Relocation Package Negotiations

While considering a job offer that involved relocating, there are some negotiation skills to understand in determining whether the relocation package offered to you is reasonable and able to make you whole in terms of reimbursement for your transition.

First things first-consider the whole package. This means that while the job may sound fantastic and the salary may appear tremendous, a careful review and comparison is required to look at the offer objectively.

Consider your new territory-what is the real estate market in your new location? How is it in your present location? Determining whether or not your property will sell quickly and for what price will give you an idea of what you are able to spend in your new location.Whether your present housing dollar will go further or not will assist you in what to request when responding to an employment offer.

Also, don't forget to compare benefit plans. Too many folks look to the actual cost of the plans as means of comparison. Look to the out of pocket costs (i.e., what is the co-pay at the physician's office) as well as the benefits (are all prescriptions covered or is there a formulary). These facts, while tedious, may make a significant impact on your new salary, particularly if your family has a special medical need.

Always negotiate specifics before accepting the job so that there are no disputes after the fact. This is particularly important in relocation expenses. If you are unsure about asking for relocation assistance, try to analyze your bargaining position relative to the prospective employer. Does the employer have many options? Are there many qualified local applicants for the same job? Or do you have unique skills unavailable in the local market?The responses may lead you to your answer.

Standard relocation packages include:

  • Cost of familiarization and house hunting trips for the employee, spouse and family;
  • Extra time off (with pay) for traveling and house hunting in the new location;
  • Moving expenses, including packing and insurance;
  • Travel expenses (lodging, meals, gas, etc.) while traveling to the new location;
  • Assistance in the sale of your current home: Company assumes responsibility for monthly payments, taxes and insurance until the home issold; price guarantee-if sold by the employee, the company will pay the difference between the net selling price and a specified price; alternative price guarantee-if employee cannot sell the house within a specified period of time, the company will buy it at a specified price; company will pay commissions and other costs of sale;
  • Assistance in the purchase of a new home: Company to pay rent of temporary quarters until a permanent home is located; buy down the interest rate; company may offer low or no interest loans;
  • A salary level commensurate with any increase in cost of living between the new location and your old location.

The most important factor, of course, is to get a final offer in writing.This will help to avoid unnecessary or uncomfortable disputes later.

This article is intended for informational purposes.Nothing in this article should be construed as legal advice or legal opinions regarding specific circumstances.

Article provided by Homesteader

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