Taking a job in another city or country should be good for your career and your finances, otherwise, you would not be doing it. However, before you reap all the benefits, you’ll face a significant financial setback – relocation. It comes with more costs than some of us can afford. Regardless of your current financial situation, it is reasonable to expect your employer to cover some of those costs. So, when negotiating a relocation package, you should make sure you get proper compensation.
Why is moving expensive?
Relocation involves numerous expenses. Perhaps none of them are too high individually, but they really do add up. First, you need to hire moving professionals NJ to transport your stuff, or at least rent a truck or a van. Then, there’s buying packing materials, maybe even paying for storage. In addition, you need to get yourself to the new location. It can all add up to tens of thousands of dollars! Since you no longer have the possibility to deduct work-related moving expenses on your taxes, you can’t get the IRS relief like so many people before you.
What most companies offer
Different companies have different policies, although the larger ones offer a standardized compensation package. What they offer depends on the city, industry or your position in the company. Still, some common expenses are typically paid for. Here they are:
- Moving fees. Your company may have a long collaboration with good commercial movers NJ who can execute your move as well.
- Temporary accommodation costs.
- Help in selling your old home in case you own one.
- Costs of traveling back home if you move before your family does.
- Job search assistance for your husband/wife.
Key points of negotiating a relocation package
Take our advice on negotiating a relocation package if you wish to complete the move financially unscathed.
How to prepare for negotiating a relocation package
- Find out about other companies’ relocation policies;
- Find an employee from your company who has moved for work recently and ask about their experience with negotiating a relocation package;
- Talk to your employer’s HR department and ask if they have a written relocation policy or if they provide standard benefits;
- Consult your recruiter, in case you are using one.
Is the employer paying for the movers?
The final cost of your relocation depends on numerous factors. These include the size of your home, the distance, whether you’re moving specialty items, whether you need a storage facility, whether you use packing services, etc. You can get a free price estimate from moving companies before you hire them. This way, you’ll know how much different companies are charging.
Discuss the offered estimates with the employer who suggested the move and see what they have to say. Perhaps, your employer will agree to cover all the costs or just some of them. For example, they could pay Jersey City movers to relocate your belongings but refuse to pay for the storage facility. Once you find out how much you have to pay out of pocket, you will be able to conclude if you can afford the relocation.
Is the new salary enough for you?
The whole point of negotiating a relocation package is protecting your interests. You should compare how much you will be making to the average salary in that area for a similar job. There are some useful websites that provide this kind of information. The decision to move for a job is often induced by a higher salary. A salary that is below average is something you should not accept without a truly valid reason.
Think about the living costs
It is crucial that you get informed about the living costs in the city you are moving to. The same salary won’t feel the same in a rural area in comparison to a metropolitan city. Is the company paying for your accommodation? How much do you need to pay in advance? Housing prices, utilities, property and income taxes will be among your major expenses. So, take all of them into consideration when doing the math.
Unique moving expenses
In addition to the universal moving expenses most people have, there are those less common ones. For example, you may need to pay for a nanny or your kid’s school. If you are moving to another state or country, gathering the necessary documentation will add to your expenses. In case you are moving with a pet or a family member, make that double or triple.
Get the agreement in writing
After you reach a deal, make sure you get a written agreement. Do not take anyone’s word for it. A formal contract is not a must. Still, your employer should sign a letter containing details regarding the assistance you get from the company.
Does negotiating a relocation package really work?
It should. It is definitely worth a try. If your new company is aware of your financial situation and they should consider paying you accordingly. What we are trying to say here is – don’t be shy to ask. What is the worst thing that could happen? If they say “no”, you still have your current job. Regardless of the standard policy, many companies will negotiate a relocation package to address your distinct needs. However, you won’t reach your goal unless it is in the company’s interest, too. Therefore, your new employer needs to see how they can benefit from your ideas.