Employee Relocation Packages: 2024 Statistics and Trends

Employee relocation packages have long been a staple in corporate recruitment strategies, offering enticing incentives for individuals to uproot their lives and join a new company in a different location. However, with changing work dynamics and the rise of remote work, there’s a growing question: Are employee relocation packages obsolete?

Employee Relocation Statistics

• 62% of people are willing to relocate for career advancement or an opportunity to make more money.
• The average job relocation package is $72,000-$97,000 for homeowners and $19,000-$24,000 for renters.
• Only 1.6% of Americans relocated for a new job in 2022.
• Companies with 100–499 employees are the most likely to support job relocations, with 23.18% of employees being the result of them.In order from most to least likely to have employees who’ve relocated, here are the statistics for different company sizes: 50–99 employees (18.18%), 1–49 employees (17.48%), 500–999 employees (16.18%), 1,000–4,999 employees (13.49%) and 5,000+ employees (11.49%).
• 64% of people who moved for a job received a relocation package.Surprisingly, nearly one-third of employees still choose to relocate even if they don’t receive a relocation package
• Only 38% of employers pay for a new hire’s moving expenses.While a much higher 66% of employers will pay for the moving expenses of a current employee who’s being transferred.
• 56% of companies include a lump sum within their job relocation package.The average lump sum paid to employees is $7,200; however, lump sums can fall anywhere between $2,500 to $15,000 typically.
• 85% of companies will cover temporary living at the new location.

The most popular thing to be included in job relocation packages is an offer for temporary living. Other commonly offered perks include home-finding trips (75%), The final move (72%), and a miscellaneous expense allowance (69%)

• Top Benefits Included In Job Relocation Packages

Cover temporary living expenses85%

Home-finding trips75%

Final move72%

Miscellaneous expense allowance69%

Shipment of HHG58%

Lump sum56%

• The highest average job relocation package is for current employees who are also homeowners, at $97,166.New employees who are homeowners receive an average relocation package of $72,627. On the other hand, renters receive far less on average, with current employees who rent getting an average of $24,216 and new employees only getting $19,309.

In assessing the status of relocation packages, it’s crucial to understand the factors influencing their relevance in today’s workforce landscape.

1. Remote Work Revolution: The COVID-19 pandemic accelerated the remote work trend, leading many companies to adopt flexible work-from-home policies. With employees no longer tied to a physical office, the need for relocation has diminished for certain roles. Remote work allows companies to tap into talent pools globally without requiring individuals to relocate, reducing the necessity for traditional relocation packages.

2. Cost Considerations: Relocation packages can be expensive for companies, encompassing expenses such as moving costs, temporary housing, spousal support, and settling-in allowances. In an era where businesses are scrutinizing costs more closely, especially in the wake of economic uncertainty, some companies may be scaling back on these packages to streamline expenses.

3. Focus on Work-Life Balance: Employees increasingly prioritize work-life balance and lifestyle preferences. Relocating often disrupts established routines and social networks, impacting an individual’s personal life. As a result, companies are recognizing the importance of accommodating employees’ desires to maintain their current lifestyle, which may involve offering remote work options instead of relocation.

4. Talent Retention Strategies: In today’s competitive job market, retaining top talent is paramount. Companies are reevaluating their talent retention strategies and offering alternative incentives to attract and keep skilled employees. Rather than relying solely on relocation packages, companies may offer perks such as professional development opportunities, flexible schedules, or enhanced benefits to retain employees.

5. Industry and Role Specificity: The relevance of relocation packages varies across industries and roles. Certain sectors, such as technology and finance, often require employees to be physically present in specific locations due to client needs or regulatory requirements. In such cases, relocation packages remain integral to recruiting talent. Additionally, executive-level positions or specialized roles may still warrant comprehensive relocation assistance.

6. Hybrid Work Models: Many companies are transitioning to hybrid work models, combining remote work with in-office collaboration. In these scenarios, employees may have the option to work remotely most of the time but visit the office periodically. Hybrid models offer the best of both worlds, allowing companies to maintain a physical presence while accommodating employees’ preferences, potentially reducing the need for full-scale relocations.

7. Tailored Solutions: Rather than adopting a one-size-fits-all approach, companies are increasingly tailoring relocation packages to individual needs and circumstances. This may involve offering flexible options such as lump-sum allowances or assistance with specific relocation expenses, allowing employees to customize their relocation experience according to their priorities.

Mastodon Moving, a corporate relocation company in Boston, is able to work within your budget to provide new hires or transfers with a seamless relocation experience from start to finish.