As you move up the corporate ladder, your company might offer you a position that requires relocation. Or, you might be scouting out a new job, only to find your perfect position is in another state or country. The job pays well, the benefits are superb, but the cost of moving long distance seems too out of reach.
Because of the costs associated with moving out of state, many companies offer current and prospective employees relocation packages. These packages are part of your benefits, just like health insurance or paid vacation. Different companies offer different packages, and it is up to you to find out which one is right for you.
Here are some things to consider when negotiating a relocation package.
1. Find out what your company offers
Companies offer a variety of relocation packages, based on what is most cost effective for them. The packages generally fall into one of four types:
- Lump Sum: The company pays you an upfront a sum of money, for you to spend as you see fit. The downside is that once the money is gone, it’s gone.
- Reimbursement: You spend your own money, keep detailed records of your expenses,
and your company pays you back.
- Direct billing: Your company handles all your expenses, along with the logistics of your move.
- Third-party relocation service: Your company hires a contracted moving service to handle your move.
2. Plan so you can make a counter offer
Once you know what your company offers, it is up to you to do research about how much the typical move costs, so you can negotiate. Doing your homework allows you to make concessions on certain things to gain ground on others. For example, you may offer to take less money for short-term housing to afford taking a real estate scouting trip ahead of the move. When planning out your moving expenses, be sure to consider the following costs:
- Cost of hiring full-service movers or renting a truck
- Moving supplies
- Temporary housing
- Shipping your vehicle(s) or the cost of gas to drive it yourself
- Alternative transportation to your destination
- Short-term storage
- Lodging and meals along the way
3. Consider your employer’s perspective
Your company’s focus is profit. Keep this in mind while negotiating, and emphasize the benefits to the company of investing in your move.
For example, convince them that having the funds to hire professional movers allows you to focus on starting work right away when you get there. Perhaps allowing for temporary housing will free you up to sell your current house or give you time to scout for new homes.
4. Read the fine print
Make sure you read the terms of the relocation package carefully. There could be caveats such as repayment, restrictions on certain expenses, and whether your relocation package is tax exempt.
Your dream job is one move away. Be prepared to sit down with your employer and hash out exactly what you can expect from them during the moving process. That way, you can begin your job free of stress and optimistic about your future in your new location. If you’re moving to or from the New York metro, let Imperial Moving & Storage act as your licensed NYC moving company. We make corporate and commercial moves look easy!