Sometimes, a relocation is necessary to take on a new career opportunity. That’s why companies provide relocation assistance to make the transition easier and minimize the impact on an employee’s finances. Should you be negotiating with your employer for a relocation package?
The relocation specialists at NRI Relocation explain when a company typically provides corporate relocation assistance, how to effectively negotiate a relocation package, and request the support you need to make your move successful.
Whether you’re a new hire or a seasoned employee facing a company-initiated transfer, you may be able to receive relocation assistance to facilitate your new professional chapter.
What Is Relocation Assistance?
Relocation assistance is a benefits and comprehensive support system provided by employers to help employees move to a new location for work. This relocation assistance can come in various types of relocation packages tailored to meet the specific needs of the employee and the company.
Common forms of relocation assistance include bonus packages, lump sum payments, managed relocation services, and hybrid options. Each corporate relocation package has its own benefits and considerations, allowing employees and employers to choose the one that best suits their circumstances.
To better understand the different types of relocation packages, read our detailed guide to relocation packages.
In Which Scenarios Should an Employee Ask For Relocation Assistance?
Companies typically offer relocation assistance when an employee is required to move for the company’s benefit. Here are the main situations that influence whether an employee should receive corporate relocation assistance or not:
Company-Initiated Transfer:
If your employer asks you to transfer to another location for a new role or responsibility, they will generally cover the relocation costs. Relocation assistance is a standard practice as the move directly benefits the company.
New Hire Relocation:
When a company makes a new hire, and the new employee must relocate to accept the job, the employer usually offers relocation assistance. Corporate relocation assistance helps the company attract talent from a wider geographical area.
Employee-Initiated Transfer:
If you are an existing employee who chooses or requests to relocate to another of the company’s locations, the company might offer relocation assistance, though it is not guaranteed. If the move is based on a personal preference rather than a company need, relocation assistance is less certain, but it’s still worth asking.
Personal Choice Relocation:
If an employee is moving for their own personal choice and motivations, the company is not obligated to pay for relocation and is unlikely to offer assistance.
Understanding these scenarios can help you determine when you should be negotiating an employee relocation package and increase your chances of receiving support.
How to Ask For Relocation Assistance
Successfully negotiating a relocation package involves strategic timing and clear communication. If a new hire is interviewing for a new position and needs to relocate, they must make this clear from the first interview to ensure no surprises later.
New hires must negotiate the relocation package as part of the overall compensation and sign-on offer during the negotiation process. Easy discussion about relocation allows you and the employer to understand what the company will offer for relocation assistance.
Negotiating a relocation package is slightly different for current employees. Typically, when a company asks an employee to relocate, the relocation package should be included in the letter of assignment and the overall presentation of the opportunity.
When an employee receives a relocation opportunity, it’s important to ask for comprehensive details about the relocation package. Employees should understand all the components of the relocation assistance offered before accepting the relocation and never agree to relocate without a clear picture of the support they will receive.
How Much Relocation Assistance Should I Ask For?
Negotiating a relocation package should include a range of services that comprehensively support your move. Here are the key corporate relocation services you should ask your employer to include:
- Home-Finding Trips: Visits to your new location to find a suitable home
- Full-Service Household Goods Moving: Professional moving services to handle packing, transporting, and unpacking your belongings
- Lease Cancellation and Home Finding Assistance for Renters: Support for breaking a current lease and finding a new rental property
- Home Sale Program and Closing Costs for Homeowners: Assistance with selling a current home and covering associated closing costs
- Temporary Housing: Accommodations if the employee needs somewhere to stay before moving into your new home
- Transportation to Destination: Coverage for travel expenses to your new location
- Allowance for Miscellaneous Relocation Expenses: A set monetary amount to cover unexpected or incidental moving costs
- Expense Management and Gross-Up for Taxes on Relocation Expenses: Management of the relocation expenses and adjustment for any taxes incurred due to these expenses
Learn more about the services and best practices your employer should use in your relocation package in our relocation policy guide.
Statistics to Support Negotiating a Relocation Package
Helping an employer understand the prevalence and benefits of corporate relocation assistance can assist employees in negotiating a relocation package more effectively. Here are some helpful statistics:
- According to a 2024 study, 54% of companies offered full reimbursement of relocation expenses, while 38% also relied on lump sums. 36% provided partial reimbursement based on the employee’s tier, position, or salary. Only 5% of companies offered no reimbursement of relocation expenses. (Atlas Van Lines 2024 Corporate Relocation Survey)
- Small to midsized companies with 100-499 employees are the most likely to support job relocations, with 23.18% of employees being the result of them. (Allied Job Relocation Survey)
- Employers are more likely to cover moving expenses for current employees over new employees. 66% of those already employed have their moving expenses covered, while only 38% of new hires have their relocation expenses covered. (Zippia)
- A study by SHRM found that employees who receive comprehensive relocation assistance report a 50% higher satisfaction rate with their move and adjustment period compared to those who do not receive such support. (Society for Human Resource Management (SHRM) Employee Relocation Study)
- The Worldwide Employee Relocation Council (WERC) states that 64% of employers use relocation packages as a tool to attract top talent, recognizing that relocation assistance is a significant factor in a candidate’s decision-making process. (WERC)
How to Negotiate a Relocation Package
Getting the ideal relocation package requires strategic planning and clear communication. Here are some tips for successfully negotiating a relocation package:
1
Research and Preparation:
Before negotiating a relocation package, conduct thorough research on standard relocation packages within your industry and geographic location. Understand the typical components and costs involved. Utilize resources like the Worldwide ERC and SHRM to gather data on average relocation assistance.
