What’s included in a relocation package? How relocation assistance can help you with a pending move

Moving to a new job and home at the same time is one of the biggest life decisions you’ll make. Yet, relocation for work is increasingly popular. Preply’s Language and Global Career Mobility Report of 1,800 people across the US, UK, and Canada found that 81% of people are more likely to relocate now than two years ago. Among these, 41% wish to pursue opportunities unavailable at home, 36% want to start over in a new environment, and 22% seek a more secure footing.

Key Takeaways

• A relocation package is a set of employer-provided benefits covering the costs and logistics of moving for a job, whether for new hires or existing employees transferring locations.
• Packages typically follow one of four models: lump sum, reimbursement, direct billing/fully managed, or core flex.
• Common inclusions are temporary housing, moving and transportation costs, house-hunting trips, family support, tax assistance, and visa help for international moves.
• Package size depends on factors like seniority, homeowner status, family size, destination, and company budget.
• Understanding how your relocation package works upfront, including what’s fixed versus flexible, helps you make the most of the benefits available to you.

 Whatever the reason for relocating, it’s a move made easier when your employer offers financial and logistical support. This guide explores what an average relocation package looks like, how it might be structured, and how to make the most of your employer’s relocation assistance. 

What is a relocation package? 

A relocation package is a set of benefits provided by an employer to help cover the costs and logistics of an employee moving for work. It can apply to new hires joining from another city or region, and to existing employees transferring to a new location.

Relocation packages can look very different from person to person and from one company to the next. For example, an employee with a spouse and school-aged children will need a more supportive package than an individual worker with no dependents. But the value and breadth of benefits will vary widely depending on your company and your role within it. 

4 types of relocation packages 

Understanding how your employer structures its relocation packages will have a direct impact on how you plan and budget for your move. Usually, your package will fall into one of the following categories. 

1. Lump sum 

A lump sum relocation package involves your employer providing a single payment to support the cost of relocation expenses associated with your move. You have control over how you wish to allocate the funds to pay your moving, packing, temporary accommodation, and transportation bills. 

2. Reimbursement 

In a relocation reimbursement model, you’ll be expected to front the cost of your move, and submit expense receipts to be reimbursed later. Your employer will usually provide an approved relocation expenses list to guide your spending and ensure there are no surprises later. For example, the list might confirm that professional moving costs and temporary housing are covered, but personal travel or home upgrades are not. 

3. Direct billing or fully managed 

In a fully managed relocation package, the company pays third-party relocation vendors directly, often within a capped budget, which removes any financial burden from you. It’s a highly supportive experience, and is usually only available within larger companies, or for more senior roles. 

4. Core flex 

A core flex relocation package offers the best of both worlds. This option provides a core selection of essential relocation benefits, such as corporate housing and travel expenses, alongside a menu of flexible benefits you can pick from, according to your needs. These might include child and elder care expenses, or house purchase assistance, for example. 

What’s typically included in a relocation package? 

Every employer will offer its own spin on the type and level of support they’re willing to provide you. But typical relocation packages often include the following. 

Housing and temporary accommodation 

Most packages include temporary housing to bridge the gap between arriving in your new city and finding a permanent home. Relocation packages typically cover 30 to 90 days, and can range from a hotel to a furnished apartment, like those offered by Blueground. The latter is a more practical choice for longer stays, giving you a proper living space and a neighborhood to settle into from day one.

Moving and transportation costs 

The cost of physically moving you and your belongings from A to B is a core relocation expense, covering professional movers, storage, packing services, and insurance for your goods in transit. It also includes travel costs for you and your family on moving day, and even vehicle transfer if you need help driving or transporting your car or van to a new location. 

House-hunting trips 

Finding a home before you’ve moved is made easier with pre-move trips to your new city, giving you the chance to explore neighborhoods and view properties before committing to a move. Covered expenses usually include travel, accommodation, and meals.

Family support 

A relocation affects everyone in your household, which is reflected by more comprehensive packages. Support can include spousal job-seeking assistance, school search services for children, and in some cases, elder care provision.

Tax assistance 

Relocation benefits are usually treated as taxable income, which catches many employees off guard. Many companies offer a tax gross-up, which is an additional payment to offset your tax liability. But it’s worth confirming this with your employer upfront.

Visa and immigration support 

If you’re moving internationally, this package feature covers the costs and administrative support associated with obtaining the necessary visas and work permits for you and any accompanying family members.

Miscellaneous allowance 

A small buffer may be available to cover incidental costs that don’t fall neatly into other categories, such as utility hook-ups or replacing household items that can’t be shipped. For international relocations, this might also extend to additional support like language lessons and cultural training. 

