Corporate Moves: A Guide to Negotiating a Relocation Package in Thailand

What a wonderful news, you just got your dream job, the only problem is that it is not in your city. It is a big step to relocate somewhere else for your work, but it is a big career opportunity and a bet for future. You found your job abroad, now you should think about the relocation process. Knowing the cost of relocation (around ten thousand dollars), you will have to play smart and negotiate prices and find the best deal for your move.

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The art of relocation negotiation

According to a workforce mobility association known as the Worldwide ERC®, companies spent $9.3 billion on relocations in 2011. With the economy coming out of recession, there are a higher number of companies offering relocation (or “relo” in HR speak) assistance. 73% of companies offered relocation incentives in 2011, a 13% increase compared to the previous three years, this research is made by the 2013 Atlas Van Lines Corporate Relocation Survey. You should realize that it is not because you found your dream job in another country that you are all by yourself in the moving process. If your new company doesn’t propose in your contract a help with your relocation, it is up to you to open the discussion. In the following, we will explain how to deal with the conversation with your employer to figure out the cost and how you will negotiate the right package for your needs.

Ask for help

We advise you to ask directly if your new company offers relocation assistance. Inform yourself, ask what you want, about the services and compensation you’ll need for your move.

Inform about the cost, keep in mind that moving can be expensive. According to the Worldwide ERC®, in 2012 companies spent around $19,303 to move a new hire renter and $70,000 to move a new hire homeowner. Don’t be too shy for asking help, this is something you should not hesitate for. If you don’t ask you won’t know what you can get from your company. You have nothing to lose so go for it!

Remember that you and your company are looking for the same thing: relocating you in the most efficient way for you and them. The purpose is to make the move as financially practical and stress-free as possible.

Know what to ask for

As we told you before, getting information is a must when you are preparing to move, get an idea of what you’ll need, including special assistance or services. For example, a single person won’t have the same needs as a family. Inform your employer about your situation, if you have a spouse or no. Take the time you need to collect all the information and suggest to your employer the type of services you will need for your relocation.  It doesn’t mean you’ll get it, but you don’t have anything to lose by asking. Do some research about the prices for you to be able to start the negotiation with an approximately good amount. Note that everyone underestimates the right amount.

More Money: Understanding corporate psychology

Every single companies have the same goal when it is about to finance their employee relocation: to pay as little as possible. Another concern that is not openly discussed is the way the relocation policy reflects on the reputation of the company. Most companies see relocation as a valuable recruiting tool, so a bad or nonexistent policy could hurt their chances of attracting top talent in a competitive job market.

So, what does that mean for you? If you’ve got another offer on the table that includes relocation, but the job you really want, do not hesitate to mention it. Precise the nature of the relocation packages the other company propose and ask the company you want to work for to match it. In the worst case they will just say no.

Here another tip? If the base salary offer is lower than you want, you can make a difference in the relocation package than by asking for a higher salary. Generally, companies prefer to negotiate with the relocation package than the salary which is a recurring expense. Just remember that companies care about their reputation and want to make an offer attractive so you’ll work for them and not a competitor.

Make your case

Whether it’s moving an employee or leasing office space, keep in mind that companies choose to spend money based on the expected return on investment. The best way has the better argument when negotiating is to show them how helping you will benefit them in the end. Show that it’s a win-win situation for both of you.

For example, in the case, the company needs you to start in three weeks, but you must sell your house and know that you won’t ever be able to start on the date they gave you. Make a request for home sale assistance and temp housing, explain that those services will free you, and help you start at the due date. When making the request, word it so that the benefit to the company comes first: “I can guarantee I’ll report to the office by January 20 and be ready for the next product development cycle if you provide home sale assistance and temp housing until my home sells.”

Remember, the person you’re working with at the company will need to make a case for your requests to whoever is writing the checks. Therefore you should make it easier for them when negotiating to access your request. Be clear about what you want, rational and concise.

The anatomy of a relocation

Most companies propose in the package lot more than just moving your households, the package can include: loading, unloading, insurance and full packing.

According to the Atlas survey, half or more of companies reimburse or pay directly to:

  • Pack all items (82%)
  • Move a car (80%)
  • Move exercise equipment (52%)
  • Move a second car (52%)
  • Unpack all items (49%)

Moving specialty items

If you happen to have delicate equipment such as a piano, a vehicle, a boat, or others, you will need special moving services. Standard moving companies may not offer special services for moving fragile equipment.

Additional assistance and benefits

As well as moving common household items, about 75% of businesses, regardless of size, given not permanent accommodation according to the Atlas poll. Nearly half given house move primes and forty-three percent incorporate loss of commercial transaction guarding for proprietors who sold their homes. Even if you do not own, there are additional assistance you could benefit from, incorporating:

  • Move organization
  • Pre-relocation visit (to verify accommodation and schools)
  • Rental services (break of a lease, deposit)
  • Employment assistance for spouses
  • Travel benefit
  • Storage room

Money:  Kind of moving package

The move packages and services included can change very much according to a number of factors: whether you own or rent, move as a single person or with your family, and the number of things you need to shift. They all have one thing in common: they must pay for services. How firms will provide you with funds: certain procedures simply need you to work with a mobile coordinator who finds, engages, and pays all the necessary assistance in your place, while with additional procedures you will be responsible for localization, pricing, hiring, and corresponding the all movement yourself. Familiarize yourself with the diverse types of resettlement service and be certain to schedule your relocation as should be done therefore that in the end, you don’t have to pay out of pocket (it can be a possibility)

A relo package may be a lump total, a refund, a direct invoice, or a relocation of a third party. As the name suggests, a lump total is when the firm offers you a quantity of money to disburse as you want for you, and every one of your things, to the fresh large town. A refund is when the firm accepts to reimburse you for all or part of the expenses related to the move. As the lump total, there is habitually a cap on the repayment of the business.

