What Is the Average Relocation Package for 2022 | UrbanBound

It’s one of the questions we hear all the time: what’s the average relocation package look like right now? As in: what benefits are included, and what does it cost?

We get it. Employers want to know so they can make sure that their relocation package is competitive, but not over the top.

Similarly, candidates want to know so they can tell if the package they’re been offered is a good one—and what to negotiate for if it’s not.

But here’s the deal: the “average” relocation package isn’t something you can define in a sentence or two, because, frankly, the relocation universe is a broad, diverse, complex place. In 2022, the average relocation package is really a spectrum.

And while we’re happy to describe what you’ll find along that so-called average spectrum, the real value of knowing is so you can do better-than-average…yes?

What the Average Relocation Policy Looks Like

When it comes to relocation policy types—i.e., the way benefits are structured and paid—all of these fall within the realm of average:

• The lump sum plan – The simplest type of plan, where an employer gives an employee a sum of money to finance his/her relocation, but little help arranging it.
• The managed budget plan – Nearly as flexible as a lump sum, except funds are only disbursed as expenses are accrued, so employers keep any surplus. Plus, the plan includes support services.
• The core flex plan – Where employees get to choose the benefits they need from a list, balancing economy with flexibility.
• The fully-covered plan – The most-deluxe plan, where the employer pays all related relocation costs and provides “white glove” relocation assistance as well.

Because many employers offer tiered relocation programs as a cost-management strategy, it’s pretty average for one employer to offer multiple plan types to different employees.

What Average Covered Expenses Include

The majority of relocation packages cover these expenses to one degree or another:

• Moving Expenses – The act of transporting household goods from old house to new, often by moving van.
• Transportation Costs – Including plane tickets or car travel needed to transport the employee and his/ her family to their new home.
• Home Buying/Selling Costs – This generally covers closing costs, attorney fees and agents’ commissions, as well as comparable rental-related expenses.
• House (or Apartment) Hunting Trip(s) – Including plane tickets, rental cars, hotel stays and a meal allowance.

A number of packages also include:

• Short-term Housing – Used to house newly-relocated employees while they’re waiting for a real-estate closing or rental move-in date. Also includes the short-term storage of household goods.
• Relocation Tax Gross-up Benefits – Funds that offset the income taxes that employees must pay on their relocation benefits.
• Destination Services – A variety of services designed to help employees and families acclimate to a new location, such as language and cultural training and guided tours. Provided most often with international moves.