Holly Lee Coaching

What is a Relocation Package?

As a career coach, I want to help you pass a job interview but also get an amazing offer and make the most out of it in any of the aforementioned. 

When a big company such as Amazon offers employment, usually for a longer tenure, and the employee is based in a location over 100-mile radius from work, they may offer a relocation package as a part of their compensation strategy.

This package works as an incentive to hire top-tier talents and add to their convenience. The package typically covers the cost of the employee moving and other work-related expenses.

How to Negotiate your Job Offer with Relocation Assistance

Relocation packages range from state to state, country to country, and continent to continent. Let’s explore the prospect of relocation and highlight its importance in the negotiation process. 

Since we’re amid COVID-19 pandemic, we should acknowledge that COVID might be here to stay for quite a while. 

Many people insist on the relocation package and there is no guarantee that the epidemiological situation is going to change soon. This does not mean that you shouldn’t negotiate any offer you get. But before you negotiate, take into consideration the following: 

  • Have a solid grasp on your situation with market-research data 
  • Find the salary package that works for you 
  • Ask if the relocation package is part of your salary package

Many of the FAANG companies offer relocation, packages, housing, and more. However, if you’re a junior being hired, which could be categorized as an individual who has less than 2 years of industry experience, ask from the get-go whether or not a relocation package is on the table.

What Is the Amazon Relocation Assistance Program?

Good recruiters tend to understand every single thing about their candidates and potential new hires. Many large organizations will most likely pay for their entire move, especially if they have a top-tier talent on hand.

Let’s say you are a homeowner.
In this context, one of the very first questions your recruiter will ask is whether you are a renter or a homeowner. 

Let’s say you’re a home-owner and you must sell your home; you have a family with children and a partner and the move will be very costly. In this case, I would walk you through the relocation assistance program process because, under it, they will pay for the whole move.

Let’s say you’re from a family household.

As an opinion, if I was told the employee had a family I don’t really know if I would’ve recommended that they take a lump sum. 

In Amazon’s case, they will pay for you and your spouse (or significant other). It’s like bringing in your spouse with you to help sell the opportunity and make you start the job in all excitement. It’s a very smart move from Amazon and a great motivator for the new hire.

Amazon will pay for your home-finding trip and in case you want to buy a new home, they will pair you up with an agent. If you want to rent, they will offer you a formula that’s called “An Apartment-Hunting Trip”.

Relocation Assistance vs Relocation Lump Sum

If you’re moving from state to state or from one country to another, there will be a budget cap. In order to handle the transit of the car from one location to another, many people sell their belongings while moving and companies offer rental cars to them.

Not all levels enjoy the advantages of the assistance program but if you’re in engineering or tech as a program manager or technical program manager (specifically in the tech space) then you’re more likely to get the benefits.

As an example, let’s assume that you are a level-six employee. 

They will write you a check for $2,500 for you to spend during your transit from point A to point B. It will include an operational manager of logistics or supply chain to help you as well. 

Whereas, a lump sum is writing you a check depending on your level and family so that you can carry out the entire move on your own. In consumer retail from the Bay Area to Seattle, I took a lump sum. This meant I packed everything I had in my Honda back then and I made the move to  Seattle then Italy, England, Berlin in Germany. 

The living standard in Europe is very high but the salary and compensation you tend to get is much lower than in the US. In Asia, it’s even lower due to the standard of living but when it comes to your relocation package, you can negotiate it on the bonus part. 

What Else Can Be Included in a Job Relocation Package?

☑ The Cost of a House-Finding Trip – The company may cover the costs of traveling to the new location to find a suitable home.
☑ Home-selling/ buying assistance – Costs of selling your home and purchasing a new home.
☑ Job Search Help – job search assistance for your spouse or partner.
☑ Transportation – Pay for the travel expenses to reach new house
☑ Temporary Housing – If you haven’t found a permanent place to live yet, Cost of temporary furnished rental housing or a hotel for a certain period of time to be covered by the company.
☑ Moving – Cost of shifting, moving truck and other related expenses
☑ Full Pack / Unpack –  company fully covers the expenses and logistics of the move
☑ Temporary or long-term storage rentals – new employer may pay for the cost of renting a storage unit while you get settled.
☑ Packing service – Pay for packing and unpacking services 
☑ Lease break coverage – Company covers the cost of lease break by paying a certain amount of money or paying the remainder of the rent owned.
☑ Airfare – If you are traveling to another city then the cost of airfare to be covered by company
☑ Rental car services – If you need to rent a car before, during or after the move, this service will likely be covered in your job relocation package.

Conclusion – Amazon Relocation Package

When you get to the offer stage with big tech companies, negotiation is important. Companies like Facebook, Google, and Amazon are known for offering high salaries and good benefits. They might not move the needle much on actual salary when you are negotiating, since they are usually giving good offers, but that does not mean you shouldn’t try. These companies do often have leeway on their equity, signing bonuses, and other benefits. What’s important is that the individual does their own research and can negotiate about what they want.