Moving Terms to know

  • Lump total: A single, pre-arranged, not movable payment supplied by the firm for relocation costs. You choose how to disburse it, but once the money is gone, he’s gone.
  • Refund: the maximum amount the firm will pay back for relocation expenses. Prepare to record your invoices. 
  • Straight invoicing: when the firm pays directly or in full for certain expenses, in many cases utilized when the firm manages the relocation assistance. This can also be joined with a lump total or refunds for various travel or rental costs.
  • Third party move: when the recruiting company subcontracts the relocation of an employee to a move assistance agent who manages and co-ordinates all necessary assistances.

In a straight invoicing placement, the firm pays directly for relocation assistance and selects and often hires the relocation firm for you. In the end, in the event of relocation by a third party, the firm contract out every one of relocation logistics and management to a traveling broker who provides complete organization for every one of assistances. This may incorporate guidance and advice on moving to a new house, home sales assistance, storage in the destination town, planning not permanent accommodation or rent assistance, and assisting with spousal employment.

Firms that decide not to contract out to an agent typically utilize a blend of procedures according to the size of the business and the moving budget. For instance, a wide firm with a large budget can directly pay the full expenses of an entire-assistance relocation, incorporating displacing a vehicle and storing it in the city of destination. It could also give a lump total or reimbursement for every one of additional connected costs, like a rental advance payment, travel costs and house marketing sales if required. In the opinion of the Atlas poll, small and medium-sized businesses are greatly more probable to utilize lump total for transportation and warehousing, while larger firms utilize lump total for diverse allowances more often and charge directly. moving and connected assistances.

Beware of movers: read the fine print of the relocation policy

There are many things to do for you and for the company. If done right, the relocation should be a win-win for both of you, but there are a not many likely that are problematic for move, so many businesses (or their legal professionals) construct guarding in their principles that you should know before the relocation:

Refund clauses

Your fresh business is making a significant investment in hiring and displacing you, so it’s understandable that they need to be reassured that after the relocation, you’re not only going to stop working for an opponent’s. In accordance with the Worldwide ERC®, eighty-six percent of firms need fresh employees to sign a repayment agreement in which if the worker abandon the firm within a predetermined period, say, within a year or eighteen months of their start date, they are responsible for paying every one of or part of the expenses of their move.

Recovery time

A large query to response if you receive a lump total payment is when the firm will pass you the money. Now? After the relocation? In six months? In the best situation, companies will make a check beside after saying yes to the proposition. Almost all will insert in your first pay check whereas others might pay at the end of a trial time. The disadvantage of overdue payment is that you could misplace a lot of your funds for a period or be impoverished for thousands of dollars until the firm reimburse you. Make sure you organize your treasury intelligently.

Unapproved expenses

Before you begin establishing assistance and disbursing money, you expect the company will reimburse you later, so make sure you comprehend precisely what is took into account an accepted cost and what is not. Even if you consider that specialty packaging and removal for your old table top bagatelle collection should be incorporated, this might not be the case. There may be some things the firm will not hide, even if it’s part of the budget. Every time, it’s best to check the accepted spending policy and try to negotiate additional services to avoid unplanned costs.

Taxes: The IRS wants your money

When arranging your move package, keep in mind that lump total payments are completely liable to tax like earned personnel earnings, which signifies you will have to pay income taxes for that sum at your filled rate of pay at the end of the year. Almost all firms will give the lump total before tax but may be willing to give it to you after tax – but only if you enquire for it. Certain will “extrapolate” – that is, pay a higher gross sum so that the net profit, after tax, will be close to relocation costs. You can escape this circumstances by enquiring the firm to charge for relocation assistance directly. You do not require to pay taxes or notify payments effect directly by the firm to the IRS. If the firm does not do direct billing, you will have to deduct the moving expenses from your tax declaration. Be sure to follow what you spend and keep these incomes. Tax regulation may vary and every one of costs are not deductible. Get in touch with a tax specialist to find out how moving can impact your tax situation.

Coordinate your own relocation

Small businesses often do not have the time or the employee to decide with a removal worker in your place, so you can finish managing the relocation yourself with your lump total. The advantage is that whatever you do not disburse, you can retain it. The disadvantage is that expenses can accumulate rapidly and before you comprehend it, this big check will start to look small. It is consequential to compare for the best price and encounter a respectable mover.

Also remember that once you have accepted the job proposition, the clock is an appointment. Almost all firms will want you to signal to employment within 4 weeks. It does not leave many durations to organize your relocation. The more quickly you can encounter a favourable engine and have it programmed, the better.

Interested in our services ?
Do you further information ?

Download our brochure (PDF) !


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