3
Prioritize Your Requests:
Determine which aspects of the relocation package are most important. While meeting all needs is ideal, prioritize the services that will significantly impact the move and adjustment period.
5
Negotiate Holistically:
Treat the relocation package as part of the overall compensation package. Discuss it alongside salary, bonuses, and other benefits. This holistic approach can sometimes provide more flexibility in negotiations.
7
Get It in Writing:
Ensure the employer documents all agreed-upon terms in writing in a letter of assignment, relocation policy, or offer. This written agreement should detail the services provided, the reimbursement process, and any conditions attached to the relocation package.
2
Be Clear About Your Needs:
Clearly outline relocation needs and preferences. Make a list of essential services such as home-finding trips, full-service moving, temporary housing, and transportation costs. Tailor requests on renting or owning a home, the size of the household, and the distance of the move.
4
Communicate Early:
If candidates are interviewing for a new position, bring up relocation needs early in the process, ideally during the first interview. For current employees, initiate the discussion as soon as the company presents the relocation opportunity.
6
Be Flexible:
While advocating for employee needs is important, be prepared to compromise. Understand that the employer may have budget constraints and try to find a middle ground that satisfies both parties.
8
Evaluate the Offer:
Once the employee has a final offer, take time to evaluate it thoroughly. Consider the overall impact on finances, family, and career. Don’t hesitate to ask for clarifications or adjustments if necessary.
Corporate Relocation Questions to Ask an Employer
When discussing corporate relocation assistance with your employer, getting detailed information is crucial to understand the support and conditions. Here are key questions to consider:
- Relocation Policy: Do you have a formal relocation policy? Can I see it?
- Letter of Assignment: Can you provide a detailed letter of assignment?
- Management: Who will manage the relocation process – me, the employer, or a relocation management company?
- Quality Assurance: How does the employer ensure the quality of relocation services?
- Payment Structure: How will the relocation costs be covered – direct payment, reimbursement, or a lump sum/bonus?
- Reimbursement Procedures: What is the timeline for reimbursements and the required documentation?
- Financial Support Timing: When will I receive relocation allowances, bonuses, or lump sums?
- Tax Assistance: How will the employer assist with taxes on relocation expenses?
- Timeline: What are the expected timelines for the relocation process?
- Specific Services: Are specific needs covered, such as:
– Family member benefits
– Return trips home
– Pet relocation
– Medical needs
– Specialty household goods moving - Payback Terms: What are the payback terms if I leave the company or don’t complete the assignment?
These questions can help employees negotiate a relocation package and prepare for a smooth transition.
How to Ask For Relocation Assistance: Email Sample
Here is a sample email that an employee might send to their manager or HR representative to request relocation assistance:
Subject: Request for Relocation Assistance
Dear [Manager’s Name],
I hope this email finds you well. I am excited about the opportunity to take on the new role of [New Position] at our [Location] office. This position aligns with my career goals, and I am enthusiastic about contributing to our team in this capacity.
As the role requires relocation, I would like to discuss the possibility of receiving relocation assistance to support this transition.
Specifically, I am seeking assistance with:
- Home-finding trips to identify suitable housing in [New Location].
- Full-service household goods moving to ensure the safe and efficient transfer of my belongings.
- Temporary housing arrangements until permanent accommodations are secured.
- Transportation costs for me and my family to the new location.
- An allowance for miscellaneous relocation expenses.
- Assistance with any tax implications related to relocation benefits.
Understanding that relocation can be a complex process, I believe these supports will enable me to settle in quickly and focus on delivering my best in the new role. If a formal relocation policy is in place, I would appreciate it if you could share the details with me.
I am happy to provide any additional documentation or information required. Thank you for your consideration, and I look forward to discussing this request further.
Best regards,
[Your Name]
[Your Current Position]
[Contact Information]
Contact NRI Relocation For Corporate Relocation Assistance
We hope this information makes your next attempt at negotiating a relocation package a success! If your employer needs help crafting your relocation package, have them contact NRI Relocation. Our expertise in managing comprehensive and customized relocation programs helps employees have smooth and positive transitions.
Direct them to NRI Relocation’s services for more information about outsourcing relocation services. Our relocation consultants are here to support your move and make the relocation process as successful and stress-free as possible.