A Guide to Relocating for Work: What You Need to Know

You’ve worked hard, and your efforts have paid off! Now, your company has asked you to move and offered you a relocation package. If you’re not familiar with a company move, the details can be a bit overwhelming, but this relocation guide will help you learn the ins and outs of relocating for work.

What to Expect in a Work Relocation Package

After your employer has approached you with the chance to move and you’ve decided to consider the option, they’ll probably sweeten the deal by offering a job relocation package. Depending on the company, your relocation package could contain any number of items, including the payment for a full-service move, temporary housing, and pre-move visits. Relocation packages are customizable, and you should negotiate with your employer for the best outcome. 

Moving Coordination and Expenses 

There’s a wide range of possibilities when negotiating moving expenses. For example, your employer might offer a full-service move that includes hiring a local moving company that manages everything from packing your belongings at your old address, driving it cross-country, and unpacking at your new home. Or, they could reimburse you for moving expenses like packing materials, a rental truck, and lodging. It’s possible that they also offer moving assistance like: 

• Temporary storage

• Auto transportation

• Fees for breaking a lease

• New rental home fees 

• New home closing costs 

• Real estate agent commission

Pre-Move Visits 

It's one thing to think you can be happy living in a new community; it’s another to move there and thrive. Most employers will pay for you and possibly your family to travel to your new city once or twice before moving. Ultimately, they want you to be content and productive. It's less expensive to send you on a couple of trial visits before officially moving and later deciding the city isn’t a good fit.

Travel Expenses 

Although moving your home is likely the largest expense of a relocation package, most employers also foot the bill for travel expenses such as a rental car, airfare, dining, and lodging. 

Temporary Housing

You might not find the perfect house to buy or rent before your first day at your new job. So, it's common for relocation packages to cover fees for temporary housing either in a hotel or in a rental home, including utilities. 

Employment Assistance for Your Spouse 

There’s a good chance your spouse has an opinion about your relocation. Employers know that getting the whole family on board with the move is beneficial for everyone, so they could offer your spouse job search assistance or help you find new schools for your kids.  

International Moves

There are many more details to consider for an international move beyond choosing a moving company, including how much you’ll have to pay out of pocket to adjust to your new country. An international relocation package should address any cost of living increases and many of the travel fees you’ll pay, including the following.

• Property management (if you don’t sell your home)

• Work visas

• Language classes 

• Cultural training and immersion programs

Run the Relocation Numbers

Each company’s relocation policies are different, so it’s important to research financial implications, like the local cost of living and tax laws, to prepare for their offer ahead of time. Some companies present a set amount of money to move; others expect you to show estimates and set clear expectations for what you’ll need for a successful move. 

Cost of Living 

If the area you’re considering is unfamiliar, it's time to conduct some research and learn about its economics, so you’ll know how to budget and potentially negotiate your relocation package. Try running your numbers through an online cost of living calculator to get a ballpark idea of what to expect. 

Tax Laws and Regulations

Income tax laws vary from state to state, and they could affect your relocation package’s bottom line. Some states like Florida and Texas don’t have income taxes, and other states have high state tax rates. If your job requires licensing, you’ll also need to account for any professional fees for new or updated licensure, possibly including a new state driver’s license. Don’t forget, under the federal Tax Cuts and Jobs Act of 2017, moving expenses aren’t tax-deductible unless you’re serving in the active-duty military.

Prepare to Negotiate Your Relocation Package

Relocation packages aren’t one size fits all. Instead, you should talk with your employer about the services you feel are most important for a successful move and then consider negotiating to get your top priorities. For example, if your family needs a full-service moving company to help manage the stress of leaving their home, you could offer to start your new job sooner. 

You could also negotiate: 

• A moving reimbursement or a lump sum payment

• Additional pre-move visits

• More time to move in before your start date

• A higher salary instead of a substantial relocation package 

• New job and location trial period