4 Steps to Take When Relocating for Work

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Although remote work has become a norm for many people post-pandemic, others still work in-person and may relocate for certain positions. In fact, 16% of Americans moved for work-related reasons in 2021 despite COVID-19. As more people are moving jobs and advancing their careers with different companies, job hunters are on the search for new opportunities – which may result in relocation. Starting a position in a new area can often be just as stressful as it is exciting; there are a lot of details to consider! To help you on this journey, here are some steps you can take to make relocating for work a breeze.

#1 – Look Into Assistance

Relocating for work is no small feat. It’s often a complex process that requires a lot of time, money, and organization. When you’re in the process of finalizing your job offer, it’s important to research your options and find out what type of assistance your company offers for those relocating. Many companies provide some sort of relocation assistance or benefits, and the terms are often flexible. They might reimburse you for moving-related costs, cover the cost of trips to visit your new location, provide moving services, offer help to sell or buy a home, and more. If you’re married, they may even help your spouse find a new position in your location as an added incentive.

If your company doesn’t offer any aid, you can try negotiating for some assistance to help with the transition. At the job offer stage, you can be rest assured they see you as a valuable asset to their team, so they’re more likely to be flexible. To make your case more convincing, research the costs associated with relocating beforehand – including the new cost of living in your location, median income for your role in the region, etc. – so you can explain where the money would be allocated. Here, you can leverage your recruiter to present market insights and comparable relocation packages from similar companies. Giving your future employer a detailed estimate of expenses is crucial in getting them to accept your request. If you’re successful, ask about preferred providers and any criteria for covered expenses. Remember, even if you aren’t able to negotiate relocation assistance, you may be able to get a signing bonus, a higher salary, or even a flexible schedule to make the transition easier and to offset the costs.

#2 – Create a Budget for Relocating

 Moving can be expensive, so calculating the expected costs of relocating and determining how much you can afford to spend will help keep your finances organized and prevent you from overspending. Before you relocate, create a budget to track your spending and keep yourself accountable. As mentioned earlier, this budget will also come in handy when asking your company for relocation assistance.

In your budget, include the cost of moving supplies, transportation, meals, professional moving and packing services, the adjusted cost of living, housing deposits, and more. If your current home needs repairs and touch ups to make selling easier, account for those expenses as well. Estimating these costs ahead of time will help make the relocation process less stressful and ensure you’re prepared for a successful move.

Relocating Contributor Blog Graphic with four steps listed in light blue bubble text

#3 – Find Housing

 Aside from getting your job offer, another important aspect in relocating for work is finding a place to live. There’s a lot that goes into buying a new home, especially on top of starting a new job, but creating a list of your wants and needs can help narrow your search. Look into the best cities for job seekers, and do extensive research on your new location to determine what neighborhoods would suit your budget and lifestyle the best. For instance, if you have children and pets you may want to live in a more suburban location with a big yard. However, if you’re single and want to be near the bustle of restaurants and bars, you may want to live closer to the city.

Along with these details, make sure to consider the length of your commute to the office, the cost of living, safety, proximity to stores, school districts, and more. If possible, try to visit the place you're moving to at least once before committing to get more familiar with the area and to get a closer look at potential neighborhoods and homes. Your company may even provide you with temporary housing so you can explore the area more without having to rush into buying a home. When considering housing options, you’ll also want to create a budget for your new home to see what you can comfortably afford. Researching financial requirements such as home loan rates, the minimum down payment amount, and the process to get a mortgage will help make the house hunting process much more efficient. This will help you be more prepared and can help your real estate agent find homes that are suitable for your needs and finances.

 

#4 – Set a Timeline for Relocating

 There’s a lot to manage during a job relocation. To make this transition easier, it’s important to plan ahead, stay organized, and create a realistic timeline for your move. The amount of time you have in between the end of your current position and your new role may vary depending on your situation, but either way it’s best to start preparing as soon as possible. If you need more time, you may be able to negotiate for a later start date if you’re moving a long distance.

In general, you should try to move into your home before starting your new job so you have enough time to get familiar with the location and get situated in your space. With this in mind, you’ll want to dedicate time to sell your current home and purchase a new one, while also making appointments with moving companies and packing. Depending on how far your move is, you may also want to plan a few visits to your new location to get a better feel of the neighborhoods and surrounding areas. Whatever tasks you need to complete, consider making a detailed checklist to keep track of everything and assign them deadlines so you stay on schedule. As long as you’re proactive and split up tasks over time, your job relocation will be a breeze.

With the help of professional recruiters, research, and preparation, relocating for work will be an exciting milestone in your career rather than a hassle. As long as you advocate for your needs and plan ahead, you’ll be set up for a successful personal and professional move. If you need help navigating the job relocation process, reach out today to Blue Signal’s talent acquisition professionals.

How to Structure Employee Relocation Packages

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Employee relocations happen for a number of reasons. A company may be opening an office in a new location, or changing offices as part of an acquisition. However, the most common reason is that a company has hired a new employee in another part of the country.

Relocating an employee is a complex and often high-stress process. The logistics and emotions of the move can be difficult for everyone involved. But with some planning and forethought, the process will go smoothly for everyone.

