The relocation packages are expatriation services that companies use to attract qualified personnel from other countries, reducing the costs related to the move and providing them with comforts in a labor and emotional sense.
The relocation package is also used when companies open new branches in other borders and need to send human talent for the project and daily work.
In this post we explain each of the benefits included in the employee expatriation package and how much they usually cost.
But before…
What is a relocation package? It is a service that includes a series of benefits for the employee and their family nucleus to move to a new country or city to work, thus facilitating the geographical, emotional, legal and labor adaptation for the person.
Organizations that want to build their workforce based on foreign talent take advantage of these packages to make the job offer more attractive to the employee.
What does an expatriation or relocation package include? The reality is that companies are autonomous in selecting the benefits offered by their employee relocation packages.
However, the general coverage of these packages includes the following advantages.
Relocation reimbursement Moving from one country to another is expensive, which is why most companies that request a relocation package offer reimbursement for the cost of the move to their employees .
This benefit also includes payment for transportation insurance.
The way in which the companies make the relocation reimbursement varies, being that they pay the amount of the move before the transfer or when the employee joins the work team.
Flexible work start date Companies are flexible with employees regarding the start date of work activities due to the complexity of adaptation and moving times.
Thus, there are occasions in which the employee can start working 1 month after being hired.
Of course, times vary depending on the type of company and your experience in expatriation packages.
Previous visits to the destination country There are many organizations that offer paid tours to employees before they are hired to introduce them to the culture and country to which they will be moving.
On these trips, he also usually helps the employee find housing and get to know the place where he will live.
Inclusion of the family in the relocation package This is one of the best benefits of the employee relocation packages because it helps the employee to move with his family to the new country .
In addition, they provide the necessary support for the employee's partner to find work and, if there are children, place them in a school.
Temporary accommodation for cost reduction It is a service that helps corporate organizations to reduce large costs in hotel payments.
This is because a temporary accommodation company is contacted for a relocation package and it provides air-conditioned, comfortable and conditioned spaces for employees.
Temporary housing also makes it easier for new workers and their families to adapt to the environment.
Financing of real estate costs In the event that the contract with the employee is very long, companies offer the option of selling the worker's current home to make it easier for him to move and not have to worry about managing the sale himself.
There are even occasions in which companies buy the houses themselves and then take charge of selling them.
In cases where there is a current lease contract by the applicant, employers are responsible for disbursing the amount required for the termination of the contract.
Undoubtedly, the financing of real estate costs makes the job offer more attractive.
Attractive salary adjustments When companies decide to relocate their employees to other countries, they offer more competitive salaries and extra bonuses that motivate the worker to accept the change.
In fact, there are times when the cost of living, if it is higher than the current place of residence, encourages organizations to offer higher salaries than normal.
And this is more beneficial in places with high tax rates.
Free tax and financial advice Some companies include financial aid in their relocation package so that workers can open bank accounts , manage payments and know the tax guidelines of the destination and that there are no surprises in the future.
Assistance and medical expenses Another advantage of employee expatriation packages is that they include medical assistance for workers and their families.
placement of vaccines is managed , if necessary, for all family members.
In addition, travel insurance is provided to guarantee the health of those involved.
Of course, there are cases in which not all the aforementioned medical coverage is offered, so workers are recommended to seek advice on this issue and, in the event that the relocation package does not include medical insurance, ask if they have advice.
Kindergartens and schools for children Some job relocation packages offer childcare and school services for the children of employees.
Best of all, they include the search for the little ones at school, visits by parents to choose the most appropriate one, and advice for registration and admission procedures .
Language and culture training A new language, a different culture, and unfamiliar customs can make it very difficult to adjust and decrease employee performance at work.
For this reason, some relocation packages include language training so that the family learns to communicate in their new country.
In addition, they offer classes on the culture and customs of the region that make the transition easier.
Processing of legal permits and visas The processing of work permits and visas can be very complicated and tedious, which is why there are organizations that include these procedures and advice in their relocation package.
This reduces the time and effort that the employee must invest in these efforts.
Repatriation at the end of the contract At the end of the contract, the companies are in charge of helping the worker and his family to return home, in the event that an extension of the employment relationship is not carried out.
There are contract conditions that provide this possibility to employees who are not satisfied with the conditions and who want to return to their hometown or country.
Price of the relocation package The price of the relocation package depends on the working conditions, what the package covers and if we are talking about an employee who will be a tenant or owner.
In this sense, the average cost of the relocation package is between €19,000 and €25,000 when we talk about tenants , while for owners it is around €70,000 and €100,000.
If these expenses are evaluated against what a company would have to spend to do it on its own, the economic savings are considerable.
In addition, the procedures for temporary accommodation and housing for families are much faster, cheaper and easier.
Undoubtedly, a very affordable and appropriate expansion option for international human talent.
Frequently asked questions about relocation packages What is a relocation package? A relocation package is a set of benefits a company offers an employee and their family to move to a new country or city for work, covering the geographical, emotional, legal and professional sides of the move.
What does a relocation package typically include? Coverage varies by company but commonly includes move reimbursement, a flexible start date, pre-move destination visits, family inclusion, temporary accommodation, salary adjustments, tax and financial advice, medical assistance, schooling for children, and language training.
How much does an employee relocation package cost? On average, relocation packages cost between €19,000 and €25,000 for employees who will rent in the new location, and between €70,000 and €100,000 when the employee is a homeowner.
Does a relocation package cover temporary accommodation? Yes, temporary accommodation is a common component, since it helps companies cut hotel costs while giving new employees and their families a comfortable, equipped space to adapt to the new city.
What's the difference between a relocation package for tenants and for homeowners? For tenants, the package mainly covers the move and settling-in costs, while for homeowners it can also include financing or assistance selling their current home, which is why the average cost is significantly higher for owners.
