Negotiating a Relocation Package: A Guide for Physicians
While landing a new job can be exciting, the logistics of moving can be daunting—both financially and emotionally. Many physicians overlook this critical component of their employment contract, focusing instead on salary, benefits, and bonuses.
Yet relocation packages can vary widely by employer, geography, and practice type. It’s not uncommon, for instance, for some hospitals and practices to offer only basic assistance, while others may cover everything from moving expenses to temporary housing, and even spousal employment assistance.
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It’s crucial that you approach negotiations thoughtfully. By advocating for your needs and those of your family, you can ensure that the move enhances your career and quality of life, rather than becoming a financial burden or source of stress.
Key Points for Negotiating Your Relocation Package
Consider the following strategies that can help you secure a strong relocation package:
- Start the conversation early. Bring up relocation support during your initial contract negotiations, rather than as an afterthought. Employers are often more flexible at this stage when you have the most leverage.
- Ask for full coverage of moving expenses. At a minimum, your package should cover professional moving services, including packing, transportation, and unpacking. Ensure that it includes any additional costs like moving large or valuable.
- Request a housing allowance or temporary accommodation. Many employers offer temporary housing while you search for a permanent residence. If you are moving to an area with a high cost of living, consider asking for support that extends beyond the initial few months.
- Negotiate assistance with selling or buying a home. Some employers provide financial support or guidance for selling your current home or purchasing a new one, especially if you are relocating from a distant or less competitive market. This could include covering real estate agent fees or offering closing cost assistance.
- Seek out help for family members. Moving with a family adds complexity. If applicable, ask for spousal employment assistance programs, school search services, or help finding child care. Many employers recognize the importance of supporting a physician’s family in making a successful transition.
- Consider tax implications. Some relocation benefits may be taxable, so it is important to clarify which portions of your package will be subject to tax. Ask if the employer provides tax gross-ups (additional funds to cover taxes on relocation assistance).
- Include licensure and credentialing costs. Relocating to a new state often means additional costs for obtaining new medical licensure or hospital credentials. Ensure your employer covers these expenses and expedites the process where possible.
- Evaluate travel and house-hunting trip coverage. Many packages include paid trips for you and your family to visit the new area for house-hunting and to explore schools or neighborhoods. Ensure these costs are covered, and clarify the number of visits allowed.
- Clarify timelines and obligations. Ensure there is clarity on the timeline for relocation assistance. Some agreements may include payback clauses if you leave the position within a certain timeframe after moving. Make sure you understand these terms and negotiate them if necessary.
All this info may feel like a lot to take in, but it’s well worth considering every point above in your negotiations!
Note: Depending on the employer, relocation assistance is sometimes capped, or in cases, physicians may need to pay costs out of pocket and then submit to the employer for reimbursement.
By carefully considering all the above factors, you can ensure that your relocation package aligns with your needs and supports a smooth transition into your new position. A comprehensive relocation package can make all the difference to ensure that your move is a positive experience for both you and your family.
Sources: Physicians Thrive, PulseforProviders, AMA, Indeed, Caprelo, and links cited above.
