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April 10, 2009

What's the best way -- and the best time -- to negotiate relocation costs?

Q: You've got a great job opportunity -- in a distant city. You don't know whether they pay for relocation, but you can't afford to pay your own way. What's the best way -- and the best time -- to approach the company for help with a relocation package (during the interview, after the offer has been made, etc.)?

Nick's reply: I think it's incumbent on you to let the employer know from the start if you will require help with your relocation. To drop this on them just before, or right after, they make an offer isn't going to put you in a good light.

Some people might argue that you'll get leverage in your negotiations if you let the deal proceed to the offer stage, then bring up the relocation issue. Yes, the employer will have more invested in the hire at this point, and they might be less likely to kill the deal after they've come so far. But is this the way you want to start a work relationship?

There's usually some negotiating room if you step forward and try to develop it, even if the company's policy doesn't include paying for relocation. The real question, therefore, is: What kind of relo deal is good for you and acceptable to the company? It's up to you to work it out and propose a solution.

Start by asking them how they handle relocations before you interview. The answer may satisfy you. If you don't like their response, you have a decision to make: Should you walk away, or suggest a negotiation?

Make sure you have a collection of options in mind. Let them know that you'd like to work out a deal that will get you the help you need and will be acceptable to them. If a company does not usually do relocations, ask why. They may have gotten burned by a relocated hire who quit quickly. If you can help them avoid risk, they're more likely to work with you. Here are some points you might be able to negotiate:

-- Full or partial relocation. That is, if they won't buy your house, move your car, help with new home financing, move you and your belongings and put you up in a hotel while you search for a place to live, will they do any of these things? Which are you willing to pay for yourself? Don't assume it's all their responsibility. If you have to bear some of this cost, remember that you'll likely get a tax break, and it's a one-time expense. Consider it an investment in your future. (If you can't see it that way, you need to reconsider whether you really want this job.)

-- There's always a payback clause in relo packages. If you leave the company before one or two years, you will owe the employer whatever expenses they incurred to move you. You may be able to negotiate this term down to a shorter time period, or they may agree to prorate it.

-- Get a loan. For those relo expenses the company won't cover, would they consider making you a loan to pay for them? The loan might be at no interest. It might be for a very short term (say, six months, with payments to be deducted directly from your salary).

These and other negotiable terms can help a candidate and an employer come together, but only if one of the parties suggests them. If the employer doesn't normally pay for relo, it's up to you to start the discussion. If you keep in mind (and act like you really believe) that both parties must come out ahead, you're likely to impress the employer and lay the foundation for a solid relationship.

Some employers think that if a candidate won't relocate himself, then the person isn't motivated enough for the job. They use the relo issue as a test. But job hunters sometimes use this same logic: If the company won't move me, they don't really want me. I think this is nonsense. Relocation is mostly a financial issue, and that means it's probably negotiable.

My advice: Put the issue on the table no later than the end of your first interview. (If the company paid to fly you out for the interview, they know relocation will come up, so you won't be surprising them entirely. If they are surprised, they're naive and you may not want to work there.) Ask what their policy is. If there's no relo program in place, indicate your willingness to negotiate mutually acceptable terms and proceed with your interviews. Then be ready to put options on the table and to negotiate.

Copyright 2009. Distributed by Universal Press Syndicate

Nick Corcodilos is author of "Ask The Headhunter: Reinventing the Interview to Win the Job" and the host of www.asktheheadhunter.com. He can be reached by e-mail at seattle@asktheheadhunter.com or at North Bridge Group, P.O. Box 600, Lebanon, NJ 08833. Sorry, no personal replies.

Read more: Ask the Headhunter , Professional etiquette , Salary and benefits

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