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published: 15 Nov 2024 in Arrival & stay

Relocation packages for candidates: Everything you need to know

Kamila Brzezińska
Kamila Brzezińska

Editor

Relocating for a new job can be an exciting opportunity – but it also comes with its fair share of logistical and financial challenges. This is where relocation packages come in. Here’s a detailed overview to guide candidates and hiring companies alike through what relocation packages are and what elements they often include.
Relocation packages for candidates: Everything you need to know

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What is a relocation package?

In simple terms, a relocation package is a set of benefits and reimbursements offered by an employer to assist employees in moving for a new job.

These packages cover some or all of the expenses associated with changing the location and aim to help the candidate transition smoothly into their new environment. The goal is to make the move as seamless as possible, by reducing financial burdens and administrative headaches.

But that is the general idea. In practice, relocation packages can vary widely in terms of what they offer, depending on the company’s budget, the employee’s role, and the distance involved.


Why do companies offer relocation packages? The benefits for an employee and an employer

Companies offer relocation packages to attract top talent, particularly when recruiting for specialized skills, leadership roles, or unique qualifications that are hard to find locally.

What is more, by offering clear, flexible, and supportive relocation benefits, companies can create a positive experience for employees, setting the foundation for a successful working relationship in the years to come.

In a way, relocation benefits demonstrate that a company values its employees' well-being, which can improve job satisfaction and loyalty. Additionally, providing relocation support minimizes downtime and stress for the new hire, helping them to focus on their new position more effectively.


What are the key elements of a relocation package?

While relocation packages vary by company and role, there are several standard elements that candidates can expect to see. Here are the most common components:


1. Moving expenses

Moving to a new location is not an easy process – and can be quite an expensive one, at that. Therefore, companies can support their employees by covering the costs of:

Household moving costs: Covers the packing, shipping, and delivery of household goods. This typically includes hiring professional movers, purchasing packing supplies, and sometimes offering storage options if there is a delay in moving into the new home.

Vehicle transport: For long-distance relocations, companies may cover the cost of transporting a car to the new location, especially if it’s not practical to drive it.

Pet transportation: Some relocation packages, especially for international moves, cover pet relocation costs. This includes transport logistics and sometimes pet boarding fees.


2. Travel costs

Traveling abroad isn’t exactly cheap, so many companies offer their employees aid by financing:

Transportation costs: This benefit covers transportation to the new location, which may include airfare, mileage reimbursement, train tickets, or other travel-related costs.

Family Travel Assistance: For candidates moving with families, relocation packages may extend travel coverage to immediate family members, including children and spouses.


3. Temporary housing

Finding a new place to live can take some time, hence many employers offer temporary housing options. Those can include:

Short-term stays: Many companies provide temporary housing in the form of hotels, corporate apartments, or short-term rentals. This benefit is often covered for a specific period (usually between 30-90 days) to give the employee time to find permanent housing.

Corporate housing: Some companies may offer extended-stay corporate apartments or provide a list of preferred housing options, which can help make the initial transition easier.


4. House-hunting expenses

Finding a new house or apartment in a new environment can be quite a challenge, especially when a language barrier is to be considered. With this in mind, employers might offer:

Exploratory house-hunting trips: Some packages include one or two trips to the new city before the official move. These trips help employees and their families familiarize themselves with the area, view potential housing, and explore local amenities.

Real Estate agency assistance: Many companies connect relocating employees with real estate agents or rental agencies and may cover the cost of rental application fees or provide discounts on housing.


5. Relocation stipends and lump-sum payments

Some employers offer rather straightforward financial support. This can take the form of:

Lump sum payment: Many companies offer a single, flat relocation allowance. This provides flexibility, allowing employees to use the funds as they see fit for moving-related expenses.

Reimbursement structure: In some cases, companies reimburse employees for specific expenses after the fact. In these instances, receipts and documentation are required.


6. Spousal and family support

For employees who have families, companies can provide many tempting initiatives, such as:

Spousal job assistance: Some companies provide job-search support or career counseling for spouses, which can be especially important for dual-career families.

School assistance for children: For families moving with children, companies may offer help finding local schools, understanding enrollment processes, or covering school-related fees.


7. Cultural and language training

Last but not least, there are initiatives that a company can offer their employees to help them to assimilate better to the new environment. There are many ways of doing that, but there are two worth particular consideration:

Cultural orientation: For international relocations, companies may offer cultural training to help employees adapt to the new country and its customs.

Language training: Language courses are often included for employees moving to a country where a different language is spoken.


Here are some companies that offer relocation packages on our website:


A perfect relocation package – is there such a thing?

All in all, employers should consider the individual needs of their relocating employees to design competitive and appealing relocation packages.

Offering flexible, customizable packages helps employees feel supported and reduces their stress during the move. Companies can make relocation packages more attractive by adding options for spousal support and exploring local partnerships with housing and travel services.

However, and most importantly, they should ensure clear communication about what is covered by their relocation package, and what might be out of its scope.


Sources:

BusinessNewsDaily.com, „The Costs of Employee Relocation

Gov.UK, “Expenses and benefits relocation”


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