Are you considering a job that will require you to move? No matter how attractive this relocation will be, you are likely to incur some major expenses in the process. Not only are you dealing with the actual expense of moving, but, for a homeowner, the expenses connected with selling an old home and buying a new home.
Of course you’d like your employer to pay for at least some of these expenses. Benefits that may be offered to a relocating employee vary widely, depending upon the situation, the company, and the position of the employee.
It’s always wise to negotiate these matters as part of a transfer package before accepting the new job. It’s also important to get this agreement in writing. That way there are no surprises later for you or the company.
Determine the status quo
Your preparation for negotiation should include asking your employer's HR department if the company has a written relocation policy or if it offers standard benefits. If you can, ask others at your company and similar firms about their relocation packages. Companies vary in what they offer, and larger companies have more generous standardized policies. You will probably find that following expenses are often covered: assistance selling your house, moving costs, temporary lodging expense, travel back home if you relocate before the family moves, and job-hunting assistance for a spouse.
Selling and buying
Most employees say their biggest concern is selling the house. The cost of buying and selling a house can erode the savings you built up in owning a home. Companies often absorb some of this expense. Realtor fees may be picked up by your employer. The cost of fixing up your home for resale is usually not covered. If the house doesn’t sell as quickly as you would like, your company may arrange for it to be purchased by a third party for a rate set by an independent assessor. If the house does not sell within, say three months, you agree to accept the third party price, which may be less than your current selling price. Whether you sell you home or not, that third party agreement will guarantee the minimum price of the sale and thus enable you to secure a pre-approved loan agreement to use as leverage when purchasing a new home. If the house is not picked up, your company could help with house payments or rent on the interim home for a certain period, often 4 months or less.
Moving
Relocation of the physical contents of the house is generally covered in a relocation package. Even if you are an efficiency apartment dweller with three pieces of furniture, the cost will likely be covered. The buy-out of the lease is often thrown in as well.
Other factors
Other factors to include would be travel arrangements for house hunting and, you relocate before your spouse, will the company pay for a family house hunting trip and your flights home? One or two house/school hunting trips may be acceptable. The spouse flying home may be as little as once a month, for a maximum of three trips. This is something usually negotiated with the hiring manager.
Finally, the cost of living in different parts of the country may be reflected in the relocation package. Clearly there is a major different between the cost of a four-bedroom house in Southwest Virginia and that of one in California’s bay area. These cost of living premiums is usually determined on a company-wide scale and not up for negotiation.
Once you and the company agree on a compensation package for your relocation expenses, make sure you have a signed letter explaining what assistance is being provided by what time. A formal contract is not necessary.
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