You just got done with a phone interview for a job that you put in an application for a few weeks ago. Everything went great and they want you to start within the next month which is awesome but there is just one hiccup. It’s states away from where you currently live.
The job sounds great but unfortunately, you can’t afford to pack up and move right now. Instead of turning down the job, you should negotiate a relocation package. Most jobs offer one and it’s the best way to relocate even if you do have the money to up and move.
This isn’t the end to the benefits however, keep reading to see all the reasons why you should talk to your new boss about a relocation package.
1. Why You Want to Start Negotiations
Most bosses will send you a relocation letter sample that has all the details of your relocation package on it if they offer one. From there, you can open up negotiations. Here are a few key benefits that you should be looking out for.
Scouting
Just because you’re okay with moving, that doesn’t mean your family is. In fact, they may be quite skeptical. This is why you should talk to your new boss about giving you the funds to make a few trips to the new area.
This not only will introduce your family to the new state they will be living in but also gives you the chance to look at potential housing options and schools for your kids.
Temporary Housing
Moving to a new state and starting a new job is stressful enough without having to throw in finding a home on top of it. It gives you a chance to actually look around for a place rather than jumping into a rent contract with the first place that seems promising.
Since you aren’t being rushed you’ll be able to research areas and school districts to find a home that everyone can agree on. Temporary housing is probably one of the best relocation perks because of this so you’re going to want to be looking for it.
House Packing and Transport
Moving expenses are no joke. Sometimes your boss will be willing to pitch into it a little bit by including house packing and transport in the relocation package. This can go one of two ways.
Either the package will only cover the transportation of your things from one state to another or it will cover the transportation and all the money you throw into packing. Regardless, it’s wise to keep all your moving receipts so you can show it to your boss later and see if there is anything they can do about reimbursing you. It may not go anywhere but then again, you may be pleasantly surprised.
Storage
Sometimes finding a home in your new state takes more time than you like. Sure you can get a hotel in the meantime but you can’t keep everything you own there with you. You’ll have to find a place where you can store it.
Renting a storage facility can get expensive depending on how long you have to keep your stuff there though. Your new boss may be willing to pitch in the money to store your things while you’re searching for your new home.
Other Expenses
Again, moving expenses are no joke and while you would love for it to go smoothly, something unforeseen always manages to put a hitch in things. You could get a flat tire or two in the middle of traveling.
You’re a human being who gets hungry after so long. Strange we know. Perhaps the travel is simply too long and you need to stay in a hotel for a night.
There are a number of additional moving expenses. Some companies will be willing to float you a small stipend to account for random circumstances such as these.
2. Package Types
Now that you know what can be included in your package, we’re going to go over how you’ll receive it. The most common methods are a lump sum, reimbursement, and direct billing
Lump Sum
The company will decide a certain amount of money to give to you that you can use to move. You’ll be given all it in one lump sum and once you spend it, that’s it. If you need more moving money you’ll have to dip into your own funds.
Reimbursement
You’ll pay for all your own moving expenses and the company will pay you back for it. You’ll have to keep every single receipt that is involved with your move so the company knows how much to give you and why they’re giving it to you.
Keep in mind that they may not pay you back for everything. Usually, they decide beforehand how much they’re willing to spend for your move and give you money equal to that.
Direct Billing
This is usually used when the company is coordinating the moving services. They pay for all or some of your expenses directly. This money usually comes as a mixture of reimbursement and a lump sum.
This method takes a little bit of work away from you because the company hires the moving service. You won’t have to hunt around for one.
Negotiate a Relocation Package Before You Start Your Next Job
Starting any new job can be fun but stressful. This is especially true when you have to move multiple states away, find a new home, and research school districts for your kids all while packing up your things. Negotiate a relocation package with your new boss to lift some of this heavy weight off your shoulders.
It could be possible that a relocation package can’t be negotiated so you have to pay for the entire move out of pocket. If you have enough money in your savings account you should be fine. Keep reading to find out how basic financial planning can help you with that.
