Relocation Package Examples

What is a relocation package?

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:

• Size, age, and financial performance of the company: Larger/more established companies typically provide a broader range of relocation perks than young startups. 
• Role within the company: Higher-ranking employees often have access to more comprehensive packages, reflecting the importance of their position.
• New hire vs. current employee: Companies might offer more enticing packages to lure new talent or ensure a smooth transition for existing employees taking on new roles in different locations.

Understanding these variables can help you set realistic expectations and prepare for negotiations with your employer about your relocation package.

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What's included in a typical relocation package?

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:

• Renters: According to Business News Daily, a person renting in the United States can expect a relocation package of between $20,000 and $25,000. This package might cover specific expenses such as the cost of movers, shipping belongings overseas and possibly temporary short-term housing. In saying this, the average relocation package is probably closer to $5,000 for an individual unless you are in a critical/executive role. Companies in the United States appear to offer more generous packages, while companies in the EU seem to be spending less than €5,000 to relocate employees.
• Homeowners: If you own your home, things get pricier because there's more to handle, like managing the move of a large household and moving your family. Here, packages can go from $60,000 to $80,000, covering things like real estate fees and the bigger task of moving all your belongings. Again, this type of package may only apply to critical employees and in certain markets (United States). Homeowner packages are rare for tech workers in Europe, and are probably only considered for high-level executives.

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:

• House-hunting trips: Need to find a new place? Companies often foot the bill for you to go house hunting, covering travel, a place to stay, and food. Some even cover childcare so you can focus on the hunt.
• Temporary housing: It's common to get up to 30 days of temporary housing while you're looking for something permanent, giving you a bit of breathing room.
• Visa: Many companies provide support or even full coverage for visa application fees and legal assistance to ensure you're authorised to work in your new country.
• Flights: For both domestic and international relocations, your package typically includes airfare for you and often for immediate family members.

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. 

• Packing and unpacking: Companies will often pay for professional movers to pack up your stuff and then unpack it when you get to where you're going. It's a big stress reliever.
• Moving and insurance: Hiring a moving company that's insured is pretty standard. The insurance should cover your belongings' worth, so if anything gets damaged or lost, you're covered.
• Help selling your home: If you need to sell your house because of the move, companies can help with the costs of ads, and paying real estate agents, and might even help cover losses if you have to sell fast or at a loss.
• Driving costs: If you're driving to your new place, you can usually get money back for mileage and gas. And if it's a long move, they might cover the cost of shipping your car.

Other expenses:

• Care support: Moving can be tough on families needing childcare or eldercare. Some packages include help with this.
• Storage: If there's a wait between leaving your old place and getting into the new one, companies often pay for storage.
• Driver's licenses and vehicle registrations: The little costs, like updating your driver's license or car registration, are usually covered.
• School help: Got kids? There's often help in finding them a new school.

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.

Relocation package examples

1. Catawiki

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):

• Visa application costs are covered in partnership with Hillbrook Expatriate Tax Solutions, who will take care of the application for you (€200-€350).
• Pre-arrival counselling and settling-in services include banking, Dutch Social Security Number setup, and educational support for children.
• Accommodation assistance is available for up to three weeks (The value of this could be around €3,150), plus apartment search assistance.
• The lump sum for relocation allowance negotiated amount paid after setting up a Dutch bank account, which will cover moving costs.
• Adaptation tips, flight tickets (approximately €150 in our example), and assistance with other moving expenses and help with arrangements.

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. 

2. Money Forward 

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: 

• Complete visa sponsorship and application assistance, including working and dependent visa support (€40).
• Flight tickets for the employee and any dependent family (approx €1,000).
• Airport pick-up and a temporary fully furnished apartment are included with the first month free (valued at €890), with a corporate discount for the second and third months.
• Relocation bonus for initial setup, negotiated but typically around the monthly living cost without rent (€900).
• Settling-in support, including assistance with city office and bank account opening, mobile plans, and credit card applications.

Relocation and onboarding support timeline:

• After the job offer: Optional Japanese lesson information.
• 4 months before joining: Preparation for visa application.
• 3 months before joining: Team assignment and department preferences.
• 2 weeks before joining: Travel orientation and housing support.
• 1 week before joining: Flight to Japan, airport pick-up, moving-in support with a fully furnished apartment for the first 30 days, bank account, SIM card/mobile phone assistance, and administrative procedures handling.
• After joining: Payment of a life support allowance.

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.

3. Apple

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:

• Flight tickets for your family to join you.
• Complete moving services, including packing, shipping, and unpacking your belongings. Car shipping assistance is also available, along with help for ending a lease early or breaking a car lease.
• Corporate housing for up to 45 days, with an option for 30 days of car rental for immediate transportation needs and up to a 5-night stay in a hotel, will be reimbursed.
• A cash lump sum for moving expenses, which can vary. Typically, it's around $7,000 for moves within the same state and up to $12,500 for international moves. For roles that are harder to fill or higher-level positions, the lump sum can go as high as $50,000, but this is negotiable.

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.

Relocation bonus or sign-on bonus?

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.

Types of relocation packages

When it comes to moving for a job, companies typically offer several kinds of relocation packages, each designed to suit various preferences and requirements:

• Lump-sum: This straightforward option gives you a specific cash amount to manage your move. It's pretty flexible, letting you decide how to use it, whether that's on movers, temporary places to stay, or other moving essentials.
• Reimbursement: With this option, you'll pay for your moving costs upfront and then get the money back from your company after you submit your receipts. It's a way to ensure your expenses are covered without needing to manage a budget upfront.
• Third-party relocation: Some companies prefer to hand over the entire moving process to experts. They hire relocation firms that do it all: pack your stuff, find you a new home, and more. This can take a lot of the stress out of moving since you're not juggling all the details.
• Direct billing: Here, the company directly covers specific moving-related costs. That might include hiring a moving company or paying for your temporary housing. This method takes the hassle of upfront payments off your plate.
• Expatriation assistance: Moving to another country? This package is the most comprehensive, offering help with everything from getting your visa sorted to adjusting to a new culture. It often includes language lessons, cultural training, and even help finding schools for your kids.

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.

Find your next opportunity

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.