![]() ![]() “There are a lot of hidden costs that can be quickly forgotten if the relocation is not managed properly,” she added. Keilich, founder and managing director of ExpatsGuide. But it’s difficult to understand an employee’s needs before they start the relocation, said Ilona A. ![]() Just like with a competitive corporate benefits package, relocation perks may affect how attractive a role is to candidates. There are many approaches and options to consider when creating an employee relocation package. What does an employee relocation package typically include? Because of those changes, which also ended the IRS 50-mile rule, relocation is more expensive than it used to be. ![]() The Tax Cuts and Jobs Act of 2017 essentially removed relocation expense tax exemptions and deductions. This prevents the employee from having to pay out of pocket. A tax gross-up is when an employer increases the gross amount of a payment to an employee to take the withheld taxes into account. While most of those items are self-explanatory, “relocation tax gross-up” is less familiar to most people. Storage units or other temporary storage solutions.As companies create relocation budgets, they can estimate how much a particular relocation effort may cost by considering the following expenses for the employee: Though the final cost of an employee relocation package varies, there are ways businesses can calculate and reduce these expenditures. The range depends on whether the person is a new hire or a current employee. The average relocation package costs between $19,309 and $24,216 for renters and between $72,627 and $97,116 for homeowners, according to American Relocation Connections (ARC), a corporate relocation group. Relocating an employee can be a costly endeavor for companies. How much do employee relocation packages cost? You can attract strong talent by making the move easier and less expensive. The study also found that “smaller to midsize companies most commonly relocate their employees” compared to larger businesses.Ī relocation package can help a new hire or a current employee move to a new city, state or country for work. With a good job opening and the right employee relocation package, businesses can attract candidates from all over the country or even the world.Ī post-pandemic survey by moving company Allied found that nearly 37% of people would move for “career advancement or the opportunity to make more money,” and 64% said they had received a compensation package for moving for work. But if an organization is looking for qualified staffers outside its geographic area, this kind of offer could entice a great candidate to move closer. If a small business is comfortable building its workforce locally, then it doesn’t need to worry about an employee relocation package. For example, tech companies like LinkedIn and Spotify typically offer relocation perks. This type of assistance happens more often in certain fields than in others. What is an employee relocation package?Īn employee relocation package is a financial benefit that companies provide to assist new and current employees in moving from one location to another because the job requires it. ![]() With the proper consideration and forethought, an employee relocation package can benefit all parties involved. But what happens if the best candidate lives far away from the prospective employer? In many cases, the answer is an employee relocation package.
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