Relocation Package Negotiation
If you are taking a new job, you might
be entitled to a relocation package provided by your new company. Knowing
about the relocation packages in general as to what all moving costs (and
other costs) are paid by the company will place you at a position where you
can negotiate a relocation package suited to your requirements. Also, many
companies will try to save on a considerable amount on relocation package if
they get some hints about your previous interests in moving to the area or
any other such issues. You have to, in such situations, deal smartly so that
you are able to get a relocation package negotiation that is any employee's
right. However, before setting for a negotiation, you must know about the
average relocation package- about what provisions are generally included in
corporate relocation packages.
Average Relocation Package
Some corporations offer to cover some
or all of the relocation costs for their employees who move at the company's
request. Larger companies generally offer a more elaborate relocation
package than smaller firms do. An average relocation package generally
includes the following provisions.
Transportation costs-road, railways, air fares or any other mode of
transport for the employee and family is included in relocation packages.
Moving Cost- The entire moving cost right from packing employee's
household belongings, transporting them and unpacking the things in new home
is provided through relocation packages.
Housing assistance- relocating employees are given assistance for
finding an appropriate house and neighborhood. Other housing assistance like
signing a lease and inspecting a home, arrangements for phone service etc.
may also be provided. Compensation packages that include a housing allowance
on the basis of location and cost of living may also be provided. Some
corporations even provide assistance in selling or renting the present home
of the employee or in terminating a lease, if required.
Family settling assistance- essential help regarding admission of
children in school, employment assistance for trailing spouse, finding day
care center for kids and aged parents and such other support for getting the
employee's family settled at the new location is provided, generally through
some relocation service firm.
Documentation- your company appoints or have certain contracts with
consultants to arrange for necessary documents including visas, work permits
and other paperwork related to your move.
Financial assistance- the relocating employee is provided with
assistance regarding financial matter such as advice regarding the new
country's banking and financial systems. Mostly the relocation service
firms, appointed to take care of relocation packages, help in setting up the
appropriate bank accounts and in dealing with other financial issues.
How to Negotiate a Relocation Package?
Knowing about all the above
provisions that are generally included in a relocation package makes you
more knowledgeable- a prerequisite for any negotiation. If you see that the
company is cutting on any of the basic provision of relocation package, you
should always stress on including them. There are certain other tips that
you must follow while negotiating for relocation package.
- Gather knowledge about the exact standard relocation package policy
of the company beforehand. You might also directly ask about it during
the job interview itself.
- When you receive a communication from the company that shows their
interest about hiring you, analyze your own position. Be as neutral
while doing this as possible. Ask some questions from yourself and find
out the answers if you do not know them- does the employer has a high
hand and has many options available with it? Whether many qualified
local applicants have applied for the same job? How distinguished
candidate are you compared to them? Do you have some unique skills that
is not available in the local market? Are you quite experienced and have
you properly projected how your experience can make a difference to the
company? Answer them without any bias and you will get to know how far
you can push the company for added benefits in the relocation package.
- If you have been planning to relocate to that area where the company
wants to send you, take care not to disclose this to the company
otherwise the company may cut certain provisions from the relocation
package assuming that you have already made arrangements for moving to
the area.
- If you are in a position to ask for more in your relocation package,
give a hint to the company about other offers from other companies but
also let them know that how interested you are in joining their company.
Let them know that in spite of your liking their company, the deciding
factor will be the favorable relocation package offered by any company.
- However, if you see that the company has some other option (besides
you), and you really want to move to the place, don't be too rigid while
negotiating your relocation package. If a company offers you a little
less than 'actual relocation cost,' try to negotiate on other points
like a somewhat increased pay or a provision for paying certain bills
etc. However, this will all depend upon the true value of your
'capability as a good employee for the company' and also the options
available to the company.
So, the key to a good relocation package negotiation is a true and unbiased
analysis of yourself and the company's position. Whoever is in a strong
position will have a high hand during negotiation!
Read more on
Employee Relocation
