The Big Move: Relocation Package Offerings
Considering a food & beverage position in another city?
Trying to land an out-of-town candidate?
Then you may have to negotiate a relocation package. And you’ll definitely want to read this post!
Recently, our team compiled and analyzed relocation package statistics from nearly 100 recent, executive food & beverage placements, including details on:
- lump monetary sums offered
- limits for reimbursed relocation expenses
- temporary living reimbursements (number of days)
- allowances for moving household goods
- reimbursed house-hunting trips
- covered closing costs and/or Realtor fees
Not surprisingly, we found that the types and amounts of allowances varied widely.
So, who should pay for what?
Since there is no single standard for relocation packages in our industry, what should you ask for – and what should you offer? Kinsa VP Laurie Hyllberg shares her insights and expert advice below:
On the low end of the spectrum…
An employer with a tight budget may offer as little as a $3,000 to $5,000 signing bonus to assist with moving expenses, plus 30 days of temporary living reimbursement (while the new hire finds a place to live), to entice a job candidate to relocate.
On the high end…
We have seen companies with large budgets offer new hires much more robust packages, such as:
- a house hunting trip for 2 to 4 days of hotel stay and airfare;
- 6 months temporary housing reimbursement;
- $25,000 allowance for moving household goods;
- up to $30,000 to offset closing costs on home sale/purchase;
- plus an extra month’s pay for incidentals.
Most packages fall somewhere in between.
The majority of employers offers a moderate level of assistance to relocate new hires. Though there are no hard-and-fast rules, here are a few practices common in the food & beverage industry:
- reimbursing 30 to 90 days of temporary lodging in an extended-stay hotel;
- paying to move household goods;
- covering airfare or mileage to get the new hire’s car to the new city.
Methods of payment are as varied as expenses covered.
The way organizations pay for relocation expenses varies greatly, too. Sometimes employers pay these expenses directly to the vendors; other times, they offer a lump sum upon the new hire’s first day of employment (allowing the new hire to spend as desired).
If offering a lump sum, employers should “gross up” the amount so that the employee’s take-home dollar amount covers the expenses it needs to. This lump sum can vary from $5,000 to $25,000 (depending on the size of household or distance of the move), but it’s most often in the $10,000 to $15,000 range. Even when the lump sum is in this $10,000 to $15,000 range, employers will sometimes also cover temporary lodging.
Knowledge is power.
No matter which side of the recruiting equation you’re on, Kinsa wants you to make an informed decision. If you’d like more data points, or specific advice on the relocation package you’re offering or considering, please contact one of our executive food & beverage recruiting experts.