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What’s Covered Under Paid Relocation Policies
Specific relocation benefits vary by employer and plan. Many employers offer tiered relocation programs, which tie specific benefits to specific job positions and titles.
However, most paid relocation policies typically cover some or all of these expenses:
- Moving Expenses – Defined as the cost to move household goods to the new location by moving van or another carrier.
- Employee Transportation Expenses – The cost of plane tickets or car travel to move an employee—and his/her family, if applicable—from the old to new location.
- Home Buying and Selling Costs – This may include closing costs, attorney fees and realtor commissions. Employers may also cover rental-related expenses as well.
- A House or Apartment Hunting Trip (or Trips) – Conducted shortly after the job offer is accepted.
- Short-term Housing – Real-estate closings take time. Sometimes, so do rental availabilities. In order to get employees on the job faster, many employers pay for or offer short-term housing (as well as temporary storage of household goods when required).
- Relocation Tax Gross-up Benefits – Because relocation benefits are taxable to employees, many employers cover the cost of those taxes—a practice known as relocation tax gross-ups.
In addition, executive-level paid relocation plans may also include benefits for packing/unpacking services and destination services, which help employees and families acclimate to their new area.
Communicating How Paid Relocation Plans Works
When an employer issues a formal job offer that includes paid relocation, it’s customary to include a relocation letter that summarizes the key points of its paid relocation benefits. (It’s also customary for employees and applicants to negotiate these benefits.)
More specifics of the plan are captured in a written relocation policy (or for employers offering tiered plans, policies).
Granular details are generally provided via a relocation “binder” or PDF documents (for traditional RMCs) or, better yet, via a real-time online portal (provided by tech-based RMCs like UrbanBound). In addition, trained relocation specialists act as a go-to resource for employees throughout their move.
One final thought: while paid relocation plans work any number of ways, the universal goal of all relocation plans should be to make every employee relocation as smooth and stress-free as possible.