How to make sure you’re not leaving relocation benefits on the table
Relocating for work can be an exciting yet challenging journey. As companies increasingly offer lump sum payments to facilitate employee relocations, assignees need to plan and strategize to make the most out of these funds. If you’ve just received a lump sum for your move, here’s a comprehensive guide on what to consider to maximize your budget without sacrificing time and quality service.
Work with an RMC to Create a Relocation Plan
The first step in ensuring a successful move is developing a detailed plan. As each relocation is different, consider your family’s unique needs. Working with a relocation management company (RMC) can help get you on the right track. Many RMCs will assign moving employees a relocation coach, who can help outline a plan—but getting ready for the move on behalf of you and your family, ask yourself:
- Housing Needs: Will you need to break a lease, pay security deposits, or cover home sale/purchase costs? Understand the local housing market to make informed decisions.
- Final Move Costs: Factor in expenses related to your final move, including transportation (driving or flying), meals, and accommodation during transit. These costs can add up quickly if not accounted for early on.
- Relocation Tax Implications: Be aware that lump sum payments may be taxable. Consulting a tax professional can help you understand how these funds will impact your overall tax situation.
- Time Considerations: Planning your moving arrangements can be time-consuming. Be realistic about how much time you can devote to organizing your move while balancing work and personal commitments.
Make a Detailed Budget
Creating a comprehensive budget is essential once you have a plan in place. Outline all anticipated expenses related to your move, ensuring you include:
- Moving Supplies: Boxes, tape, and other packing materials.
- Transportation Costs: Fuel, flights, or vehicle rental.
- Temporary Housing: Costs related to short-term rentals or hotels.
- Miscellaneous Expenses: These include utility connection fees and pet care.
Establishing a detailed budget can help you track your spending better and identify areas where you can cut costs without compromising quality.
Optimize Your Shipment
When shipping your belongings, consider using a full-pack shipment managed by a Global Mobility Solutions (GMS) provider. Here’s why:
- Expert Support: A GMS provider offers professional packing and handling, ensuring your belongings are safeguarded throughout the move. In the event of damages or losses, having professional assistance can be invaluable.
- Reducing Shipment Costs: While saving money by managing your shipment independently may be tempting, a GMS provider often has established relationships with shipping companies, leading to better rates and less hassle.
Leverage a Destination Services Provider (DSP)
A Destination Services Provider (DSP) can be an indispensable asset during relocation. Here’s how they help:
- Local Expertise: A DSP offers insights into the local area, helping you find suitable housing, schools, and amenities tailored to your family’s needs.
- Advocacy Upon Arrival: It is crucial to have a local advocate. They can navigate challenges, ensuring a smoother transition into your new community.
Plan for Budget Holds
As you prepare your budget, consider including budget holds for unexpected expenses. Here are some common areas where extra funds might be necessary:
- Customs Fees: If you’re relocating internationally, customs can be a significant expense.
- Shuttles and Logistics: Don’t overlook transportation from the airport or rental car services.
- Unexpected Carry Costs: If your new home isn’t easily accessible, you may incur additional costs for moving your belongings from the moving truck to your new residence.
By anticipating these potential costs, you can avoid the stress of overspending or being caught off guard.
Weigh Temporary Housing vs. Airbnb
Finally, when considering where to stay during your transition, weigh the pros and cons of temporary housing versus Airbnb.
- Temporary Housing: Often offers more space and amenities, making it a comfortable choice for families. However, it may come at a higher cost and involve longer-term commitments.
- Airbnb: Provides flexibility and can be a more economical option. Still, consider the trade-offs regarding space and amenities, especially if you’re moving with a family or pets.
GMS Gets Employees from Point A to Point B
Relocating with a lump sum requires thoughtful planning and budgeting. You can maximize your lump sum by creating a comprehensive relocation plan, making a detailed budget, and utilizing the resources available to you, such as GMS. Always think ahead to account for unexpected costs and weigh your temporary housing options wisely. With careful consideration, you can ensure a smooth transition into your new home without compromising the quality of your relocation experience.
Work with GMS to create comprehensive relocation packages. These packages can be tailored to meet your specific needs, whether you require assistance with finding a new home, settling into a new community, or managing the logistics of the move itself. GMS offers various services, including home search assistance, school search support, and cultural training for those relocating to a new country.
Remember, relocating is not just about moving your belongings; it’s about starting a new chapter in your life. Embrace the change, and don’t hesitate to seek support from friends, family, or professionals during this time. With the correct planning and resources, you can turn what may seem daunting into an exciting opportunity for growth and adventure.
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