How to Build a Typical Employee Relocation Package

Employee relocation is an essential tool to make sure you have the right people in the right place. When an employee is offered a promotion in another city or the perfect job candidate lives in another location, companies will often offer a relocation package. While employers aren't obligated to provide relocation packages, it can incentivize a valuable employee (or candidate) to relocate to a new city and also help retain them.   

There are many ways to offer employee relocation, however, there are a few important things to think about when building out an employee relocation package:

• Be proactive. Build out a policy before you need one. 
• Consider your company culture. How do you want to reflect that in your employee relocation package? 
• Who will be eligible for relocation assistance?
• How much do you want to spend?
• What services do you want to cover?

As an employer, one of your top priorities should be ensuring that your employee has a smooth transition during their relocation. Here are a few tips on how to build out your employee relocation package:

Building out an employee relocation package

Employee relocation tends to fall on HR/mobility and recruiting teams, since they're on the front line when it comes to connecting with current and future talent. Relocating one or two employees here and there might seem minor but doing it without a plan runs the risk of making reactive (and expensive) decisions around employee relocation. 

That’s why, as mentioned above, putting a relocation policy in place before you need one is essential to ensuring your company is equipped with the right tools to scale.

If your business would benefit from relocating an employee to another city, you need to start thinking about relocation packages for your employees.

How much to spend on an employee relocation package

There's a lot of research out there about the average relocation cost, but a package can range anywhere from $2,000 to $100,000. How much you want to spend on an employee relocation package is entirely up to you and your company.

What factors into relocation assistance costs?

You must decide if you plan to cover the entire cost of the move, or if you simply plan to assist with some expenses. However, the actual cost to relocate an employee depends on a number of different factors:

• How far are they moving? Is it to a different state, or a different country? International relocation will always be more expensive than a US domestic relocation. 
• Do they own a home? 
• Do they have a family?
• How much stuff do they have? How much does all that stuff weigh?

Ultimately, your employees will appreciate any support you can provide. However, the more you plan to cover, the happier they'll be. Smaller companies or companies who relocate a lot of entry-level or recent grads, tend to provide less benefits.

To learn more about what typical relocation assistance costs, check out How to Maximize Your Relocation Program Budget: 5 Insider Secrets for Doing More with Less.