If your company is in the beginning stages of creating a domestic relocation policy or updating your current one, there may be some questions from employees about the kind of benefits you will be offering. Most policies include most, if not all of the core benefits listed below. We have also included a look at some ancillary benefits that have become increasingly popular.
Home Finding Assistance – A home or apartment search in the new area, based on an employee’s specific requirements and preferences, taken after the employee has made a decision to relocate. Tours of appropriate communities, housing options, and other key area information will usually be provided. Home Finding Assistance can also include: area orientation, educational consulting, furniture rental, mortgage services, property insurance and auto purchase/lease programs.
Temporary Living – Assistance with establishing and maintaining a fully furnished corporate apartment as temporary residence at the new location prior to a permanent move.
Shipment of Household Goods and Automobiles – Professional moving services to transport personal property belonging to the employee and immediate family and including (but not limited to) appliances, books, clothing, furnishings and furniture.
Home Marketing Assistance – Home Marketing Assistance is designed to provide your employee with the expertise needed to efficiently sell a home in today’s marketplace. The ultimate objective is directed at generating a quick home sale at the highest possible price. The Home Marketing Assistance service provides excellent support and guidance, reduces selling time and eliminates unnecessary costs, minimizes disruption and stress, allowing the employee to focus on their family and new job, and maximizes the home value for the employee.
New Home Purchase Closing Costs – Your company would assist with expenses incurred in connection with the actual purchase and closing of property.
Lease Cancellation Expenses – A fee charged to a tenant or lessee in the event the tenant breaks the lease before the stated period of time in the lease has expired. Also known as Lease Termination Penalty. Some companies are paying all or a portion of this fee for their employee to be able to break their lease.
Final Move Expenses – Expenses associated with your employee and their families one-way travel to their new location for the final move.
Miscellaneous Relocation Expense Allowance – Generally covers expense items not otherwise specifically covered within the relocation policy. The Miscellaneous Expense Allowance is intended to cover incidental expenses that may include, but are not limited to: driver’s licenses and automobile tags/registrations in the new location, security and utility deposits, pet deposits, cleaning or maid service (new or old location), Home repairs or improvements.
Duplicate Housing – Payments made to an employee on an interim basis to cover mortgage interest, taxes, insurance and maintenance costs on one residence (former or new) when that employee is the owner and responsible for residences in both the old and new location.
Spouse/Partner Assistance – When an employee gets transferred, their spouse/partner moving with them will more than likely have to find a new job. Your company can offer support such as setting them up with a recruiter to help find the spouse or partner a new job, offer interviewing skills training, finding a job for the spouse within your company, exchange resumes with other companies in the new location, etc.
Loss on Sale – Your company would reimburse the relocating employee for a portion of their loss if the employee ends up selling their current home for less than they originally paid for it. It is important to state in your policy which level employees receive the Loss on Sale benefit.
Enhanced Home Sale Programs – From reimbursing home selling cost to full service, tax advantaged programs such as the Buyer Value Option program, Guaranteed Offer, or Amended Value program.
Payback Agreement – If an employee voluntarily leaves the company within a specific period of time, the employee must repay to the company all or a portion of any relocation expenses, including gross-up, incurred by the company.
If you have any questions about these benefits or would like OneSource Relocation to review your current or new domestic relocation policy, let us know. Our OneSource Relocation team has decades of relocation experience under our belts, and we have been able to help many companies update or create their relocation policies to help attract new talent and save money.