What factors affect the size and scope of a package? 

One of the most important variables influencing the breadth of your relocation packages is who initiated the move. According to Andrea Picton, a global HR director with 20 years of experience across companies like Gartner, EY, Haleon, and Chelsea F.C., “If the business needs you in a different location, they’ll move mountains to get you there.” In contrast, employee-driven relocations, whether for personal reasons or lifestyle choice, tend to result in minimal support. 

The following factors also have a strong influence: 

• Seniority: If your role sits higher up the org chart, you can expect to unlock more comprehensive, managed packages rather than a simple lump sum. 
• Homeowner status: A renter’s package will be relatively basic, although may include the cost of lease breakage. A homeowner’s package may include home sale assistance, closing costs, and real estate fees on top of everything else. 
• Family size and dependents: More family members means more travel, more housing space needed, and potentially school search assistance or spousal job support. 
• Distance and destination: Your employers will likely factor in the cost of living in your destination location, which can impact the level of support available to you. Similarly, international moves add further complexity around visas, tax compliance, and cost-of-living adjustments. 
• Company size and budget: Business affordability is also key. Melissa Duncan, founder of HR Exec and fractional CHRO for a range of different-sized organizations, says “I have seen the range vary from a flat rate of what the company can afford to being based on a percent of salary. I have seen $X be all that is left in a hiring budget and that is all that can be offered.”

How to make the most of your relocation package 

While you may not always be able to influence the contents or value of your relocation assistance, there are still plenty of ways you can make the most of it. 

Understand exactly how your package works 

Learn as much as you can about your relocation package upfront, so there are no shocks or surprises along the way. For example, you don’t want to discover you should have been keeping receipts to file as reimbursement claims. 

Know that package components aren’t interchangeable

While certain elements of a relocation package may be negotiable, especially if discussed early enough in the process, Picton warns that many elements are simply fixed: “If you’re given 30 days of temporary accommodation, you won’t get the cash equivalent if you don’t use it. And it won’t be rolled into rent if you find a long-term rental property quickly.” 

Prioritize the must-haves early

If your employer offers your relocation package as a core flex or lump sum payment, be intentional about how you plan to spend the budget. Duncan suggests asking, “Is it worth it for things like hiring someone to pack your boxes vs. doing it yourself and reallocating those funds to the move itself?” 

Build in extra time for your move

It’s important to be realistic about the timings of certain moving services. Andrew Bennett, a senior relocation consultant for a global mobility company, makes the point that employees often assume “an air freight will travel in the same manner and at the same speed as a passenger.” In reality, you should be prepared for a delay before receiving your belongings if you’re moving internationally; the shipment must pass through both export and import custom procedures, which often takes considerable time. This is one reason many employees choose to move into furnished apartments first, such as those offered by Blueground, while they wait for their belongings to arrive.

Factor in tax 

Most relocation benefits are taxable income, which means you may see it on a W-2 form—your wage and tax statement. In Duncan’s experience “most companies will ‘gross up’ the package to cover some of the tax burden,” but it’s always worth asking this upfront before accepting the package.

Settle in your new home faster with Blueground 

A relocation package can take much of the stress out of what is a huge personal and professional undertaking. Having the right support in place makes all the difference, especially with the housing piece, which is often the most logistically complex part of the relocation puzzle. 

Blueground specializes in furnished, move-in-ready apartments for relocating employees, offering flexible terms and a seamless, tech-enabled move-in experience. Rick Moreno, an employee in the energy industry, relocated to California through Blueground and describes the experience as entirely painless. “I just showed up with my bags, moved right in, and I didn’t have to worry about anything else. The amenities are incredible. There’s always something going on. People are barbecuing, hanging out, there’s a public workspace, and all the business services you would need.”

Learn more about what a Blueground stay looks like and start exploring apartments.

FAQs about relocation assistance for employees 

What is relocation assistance? 

Relocation assistance is financial and logistical support provided by an employer to help cover the costs of moving for work. It can include temporary housing, moving expenses, travel costs, and family support, and may be delivered as a lump sum, reimbursement, or fully managed package.

What is a good relocation package? 

A good relocation package covers your core moving costs, such as housing, transportation, and travel, while reflecting your personal circumstances, such as dependents and homeowner status. The most competitive packages also include tax assistance, family support, and flexibility over how benefits are used.

How do relocation packages work? 

Relocation packages provide employees with financial support to cover the costs of moving for work, either upfront as a lump sum, through expense reimbursement, or via direct billing to third-party vendors. Your employer’s relocation policy will outline exactly what is covered and how to claim.