Employee Relocation: Any Tips or Ideas?

Submitted by Ray Berg
in
General Questions and Comments
Hello folks Long-time listener, first time posting … Has the topic of Manager Relocation come up yet? From 2001 through 2005, I had been working with a company located in Irvine, California as a traveling sales, then training manager. I was located in Atlanta, Georgia and though I spent a few weeks now and then in Irvine I was not relocated there. The company was due to be acquired in 2005 and rather than facing the likely prospect of relocating I took a position with another company rather than relocate. (For many reasons but mostly the cost of living comparing Atlanta to Irvine.) Now I cant say I have been entirely pleased with the current job but it has it good points. However the manager I had at my old company has come calling and wants me back. It does involve relocating and I am thinking this may be a second chance. I met with him and Human Resources in Irvine a few days ago and we talked over a few points and I am awaiting a proper offer. I would appreciate anyone’s thoughts on relocating for a position including salary, time lines, selling of my current home and such. Thanks
Submitted by Robert Burns on Sunday January 7th, 2007 7:48 pm

rayberg -

Great question! I recently went through a relocation from Minnesota to New York. I am certain that I left a lot of relocation assistance and benefits on the negotiating table. I am also interested in responses to your question.

I applied for a job in another company owned by the same parent company. I paid my own way to fly out for the interview. Immediately after the interview, the president of the company offered me the job. I did have the wherewithal to bring up salary (my request was 20% more than I was expecting), but did not mention relocation assistance or assistance in selling my home.

A few days later, I was given a verbal offer for the salary that I asked for, which was more than I expected. At this point, I felt that it was too late to bring up relocation assistance or assistance in selling my home. So, I accepted the offer.

After a two week notice (I wish I knew about M-T sooner!) and one week to drive all of my stuff half way across the country, I was at work in my new position.

Lessons Learned:
#1: ALWAYS ask for relocation assistance.
#2: NEVER, EVER drive your own moving truck!!!
#3: A relocation can DRAMATICALLY move your career path forward!

Sorry for the long post.

Bob

Submitted by Ray Berg on Monday January 8th, 2007 9:59 am

Thanks for the reply, Bob!
I did ask for a 20% increase in salary, just to offset the difference in the cost of living concerning my current (modest) household in Atlanta and to maintain that modest way of life in California.

I am awaiting info on a relocation package but they have already said they don’t assist in selling homes any more.

I am considering a “phased” move with myself taking the job and a corporate apartment for a few months as the spouse wraps things up in Atlanta and we would finalize the entire relocation in early summer.

That said; if anybody else has a thought I would appreciate it. This is a big step for me and one that I have never taken. (I'll continue this post as the negotiations move forward)

Submitted by Lee Waage on Tuesday January 9th, 2007 9:07 am

rayberg,

Be mindful that whatever relocation benefits your employer pays to you or on your behalf will likely be taxable income (the only items not taxed by the IRS are: Final move expenses for airfare, some mileage, lodging and meals; shipment of household goods and car; storage up to 30 days. Corporate housing can cost about $3-4,000 per month, and is all taxable income. If you are considering a phased move in which the company pays your rent, you will be responsible for paying income taxes on those rental amounts.

I recommend that you try to negotiate tax assistance, often called "gross up", using a calcuation method called Equalization. It is the most comprehensive and will not leave you with any tax burden.

Another cost-of-living tool that is often used when moving to high cost areas is a mortgage interest subsidy, in which the employer pays a percentage of your mortgage interest for 3-5 years, at a delining rate each year. This helps to acclimate you to the new area's costs.

Submitted by Ray Berg on Tuesday January 9th, 2007 9:22 am

wow ... thanks lwaage.
Those are great tips that I certainly did not think of.
Another friend told me yesterday that her company offered to pay closing costs if she bought a home in the new area within the first six months. It appears that negotiation is key.

Thanks to all who are dropping in tips.
Ray