The issue is exacerbated by the fact that high-level professionals are reluctant to relocate: only 11% of job seekers relocated for work over the past ten years. Moving for a job can seem like too much of a hassle, especially when one is older, more experienced, and in high demand—unless an alluring relocation deal is on the table.
Should You Use a Standard Relocation Package for Executives? – CapRelo
What do relocation packages for executives include?
A typical executive relocation package will include cash compensation, moving costs, costs related to breaking a lease or selling a home. The package’s moving expenses section would pay for the direct costs of moving, such as packing and shipping household goods and goods, transporting vehicles, paying for transportation during the moving process, and paying any storage fees that may be required. The cost of moving may also include travel to the new location to look for housing before relocating.
The relocation package may include short-term housing costs if the executive and their family are unable to locate suitable housing right away or if the dates do not work out for their home in the new location. Normally, all of these expenses would be classified as physical moving expenses in a relocation package for executives.
Real estate commissions and expenses related to putting a house on the market, like inspections and appraisals, may be included in the price of a home sale. The executive would prefer to be in a lease agreement with potential early termination or cancellation fees if they rent their home or apartment rather than own it. To persuade the person to leave their current living situation and travel to the new location for work, the company providing the executive relocation package would pay that cost and any related fees.
A cash allowance or lump sum of money is frequently included in an executive relocation package in addition to the benefits mentioned. The sum of money given to the new employee when they accept the job offer may be known as a signing bonus. Although it is frequently provided as a supplement to any relocation costs not already covered by the package, the recipient is free to use this money however they please. Some businesses demand that an employee fulfill their duties for a predetermined amount of time or forfeit the bonus.
What are relocation packages for executives?
Benefits provided to individuals who receive job offers for executive positions that require them to relocate are included in relocation packages for executives. Those who reach the executive level of their careers may have families, homes, and a lot of personal belongings, so moving can be very expensive. A business may be able to entice a strong candidate to relocate their family to work there by providing an alluring executive relocation package.
The smoother relocation process is another goal of executive relocation packages. A person at the executive level might have to sell their house, which can be an expensive and time-consuming process. A company can help make the job offer seem more appealing by providing a package of benefits to streamline the moving process and defray associated costs.
Executive relocation package vs. mid-to-entry-level employee relocation packages
Companies may provide relocation benefits to workers at all career levels. However, the value of a relocation package offered to an entry-to-mid-level employee is typically different from that of an executive-level employee’s package. As they are more likely to be older and further along in their careers, executives may also be more well-established in their communities and at home. Entry-level workers may be younger and have fewer responsibilities that bind them to their current location, while many executives have spouses and children who will be impacted by the relocation process.
A few thousand dollars in cash bonuses are frequently included in employee relocation packages for mid- to entry-level workers. Someone without a home or many belongings to move would probably find this package attractive, so they might be more willing to accept it when accepting a job offer. Someone who is further along in their career and is more well-known where they are is less likely to uproot themselves for a small sum of money. When moving for a job, they would anticipate that more of the associated costs would be paid for.
Tips for negotiating an executive relocation package
You can definitely bargain when a company offers you an executive relocation package if it falls short of your expectations. Follow these tips as you go through the negotiation process.
1. Consider all the costs
Moving is expensive, especially if you are crossing state lines. Be sure to think about the associated costs before accepting a relocation package. If you own a home, you will need to get it ready for sale, list it on the market, pay any realtor fees, and pay any other related costs. You will need to pay for housing in the new location as well as the cost of packing and transporting your belongings. Make a list of the steps you must take to relocate so that the offer contains everything you require.
2. Know what you need
You should go into the negotiation with a list of your particular needs since your needs might be different from those of other employees to whom the company you are considering working for has extended relocation offers. The needs of a recent college grad will be different from those of a more established person with a spouse and kids, multiple cars, and a house full of possessions. Your employer will depend on you to specify your expectations and needs because they are unaware of what you own and the steps you must take before relocating.
3. Prepare a strong case
You must make a compelling argument for why you are worth the additional expense when negotiating a relocation package. You can emphasize what you will bring to the business and what makes you stand out from other possible job applicants. Talking about your future goals and how you intend to support and strengthen the business over the ensuing years may also be helpful.
4. Come in with confidence
Negotiation is a skill that requires confidence and conciseness. Having confidence can help you strengthen your position and persuade the other party to the negotiation that you are worth the extra expense. To avoid misunderstandings as you consider the needs you and your family may have during the relocation process, keep your talking points clear and concise.
What is included in an executive relocation package?
The executive relocation package will typically include full coverage of all moving costs. This covers moving expenses (airplane/train tickets), packing and shipping of household goods (typically up to 18,000 pounds), moving of a vehicle, short- or long-term storage, temporary housing, and one or more home-finding trips.
How much do companies usually give for relocation?
Relocating an employee can be a costly endeavor for companies. According to a 2016 report by Worldwide ERC, a trade group for relocation services, the typical relocation package for renters costs between $21,327 and $24,913 and for homeowners, it costs between $61,622 and $79,429 per person.
How much should you ask for a relocation package?
Depending on the person and their package, the total costs and amounts may differ; for instance, payments typically range from $2000 to $100,000. The majority of employers offer a one-month moving period, which is a lot of time for the employer and a little tight for the employee!