How To Negotiate a Relocation Package

Whether you are starting a new job or relocating for your current job, knowing how to negotiate a relocation package is essential. Moving is stressful enough, and becomes more stressful when you are moving for work. 

Relocating for work usually comes with a lot of emotion, fear, challenge, and excitement. Since relocating for your job is a difficult task, it is important that you get what you deserve out of a relocation package.

How to Negotiate a Relocation Package: Step-by-Step

Relocating for work can be expensive. Learning how to ask for a relocation package can seem overwhelming at first, but it is essential when relocating for your job. There are steps you can take to negotiate a relocation package so you do not have to sustain the high costs of relocating alone.

1) Focus on What Is Important 

Relocating for your job is an opportunity to make improvements in your life. Knowing how to negotiate a relocation package is helpful when preparing for your move. When you negotiate, you address your needs and what is important to you. 

You should think extensively and not limit yourself financially. Once you have decided what is most important to you, you can prepare to negotiate a relocation package to best meet your needs. 

For example, some needs that might be important to you when relocating may include:

  • A higher mortgage/rent cost allowance
  • A raise in salary
  • Subsidy for a higher cost of living for you and your family
  • Assistance in finding new doctors, daycare, or a good school for your child
  • A bridge loan if you cannot sell your home before relocating

2) Be Aware of Typical Relocation Packages

In order to fully prepare yourself to negotiate a good relocation package, you should be aware of what the typical relocation package includes. It is wise to ask your company’s HR department if they have a written relocation policy, a relocation consultant, and what standard benefits they offer. 

In addition to speaking with the HR department, you should:

  • Ask your family and friends if they have similar relocation experiences with their jobs and inquire about their relocation packages
  • Find out if any other employees have recently moved, and ask about their relocation package

Typical relocation packages usually include temporary lodging expenses, the cost of moving, job assistance for your spouse, traveling costs, and assistance in selling your home.

3) Suggest A Package to Benefit Both You and Your Company

Many companies appreciate when their employees suggest a package to benefit both sides. Your employer will be more likely to agree on your suggested relocation package if it benefits them as well. For example, you can tell your company that you will be able to work longer and be more productive if you can get certain needs settled. 

Another example would be to suggest assistance in selling your home, so you can more quickly relocate and settle into your new job, increasing productivity.

4) Get the Relocation Package Negotiation in Writing

It is essential to get the relocation agreement in writing once you and your company agree on a package that meets your needs. Remember that certain moving expenses will not be tax-deductible, so you should know how to properly claim moving expenses on your taxes

While you might not need a formal contract, you should at least obtain a signed letter that includes the agreement’s details with the time and date of when it starts. 

Negotiate Relocation Package

Types of Relocation Packages 

There are a few types of relocation packages that companies often use.


With a reimbursement package, you will need to keep any receipts regarding your relocation, and your company will pay you back once you move into your new home. It is crucial to remember that there might be an entire billing cycle between when you pay for your relocation and once you are reimbursed. 

Be sure you budget so you can take a financial hit in case you are not reimbursed quickly enough. Also, remember that a relocation reimbursement is different than a relocation bonus, which allows you to receive a predetermined amount of money for your move.

Lump Sum

A lump sum relocation package is when your company gives you a one-time payment for you to use for your moving costs. You should carefully budget your moving expenses in case unexpected costs arise, so you are financially prepared for your move and all the expenses that come with it. 

If your moving costs go over what your company gave you in the lump sum, you must pay the additional costs.


In a third-party relocation package, your company outsources all the relocation logistics to a third party to handle the entire process. The third-party will sometimes offer assistance and guidance to the employees once they move to their new town, which can be beneficial.

What Does Relocation Assistance Cover? 

Relocation assistance covers a variety of elements. It is vital to ensure that your relocation packages include these common factors.

Purchasing a New Home 

Your company may be willing to help sell your current home and assist in purchasing a new home. This can be a relief, as you would not need to deal with listing your house on the market, scheduling showings, or waiting around for the process of selling your home to be completed.


Your company should cover transportation costs if you need to travel back and forth from your current location to your new place. In addition, your employer should also cover the expense of moving your belongings and furniture to your new home. 


If you have not yet purchased a home in your new location and are planning on temporarily renting, many companies will cover the cost to rent a storage unit for the time being. However, some employers will not cover this cost. You should ask if you think storage is something you will need.

How to Ask for Relocation Assistance

When asking for relocation assistance, it is crucial to be confident and let your employer know your needs. Knowing how to negotiate moving expenses is essential to achieving what you want in your relocation package. Confidence can go a long way in helping you get what you deserve.

Final Thoughts 

Knowing how to negotiate a relocation package, when preparing to move to a new location for work is essential. If you are planning to relocate for work and need help to put together a good relocation package, schedule a consultation with ARC Relocation today.