A relocation budget needs to cover both the move and the first period in the new location. For HR, that means making clear which costs the company will cover, when they will arise and what happens if plans change. Housing, practical settling-in, the family’s needs and your organisation’s own time all need to be considered together.
Start with the employee’s circumstances and the support you have agreed to provide. Someone moving alone for a short assignment has different needs from a family settling in Sweden. A budget template with clear assumptions is therefore more useful than a general total figure. Also decide which cost centre should carry the budget. Should it, for example, be allocated to recruitment, employer branding or personnel costs?
Describe the move before calculating costs
Write down the assumptions behind the budget: destination, expected arrival, assignment length and the people moving. Note which decisions have not yet been made. If the location of the new home or the family’s arrival date is uncertain, make that visible in the calculation.
Then review the support the employer will offer. Will the company cover accommodation for a limited time, help with finding a home and practical settling-in? Do not include support that has not yet been approved as though it were a promise to the candidate.
Separate one-off costs from ongoing costs
A one-off cost may be straightforward to assess when you have a quote. An ongoing cost also needs a time period. The price of accommodation, for example, tells you little about the budget unless it specifies how long the accommodation will be used.
Also distinguish between a cost and a temporary payment. A deposit can affect how much money needs to be available without being a final cost in the same way as rent. Ask your finance team to assess how each item should be treated and how any tax, VAT or benefit affects the calculation.
The table can be used as a starting point for your own budget. The items are examples to consider, not a standard package or a Nimmersion price list.
| Budget item | Information to gather | What needs to be decided? |
|---|---|---|
| Travel and possible transport of household goods | Quote or estimate for the specific move | Scope and who makes the bookings |
| Temporary accommodation | Price, terms and estimated length of stay | Period, budget limit and who may approve an extension |
| Home finding | Quote for the support required | What the employer will pay for |
| Permits and advice | Current fees and a quote where support is needed | Which cases and people are covered |
| Practical settling-in | Assessment of the employee’s needs | What support will be offered |
| Accompanying family | Needs such as school orientation | Which services are included |
| Internal working time | Estimated time for HR, the manager, payroll and finance | Who will make the time available |
| Contingency for changed plans | Identified uncertainties | Amount and decision-making responsibility |
Treat accommodation as a question of time
The accommodation plan affects both the budget and the employee’s daily life. If a long-term home is not arranged by the time they arrive, you need to consider a temporary solution and how the transition will be managed.
Calculate a main scenario and an alternative in which temporary accommodation is needed for longer. Use current prices and terms. Check what an extension or cancellation would involve before you need to make the decision.
Through its home-finding support, Nimmersion can help assess needs and search for accommodation. Request information that reflects your employee’s particular circumstances so the budget is based on the right scope.
Make the organisation’s time visible
Even when an external provider handles parts of the move, HR and other functions still need to be involved. Someone needs to approve costs, answer questions and coordinate contact with the employee.
Set out the internal work you expect to be needed. The aim is not to promise a specific time saving, but to avoid a budget that assumes all internal coordination will happen without resources. If you compare different arrangements, include the same tasks in both alternatives.
Give uncertainty its own space
A useful basis for decisions shows what you know and what is still an estimate. Label each amount as a quote, a confirmed cost or a preliminary assumption. Record when the information was prepared.
Then decide who can use the contingency and when a change needs to be raised for a new decision. This makes it easier to handle a later arrival, for example, without starting the whole budget process again. After the move, compare the actual outcome with the estimate and use what you learn for the next recruitment.
Prepare for the support you need
Nimmersion’s relocation services include support with housing and settling-in. Tell us who is moving, when you expect them to arrive and what you would like to manage internally. Contact us to discuss an arrangement that you can use in your budget planning.
