Companies may help their employees with the relocation process by offering financial assistance, information and support. Financial assistance may be offered as partial, covering specific components of the move, or as a set amount meant to cover all aspects of the relocation. According to a survey conducted by the Worldwide Employment Relocation Council, about 35% of employees are offered a lump sum (up-front cash or reimbursement allowance) only policy. 46% of employees are offered a lump sum in part policy. Some companies offer all the relocation allowance upfront, and it is up to the assignee to decide how and when to spend it. Other companies offer a certain amount per month or allowances per task and the assignee is responsible for finding a resource within that budget. Then, there are those companies that facilitate their assignee’s entire relocation through their internal and outsourced supply chain. These companies take care of all or certain aspects of the move by providing housing, transportation, moving of goods, and assistance with documents.
Much of the responsibility for the relocation is on the assignee. Making good business decisions is key to ensuring that your allowance is spent in a productive way, without overspending and incurring problems further down the road. When the sum offered by the company is substantial, it can be easy to mismanage the money if you’re not aware of all the different expenses you will incur or resources you need. It is always important to leave some money aside for unexpected expenses that might arise during the move.
Before beginning the relocation process, make sure you understand what type of financial assistance your company will offer and what the implications of this arrangement will mean in terms of time, taxes, and the work involved. Understanding the type of support and resources offered is also very important. Will the company help you apply for Social Security, pet movers, a car, school for the children, etc. or must you do the research yourself? Luckily, you have a friend in the community, we can help.