What is a good relocation fee?

What is a good relocation fee?

Relocating an employee can be a costly endeavor for companies. The average relocation package costs between $19,309 and $24,216 for renters and between $72,627 and $97,116 for homeowners, according to American Relocation Connections (ARC), a corporate relocation group. A relocation package usually covers work-related and moving expenses so the employee and their family can feel a sense of relief during the relocation process. Businesses that offer decent relocation packages can attract candidates for jobs from all over the country because of this perk. Companies will sometimes offer to pay for moving expenses via a “relocation package”—which could be given to an employee in the form of a lump sum payment, reimbursed at the end of the move, or handled directly by their chosen moving company. Moving companies have to pay more money to hire movers: to recruit, build, train, keep the best moving crews and compete for labor. Remember, movers have to pack, load, unload, climb flights of stairs, lift heavy objects, and do it all day, every day. So this is one area that makes a lot of sense.

What is a typical relocation fee?

An average relocation package costs between $21,327-$24,913 for a transferee who is a renter and $61,622-$79,429 for a transferee who is a homeowner. Of course, this number is just an average of what larger corporations are spending on employee relocation – the relocation amount can be anywhere from $2,000 – $100,000. On average, movers cost between $75 and $350 an hour, depending on the type of move. For example, local moving companies charge about $80-$200 per hour, and long-distance moves cost roughly $85-$250 per hour. Most long-distance movers charge by weight and mileage, so the cost of your move will depend on how large and heavy your shipment is, as well as the distance between pickup and delivery locations. In this type of relocation package, employers cover expenses beyond moving and transportation. They might help employees and their spouses obtain work visas and provide paid trips to their new work location to find housing prior to their move. They also might help employees with cultural assimilation once relocated.

How much is a normal relocation package?

An average relocation package costs between $21,327-$24,913 for a transferee who is a renter and $61,622-$79,429 for a transferee who is a homeowner. Of course, this number is just an average of what larger corporations are spending on employee relocation – the relocation amount can be anywhere from $2,000 – $100,000. This type of relocation package is when a company gives a transferee a set amount of money to help them with moving expenses. The transferee is responsible for using that money to hire a moving service, transportation and any other expenses that are necessary. Payment. A relocation incentive may not exceed 25 percent of the employee’s annual rate of basic pay in effect at the beginning of the service period multiplied by the number of years (including fractions of a year) in the service period (not to exceed 4 years). Because tips are not mandatory during the moving process, it’s up to you to decide the right amount. You may choose to tip your movers a flat rate or to give them a percentage of the total moving cost. A general rule of thumb is to tip $4 to $5 per hour per mover or to tip between 5 and 10% of the total move cost.

How much can I ask for relocation?

Relocation packages can range in worth from $2,000 to $100,000. What services and the amount of money you decide to cover is entirely up to you and your company. However, keep in mind that the more you are willing to give, the harder it may be for a candidate to refuse your offer when you negotiate moving expenses! Why do moving companies charge so much? Moving companies seem to charge a lot of money because they have a lot of expenses to cover: from labor for packing and loading the moving truck in any circumstance to fuel costs and equipment fees, you can be sure your money is being well spent. Most long-distance movers charge by weight and mileage, so the cost of your move will depend on how large and heavy your shipment is, as well as the distance between pickup and delivery locations. Furniture allowance: Not all relocation packages give you a lump sum to buy new furniture. But then again, there’s no harm in asking—especially if you’re subletting your old place and you aren’t shipping large pieces of furniture. Just Ask the Question If not, thank them, consider the offer—and if you’re interested, ask—directly and courteously—if relocation benefits can be included. If the employer comes back with a firm “no,” it’s up to you to decide if you want to keep pressing or take the job regardless.