What is a reasonable relocation package?
Daniel T. Bloom SCRP
You have just been called back for your third interview for the position you have always dreamed of having. This the time to begin looking at what the benefit package contains. One aspect of the benefit package is the prospective new employer’s relocation package. How are they going to get you from where you are now to where they need you?
Relocation policies will vary from employer to employer. The basis for the extent of the policy is based in the culture of the employer. When we look at the concept of culture we tend to place employers in one of three categories. The first one is the employer with a “womb to tomb” philosophy. These employers are wiling to do anything for their employees. It is from this group that you will receive the greatest breath of benefits. The second group is that of “cost conscious.” These employers are willing to do just so much for their employees. As long as they can provide the benefits and still remain within the budget they are more than willing to do so. The final group is characterized as being “rough justice” by nature. Typically these employers will do the least amount to help you with the move. One local employer stated to us that they provide new hires with a check for a flat amount and tell them they will see them Monday morning.
Another aspect of what policy benefits will be provided to you will depend on where your new position lies within the corporate hierarchy. Fresh graduate new hires typically receive the least amount of benefits. Fresh graduates can expect to receive usually a lump sum payment to cover their moving expenses. Most employers feel that since they are just graduating from college, that they can just place their “junk in the trunk” and move to wherever they need to go. In this tight labor market the middle management and technical new hires begin to see the first signs of comprehensive relocation benefits. With the exception of a home purchase program, they tend to get the whole package. Finally if you are considered in the group of new hires in the upper levels of management, the tendencies are to give the whole ship.
Looking at the technical and executive level new hires, what then constitutes basic policy components. Beginning from the start of the process, most companies will provide you with up to two house-hunting trips to the new location. These two trips will carry a total of seven days in duration. Since they are a requirement to get you there, most companies will also cover the cost of moving your household goods and personal effects to the new location. As an adjunct, they will also cover your costs of getting yourself to the new location.
Other areas of policy benefits that may be included are such items as assistance to your spouse in setting up a campaign to find new employment, child care assistance, elder care assistance, pre-marketing assistance to assist in selling your old residence, rental assistance if you plan on renting instead of buying and temporary living assistance, if you are going to need a place to stay for a month while your home is readied for occupancy.
We are in a talent war, and in many cases if you are wanted badly enough by a new employer, they may well consider your requests for specific parts of a relocation policy based on your individual needs. The worst-case scenario is that they tell you that it exceeds their operating parameters for this position.
Daniel Bloom is President of Daniel Bloom & Associates; Inc, a company who specializes in providing custom designed relocation services to corporations nationwide. By going to our website at http://dbaiconsulting.com you are welcome to join our industry talk mailing list. Ask your peers about your relocation questions. You can contact Dan Bloom at email@example.com or by telephone at 727-581-6216.