Relocation packages are one of the most misunderstood parts of a job offer, on both sides. Candidates often don’t know what to ask for, and companies often default to a standard tier without realizing how much a thoughtful package improves retention and time-to-productivity.
Having helped hundreds of people relocate, we’ve seen what works and what doesn’t. The best packages aren’t necessarily the most expensive. They’re the ones designed around what the person actually needs. Here’s what we’ve learned.
The best companies go beyond a cash bonus
When most people hear “relocation package” they picture a lump sum. $5K, $10K, maybe $15K dropped into an account. That helps, but it leaves the employee to figure everything out on their own, during what’s already one of the most stressful transitions of their life.
The companies with the best retention after relocation tend to offer structured support, not just cash. Here’s what that looks like:
- Temporary housing: a furnished apartment or hotel for 1 to 3 months so the employee isn’t rushed into signing a lease in a city they don’t know yet
- Lease break coverage: covering the penalty on their current lease removes a real blocker that can delay start dates
- Professional movers: packing and shipping handled by a moving company, ideally paid directly rather than reimbursed
- Cost-of-living adjustment: for moves to expensive cities like SF or NYC, a salary adjustment signals that you’ve thought about the full picture
- Partner support: career coaching or job search support for a relocating partner, because an unhappy partner is the #1 reason relocations fail
- Home sale assistance: for homeowners, help selling their property or a guaranteed buyout removes months of uncertainty
For international moves, the list grows: visa and immigration lawyers, flights home to visit family, tax equalization, and work permit support for partners.
The tax gross-up: small cost, big signal
One of the most common frustrations we hear from relocating employees is the tax surprise. A $15,000 moving bonus gets taxed as regular income, meaning the employee might only see $9,000 to $10,000 after withholding.
A tax gross-up, where the company covers the tax on top of the bonus, solves this completely. Many companies already do it for senior hires. Extending it more broadly is one of the highest-ROI moves in a relocation package: it costs relatively little and eliminates the single biggest source of candidate disappointment.
Why structured support beats a bigger check
When an employee gets a $15K lump sum and has to coordinate movers, find housing, break a lease, and navigate a new city alone, they spend their first weeks distracted and stressed. That’s weeks of lost productivity, and it often colors their entire impression of the company.
When the same employee gets temporary housing, a moving company, and someone helping with logistics, they show up on day one focused and grateful. The cost might be similar, but the outcome is dramatically better for everyone.
What good packages look like by situation
Individual renter
- $7K to $15K moving bonus or professional movers paid directly
- 30 days of temporary housing
- Lease break coverage
- Tax gross-up on the bonus
Relocating with a partner
- $10K to $20K moving bonus
- 60 days of temporary housing
- A house-hunting trip to explore the city
- Career support for the partner
- Lease break coverage + tax gross-up
Homeowner
- Professional movers paid directly by the company
- 60 to 90 days of temporary housing
- Home sale assistance
- Multiple trips to explore the new city
- Cost-of-living pay adjustment
International move
- Professional international movers
- 90 days of temporary housing
- Visa and immigration lawyers fully covered
- Tax equalization (so the employee isn’t double-taxed)
- Annual flights home
- Work permit support for partner
The payback clause: keep it fair
Most relocation packages include a repayment clause. If the employee leaves within 1 to 2 years, they repay some or all of the benefit. This is standard and reasonable, but the structure matters:
- A sliding scale feels fairer than all-or-nothing. Someone who leaves at month 20 of a 24-month window shouldn’t owe the same as someone who leaves at month 3
- A layoff exception is increasingly expected. Employees shouldn’t repay relocation costs if the company ends the relationship
- Shorter windows (12 months vs. 24) signal confidence that the employee will want to stay
Fair payback terms don’t just protect the employee. They make the offer more attractive, which means higher acceptance rates.
Don’t forget the partner
This is one of the most overlooked factors in relocation success. If an employee’s partner is leaving their job and social network to make the move happen, that’s a significant sacrifice, and an unsupported partner is the leading cause of failed relocations.
Career coaching, job placement support, or a transition stipend for the partner costs relatively little compared to the cost of a relocation that doesn’t stick. The best companies already understand this. The rest are starting to catch on.
A note for candidates
If you’re evaluating a relocation offer, use the benchmarks above to understand what’s reasonable for your situation. Most companies have more flexibility in their relocation budgets than what appears in the initial offer. Not because they’re holding back, but because they default to a standard tier unless you share what you actually need.
The most effective approach is to lead with your situation, not a dollar amount. Something like:
“I’m really excited about this role and I want to make sure the move goes smoothly so I can hit the ground running. I’m moving from Austin to San Francisco with my partner, and we’ll need to end our lease early, ship our things cross-country, and find a new place in a much more expensive city. Can we walk through how the relocation support covers each of those?”
This framing works because it ties the ask to your ability to show up and do great work from day one, which is exactly what the company wants too.
The bottom line
A great relocation package isn’t about spending the most money. It’s about removing the friction that makes moves stressful and distracting, so the employee can focus on the reason they were hired in the first place.
For companies, that means thinking beyond the lump sum. For candidates, it means understanding what good support looks like and communicating what you need. When both sides get it right, the move goes smoothly and the new hire is productive, happy, and far more likely to stay.
Whether you’re building relocation packages or navigating one yourself, Gullie can help. We’ve helped hundreds of people and companies get relocations right.