Relocation packages are key to a smooth transition when you're eyeing a new role that requires moving, particularly for jobs overseas. Nowadays, around 50% of companies offer essential relocation benefits. Typical relocation assistance includes help with work visas, covering your flight tickets, providing tips for adjusting to new surroundings, helping with moving costs and short-term housing, and helping you find a long-term home. These advantages make a significant difference in attracting skilled professionals.
Getting a good grasp on relocation packages helps you negotiate a better deal for your move, or keeps your company competitive by attracting the best talent. This guide breaks down what's usually included in these packages, with real-life examples from big tech companies. Whether you're planning your own move or you're in HR looking to offer attractive packages, this article has the info you need to make informed decisions.
A relocation package provides essential support to employees transitioning for work, covering moving costs nationally or internationally. This assistance isn't just about easing the personal burden of relocation; it's a strategic move by companies to secure top talent from anywhere in the globe. By handling expenses and logistics, from packing to housing, businesses remove barriers, making it easier for the best candidates to say "yes" to opportunities. Relocation packages are a win-win, offering employees a smooth start in new roles while enabling companies to fill crucial positions with the talent they need to thrive.
The content and value of relocation packages can vary widely, influenced by factors like:
Understanding these variables can help you set realistic expectations and prepare for negotiations with your employer about your relocation package.
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As mentioned above, the scope and cost of these packages differ significantly, influenced by the employee's position and the size of the company.
Average costs:
When it comes to relocation packages, here's the kind of support an employee can expect:
A typical relocation package — anywhere between $20 - $80k — contains the following:
Premium perks (RARE):
Relocation packages that include the following perks are sometimes offered by Big Tech and F500 companies to employees that have been hired into a high-level role. Again, these perks are more typical in the U.S. market, it would be extremely rare to find a package with these perks in Europe, Asia, or Australia.
Other expenses:
Knowing what's typically covered can help you figure out if your relocation package has everything you need. And if it doesn't, you'll know what to ask for.
Catawiki is an online marketplace for buying and selling special objects, that operates globally and is expanding further. Based in Amsterdam, with 500-1,000 employees, Catawiki offers a comprehensive relocation package for employees moving to work at their office in the Netherlands.
The relocation package includes (Let's say you are moving from London to Amsterdam):
The base value of Catawiki's relocation package, excluding the negotiated relocation allowance, starts at around €3,650 for someone moving from London. This value will vary based on your negotiation, where you're moving from, your position, and whether you have family with you.
Money Forward is a prominent FinTech company in Japan, with over 40 services, from personal finance management to B2B SaaS solutions. They offer a very generous relocation package for applicants and their families. For the sake of this example, and to see how much this package is worth; well calculate the cost of a single person relocating from Germany to Japan. Here's what you'll get with Money Forward's relocation package:
Relocation and onboarding support timeline:
This package, excluding negotiated amounts but including flight, initial accommodation and visa costs, comes up to an estimated base value of around €2,830. Of course, the total value can significantly increase with the relocation bonus and discounted accommodation for the second and third months, plus the additional flights and visa arrangements for the applicant's dependant family.
Apple offers a comprehensive relocation package for new hires, giving you two options: a one-time lump sum or a detailed package that covers various moving expenses. This package includes essentials like flight tickets for you and your family, moving services, and temporary accommodation for up to six weeks to ease your transition.
Here's a breakdown of what's usually covered:
The cash lump sum you can negotiate for often depends on the role you're being hired for, your experience level, how critical your role is to the organisation, and how well you negotiate. For example, if you're not using the temporary housing, Apple might reimburse your first month's mortgage for a new home.
Negotiation is key. Apple employees who have gone through relocation stress the importance of negotiating to enhance their relocation package. By negotiating, you can adjust the package to better fit your needs.
A relocation bonus is specifically designed to cover the costs related to moving for a new job. It's there to help with expenses like movers, travel, and temporary housing. On the other hand, a sign-on bonus is more like extra income you receive when you start a new job, which you can spend however you like.
In the U.S., the way these bonuses are taxed differs. A sign-on bonus is taxed as income, but a relocation bonus might be partially deductible since it's seen as a reimbursement for your moving expenses. However, tax rules can be complex, so getting advice from a tax professional about your situation is wise.
Some companies might offer a sign-on bonus instead of a relocation package, possibly to simplify the process. Others might provide both, especially if you're leaving behind significant benefits, such as a 401K or stocks, at your previous job. The sign-on bonus could then help offset the loss from leaving those benefits behind. So, when you're discussing your job offer, it's important to understand the specifics of any sign-on or relocation bonus. For example, while you can often negotiate a sign-on bonus, relocation packages tend to have more fixed terms. So, make sure you fully understand what's being offered and how it aligns with your needs and expectations.
When it comes to moving for a job, companies typically offer several kinds of relocation packages, each designed to suit various preferences and requirements:
Each of these packages has its perks, depending on what kind of support you're looking for in your move. Whether you need the simplicity of a lump-sum payment or the thorough support of expatriation assistance, there's a relocation package tailored to your situation.
Ready for a new adventure in your IT career? Head over to Relocate.me and dive into a range of job opportunities from around the world from companies offering relocation support. It's crucial to pick a company that understands and supports your relocation needs, making your transition to a new country as smooth as possible.
Alexandra is a marketing enthusiast with a passion for launching and growing HR-Tech products, such as Relocate.me. She believes content marketing is about delivering high-quality content that provides value—not just generating leads. Alexandra has been involved in tech recruitment since 2016.
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