Each month thousands of employees move to a new community, to start a new job. Moves often are more expensive than anticipated. Not only is there the actual expense of moving, but also, for a home-owner, the expenses connected with selling an old home, and buying a new home.
Some corporations may offer to cover some or all of the relocation costs for employees who are moving at the company's request. Larger companies usually offer a more elaborate relocation package than smaller firms. These benefits become particularly important when there is a large increase in housing costs. For example, an employee leaving a $150,000 four bedroom home in a small midwestern community may find that comparable housing in the San Francisco Bay Area may cost around $500,000.
When interviewing for a job, ask your prospective employer whether or not it has a relocation program, and find out as much as you can about it.
Benefits which may be offered to a relocating employee vary widely. Each situation may call for a different bundle of benefits; analyze your own situation carefully. It is always best to negotiate these matters as part of a transfer package, before accepting the new job, to avoid surprises to either the employee or the company after the move has taken place.
- Cost of a familiarization and house-hunting trip for the employee, spouse, and family. (Does your family really want to move here?)
- Extra time off (with pay) for traveling and house hunting in the new location.
- Moving expenses, including packing and insurance.
- Travel expenses (lodging, meals, gas, etc.) while traveling to the new location.
- Assistance in the sale of your old home:
- º Company assumes responsibility for monthly payments, taxes and insurance until
- the old home is sold.
- º Price guarantee: if sold by the employee, the company will pay the difference
- between the net selling price and a specified price.
- º Alternative price guarantee: If employee can not sell the house within a
- specified period of time, the company will buy it at a specified price.
- º Company will pay commissions and other costs of sale.
- Assistance in the purchase of a new home:
- º Company to pay rent of temporary quarters, until a permanent home is located.
- º Buy down the interest rate.
- º Company provides low or no interest loans.
- A salary level commensurate with any increase in cost of living between the new location and your old location.
As a final check-list before accepting a new job in a new community, consider the effects on your over-all career goals:
- Does the move represent a true promotion, or a desirable change in direction, or is it only a lateral move?
- Is the new location in the "mainstream" of your industry, or are you moving to a "backwater"?
- Would you prefer to live in the new location for personal, life-style reasons?
- Considering the changes in salary and costs of living, is the move a financial advantage or disadvantage?