Relocation packages are necessary when it comes to the moving experience. Regardless of whether it is a move for professional or personal reasons. A relocation package gives you the support you need to make your move a greatly smooth one. Here is what you should know about the average relocation package.
First things first, what is a relocation package? Well, to put it plainly, a relocation package is a way for employers to help cover the moving costs of their employees moving to a new office location. It is used for corporate relocation where employers could need new hires at a different branch of the business, or one of the employees in a higher position is needed in a different office. Or the employees, themselves, want to make a move to a different branch. Whatever the reason for the corporate relocation, relocation packages are used to help cover some of the cost of the moving process.
This is a bit different to relocation assistance. While the terms can be interconnected there is a difference between the two. Relocation assistance is specific way that the business can get help, in terms of services, for their employees' moves. This can be the business hiring a moving company to move their employees or hiring packers and unpackers for ease of the corporate move. A relocation package is the funds while relocation assistance is the services may be the best way to think of it. It is not surprising that the terms are extremely intertwined with each other. But, the terms do both follow under relocation benefits since it is a benefit that the employee does not have to fully cover and makes their move easier.
The employees that can qualify for relocation packages depend on the individual businesses that they work for. However, it is linked to the position of the employee and how much the business can afford to cover the moving expense. The position of the employee can indicate how much the business can cover the moving process in terms of funds. For example, people in higher positions can get more covered by the business such as car rental, childcare, temporary housing, etc.
New hires may only get the basics of the moving expenses covered such as transportation or covering some of the costs of the moving company. Another factor to influence the relocation packages is the distance to be traveled. Therefore, it would be wise to sit down with your employer and discuss in detail what they will help cover and how.
What the relocation package covers depends purely on the business and what they can afford. Therefore, you, as the employee, would want to read carefully through what is offered to see if it suits your needs. If something is lacking you can bring it up to your employer and see if they can make a plan to cover it, or part of it. Usually, a relocation package should cover, or partly cover the following:
Relocation packages can be paid out a few ways with relocation reimbursement and relocation bonus being the more common ones. However, there are also:
Regardless of the method of relocation package pay-out, there are relocation taxes involved. Therefore, many companies can include a relocation tax gross-up to cover the taxes of the move so that the employee does not have to.
As briefly mentioned relocation reimbursement is a method of corporate relocation where the employee pays upfront to cover the costs of the move. The employer reimburses the funds or part of the funds after the move is completed. Therefore, the employee would have to keep track of the expenses and keep all the receipts. And, there can be a limit on how much the employer can cover the reimbursement. The major downside of this is that the employee may not have the initial funds to cover the relocation. Therefore, a plan and different strategies have to be made.
The other commonly used method of relocation package payout is the relocation bonus. This is different from the previous method in that the employer provides a fixed amount of the relocation funds upfront. It can be called other things such as lump sum, cash allowance, and more. The relocation bonus is usually calculated based on the following factors:
However, the amount of the lump sum depends on how much the business can afford. The way the funds are distributed depends on the employee. This can be good if the employee knows what they are doing regarding the move, and they are good with the funds. However, if they are not, then they could end up paying out of their pocket to cover the difference. A relocation bonus as well as a relocation reimbursement requires a lot of planning and research on the employee’s side (and a bit on the employer’s side) to make sure the costs are covered.
This is how personal moves are obviously handled by individuals.
Third-party relocation is a form of corporate relocation when the business outsources a third party to handle the range of services for the relocation of the employees. Shyft is an example of this (more on us later.)
If an employee is required to move to another country, then the employer may consider using expatriation assistance. Expatriation assistance can cover overseas trips when it comes to house hunting and it can also cover getting work visas for the employee as well as their spouse. As well as finding schools for the children. Plus, expatriation assistance relocation packages could also help cover the cost of language and cultural assimilation courses so that the employee can get to grips with the new country quicker.
As the name suggests, direct billing is when the employer pays the moving company directly. It can also involve selling the current house as well as other services that the employee and their family need to make the relocation work.
Allow yourself time to get more familiar with the different types of relocation packages and to know what your business offers you. It would also be wise to speak to a professional.
Getting your relocation package sorted out on a professional level is up to your company. However, getting your relocation experience in order on a personal level can be easier done with Shyft’s help. Let’s explain…
Shyft is the world's first tech-driven moving platform with our purpose being to organize your move so you do not have to. Before making your move, take a trip to our site to learn more as well as to get in touch with us. There is a short form on there for you to fill out. Likewise, we have a secure mobile app, Shyft Next, where you can get in touch with us. The app works on iOS and Android. Plus, it is free.
Shyft Next app is needed since this is how your new Move Coach will connect you. This is a video chat done through the app but only at the time that you say. Therefore, you are already saving time since there is no waiting period for the call. Speaking of the call…
You will meet and see your Move Coach who will guide you through the Shyft moving experience. They can answer move-related questions regarding Shyft and could even give some advice. However, the main point of this interaction is that your Move Coach will create your inventory list straight away without needing to come to your current home.
All you have to do is host a virtual tour of your current home while this initial call is happening. Within half an hour from the end of the call, you will be sent your 95% accurate inventory list from your Move Coach. They are averagely that fast.
When you get your list, you can take it from 95% accurate to 100%. You can remove items, add items, and leave notes about items. This is all done through the app for your convenience. Your improved 100% inventory list will be sent to your Move Coach, and they will use it to source moving quotes for you. As well as using only your moving details (no private ones.)
Shyft has a pool of Shyft-verified, vetted, and experienced moving companies that we draw from. This is where we will collect three or more moving quotes. Each quote is from a different mover. Information about the mover, as well as their quotes, will be sent to you. You can compare the costs, services, etc. through the handy Shyft Next app.
The moving quotes are fixed, meaning there are no hidden costs. And, the price of the moving company you decide to work with will not change even if your inventory list were to. When you make your decision on which moving company is the best one for your situation, let us know so that we can book them straight away before someone else does.
We have more to offer you besides aiding with your moving experience. Such as our Home & Lifestyle, online marketplace. Here is a collection of products from office supplies to mattresses, temporary accommodations to services including TaskRabbit, and more. All the physical items will be delivered to your new abode. Furthermore, all the items and services on our marketplace come with a discount. Save money and get what you need to make your moving-in life easier.
Also, we offer a concierge service that connects your utilities in your new home for you. As you can guess this will save your nerves, time and even money.
If you are on the lookout for help with a corporate relocation, then look no further than our Shyft Card. It is a secure app where employers can send relocation allowance to their employees directly. As well as to keep track of what is going on through our safe app. Book a demo to get your knowledge. Make sending relocation packages for employees a lot easier, safer, and faster.
Regardless if you are going on a corporate or personal relocation working with us also means that we are on call to you seven days a week. Whenever you have a question, or concern, or want to check in, we are there for you to answer your questions. Plus, keep you up to date.
Add Shyft to your new average relocation package. Regardless if it is a personal or corporate move to make your life easier. And, less stressful since we cover the organization of your moving experience. Get in touch today to learn more.
