As an expert in the field of employee relocation, I have seen firsthand the challenges and expenses that come with moving for work. It's important for both employers and employees to understand what moving costs might include in order to properly plan and budget for a relocation. While a typical relocation package covers the basics such as moving and storing furniture, there are many other essential moving supplies and services that can add up quickly. At the most basic level, you'll need moving boxes and packing tape for your move. But there are also other items that can make the process easier and protect your belongings during transport, such as box cutters, rolling platforms, hand carts, bubble wrap, furniture pads, and moving blankets.
These may seem like small expenses, but they can add up over the course of a move. One of the biggest factors that can drive up the cost of a relocation is moving fragile objects. Professional carriers often charge extra for wrapping and transporting delicate items like pianos and antique furniture. While this may be seen as an ideal approach for employers, it can leave employees feeling frustrated if the maximum expense per section is not enough to cover these specialized moving costs. In order to manage these large and unpredictable expenses, many companies opt for fully covered relocation packages. This not only helps high-level employees with their moves, but also ensures that all costs are taken care of.
However, it's important for both employers and employees to carefully review what is included in these packages to avoid any surprises or unexpected expenses. Before making the decision to relocate for work, there are several questions that employees should ask themselves. Beyond just understanding what is included in their job relocation package, they should also research the company and its culture to ensure it is a good fit. It's also important to consider the cost of living in the new location and any potential changes in salary or benefits. One of the biggest expenses that employees may overlook is the cost of hiring a moving company. While renting a moving truck may seem like a cheaper option, there are often hidden fees and costs associated with this method.
Additionally, before the Tax Cuts and Jobs Act (TCJA), taxpayers were able to deduct certain moving expenses if they were work-related and involved a move of at least 50 miles. However, this is no longer the case. For those who are short on time or simply want to avoid the stress of cleaning their old or new home, hiring professional cleaners can be a good solution. This ensures that the old residence is ready for its new owners or that the new home is clean and ready for furniture to be moved in. Another expense that is often covered by employers is the cost of meals during the relocation process. This can include meals at the airport, on the road, and even at restaurants (within reason).
However, it's important for employees to keep track of these expenses and stay within any limits set by their employer. The overall cost of a relocation can vary greatly depending on factors such as the number of moves needed, the weight of belongings, and the distance between old and new homes. For those with children, there may also be additional costs for child care services before, during, and after the move. In order to manage these expenses, many companies use a model that sets a limit on what they are willing to spend on an employee's move. This not only helps control costs, but also ensures that employees are not left with unexpected expenses. However, it's important for employees to carefully review these limits and make sure they are adequate for their specific relocation needs. Finally, it's important to consider the time and energy that goes into a relocation.
Even if you are able to move into your new home in a single day, you may not have the time or energy to unpack and set up essential items like your bed and kitchen supplies. This may require additional expenses for hiring help or purchasing new items. As you can see, there are many factors that can contribute to the overall cost of relocating for work. It's important for both employers and employees to carefully consider all of these expenses and plan accordingly in order to ensure a smooth and successful relocation.
