However, most employers give some monetary help to their employees and help them to relocate. But how do you negotiate a good relocation package?
Before you begin the negotiating process understand what your needs are and put them on paper. Include everything possible, from your spouse's job, to your children's new school, leased accommodation, cancelling your lease on your current house, packing your household goods and shipping them to your new home, your travel papers. Don't leave anything to memory.
Add all the expected expenses and prepare a budget of relocation assistance to your boss. Don't be caught doing your adding and subtracting on the spot. Now sit with your boss and ask him in what areas he will provide help and support.
Whatever relocation assistance package your company agrees upon, get it in writing, even if in an informal communication they have assured you not to worry and that you would be provided with relocation assistance.
Before you sign an employment contract or take any irrevocable steps that commit and bind you to the new position, incorporate them in a legally binding contract to ensure that for both sides there is no ambiguity or indistinctness.
Many a time, the company will say that the money spent will be reimbursed to you later on. Try, however, to negotiate an advance against the full amount of your relocation budget. This will help you, for there will always be some expenses which have to be paid in advance or on the spot and could create a serious cash-flow burden if you have to meet them out-of-pocket.
Always remember that just because your employer is bearing the expenses, you spend recklessly. Bargain efficiently and effectively for services. Packers and Movers are known to give huge cash-discounts. If you are able to refund a portion of the advance money advanced to you, it will help stamp your image as a shrewd and fair team player and when you submit your final receipts, not too many questions will be asked.
Many a time the employer will give you a signing bonus or a relocation bonus, keeping in mind the relocation expenses that you are likely to incur. Weigh the actual expenses with the signing amount and then decide to decline or accept. Singing amounts reduce the hassle for both you and your employer to maintain accounts and submit bills and deduct expenses. Whereas reimbursing of expenses means that, you will get compensated for incidental costs that you had failed to planned for.
A one-way flight ticket to your new place of work is a bare minimum that most companies offer. However, if your relocation means that you may have to return a few times to clear things up, see if the company can offer you flights back home as well.
Seek full medical insurance as a prerequisite to moving or ensure that your salary is enough to cover the cost of insuring yourself. Medical costs can be exorbitant.
You could need a car and driver if you are relocating to a relatively new place that is unsafe or remote. Discuss this benefit with your employer.
Most places do not offer suitable public education to temporary residents. The cost of private tuition can be high and you may find that what you have to pay for your children's education here, is much more than what you were paying back home.
Make sure that your new salary takes into account this addition expense.
Relocation packages are standard business expenses, but you must maintain detailed records for federal, state, and local tax agencies, failing which they may be construed as personal income.
Relocation expenses are incidental expenses and you would not have had to incur them had you worked from your place of residence. Your company is morally and legally bound to offer help and it is for you to ensure that the package you get is fair and justifiable.
