Relocating for a new job position can be an extremely taxing experience. To lessen this burden, some companies have historically included relocation assistance as part of job offers to candidates who will need to move for a new position, typically with the caveat that the employee must remain with the company for a certain period of time. In this article, we explore whether relocation assistance is still something today’s job candidates should expect.
A Proven #1 Prospecting Hack You're Missing Out On
Is Relocation Assistance Still on the Negotiating Table
1. Is
Relocation
Assistance
Still
on
the
Negotiating
Table?
ome
of
life’s
happiest
events,
like
moving,
buying
a
new
house
and
accepting
a
new
job,
can
also
be
among
the
most
stressful
in
a
person’s
life.
Combine
these
into
one
scenario
-‐
relocating
for
a
new
career
opportunity
-‐
and
you
could
be
looking
at
a
very
taxing
experience.
To
lessen
this
burden
on
new
employees
or
those
who
are
being
transferred,
some
companies
have
historically
included
relocation
assistance
as
part
of
job
offers.
These
benefits
typically
come
with
the
caveat
that
the
employee
has
to
stay
for
a
certain
period
of
time
after
receiving
the
assistance.
Relocation
assistance
can
vary
greatly
among
firms
and
often
includes:
✓ Scouting/House-‐hunting
trips
✓ Storage
assistance
✓ Spousal
support
✓ Childcare
options
✓ Cost
of
breaking
a
lease
(such
as
losing
a
security
deposit)
✓ Expenses
associated
with
buying
a
new
house
and/or
selling
an
existing
one
(such
as
realtor
fees)
✓ Other
various
moving
expenses
(including
physical
moving
costs)
Impacting
Factors
for
Relocation
During
the
recession,
offering
reloca2on
assistance
was
a
challenge
for
many
companies
with
the
grim
economic
outlook,
budget
constraints
and
a
challenging
real
estate
market.
But
all
of
these
have
eased
in
recent
years
and
are
being
overshadowed
by
the
demand
for
a
strong
workforce.
According
to
the
Atlas
Van
Lines
2013
Corporate
Reloca2on
Survey,
company
growth,
an
improving
job
market
and
a
lack
of
local
talent
are
leading
to
more
reloca2ons
for
new
hires
and
transferees.
Therefore,
reloca2on
assistance
is
s2ll
playing
a
role
in
job
offer
nego2a2ons.
The
following
charts
(from
the
Atlas
survey)
show
the
key
internal
and
external
factors
having
the
most
impact
on
the
number
of
employee
reloca2ons,
by
company
size/number
of
employees:
S
By
Caroline
Drazin
2. Trends
in
Relocation
Assistance
Relocations
have
been
on
the
rise
since
2011.
In
fact,
in
recent
years,
relocation
volumes
are
increasing
at
a
faster
pace
than
relocation
budgets
(a
change
from
before
2009,
when
the
trend
was
reversed).
Atlas
Van
Lines
predicts
the
new
corporate
normal
will
be
“doing
more
with
less,”
or
more
relocations
on
less
budget.
In
2013,
the
Society
for
Human
Resource
Management
(SHRM)
conducted
their
annual
survey
to
determine
what
benefits
employers
are
offering
their
employees.
The
table
below
displays
results
regarding
Home
Relocation
and
Benefits:
Spring 2014 NavigatorIs Relocation Assistance Still on the Negotiating Table?
3. Spring 2014 NavigatorIs Relocation Assistance Still on the Negotiating Table?
A
few
highlights
from
SHRM’s
results
are:
• The
most
common
form
of
relocation
assistance
in
2013
(32%
of
companies
surveyed
offered
this)
was
a
one-‐time,
lump
sum
payment.
SHRM
cited
a
desire
to
avoid
copious
amounts
of
paperwork
and
administrative
hassle
as
the
reason
for
preferring
the
single
payment.
• A
lower
percentage
of
companies
provide
employee
home
buying
assistance.
The
results
revealed
that
the
companies
who
offer
this
benefit
may
do
so
in
the
hope
“that
homeowners
may
feel
more
rooted
in
the
community
and
therefore
less
likely
to
leave,”
according
to
SHRM.
Only
3%
of
companies
surveyed
provide
mortgage
assistance
and
down
payment
assistance,
respectively.
• The
percentage
of
companies
offering
rental
assistance
declined
50%.
• Location
visit
assistance
(helping
to
pay
for
the
employee’s
house-‐hunting
expenses
when
relocating)
and
temporary
relocation
benefits
(applies
to
employees
maintaining
two
households,
one
permanent
and
one
temporary)
declined
over
10%
between
2009
and
2013.
The
Atlas
Van
Lines
survey
reported
that
the
kind
of
reimbursement
a
candidate
will
receive
(full
reimbursement,
partial
reimbursement
or
lump
sum
payment)
varies
based
on
the
size
of
the
company.
Mid-‐size
and
large
firms
indicated
that
more
than
half
of
their
candidates
were
fully
reimbursed,
compared
to
small
firms
that
lean
towards
lump
sum
payments.
Regardless
of
size,
all
firms
used
partial
reimbursement
for
one-‐fifth
or
less
of
their
candidates.
Alternatives
to
Offering
Relocation
Assistance
When
a
company
simply
cannot
assist
with
the
full
cost
of
relocation,
there
are
creative
alternatives
that
can
suit
both
the
organization
and
the
candidate.
A
few
options
include:
✓ Telecommuting
✓ Sign-‐on
bonuses
✓ Ongoing
housing
assistance
programs
✓ Realtor
expenses
and
closing
costs
✓ Pre-‐move
counseling
✓ Tax
Gross-‐Up
Assistance
and
guidance
on
deductions
and
other
tax
implications
(see
Publication
521
at
the
IRS
website)
4. Spring 2014 NavigatorIs Relocation Assistance Still on the Negotiating Table?
Caroline
Drazin
is
Marketing
Coordinator
with
Helbling
&
Associates.
She
works
closely
with
our
search
consultants
in
developing
articles
and
blogs
about
talent
management,
career
development
and
executive
search.
She
may
be
reached
at
carolined@helblingsearch.com.
To
subscribe
to
Helbling’s
quarterly
e-‐Newsletter
and
New
Search
Alerts,
visit
our
home
page
at
www.helblingsearch.com.
Social
Media:
Blog:
blog.helblingsearch.com
Twitter:
@helblingsearch
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Conclusion
Should
new
employees
and
transferees
expect
relocation
assistance
to
be
part
of
their
negotiations?
The
answer
is
yes.
Over
the
past
ten
years,
nine
out
of
ten
companies
reimbursed
or
paid
some
relocation
costs
for
new
hires
and
transferees.
And,
while
in
the
latest
Atlas
Van
Lines
survey
the
number
dropped
to
approximately
eight
of
ten,
Atlas
states
that
the
main
reason
behind
this
decrease
is
that
more
small
firms
are
opting
either
to
not
cover
costs
or
to
offer
lump
sums
instead.
Full
reimbursement
or
lump
sum
payments
are
still
the
most
popular
methods
for
new
hires,
with
full
reimbursement
narrowly
in
the
lead.
Also,
most
firms
of
all
sizes
saw
stability
or
increases
in
budgets
for
relocation,
although
many
companies
will
be
aiming
to
do
more
with
less.
Relocating
for
a
new
job
can
be
expensive,
psychologically
draining,
and
time-‐consuming.
Luckily,
many
companies
still
alleviate
this
burden
by
offering
some
kind
of
relocation
assistance
to
those
professionals
they
really
want
to
have
on
their
team.
Sources:
Atlas
Van
Lines,
Society
for
Human
Resource
Management
(SHRM)