When interviewing a candidate who would require a relocation package, start the discussion early, and keep it separate from salary negotiations. Many hiring managers combine relocation and compensation into one conversation, but this often leads to conflict and bargaining. No matter what the compensation is, the cost of relocation is different for every situation and should be considered separately. Having a recruiter to act as the middle-man is very helpful, since they can manage discussions on both sides to come to a mutual agreement without tensions running high.

Employee relocation packages

Employee Relocation Decision Factors

 

1. Living situation

The house or apartment is a major consideration in a relocation package. For renters, the process is straightforward. They will need to break their lease and find a comparable apartment in the new area. Homeowners will need to value their house, sell it, and buy a new one, usually all within a short timeframe. It all starts with a comparative market analysis with a realtor. Get MLS data to compare similar homes in the area that have recently sold, and develop a price listing for the home as soon as possible. This will help the house to sell for a fair price.

What to Consider:

  • Lease breakage and security deposit coverage for renters
  • Realtor fees
  • Home selling and home buying services
  • Property management to maintain old home while on the market
  • Hotels and temporary housing
  • Current home equity that may be lost due to housing market difficulties
  • Interim housing
  • Storage for personal property
  • Replacement cost for depreciated items such as old furniture

 

2. Cost of living

A middle-class lifestyle does not look the same everywhere in the country –Manhattan has a very different cost of living compared to suburban Texas. A relocated employee may find that their spending habits have to undergo many adjustments in a new area.

Not only will there be differences in normal expenses such as car insurance and property tax, they may need to revamp their work wardrobe, buy or get rid of a car, or take on unfamiliar expenses. This can work heavily in favor if an employee is moving to a less expensive area, but it is painful for an employee to start a challenging new job and also keep up with big lifestyle changes at home.

Companies can provide a “Why Our City” packet with highlights of the area and helpful tips for settling in. This small gesture can have a huge influence on a new employee and get them excited for their new home.

Employee relocation packages - cost of living

As of 2016, Hawaii, Washington DC, and California had the highest cost of living. Mississippi had the lowest. (Source)


What to Consider:

  • Tax rates (income, property, etc.)
  • Difference in home values between new and old locations
  • Square footage differences, which impact the cost of furnishing and maintaining a home
  • Normal day-to-day expenses, such as car insurance, gas prices, and food
  • Cost of medical care and health insurance
  • Major lifestyle differences (such as keeping a car in an urban area, mass transit costs, wardrobe expectations, etc.)
  • Tax liability from receiving the relocation package

 

3. Family Situation

A relocation usually involves the breadwinner of the family, but most families rely on two incomes. The employee’s spouse will need to make decisions about their employment situation in the new location. Be sure to address with the employee whether other family members would need to secure new employment before accepting the offer. Children are another consideration if they are in school. An employee may choose their housing based on a particular school district or the location of services that their child needs, like athletics, religious organizations, or medical services.

What to Consider:

  • Spouse’s lost income and cost of finding a new job
  • Children’s educational expenses, travel expenses
  • Athletics, programs, religious organizations
  • Additional cost of special or medical needs

 

4. Transportation and moving

Transportation is the final major expense item. This includes more than just the one-way trip to the new location; there is a lot of back and forth during a major move.

What to Consider:

  • Plane flights
  • Square footage of current house to pack
  • Packing, shipping, and unpacking fees
  • House-finding trips
  • Rental cars (or Uber fees)
  • Cost of transporting vehicles (cars, boats, motorcycles, and recreational vehicles)

 

Types of Employee Relocation Packages

How should a company approach a major relocation to keep their new employee happy? There are three major types of relocation reimbursement packages:

Direct Bill or Third-Party

In this type, the company hires and pays the moving company directly. This type of reimbursement is convenient for the company and the employee for big-ticket items, but it makes it difficult to cover smaller expenses and can lead to a lot of back-and-forth.

A similar type is the third party reimbursement, where a company hires a third party to handle all details of the relocation. This is convenient but expensive. It also may lead to conflict with the employee if the relocation company is inflexible or difficult to work with.

Open-ended

Open-ended reimbursement agreements can be problematic, because there are so many small expenses to consider, like professional cleaners, double rent payments, deposits on cable, utilities, property inspections, realtor fees, etc. These small costs add up fast, and can lead to bickering over details and an unending stream of invoices.

Lump Sum (Capped Reimbursement)

A lump sum reimbursement plan is the simplest way to go, especially for relocations that involve a whole family. A lump sum reimbursement takes into account the major big-ticket items, including the cost of movers, housing expenses, hotel stays, and transportation.

employee relocation packages

In all cases, the employee should complete a detailed assessment of what their move will cost. Surprises are often expensive and hard to manage in the middle of a big relocation. It pays to plan as much as possible up front, and stay flexible. One major expense that many employees overlook is tax liability. When an employer gives an employee a large sum of money for relocating, the employee may not realize that the government considers it taxable income. The employer should be clear whether or not they will cover this tax liability, or if it is the employee’s responsibility.

Relocation is an opportunity for growth and positive change for an employee. Roll out the red carpet for new employees to make sure that their first impressions of their new home are positive and exciting. In addition, consider the company’s new employee onboarding strategy to make them feel welcome in their new job.

Find more of Blue Signal’s relocation tools here.

 

Working on an employee relocation within your company? Contact us at info@bluesignal.com for a free consultation.