What is a Reasonable Relocation Package?

Reasonable relocation package

A reasonable relocation package covers all or most of the costs incurred when an employee moves to another location.

Employee relocation expenses

Companies will sometimes pay for moving and other work-related expenses when employees move to another location for work. A relocation package provides the employee with peace of mind and covers all or most of the costs associated with long-distance moves.

There is no such thing as an “average” relocation package. Instead, employers will determine a relocation package based on the employee’s status and previous work commitments, as well as the distance to the new location.

Relocation packages, however, might include the following features:

  • Housing — the costs associated with short-term accommodation when an employee moves to a new area.
  • Insurance coverage — insurance for moving to another location, which will protect high-value items.
  • Packing and unpacking — when a moving company packs up an employee’s belongings and unpacks them at the final destination.
  • Storage — when an employee has to keep their belongings in storage because their move has been delayed or they are unable to find suitable accommodation.
  • Transportation — when a moving company transports an employee’s belongings via road, rail, sea, or air.

Companies that specialize in corporate relocation allow employers to customize employee moves based on their budget and circumstances. This ensures they don’t spend money on services they don’t require.

Relocation package example

A New York City-based medium-sized company has recently opened a new office in Los Angeles, and they are sending their top sales representatives to train their West Coast sales team. This company provides the sales representative with a generous relocation package, which covers most of the costs associated with the move.

The relocation package includes packing, unpacking, and transportation services because it would be unfeasible for the sales representative to relocate to the other side of the country without any assistance. The package also includes insurance and short-term accommodation in an apartment for 30 days until the employee finds somewhere else to live.

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