It is common practice for companies to hire employees from outside an area or relocate their existing employees to other branches. When this happens, an executive relocation services Sydney, referred to as RELO in some countries is provided to them. The terms of the relocation package depend on the job one has at the company, the job they are being offered at the new location and how much the company wants them to move to the new location. Normally, a third party relocation company is involved in the process, contracted by the employer to cover all the aspects of the move. These third party companies offer financial incentives to their clients when they are changing locations.
The level of incentives in the relocation services provided depend on the post held by the individual moving, and their seniority in the company. The more the company wants that employee to take the new job, the better the package they receive. For the low level employees, the minimum is normally covering the moving costs, paying for the boxes, paying the moving company employees and paying for alternative accommodation at the new location as the employee looks for permanent housing. The more the company wants the employee to take the job, the further they will go in making the relocating services easier.
The employing company can take it a step further and offer their employee incentives to buy a new home in their new city. They might pay closing costs for their employees such that they have few expenses out of their pocket. The company might go as far as paying the interest on the new home, or giving a loan at a very low rate. Another common incentive many companies give is covering the down payment.
The relocation company will often provide the person moving with a choice of real estate companies. These real estate companies benefit from this association by having a steady stream of customers available to them. They pay the relocation company heftily for these benefits. Apart from buying the new home, the relocation company will also get actively involved in selling the old home. They have packages where they pay some of the closing costs and real estate commissions. If the home has to be sold at a loss, in the rush to get to the new job, then the relocation company and the employer will often come together and cover the losses. The biggest advantage these relocation companies bring to the table is the guaranteed buy out (GBO). The GBO removes all potential risk from the seller of the house. Before the house is listed, the relocation company hires two independent appraisers. If the seller cannot sell their house within a period of time, then the relocation company buys the house at the average of the two appraisals, to sell when there is a customer. Know the most cost effective relocation companies and know what they can cover for you, continue reading here.
Since the relocating company is a third party, the process might be stretched since there are more papers to sign and processes to go through. However, considering the benefits of involving them, the end justifies the means.