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Relocation allowance

Hi

I am trying to find out where can I pull current data on how many companies offer domestic relocation allowances and what the average allowances are? 

1195 views
  • Kirstie

    It would be dependant on a number of issues - seniority of role, difficulty recruiting into a role, how much the organisation can afford - and so on.

    Ours would range from 'reasonable rental' for a period of time (c13 weeks) through to full relocation with all reasonable expenses (apart from the actual bricks and mortar) being covered - with anything above the £8k HMRC allowance grossed up.
  • Most companies wouldn't offer a relocation allowance (in my experience) for any but the most senior colleagues. To be honest I can't recall the last time I authorised one

    If we did it may well be along lines Robert suggests but can't see the justification in most cases
  • In reply to Keith:

    I really appreciate your responses as I am being pushed by recruitment agencies telling me that everyone is offering relocation but I couldn't find any data to back this up.
  • In reply to Kirstie:

    You should not assume that this means nobody is offering relocation.

    For mid-senior recruitment we would invariably offer relocation - especially as our location is not the easiest in to which to recruit.

    Hard to fill vacancies, the perfect fit applicant lives 200 miles away (or perhaps in another country) - valid reasons to offer a relocation.
  • In reply to Kirstie:

    Hi Kirstie

    Further to Robert & Keith's points, the sector may also drive whether companies offer relocation or not.

    I've worked in multiple tech/engineering companies in the South East/Eastern region and some form of relocation assistance has been standard in the majority of these companies (and offered by our competitors) for technical roles, including offering relocation for junior engineering roles where there is a skills shortage. However relocation is not usually offered to those in easier to fill non-tech roles.

    Up to £8k has been the cap typically, but the amount offered will vary depending on scarcity of skills, whether the employee is currently renting vs a homeowner, relocating from overseas etc.

    There have been occasions where we've gone above the £8k cap for senior hires, with a discussion/negotiation at offer stage about who will be responsible for the tax above £8k - Company or employee.

    Most relo assistance has been subject to a 24 month clawback (on a sliding scale).

    Your agencies should have a good view of the ranges of relocation assistance offered in your particular sector/region.

    Joe
  • Steve Bridger

    | 0 Posts

    Community Manager

    9 Nov, 2021 09:36

    I'm wondering whether we'll see more employers offer relocation packages across a wider range of roles given the current climate [?]
  • In reply to Steve Bridger:

    Or in some companies and for some roles, no relocation at all because people might be able to work more remotely?!
  • Steve Bridger

    | 0 Posts

    Community Manager

    9 Nov, 2021 12:20

    In reply to Alys Martin:

    Indeed... and we've had discussions about that, too - e.g. London weighting.
  • In reply to Steve Bridger:

    Hi, I'm jumping on this thread as I have a question about international relocation assistance. What is the usual HR policy for internal senior transfers in global corporate multi-nationals?

    My spouse and I re-located/repatriated from Singapore to London in May last year (2021), during the pandemic. He is very senior and was an internal transfer within one of the top media agencies in the world. He told me that the company was paying for our Shipping, via the 'Global Mobility team' based in Paris. I have checked via LinkedIn and this team does exist. I thought this was reasonable and true. I understood the shipping to Singapore the few years before had been covered by his old company, another well-known media agency. I thought this was standard corporate practice for internal transfers, especially those senior. I am from a Civil Service background and international relocation assistance is offered to employees and their families, regardless of grade.

    On arriving back to the UK, I discovered serious issues my spouse had keeping from me for years. He had a mental breakdown. He displays very high traits of Autism and has mentally withdrawn (and actually left me) and is in a perpetual state of shutdown. Refuses to engage in any personal issues, remaining silent. I never received the shipping and he refuses to communicate an explanation of what has happened.

    When I contacted the company HR to clarify in December, the HR Manager said it was something to do with his contract. I pointed out he received his contract only on arriving in the UK. I believe it is not unusual for an internal employee assuming the relocation to be covered and dealt with at some point. He kept saying it would be sorted out with the London office receiving the shipping invoice. I confidentially sent the HR legal & health documents, explaining that my spouse has serious problems regarding administration and organisation (there was another matter which led me to get in touch). I clarified that he displays traits of Autism Spectrum Disorder and was in a state of shut down (with an NHS letter). I then left it and heard nothing since he refuses to engage with me.

    I picked it up in February with the HR Director, stating the shipping includes essential legal documentation and personal items. My spouse was copied in, and it was clear to all he is in a state of mental dis-engagement as he remained silent. Initially, she said she would look into it. Then she came back with a very awkward response, refusing to answer my reasonable questions of if he was offered relocation, and if not, why not/eligible etc? Ie. what is the company policy? She and the CEO refuse to answer my reasonable questions on what is the company policy on re-location (ie. why did he lie?).

    He is mentally unstable yet very highly functional, and high performing at work. My HR friends say re-location is offered to internal employees, often up to £20-30k for families. My spouse said our shipping was under £5k. The company did not pay for flights. He transferred into a new role that was created for him, without an external competitive recruitment process. Furthermore, there was only 3 months left on his Singapore 'Employment Pass' which is the defacto residency permit. Singaporean law requires companies to repatriate employees home, paying for flights etc to confirm exit.

    I fully understand he is the employee not me, data protection laws etc. I am totally disgusted that a) they did not handle the re-location? b) refuse to state their policies and explain why. I believe the HR stuffed up in regards to the employee assistance /'duty of care' (if such a thing exists in corporate media agencies) and they are using this against him. He is extremely non-confrontational and has anyhow dis-engaged from his wife and matrimonial home. Ie. He doesn't care he doesn't have his or our personal goods. He has walked away in the most brutal manner (as apparently happens in some Autism/Asperger's' individuals when they cannot emotionally cope).

    This company made billions out of the Pandemic, have PRed this heavily and the CEO likes to put herself in the media as caring for employees' mental health. The Evening Standard has described her as 'the Most Powerful woman in Advertising.' My spouses' manager reports into her and is on the C-Suite. Yet, they are quibbling over shipping that was less than £5k for an employee who had almost three years tenure. Longer than both the CEO and manager. A lifetime for media types.

    My HR and other professional friends are really shocked and disgusted they refuse to meet or engage with me on the issue. It is clear their employee is in a poor state of mental health. Re-location is one of the very few 'touchpoints' where the family is also concerned in addition to the employee. I don't believe my interest is unreasonable.

    I would be grateful for any knowledge on international internal employee re-location assistance, or opinions etc. Is this really standard global MNC corporate practice?