Relocation Negotiation Tips

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When a new position requires a relocation, special needs arise that must be
negotiated up front. After the move, little can or will be done to compensate
you for costs that you did not specifically negotiate in advance. After salary
issues are resolved, negotiate relocation benefits.

Relocation issues are one-time, unique topics that should not interfere with
fair compensation for the performance of a particular job. Always negotiate the
most important items first so that negotiation can end gracefully if the
employer signals any discomfort in continuing the discussion. Watch for changes
of body language, word choice, or tone of voice as signals that you may be
"over-negotiating."

Offers are rarely a surprise. If an offer in a distant city is anticipated, the
job seeker should take several actions to prepare for negotiation. These
actions include:

     A. At the library or local bookstore, read about the potential new city in
     The Places Rated Almanac. Take steps to know as much as possible about the
     new city--and share that information with your family.

     B. Call the end city's Chamber of Commerce to receive their "newcomers'
     packet". Ask specifically for school district information, and lists of
     potential employers for your spouse, church, civic groups, etc.

     C. Call three moving companies to get bids on the potential costs of your
     move. Knowing your moving costs before the offer is made will enable you
     to know whether the "moving expenses" portion of the offer is adequate. To
     eliminate any unexpected costs, be sure to ask for boxes and for a "long
     carry" to be added to the end location.

Once the offer is made, negotiate the standard elements first: salary, vacation
days, insurance coverage, start date, company cars, etc. After these elements
are secure, address standard relocation issues. These issues include:

     1. A house hunting trip with your spouse, expenses paid. Typically,
     expenses for this five to seven day trip, including airfare, hotel, meals
     and normal business expenses, are covered. Request the option to split
     this trip in two parts, even if you have to pay for the second set of
     airline tickets. Often, couples find that they cannot be away from their
     current homes for five to seven days or that they cannot select a new home
     as quickly as they had hoped.

     2. Moving expenses. Companies handle these expenses several ways:

           Flat payment. A flat payment of $3,000 - $10,000 may be offered to
          cover expenses including moving company expenses, hotels, meals, and
          mileage (be sure it fits estimates you received from the moving
          companies).

           All expenses paid. Up to a stated ceiling, all expenses are paid as
          long as you turn in receipts.

           All expenses paid and coordinated through the company's moving
          company.

     Any expenses not covered by the company may be tax deductible. Keep all
     receipts and track your moving mileage. Only when you know the approximate
     costs of moving your possessions are you in a position to negotiate an
     increase of a flat rate paid to cover expenses.

     3. Temporary living expenses. These costs need to be negotiated up front
     with maximum flexibility since move-in dates may vary and the new home may
     not be accessible for one to three months. If at all possible, negotiate
     for the opportunity to extend the temporary living arrangements after 30,
     60 or 90 days.

     4. Bonus to cover incidentals. Larger companies frequently offer a flat
     bonus of $1,000 - $3,000 to cover costs such as utility hook-up deposits,
     curtain alterations, house cleaning, window washing, etc. (If your new
     employer does not offer this benefit, request a letter from each of your
     current utility companies to vouch for your good payment record. This
     letter may negate the need for a security deposit in the new city.)

Few companies offer more than standard benefits when relocating new hires.
Senior executives, however, are frequently able to negotiate for additional
benefits such as:

     1. Payment of points, advertising costs, and even realtor's fees when
     selling your current home.

     2. Purchase of your house if you do not sell it within 90 days. The
     purchase price is usually based upon the average of three broker price
     opinions or comparable market studies.

     3. Shipment of your car at company expense.

     4. Spouse career assistance in the new city.

     5. Mortgage rate assistance in the new city.

Candidates with offers in hand have tremendous negotiating power. If relocation
issues could be a barrier to your acceptance of an offer, most companies will
try to accommodate your needs. Approach relocation negotiations as you would
salary negotiations: as a WIN-WIN proposition