Relocation Package

A relocation package is a set of services offered by a company to employees or job applicants to support them during a transfer of location.

These packages come in various forms and styles, depending on the company, the employee's position within the company, their salary bracket, and the company's budget.

These packages are typically available when an employee or applicant is relocating internationally or within the same country.

However, many companies also offer packages for employees or applicants moving within the same region or city.

For example, if you are starting a new job and need to move to a different, more distant district, you can discuss the relocation package.

The relocation package is part of salary negotiations and should always be negotiated.

A privately managed move is usually significantly more expensive than a relocation package, especially if the employee lacks moving experience. A larger company has its partners, gets volume discounts, and can simply book the move as a business expense. In the long run, the costs of such a package are lower for the company than compensating for the employee's private relocation with a higher salary.

Another advantage: the company can retain the employee on a longer-term contract.

An international relocation package can include assistance with finding accommodation, rent, double salary (salary in the home country and abroad), fees for international schools, club memberships, a company car, assistance with selling real estate, plane tickets to familiarize oneself with the new location, and much more.

In most cases, such a package includes the moving costs.

These packages always reflect the company's economic situation, business structure, and future plans in the country where the branch is located.

Over the past 30 years, investments by American and European companies have shifted significantly from Latin America to Asia. However, the investment landscape in Asia is also rather subdued, and large relocation packages are the exception.

In South America, these packages have been meagre for the past 20 years; it is extremely rare for senior managers to be sent with their families.

Companies prefer to send single employees from lower management, and the packages offered, if any, are correspondingly small.

This effect is clearly visible in Brazil. São Paulo, once a cosmopolitan and international hub for international holding companies, has long since lost the American and European flair of the 1970s and 80s.

The relocation industry has felt the effects. Where once thousands of expats—managers, engineers, teachers for international schools, and their families—came and went every year, things have become much quieter.

If you receive a decent international relocation package today, you've hit the jackpot.

If your package includes moving expenses, you're already in a solid position.

Some companies offer unlimited coverage of moving costs, while others pay a fixed allowance.

If you receive unlimited coverage and choose your own moving company, you should make sure the moving company doesn't find out about this initially.

Your company can either directly cover all necessary expenses for you or provide you with fixed allowances. In the latter case, you'll receive fixed amounts for hotels or flights. This option is usually more cost-effective. You can play the thrifty card and look for cheaper flights and book hotels with one less star rating. Or book your accommodation through Airbnb.

If your relocation allowance includes a fixed amount, you need to clarify in advance how much your move is likely to cost. If you have a larger household and the costs of moving to the foreign location are higher, for whatever reason, this could give you a stronger negotiating position.

Your personal situation, your partner, your children, pets, your household, your living situation—all of this needs to be taken into account.

If you have recently purchased and renovated a property and consequently incurred higher financial obligations, this is relevant to your negotiations with your employer.

The moving costs are therefore just as important in your negotiations.

We can help you with this. We'll show you how to get the most out of your relocation package.

There are various ways to utilize relocation packages to gain logistical, time-related, and financial advantages.

For example, you can take care of things like real estate agent appointments, school visits, etc., during your first introductory stay... This way you can save yourself further flights later and use the money for the tickets for other things.

By shifting your focus right from the start, you can anticipate many aspects of your planning and make better decisions.

Most prospective expats completely waste their first visit. If you plan it thoroughly in advance and organize many things from your home country, you can get started right away. Everyone assumes you're just flying in for a casual visit. But you're already in a business-oriented mindset and won't waste any time. This way, you'll also get to know your new location much faster and see in advance whether it's a good fit for you.

If you'd like more information and want to learn how to better negotiate your relocation package, give us a call.

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