As specialists in corporate relocation, We understand that the process of moving your company to a different location can be costly for employees. With the help of corporate relocation plans, employees will be capable of working from home without feeling the financial burden that is usually related to relocating. If you plan it with care and consideration, the employee relocation plan can benefit both the employer and the employees.
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What exactly is a relocation package?
Employers usually offer relocation packages in the event they offer their employees permanent employment at least 50 miles from the place they currently work. The package usually includes the cost of relocation and work, to ensure that families and employees will feel a sense of peace during the entire process of moving.
Employers who offer good relocation programs can attract candidates for jobs across the nation because of this benefit. But, the final choice of many job-seekers is determined by where they’ll need to relocate and the place they’ll have to relocate to. A relocation plan can help ease the burden of moving.
What is the definition of relocation assistance?
Relocation assistance happens the time when employers assist newly hired or current employees to relocate. Assistance for relocation is offered for employees who are moving from one location to another such as a city, state, or even a different country.
The advantage that relocation assistance can provide is to lessen the financial burden associated with the relocation can bring and help you get your employees settled into their new residence in the shortest period of time. Assistance during the relocation process will help in a variety of areas:
- Service for unpacking and packing
- Costs of transportation
- Moving costs
- The layout of a home
- Temporary accommodations
- Assistance with mortgages
- Purchase of a brand-new home
- The language training
- Education in the arts
- The most popular moving packages
Average Relocation Packages for 2022
There are numerous options to consider when preparing a moving plan for 2022. The unique benefits that this package will determine how attractive the package will be to your employees and potential job candidates.
It’s not easy to grasp the requirements for your worker prior to the time they’re planning to move. If you’re considering the specifics of a relocation plan for 2022, you must consider these aspects.
Flexible Start Date
The new employees typically start working within 2 weeks after they accept their job offer. If employees need to relocate, it might take longer.
In creating the perfect relocation plan it’s crucial to inquire with your employees about the time they anticipate they’ll need to be ready. By establishing clear communication with your employees, you’ll be able to determine the most realistic time frame to relocate to and then begin taking the necessary preparations to create an enjoyable working environment.
Moving can be costly Therefore, companies could help their employees by offering an expense reimbursement plan to pay for moving expenses. This can include costs for moving as well as transportation and even insurance for the mover.
The company can choose to provide only the money required after the employee who is moving files cost reports or opt for an all-in lump sum.
Temporary Housing arrangements
If your employee is required to begin work on a specific date, consider providing them with temporary accommodations. You can put your employee in the Hotel or Airbnb until they’ve found the home they wish to purchase or until they are finished the construction of their new home.
Your employee might not be able to purchase or build an apartment, and may prefer leasing instead. If your employee would prefer to rent, they can find a different place where they could stay till they find an apartment for rent. In addition to the costs of temporary accommodations, companies typically also have to pay for expenses for utilities.
Many companies offer their employees trips for free to their new work prior to the date when they are ready to move. Let your employees explore the new location they’ll relocate to. They’ll be less stressed during the process of moving as they’ll get an opportunity to interact with people from the new community.
A majority of employers will give the employee two free excursions to learn more about the local area before looking for their next residence.
Real Estate Cost Assistance
Most of the time, businesses assist employees who are moving by covering the costs of buying or selling a home. A majority of businesses aid by promoting the old homes of their employees or purchasing the property later to sell. If your employee is under a lease agreement it is possible to pay for the rent in the event of a breach of the lease.
If you’re asking your employee to relocate, you are also requesting your family members to relocate. A majority of the time, an employee has relatives who require relocation with them.
Your company can help families by helping the family members of the person who’s moving and adjusting to their new home. They can aid the spouse to find work or locate schools for the children of the employee, or help in finding childcare alternatives for their kids.
The cost of living can vary in relation to the place you live. Certain companies offer relocation bonuses to help you pay for living expenses. This is a good alternative for states that have tax rates that are high.
Make an exit clause
Businesses should be able to make a profit through the process of moving. To do this, they should implement an obligation to pay back. A clause for payback states that when an employee who’s been transferred quits before the deadline or they are required to pay the company for the cost of relocation.
Executive Relocation Packages
Optional Relocation Options for Standard Packages
If you’re wondering, “What is a reasonable relocation plan?” you can offer your employees a variety of suitable options for relocation.
Lump Sum Relocation
A lump sum plan for relocation is a typical option for employees as many choose this type of plan. A lump sum plan is where a particular amount of money is paid to the employee moving to pay for the expenses of the relocation. The government considers the sum as income, making it tax-deductible.
To cover tax obligations, many employers pay their employees using gross-up, which frees money to pay to be used for relocation.
Another consideration when considering a lump-package move is that it could be difficult to calculate the expense beforehand in a precise way. If you are overestimating that amount, the employee has to pull out their own money to pay for the difference.
Executive Relocation Package
The executive packages for moving include the entire cost of moving included. Moving expenses include moving and packing household belongings that weigh up to 18,000lbs and long-term or short-term storage auto relocation and transportation expenses and visits to the residence of the employee, in addition to temporary housing expenses.
A successful executive relocation plan will anticipate the possibility that an employee moving might face difficulties during the course of their move, particularly for those who have families. It is essential to help in finding preschools and other schools that are able to accommodate the children of the employee.
Spousal support is part of the plan for executive relocation in order to assist those who are spouses of employees in getting the job they want.
Employees often provide incentives to relocate to help with the cost of living in the new area. The company pays each employee who moves an amount determined by a number of factors. This will include a higher cost of living due to the expiration of leases, the cost of moving as well as the cost of searching for a new home.
Relocation reimbursement programs require the employee moving to cover the cost of relocation out of their pocket and knowing that their employer will be able to pay an amount after the move has been completed.
In the majority of cases, employers take care of the cost of moving. However, it is your responsibility and the responsibility of employees to decide what a fair and reasonable compensation plan includes. Employees should keep all receipts they’ve received to ensure that the business does not overpay for the money.
The most frequent issue in this type of plan is that the individual may not have enough money to cover the initial cost of the move without financial assistance. This leaves them in a precarious situation because they may want to move but cannot because they’re unable to afford the initial move.
What is a nice relocation package?
There are a variety of different relocation plans to choose from, making it difficult for employees to pick the best suited to their requirements. If you offer a wide range of moving services and your employees are pleased with the support they receive from their employer when they move, they’ll feel less stressed out by the entire process.
A comprehensive relocation plan will cover all the costs of moving, and give employees plenty of time to find their new place of residence. ARC Relocation can help with all factors involved in moving. It can help you find moving companies that can assist you in the relocation of your employee as in addition to packing and unpacking help and shipping vehicles. Contact us today to arrange your free consultation. A no-cost appointment phone call.