Every company will offer a variety of relocation packages. These options are arrangement of monetary help, repayments, and different conditions. It all comes down to how money is handled and by whom. The following article will break down each type of relocation package that may work best for you.
Lump Sum
A business organization will provide a sort of allowance or certain amount of money that may be used to cover any moving expenses and assist the employee during their search for new employment opportunities. Although, you may have the freedom to spend the money in any way you would like, once it has been used up, extra expenses will need to be paid out-of-pocket. The overall intent of the lump sum package is to help employees get sorted out quickly, and to adapt to their new job and lifestyle. Some expenses this may cover are temporary housing, moving services, selling assistance. Read up on What is in a Corporate Relocation Package for further information.
Reimbursement
Reimbursement relocation packages are offered by the employer to cover any moving costs. Sometimes, there will be a set amount that will be covered and other times these costs will be paid back entirely. The best way to track expenses is to keep all the receipts as proof to be properly reimbursed.
Third-party Relocation
These are businesses that offer services to employees for their move, therefore being the intermediary for companies to manage and coordinate their staff relocation. A reason for this may be because companies are not large enough to support employee relocation thus sourcing externally. Many third-party relocation companies will provide information on relocation benefits, how to be reimbursed, and moving services. This makes the moving process carry on much faster and more efficiently.
Direct Billing
Essentially, this type of corporate relocation package involves the company collecting all the moving costs and choosing how many of the expenses they would be paying for. Oftentimes, this can be joint with lump sums and reimbursement packages for any additional services. This is quite an ideal package as it allows the employee to not stress about how they may be able to pay off these expenses and focus on their moving process.
Check out our blog for even more information.
Contact us at 416.731.1372 to learn more about our suites and to book!