may need help to make the move and live close enough to work for them. Making this claim may be enough to encourage HR to put together a relocation package for your approval, which you can accept, reject or negotiate.
Ask for an advance
If the company doesn’t offer a relocation package, you can ask for an advance in your earnings to cover some of your moving expenses. If HR agrees, you earn more money at the beginning of your tenure, either as a lump sum or in installments, to help supplement the immediate costs of moving. Asking for and accepting this type of offer means you may make less money later in the year, something to remember when creating your household budget. Another option could be accepting a lower base salary for a relocation package.
Ask for a bonus
If an advance isn’t available, ask HR if you could work together to create an incentivizing goal program to earn bonuses in your new position. Together, you can set certain criteria or performance standards to reach within a certain period to earn more money. This could be an option to help you cover some moving costs without actually calling it a relocation assistance package. When making this suggestion, communicate that it’s to help compensate for your move.
Do your research
If your company doesn’t offer relocation assistance, HR may not understand just how much it costs to move from one place to another. Research moving costs from your current location to that of the new job. Compare facts like costs of living, price of moving all your belongings, taxes in the new location and any other monetary expenses to prepare for the move. You can use this information when making your case with the company to show why a relocation package is necessary.
Practice your negotiation skills
Even if your company offers some relocation assistance, you may negotiate to get certain aspects of your move covered. Doing your research can help, but so can practicing your persuasive skills. Learn how to construct a factual argument and how to negotiate for compensation you think you deserve. This can help you feel more confident when approaching HR and also makes it more challenging for the company to refute your claim. One negotiation tactic may include leveraging other job offers that provide relocation assistance to convince your company to create a competitive package.
This article is for information purposes only and is not intended to constitute legal advice. Consult with an attorney or lawyer for any legal issues you may be experiencing.