Great news! A new position has opened up in one of the office branches in a different state. Rather than going through a, tedious and time-consuming recruitment process, the right person for the job is already in the company. There is only one thing to be considered. Relocating them as they move from their present position to the new opportunity.

When employers expect their employees to move from one place to another, they need to cater for the cost of the move. This is because the individual and possibly their family, need to start life afresh. Depending on the position of the person within the company, it may be necessary to have a job relocation package negotiation. This will ensure that all the concerns and needs of the employee are well captured.

How do Relocation Expenses Work?

On the surface, it may appear that the key cost of relocation is logistical or around transportation. However, it is much more detailed than that. When looking at the expenses, it is important to broaden perspective and especially to identify hidden costs that may cause the employee discomfort.

Here is a snapshot of what is included in a relocation package.

• Professional packers and movers – This would include a company that will help pack and move belongings of the employee. In addition to packing up the house for the move, this team should also be available to unpack upon reaching the new destination.
• Transportation and logistics packages – A comprehensive coverage that will cater for transportation of belongings. Within these packages there is also the aspect of insurance to ensure that any damages can be catered for.
• Storage rentals
• Communication and language training
• Airfare or rental car services – This is normally in the form of reimbursement for expenses incurred through mileage or travelling by air.
• Hotel and meal costs – While a new home is being prepared, it will be necessary to have a place to live, normally for a maximum period of 30 days.
• Short term childcare services
• Real Estate Assistance – At some times, it is necessary to make a permanent move which may require selling a home. The company should take on the costs of advertising as well as reimburse any fees that are incurred.

The Types of Relocation packages

There are several packages that one can choose from and they include the following: –

1. Lump sum packages where moving expenses need to be contained within a certain set budget.
2. Reimbursement packages that entail the employee paying for all moving expenses and then being reimbursed by the company.
3. Direct billing where all aspects of the move are directly charged to a moving service provider.
4. Expatriation packages that are offered when employees need to move to different countries.

Moving is time consuming and can be expensive. The best way to manage it is to ensure that the process is controlled from the get-go. Using a third party or company to handle all logistics is a good idea and tracking through receipts and invoices will be much easier this way.