Relocation Costs
ntk104
65 Posts
I have been having difficulty lately hiring qualified IT people for the company I work for. The other evening I saw an item on a newscast that stated that companies are paying relocation costs to get qualified employees. We don't have a policy about relocation costs and I was wondering if anyone else has experience with this, what are you paying for relocation costs?, does the money offered vary because of education or experience? etc..
Comments
I have paid relo for one of my IT employees. We paid $5000 after 90 days of employment to help defer expenses. In this case, the new employee was staying with friends in the area initially while looking for a place.
At a previous company we paid for certain things like rental of moving truck, cost to register the vehicle in the new state, cost to hook up utilities (telephone, cable, electric, etc.) but put a cap on the total dollar amount. The cap on the total dollar amount did vary by position, meaning that an exeutive got more money than a manager got.
I agree. In addition, the tax rules can be a little complicated so an expert can help navigate those issues as well.
<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />You should list qualifications, such as
· The employee has been transferred or reassigned within the system at Company request
· The Company requires the employee to reside in a specific area, or the employee wishes to move to another location so as to reduce substantially the commuting time and distance to work
· The relocation must be at least 25 miles from the present reporting base and 25 miles more distant from the employee's residence
· The employee must indicate intent to move at least six months before the date of transfer or reassignment and actually relocate within a reasonable time thereafter. Normally, such relocation will be expected to occur within one year's time from the date of transfer.
Your policy might cover moving expenses, home sale assistance, rental assistance, transportation , and mortgage assistance.
Most major companies have a policy that allows relcation payments for exempt positions including house hunting, moving van, packing, and incidentals on relocations. Some of the smaller companies just pay a flat relo sum (5K-20K) and expected the new employee to spend it and do the taxes. When a company doesn't pay moving for exempt positions it comes across as a employer who doesn't value its people. In hot employment disciplines where it is hard to find people, failure to pay relocation is a good way to lose a quality candidate,
C. Thomas Rezner, SPHR