A relocation package is a benefit that companies offer to assist employees in moving from one location to another because the job requires it. When a company offers an employee long-term employment more than 50 miles from the current work location, a company may offer a relocation package. The package usually covers the employee’s reasonable moving and other work-related expenses, to relieve the employee and their family of the expensive burden of relocation.

A typical relocation package usually covers work-related and moving expenses, such as the costs of moving and storing furnishings, household goods, assistance with selling an existing home, costs incurred with house-hunting, temporary housing, and all travel costs by the employee and family to the new location. The package can also include other features to make the prospect of relocating more inviting, such as third-party relocation services, which involve a service provider that coordinates all of the employees moving needs.

There are different types of relocation packages, including lump sum packages, executive relocation packages, relocation bonuses, and relocation reimbursements. A lump sum package is when a set amount of money is directly given to the relocating employee so they can pay for the expenses that come with moving.

A relocation package is a recruiting perk that companies offer as an investment in their employees. By offering a strong relocation package, companies can attract quality candidates and keep their company competitive in the global job market. Relocating an employee is no small task, but the benefits are well worth it. When a company creates a welcoming, accommodating relocation package, employees receive the assistance they need at every step of the way, which can lead to higher retention rates and deeper employee loyalty.