With high unemployment, employers don’t have to offer relocation benefits. So…they don’t. The 2011 Employee Benefits report published by the Society for Human Resource Management confirms what rumor has long held: if you have to move for a new job, you get to pay for it yourself. Formerly generous relocation benefits have shriveled. Previously rich but rare relocation benefits have all but disappeared. And, they’re unlikely to come back.
If you have to relocate to get or keep your job, here is what you won’t get:
Employers offering:- 18% Temporary relocation benefits (down from 42% in 2007)
- 9% Assistance selling previous home ( down from 19% in 2007)
- 3% Mortgage assistance (down from 12% in 2007)
- 26% offer lump sum relocation payments (down from 30% in 2009)
- 8% offer closing cost assistance (first year tracked)
- 8% offer reimbursement of agent fees (first year tracked)
- 4% offer a home buyout program (first year tracked)
- Find out in detail what benefits your employer currently offers. Relo programs likely have changed dramatically since the last time you moved.
- Figure the value of the relo benefits so you can see how they affect your cash flow and negotiating chips. For instance, if your employer covers temporary housing, you have more room to negotiate the date you take possession of your new house.
The takeaways for sellers:
- As you start negotiating, ask specifically if the buyer’s employer covers closing costs or reimburses agent fees. If so, you’ve just unearthed a little stash of cash that your buyer can tap into.
- Understand that corporate relocation programs probably don’t provide the cushion they used to. Don’t assume that a relocating executive can dip into corporate coffers to cover moving and home selling costs.
Image courtesy of Morguefile contributor puravida.
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