What's a typical relocation compensation?

[vi edit]

Sometime in May I'm going to be moving from Iowa to Phoenix because my company is opening another corporate office they want me to work out of. My wife will stay in Iowa for a year and live in our home that we have a mortgage on. I'll rent out an apartment in AZ near where I'll be working. When I move down, I'll be moving very light - couch, tv, clothes, and a bike. That's about it. I could easily fit everything in a small Ryder truck.

In a year when my wife comes down, we'll bring down the motherload of stuff from our home.

When the owner of the company asked me if I'd be willing to move down there, he said think about what you'd want for compensation and moving costs and come back to him with it. Since I've never done anything like this, I really don't know what to ask for.

The actual cost of moving truck for sure, but what else? A month or two worth of rent? Closing costs on a house next year? Reimbursement of realtor's fees if I need one to sell my current home?

One piece of leverage that I have, is that regardless of what I did with my current home, I would still travel back up to Iowa for a week every 4-5 week to work in the Iowa office. If my wife wasn't staying in the house up here, my company would be looking at paying for a weeks worth of hotel room costs. Now I've basically got free room and board since I'd stay in our home for a full year. That's a significant amount of money saved, and could maybe use that for negotiating.

Anyone been in a similar situation?




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Anandtech Administrator
KeithTalent

 

[PremiumG]

when my buddy found a job out of college, they wanted him to work in another state... his relocation $ was about 1 month's worth of salary

 

[ShOcKwAvE827]

My brother got a job with intel @ their sacramento offices. They gave him 6K to move from TX.

 

[rh71]

I think it was 3 months salary that was to cover all expenses (and your lifestyle change). Depends on what you do, of course.

If I was asked to do it, I wouldn't. Only if I were single, had no ties, and wanted new scenery.

 

[BigSmooth]

When I was relocated a few years back, my company paid for the following:

all moving costs (including packing materials, professional movers, etc.)
shipping my cars to the new location
airfare to the new location
roundtrip airfare back home for Christmas (I asked for this because they wanted me to move on short notice right before the holidays)
an extended-stay hotel while I looked for an apartment

Overall, I think the company spent about $7-8K total for my relocation from Portland to D.C. Not a lot since I was somewhat low-level at the time. Since I'm in accounting, I know they spent nearly $30K to relocate a new COO a few months later, although I don't remember exactly what that included.

I think it basically depends on your position in the company. If you don't ask for anything exorbitant, you'll probably get it.

 

[Atlantean]

When my neighbor moved from Kelowna, BC, to Dubai (in United Arab Emirates), they paid for all his stuff to be moved out there, his house there, for his kids to go to private school (that costs 17k a year), and gave him a raise.

 

[vi edit]

Hmmm...hadn't really thought about putting in into a monthly salary perspective. That seems like a good way to look at it.

3 months of my salary right now would *easily* cover the truck rental and a good 7-8 months rental in a nice apartment in a good part of town.

Our biggest concern was having to cover two households worth of payments. We can do it with our current income, but it would be pretty tight.

 

[Narse]

When I moved from Atlanta to Orlando I was given 5k for the move.

 

[kranky]

The fact that you won't require reimbursement for the weeks you are back in Iowa is a definite bargaining chip.

Figure what that will save them in a year - my guess is about $8-10K. Let's call it $9K.

Negotiating something like this is very dependent on what your company is like, but I'd start with this:

First, figure out all costs of moving to Phoenix, including utility installs, new driver's license, license plate, etc., one month extended-stay hotel while you find a suitable apartment, closing costs on both selling your old home and buying a new one. Let's call this "moving costs".

Now, depending on what that adds up to, see what your bargaining position should be.

A. Moving costs far exceed the $9K: Early on, point out that they will not be absorbing the $8-10K and this should be part of the overall picture. Then always take that $9K number out of the total when you talk about the total amount.

B. Moving costs are about equal to the $9K: Ask for everything and the kitchen sink to be reimbursed, including 3 months salary. If they balk, bring up the $9K savings and show that it's not costing them practically anything. If they still balk, you could hint that if visgf decides to move down with you early, they would have to absorb the extra cost of you being back in Iowa, and you could graciously offer to pay that out of your own pocket if that happens so they can't be blindsided.

C. Moving costs are well below the $9K: Ask for a couple months' salary plus the $9K, explaining that it's really not an extra cost, but it would simplify things to be able to do a lump-sum deal instead of tracking tons of receipts and generating lots of paperwork on both sides.

If you end up with a deal that covers your closing costs on the old and new homes, get an agreement that these costs are covered even if you don't do the home transactions for 18 months. You could agree to reimburse them for those costs if you choose to leave the company in the next two years.

The risk of asking for closing costs to be paid for a home sale that won't take place for a year is that if you part ways with the company before then, you are stuck. That may not be an issue for you, however.

 

[damiano]

i got 20K bonus / reimbursment to move from NYC to santiago Chile for 2 years

 

[notfred]

I have no idea what to ask for, but that'd have to be one hell of a job to move me halfway across the country. I like it in California.

 

[Bryophyte]

We got 11K to move from Davis CA (near Sacramento) to the Portland OR area two years ago.

 

[RU482]

When my wife took a job out of state, they packed our house and hauled our goods and vehicles. They also gave us a credit card with ~ a month's salary on it. ($4500, IIRC)

This was for a new hire fresh grad chemical engineer at a pharmacutical manufacterer, going from Cedar Rapids to Indianapolis

 

[Ogg]

Originally posted by: damiano
i got 20K bonus / reimbursment to move from NYC to santiago Chile for 2 years

Cant you get me a job too???????

 

[EagleKeeper]

Indiana to Las Vegas.(different company)


Company covered cost of move.
Moved two vehicles by truck.
covered cost of driving two vehicles.
Expenses covered for the drive.
30 days temp housing/expenses for family members.
60 days temp housing/expenses for me.
$8K signon
$1K misc expenses re-embursement.


Florida to Indiana. (different company)

Company covered cost of move.
Covered cost of driving two vehicles.
Expenses covered for the drive.
30 days temp housing/expenses for family members.
60 days temp housing/expenses for me.
R/T airfare every 2 weeks until moved the family (3 months)



San Diego to Virgina.(Same company)

Shipped two vehicles
Covered cost of driving one vehicles.
Expenses covered for the drive. 300 miles per day.
30 days temp housing/expenses for family members.
60 days temp housing/expenses for me.
1 month salary.
Housing expenses to close out lease and start new one.

A lot will depend on the value of you to the company and if they feel that you are taking advantage of the situation.