What Does Corporate Relocation Include? A Guide for HR and Employees

"We'll cover your relocation." It's a phrase that sounds straightforward until you start asking questions. Does that mean they'll pay for the movers? Does it include temporary housing? What about selling your current home? What if your partner needs job search help?

Corporate relocation is one of the most nuanced employee benefits in existence—and the gap between a minimal relocation package and a full-service one can mean the difference between a smooth transition and a deeply stressful one.

This guide is written for two audiences: HR professionals and global mobility teams designing or reviewing relocation policies, and employees who have been offered a relocation package and want to understand what they're actually getting.

The Core Components of a Corporate Relocation Package

1. Household Goods Moving Services

The most basic element of any relocation package is coverage of the physical move. This typically includes:

• Packing and unpacking of household goods
• Transportation via truck or freight, depending on distance
• Loading and unloading at origin and destination
• Basic liability coverage for goods in transit

More comprehensive packages—often labeled "full-service" or "executive-tier"—include additional services like custom crating for artwork or antiques, climate-controlled transport for wine collections or fragile items, and dedicated move coordinators who manage the process from start to finish.

Companies relocating talent to competitive markets like Los Angeles often offer upgraded moving services as a recruiting incentive. A candidate comparing two offers may weigh the quality of the relocation package as part of the total compensation picture.

At LuxeMove, we work with both companies and individual relocatees who have been assigned a budget or approved a full-service move. Our services page outlines what's available at each tier.

2. Temporary Housing Assistance

Most employees don't move directly from their current home into a new one. There's usually a gap—sometimes a few weeks, sometimes a few months—during which they need a furnished, comfortable place to stay.

Temporary housing assistance can take several forms:

• Per diem allowance (a fixed daily amount to cover housing costs)
• Managed temporary housing arranged by a relocation management company (RMC)
• Apartment finder services with access to corporate housing networks

In Los Angeles, temporary housing logistics matter a lot. The city's geography means a 20-mile commute can take 90 minutes at peak hours. Placing a relocating employee in temporary housing on the wrong side of town wastes their time and creates additional stress during an already demanding transition.

3. Home Sale Assistance

For employees who own their current home, selling it is often the most stressful part of the relocation process. Corporate relocation programs address this in a few ways:

Buyer Value Option (BVO): The company guarantees a purchase price if the employee can find a buyer on their own within a set period. If they can't, the company purchases the home at the agreed value.

Guaranteed Buyout (GBO): The company arranges for a third-party to purchase the home, with the guaranteed purchase price based on independent appraisals.

Reimbursement for selling costs: Some programs reimburse closing costs, agent commissions, and other fees associated with selling, rather than guaranteeing the sale itself.

The right program depends on the employee's local market and the company's budget. In slower markets, home sale assistance can be a significant financial benefit. In hot markets, a simple reimbursement may suffice.

4. Home Purchase Assistance

When the destination is Los Angeles, home purchase assistance becomes particularly valuable. LA has one of the most competitive real estate markets in the country, with median home prices well above $800,000 in most desirable areas—and considerably higher in neighborhoods close to major corporate campuses.

Purchase assistance may include:

• Access to a preferred real estate agent who specializes in relocation
• Mortgage referral or preferred lending rates
• Closing cost reimbursement
• Down payment assistance (less common, but offered in high-demand talent markets)

For employees buying in West Hollywood, the Westside, or neighborhoods near tech hubs like Playa Vista and Culver City, having a relocation-experienced agent who understands the market is crucial.

5. Rental Assistance

Not every relocating employee plans to buy. Many prefer to rent first, spend a year learning the neighborhoods, and then decide where to purchase. Rental assistance can include:

• Apartment search services
• Security deposit reimbursement
• Lease-break assistance for the employee's current rental
• Moving in/out fees reimbursement

In LA, first-month-last-month-plus-security-deposit requirements can mean several thousand dollars upfront. Reimbursing this through the relocation package removes a significant barrier for employees who are cash-constrained during the move.

6. Cost of Living Adjustments

Los Angeles is an expensive city. An employee moving from Raleigh, Atlanta, or Denver may experience significant sticker shock—not just in housing, but in everyday costs like groceries, childcare, and transportation.

Some relocation packages include a temporary cost-of-living allowance (COLA) to help offset the difference during the first year. This is especially common for companies aggressively recruiting talent from lower-cost markets.

7. Family Support Services

The most common reason a corporate relocation fails isn't work-related—it's family-related. An unhappy spouse, a child struggling with the school transition, or a partner who can't find work often leads to the employee requesting a transfer back or leaving the company altogether.

Sophisticated relocation programs address this proactively with:

• Spousal/partner career transition support: Resume review, job search assistance, networking introductions
• School search assistance: Helping families identify the right public or private school options at the destination
• Child and dependent care referrals: Connecting families with daycare providers, nannies, or after-school programs

For moves to Los Angeles specifically, school quality varies enormously between LAUSD schools and surrounding districts like Santa Monica-Malibu, Pasadena USD, or Beverly Hills USD. Having expert guidance on this front prevents costly mistakes.

8. Tax Gross-Up

Since the Tax Cuts and Jobs Act of 2017, most relocation benefits are treated as taxable income. A $25,000 relocation benefit could result in an additional $8,000 to $10,000 in federal and state taxes for the employee—a significant financial hit.

A tax gross-up is an additional payment from the company to cover this tax liability, ensuring the employee receives the full intended value of the benefit. Whether a package includes a gross-up is one of the most important—and frequently overlooked—questions an employee should ask before accepting a relocation offer.

9. Destination Services

Destination services help employees get oriented in their new city. In Los Angeles, this might include:

• A community orientation tour covering neighborhoods, commute routes, and local amenities
• Driver's license and vehicle registration guidance (California has specific timelines for this)
• Utility setup and service transfer assistance
• Information on healthcare providers, gyms, and community resources

What's Often NOT Included (But Should Be Asked About)

Even generous relocation packages sometimes have gaps. Common items that may require negotiation or clarification:

• Pet transportation: Moving large dogs or multiple pets across the country can be expensive. Many packages exclude this entirely.
• Vehicle shipping: If driving isn't feasible, shipping a car from New York to Los Angeles can cost $1,000–$2,000. Confirm whether this is covered.
• Return trips for house-hunting: Employees often need one or two pre-move trips to find housing. Ask whether these travel costs are reimbursable.
• Storage costs: If the new home isn't ready on move-in day, household goods may need short-term storage. Confirm who covers this.

A Note for HR Teams

The best relocation packages are designed with empathy—they reflect an understanding of what actually causes employee stress during a move. Focusing too heavily on cost caps while ignoring support services leads to employees who arrive burnt out and resentful.

If your company is relocating talent to Los Angeles, consider partnering with a dedicated luxury moving provider like LuxeMove for the physical move component. The difference in care, communication, and execution compared to a standard carrier is substantial—and it reflects directly on how the employee perceives their onboarding experience.

Contact LuxeMove to discuss volume agreements or preferred vendor arrangements for your corporate relocation program.

Summary

Corporate relocation includes far more than just hiring a moving truck. A comprehensive package addresses the entire transition: packing and transport, temporary housing, real estate support, family services, cost-of-living adjustments, and tax assistance. Understanding exactly what's included—and what isn't—allows both companies and employees to plan more effectively and avoid costly surprises.