If your company is asking you to relocate, you have the right to open negotiations for a relocation package. By being aware of the services available to you, you can make the best decision for yourself and your workplace.
When you take on a new job, an upfront conversation about benefits, vacation time, and other concessions might not be easy to secure. Instead, itâs up to you to know what youâre worth in the marketplace and how much commission your role brings in. If you are being asked to relocate for work, this can make things even more challenging because some companies might be reluctant to provide additional compensation for relocating (unless it is based on distance from home, cost of living, etc.). The good news? If youâre willing to negotiate, there are likely ways for you to get a better relocation package. It might take a little bit of back and forth, but if you hold your ground, youâre sure to reach an end result that reflects your worth. Here are some tips for making your case.
Relocation Package Types
The most common types of relocation packages include:
- Relocation allowance: a lump sum payment provided by the company either as a one-time or recurring payment, based on the company’s policy, to help cover the cost of relocation.
- Moving expenses: reimbursement of the costs associated with moving to a new location. For instance, if you need to hire the help of a moving company with storage, the cost would be covered.
- Housing allowance: a monthly payment to help cover the cost of renting or buying a home in a different location.
- Relocation bonus: a one-time payment provided by the company to help offset the costs of moving to a new location.
- Hardship allowance: a one-time payment provided by the company to help offset the cost of relocating to a new location, where the new location is significantly less expensive than the employee’s original location.
Relocation Package Negotiations
If you are being asked to relocate for work, itâs likely that you have some degree of negotiation power. While it might be hard to know how to ask for a relocation package, the truth is that youâre likely well within your right to do so. This is distinctly true if you are a high-performing employee and have received multiple job offers. When the time to negotiate comes, there are a few things to keep in mind:
- Know what you want: Before you go into a negotiation, you want to know what you are aiming for. Start by determining how much your relocation is actually costing you. This includes everything from buying new clothes to renting a new place to selling and transporting your stuff.
- Communicate your value: Make sure that your employer knows just how valuable you are to the company. You can do this in a number of ways. First, make sure you are keeping a record of your accomplishments. Next, make sure that your manager is aware of how much you bring to the table. You can do this by calling for regular one-on-one meetings with your manager and communicating your value to the team.
Check The Cost Of Relocation
One of the first things to consider when negotiating a relocation assistance package is to check out the cost of relocation. You can do this by going online and searching for things like the âcost of relocation calculator.â You can also ask your employer how much the company is willing to spend on your relocation. Itâs important that youâre aware of this number in case the package your employer offers you isnât sufficient to cover your costs.
Write A Relocation Agreement
If you negotiate a lump sum payment, make sure you get it in writing. This way, you have a record of what was promised and can refer back to it if needed in the future. In your agreement, make sure to include:
- The amount of the lump sum payment.
- A list of what is included in the payment (i.e. the cost of renting a new home, etc.)
- When you will receive the payment (i.e. at the end of your first month on the job, etc.)
Take Into Account The Local Taxes And Living Cost
Another thing to keep in mind when negotiating your relocation package is the local taxes and the cost of living. If the company is covering the cost of moving for you and your family, make sure that the company takes into account the cost of living in your new city. Otherwise, you could end up taking home significantly less than you do now. You can check these numbers using sites like Numbeo.
Focus On Shared Advantages
When negotiating your relocation package, donât focus on what you want but rather on what you can offer your employer. You want to emphasize to your employer the value that you bring to the company and the benefits that you can provide by relocating to the companyâs city. By focusing on shared advantages, your employer is more likely to see the advantages this offer could bring to their end, reaching a more harmonious conclusion.
In Conclusion
When asked to relocate for work, itâs important to negotiate the best relocation package possible. As long as you can clearly communicate your own value and implement a degree of compromise, you should be able to reach a conclusion thatâs satisfactory for all parties.
