Employee Relocation Allowance

📦 Average Job Relocation Packages in 2025: What Employers Need to Know

Finding the right talent is only the beginning. When your ideal candidate lives outside your company’s location, relocating them becomes the next critical step. Whether it’s a domestic move or an international assignment, offering a competitive and well-structured employee relocation package is essential.

At Corporate America Relocation Services (CARS), we’ve developed this complete guide to help employers understand every facet of employee relocation in 2025.

🔄 What is Employee Relocation?

Employee relocation refers to the process of transferring an employee, new hire, or intern to a different geographic location for work purposes. Relocation allows businesses to tap into a broader talent pool by supporting staff in transitioning to a new location, often covering related moving costs.

🌍 How Big is the Employee Relocation Industry?

The global relocation industry is a major market, valued at approximately $25 billion. On average, businesses spend around $16.2 million annually on employee relocations.

📊 According to MoveBuddha:

31 million Americans moved in 2019

That’s about 10% of the population

Over 10% of these moves were driven by job changes

💸 What Are the Costs of Employee Relocation?

Costs vary based on employee status and housing situation:

🏠 Current employee, homeowner: $97,166

🏢 Current employee, renter: $24,216

🏠 New hire, homeowner: $72,627

🏢 New hire, renter: $19,309

📦 Expenses can include:

Household goods shipments

Temporary housing

Pet transportation (up to $125 per animal each way)

📦 Types of Relocation Packages

There’s no one-size-fits-all. Most companies choose from the following types:

1️⃣ Lump Sum Package

A flat cash payment for the move.
💡 While simple, it may not ensure optimal relocation outcomes.

2️⃣ Tiered Packages

A structured approach where benefits are based on employee level:

Tier 1: Interns or junior staff (renters)

Tier 2: Mid-level managers (homeowners or renters)

Tier 3: Executives or senior leaders

3️⃣ Managed Budget Packages

Also known as capped allowances.
The employer sets a spending limit and engages a relocation partner to manage the services.

4️⃣ Fully Covered Packages

Comprehensive and often used for high-level employees.
Covers all relocation-related expenses, reducing stress and risks for transferees.

🧾 Are Relocation Packages Taxable?

Yes. Since the 2017 Tax Cuts and Jobs Act, relocation benefits are taxable.
💰 Employers often “gross up” packages to offset tax burdens.
🌐 For international relocations, tax equalization is recommended to maintain consistency in employee obligations.

📑 What Should Be Included in a Relocation Policy?

Relocation policies typically include:

🚛 Household goods moving

✈️ Transportation for employees, families, and pets

🏨 Temporary housing

Exceptional packages may also cover:

🏠 Home sale and purchase support

💼 Spousal job assistance

🏫 School search and cultural integration

📂 View our relocation policy samples for detailed templates.

🌐 Challenges of International Relocation

International assignments are more complex due to:

🛂 Visa and customs regulations

📅 Fixed-term contract implications

🌍 Cultural integration challenges

⚠️ With 40% of global relocations failing, proper planning and employee support are essential.
Our Global Relocation Services address each of these areas with proven strategies.

❓ Common Employee Questions

Employees may ask:

“How do relocation packages work?”

“Are relocation benefits taxed?”

“What’s the timeline for a move?”

“Can I negotiate?”

✅ Clear communication is key.
Anticipate and address questions early to ensure confidence in the process.

🏡 Managing Home Sales in Relocation

CARS offers multiple solutions for selling homes quickly and efficiently:

🧾 Buyer Value Option (BVO): Employer avoids gross-up by treating home sale costs as business expenses

✅ Guaranteed Buyout Option (GBO): Relocation company buys the employee’s home

💼 Amended Value Option (AVO): Matches outside offers and transfers ownership to third parties

💸 Affinity Rebate Program: Cash rebates up to $3,000 on eligible home sales, paid within one week of closing

💼 Additional Allowances

Employers may also offer:

🛒 Relocation stipends for groceries and travel

🏘️ Housing assistance

📃 Lease negotiation support

📚 Best Links and Resources

Explore our free resources:

✅ Relocation Benefits Checklist

📑 Sample Policies and Allowance Guides

🏘️ Real Estate & Relocation Glossary

🏛️ Government Relocation Guidelines

🤝 Should You Outsource Relocation?

Relocation involves:

⚖️ Legal compliance

💵 Financial planning

🚚 Logistics management

📦 Outsourcing to experts like CARS provides:

Tax efficiency & global compliance

Local knowledge & worldwide networks

Dedicated relocation managers

Partnerships with trusted service providers

Let our relocation experts manage the process while you focus on business growth.

📞 Ready to Streamline Your Employee Relocation Program?

Contact CARS today for a no-obligation strategy session or to access downloadable relocation policies tailored to your organization’s needs.