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Find the Relocation Package that is Right for You

Tuesday, July 19, 2022
A couple lying on the floor while moving into a new home surrounded with moving boxes

Relocation for work purposes may be a hard sell for employees. However, there are relocation packages that can help employers and employees in moving not only themselves but also their families to a new home. Therefore, let us go into what you can expect in a relocation package, what types there are, and how employees can negotiate the terms with their employers.

So What is a Relocation Package Exactly?

A man with a box over his hand, with a cartoon-drawn smiley face on it, standing and holding another box surrounded with moving boxes

An employee relocation package is aimed to help employees move due to work reasons, as in, their company is requesting them to move to a new location to do their job. Companies would often use relocation packages to assist either current or even new employees to move themselves and their family to their new work location. It is typically used in certain fields such as IT.  

The whole point is to get qualified, and experienced employees to move closer to their new place of work, certainly so if it is in another country. A relocation package can also be a card in the hand of the employer to get new employees on board. Many employees have expressed that they would be willing to relocate for the right job, and a relocation package is an Ace to help them join the team while making the move. The main deciding factor outside of the work is the location they will be moving to. And, the hassle that comes with relocating. This is where a handle relocation package comes in to help decrease and take away the hassle.  

A bonus for employers to use relocation packages is that it will be cheaper for the employees, and make the moving process easier as well. Plus, a great relocation package can improve employee retention rates while keeping and finding strong, new talent.

Different Types of Relocation Packages

A couple in the process of moving out, holding up and standing behind potted plants their are moving out of their apartment

Since we are talking about relocation packages, as you know there are different types. It all depends on what the company can afford to do as well as the distance of the relocation. These relocation packages that we are about to mention are just some of the ways that businesses can structure the relocation funds for their employees. 

Lump-Sum Relocation Package

This is a set amount of money for the employee to use to make their move. However, the employee has to hire the moving company and figure out transportation, as well as the other expenses that may pop up. The lump-sum is a fixed amount that the employee is in charge of. 

Relocation Reimbursement

This type is when the employee first pays for the moving process out of their pocket with the idea that the company will reimburse/ pay them back. This will be a certain amount of the money spent after the move has been completed.

Depending on the agreement the business may be able to cover most of the moving expenses, and maybe even all of them. However, the employees have to keep all the recipients so that they can get some or all of the funds back.

Third-Party Relocation

A woman, smiling, and standing in front of a white board, with writing on it explaining the difference between relocation packages

Here is where the business hires a relocation company to do all the moving processes for their employee. Such as finding moving companies, storage, etc. The business does not have direct involvement with the process since it is in the hands of a third party.  

Such companies that handle employees’ relocation are Graebel. They are a full-service Relocation Management Company (aka RMC) that uses strategies to relocate not only employees, but teams, and corporations around the world. Furthermore, they work by their “people-first approach.”    

Another third-party relocation company that you can check out is Aires. They aim to make relocation seamless and streamlined from the start to the end including the potential challenges along the way. They manage everything including service partners. However, there are a lot more reasons you should choose Aires.

Expatriation Assistance

The next type of relocation package is called expatriation assistance. It is for companies that wish to move their employees from one country to another. And, this type of relocation package covers expenses beyond that of transportation and the moving process. 

Since moving to a new country will also include visas, as well as finding homes. Furthermore, this package can also be for employees with families as well as helping them with cultural assimilation after the move has been completed.

Direct Billing

A couple moving in their white sofa in their new living room that has a cardboard box full of books on it

Direct Billing is not as much a relocation package as it is a method of payment when it comes to lump-sums or reimbursements packages. As the name suggests it allows employers to directly transfer the relocation funds to their employees. 

If you use a Shyft Card then not only will you have a secure platform to make direct transfers, but you will also have a handy table to see where and how the funds are being spent. Putting the employers in the know and control of what is happening to their employee’s relocation allowance.

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What a Relocation Package Should/ Can Have

 A man standing in a dark room with his finger to his head thinking of his job relocation options

When it comes to deciding which is the best relocation package for you to use for your employees, you would have to research what these packages have to offer. It is also important to know about your employee in terms of whether they have a family or not, or even if they are willing to relocate in the first place. When it comes to the packages themselves they should have: 

  • Relocation reimbursement such as for moving services, as well as insurance.
  • A flexible start date. This one is important, certainly for new employees who have to make a move straight away. It may take them some time not only for the move itself but also a time frame to settle into their new home. Therefore, ask them how long they would need for it.
  • Some free visits. This is helpful for employees to check out the location before they make the move. It can even jump-start their house hunting as well as getting used to the new environment. Certainly helpful for a huge move.
  • Temporary housing is when the company puts the employee (and their family) in a house for about a month or two until they find a new home to live in. Temporary housing can be hotels or Airbnb, and the company also covers the utility costs. 
  • Familial support is not only to move the whole family to the new temporary home, but it can also be to help the spouse find employment. And, even to provide child care for the kids, while also helping to find the right school for them.
A side profile of a mother in a yellow dress, and her child playing in a playground in their new neighborhood
  • Real estate cost assistance is when a company steps in to help sell the old home. Or they can buy it to sell at a later date. However, if the employee was renting, then the company can help cover the cost of the lease being broken. 
  • Pay adjustments/ bonuses. This is when the cost of living is higher than in the old location. Therefore, a company may have to pay adjustments or relocation bonuses to help cover these differences. 
  • The payback clause is to cover the employer’s back. It is a clause that is designed to cover the bases for the employer. It states that if the employee leaves before a set period of time after they have relocated then the employee has to repay the relocation cost that the company covered for them. 
  • Packing service. As in to hire a company to do the packing and unpacking for the employee to make sure that all their items are safe. As well as to decrease the stress on them.
  • Auto travel reimbursement is when the company covers the cost of the mileage or gas that was used when driving to the new work location. Furthermore, if the employee does not drive to their new work home, then the company may have to cover the cost of transportation of the employee’s vehicle if they travel by plane or train.

Relocating with Shyft

A man standing in front of a wall in RMC, smiling and looking up to the side excited about learning about relocation packages

Shyft is the world’s first tech-driven moving platform. We organize the whole moving process on your behalf. Check out the Shyft Moving website for more info as well as to fill out our very little form so that we can get in contact with you at a time that you want to be called.  

How we work is that we give you your very own Move Assistant who will call you via the ShyftNext. This is a free app to download on your mobile where your Move Assistant will give you a video call. This call serves for them to create your inventory list to be 95% on point. After this first call is over, the list is sent to you so that you can check it. Once we have the list back with your seal of approval, and all your moving details we will present this information to our secure bidding platform.

A happy woman standing in from of a colorful graffiti wall of her new building she just moved into

It is where experienced, and verified moving companies that Shyft has approved of gather to bid on moving gigs. From here we gather three or more moving quotes to send to you. All the quotes are fixed as well as we give you all the information about the movers. This is so that you can make an educated decision on whom you want to handle your move.  

Plus, you do not pay for our services, just your move. We are on standby for your call every day of the week, including the weekends and in the evenings. So whenever you have a question, need tips, or advice, get in contact with us.

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