Relocating for work: Breaking down the costs
Relocating for work is a big decision and moving to a new area can bring with it a lot of unknowns. One of the most important things to consider when you’re looking at moving for work is your budget and how any move would affect your financial security. Many companies will offer relocation assistance for candidates who are moving geographical locations to take up a role. This is becoming increasingly common in sectors such as healthcare where homeworking is impractical, as it allows employers to attract the best talent from around the UK and beyond.
To explore this further, what specific factors should you research before accepting a job offer that requires relocation?
Cost of Living
One of the primary financial considerations when relocating is the cost-of-living difference between your current location and your new destination. The cost of living encompasses various everyday expenses such as housing, groceries, transportation, healthcare, and entertainment. Conducting a comparative analysis can offer a clear picture of how your standard of living may change and help you assess if the move is financially viable.
Cities like London, for instance, have a substantially higher cost of living compared to smaller towns or rural areas. In such cases, you might find that housing costs, including rent or mortgage payments, are markedly higher. Additionally, daily expenses such as dining out, utility bills, and transportation costs will likely increase. Conversely, moving to a less expensive area might provide a financial relief, allowing you to save more or afford a better standard of housing.
Numerous online tools and resources, such as cost of living calculators, can provide an insightful comparison. However, it's also beneficial to conduct ground-level research by talking to current residents and visiting local establishments if feasible. This hands-on research can give you a real sense of the financial landscape you’re moving into.
Relocation Packages
If you are relocating for a job, understanding the specifics of your employer's relocation package is crucial. Relocation packages can vary significantly from one employer to another, and what’s included can make a significant impact on your financial position. Typically, these packages might cover components such as moving expenses, temporary living costs, and travel expenses during the move.
Some comprehensive relocation packages may also offer additional support, like assistance with selling your current home or finding a new one, school search for your children, and even help with acclimatising to your new city. Key elements to look for in a relocation package include:
Moving Costs: Does the package cover hiring professional movers, packing services, and shipping of household goods?
Temporary Housing: How much support is provided for temporary lodging if your permanent home is not ready upon arrival?
Travel Costs: Are flights or other travel methods covered for both you and your family during the move?
Settling-In Allowance: Is there a stipend to cover initial expenses such as utilities setup, new furniture, or other necessities?
Negotiating your relocation package might be necessary to ensure that it truly meets your needs.
Hidden Costs
When considering hidden costs involved in relocation, the obvious expenses like moving trucks and packing supplies are just the tip of the iceberg. Hidden costs can accumulate and strain your budget if not properly anticipated. Here are some potential hidden financial traps to be mindful of:
Temporary Housing Costs: Extended stays in temporary housing can quickly add up, especially if the housing market is competitive or your arrival overlaps with peak rental seasons.
Storage Fees: If your belongings need to be stored for a period due to delays in your permanent housing availability, these storage fees can become significant.
Travel Expenses: Multiple trips back and forth for house hunting, familiarisation tours, or family visits can contribute to unforeseen travel expenses.
Pet Relocation: Transporting pets, especially internationally, can be costly, involving travel crates, flights, and potentially quarantine procedures.
Utility Setup Costs: Initial deposits and setup fees for utilities, internet, and other services can swiftly add up in a new location. Contract cancellation of existing services can also incur fees from service providers and these costs may also be included in your relocation package.
Vehicle Registration and Permits: If you are moving to another state or country, ensure you budget for new driver’s licenses, vehicle registration, and permits which can be hefty.
Adequate planning and budgeting for these hidden costs can ensure you aren't met with unpleasant surprises during your relocation process.
While not every cost of your move can be absorbed by your employer, it’s always worth having a clear idea of the costs and benefits involved in relocating for work, and how your employer might be willing to help.
If you’re a healthcare professional seeking relocation you can trust our specialist healthcare recruiters to help you negotiate the right package. Check out our latest vacancies or call us on 01904 230002 for a confidential career chat!