Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Careers - Employment
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Fill in a brief DW Simpson Registration Form
to be contacted when our jobs meet your criteria.


Reply
 
Thread Tools Display Modes
  #1  
Old 10-15-2004, 02:04 PM
Acting As Herb Acting As Herb is offline
Member
 
Join Date: May 2004
Posts: 88
Default What is a fair relocation package?

Say a talented actuary is a new ASA with 7-years of experience. He is married, has a child in school, and owns a home.

Say a company 2,000 miles away thinks he'd be a great fit and wants to hire him. Our cost of living here is somewhat more expensive than there. All we can offer him as a salary is $75,000 salary--what he makes now--but he will likely accept that because we offer a better bonus structure and more potential for advancement.

I don't know what to offer him as far as a relocation package and/or sign-on bonus. I think he really wants to come here, and I don't have a lot of money in the budget for an extravagant package. What would be a reasonable relocation package that was on the cheap side, but not too out of line with the market?

If I give him an after-tax check of $6,000 as combined sign-on bonus and relocation package and allowed him to make his own decisions about how to use it to move his family and belongings down here, would that be pretty much in line with other offers he is likely to receive? I'm trying to go cheap with this, but I don't want to be so cheap that it comes across as a slap in the face.
__________________
Still spinning our wheels...
Reply With Quote
  #2  
Old 10-15-2004, 02:19 PM
Loner's Avatar
Loner Loner is offline
Member
 
Join Date: Dec 2001
Location: The Third Half
Posts: 35,980
Default

Given that relo packages often involve paying the real estate agent's commission on the old home, sounds like you're slapping something with an offer of $6,000.
__________________
2012 AO Rap Battle Champion
Co-Legend of the Water Cooler(TM)
Reply With Quote
  #3  
Old 10-15-2004, 02:23 PM
Westley Westley is offline
Member
 
Join Date: Nov 2001
Posts: 20,725
Default

Quote:
Originally Posted by Loner.
Given that relo packages often involve paying the real estate agent's commission on the old home, sounds like you're slapping something with an offer of $6,000.
Yup. I don't think that $6,000 plus cost of movers plus real estate commissions plus other costs of housing change (a mortgage point, closing costs, etc) would be overly generous, just reasonable.
__________________
That's the Law of the land. It has nothing to do with the Government. ---jas66kent
Amerika is a country of prudish religous nutz who consume prn on a massive scale ---Guerilla Poster
Plus the person with 3 years in pension will already have their soul completely crushed, so you know that person is damaged goods. ---figure 8

"Best of... Westley" thread: http://www.actuarialoutpost.com/actu...ad.php?t=52501
Reply With Quote
  #4  
Old 10-15-2004, 02:23 PM
DW Simpson DW Simpson is offline
Site Sponsor
Site Sponsor
 
Join Date: Sep 2001
College: Yes
Posts: 18,631
Default

This may be useful, too -- http://www.actuary.ca/phpBB/viewtopi...32671&start=12
Reply With Quote
  #5  
Old 10-15-2004, 02:38 PM
Ms. Re Ms. Re is offline
Member
 
Join Date: Nov 2001
Posts: 215
Default

so you're wanting to just pay him $6K and let him handle moving, temporary housing, house hunting trips, sales commission on his old house, and closing costs on his new house? If so, that would be one of the worst relo packages that I've heard of for a credentialed actuary...a $6K bonus plus the above items grossed up for taxes sounds more reasonable
Reply With Quote
  #6  
Old 10-15-2004, 02:54 PM
Swiper Swiper is offline
Member
 
Join Date: Apr 2004
Posts: 251
Default

I agree with the others. If the $6,000 is intended to cover bonus, moving expenses, real estate costs, etc, that is very very low. I would expect the signing bonus alone to be that for an ASA. I think $6,000 plus moving expenses plus real estate fees to sell current home is a reasonable offer.

I thin if you want to offer a flat amount and let the prospective employee pay these costs your offer would need to be upwards of $20,000 as the realtor fees alone could be in the $10,000-$15,000 range based on a standard 6% commission.
Reply With Quote
  #7  
Old 10-15-2004, 03:05 PM
Salzmann's Avatar
Salzmann Salzmann is offline
Member
 
Join Date: Jun 2004
Location: Midwest
Posts: 5,460
Default

I moved last year at a more senior level- my company is a sub of a Fortune 500 and it's probably one of the last great relo packages, but here's what I got:

1. Realtor commission.
2. $5000 after tax for house-hunting trips. We could keep what we didn't spend.
3. A month's salary before taxes for "stuff". The new house always needs new curtains, more furniture, repairs that you hadn't anticipated.
4. A bonus of up to 2% (before taxes) if I sold my house quickly. Went down to 1% if it sold within 6 months. That was an incentive to make necessary repairs and price it right. I got 2%.
5. Moving costs- must have been about $12,000.
6. If the house didn't sell within 6 months, they would have bought it.
7. One point on the mortgage, which was taxable income to me.
8. Legal fees for buying and selling.

If you're going through a recruiter, check with him/her about what might be acceptable. As you can see, your candidate has a lot of expenses involved in relocation and $6,000 won't do it.
Reply With Quote
  #8  
Old 10-15-2004, 03:31 PM
Acting As Herb Acting As Herb is offline
Member
 
Join Date: May 2004
Posts: 88
Default Re: What is a fair relocation package?

Real estate commisions! I haven't even heard of people paying that. It's not like it is my fault that he owns a house.

According to the thread to which DW Simpson linked, entery level people who have to move get, on average, a $3,000 bonus/relocation package.

The candidate I'm trying to land will probably end up spending the full $9,000 (before tax) on allowable expenses. That is 3 times the average that entery level people get. He has 3 times as many exams under his belt, so he should think it is a fair deal, right?

I'm aware that some companies are very generous when it comes to these things. I'm not trying to compete with companies like that. I'm not trying to indemnify the candidate for the actual costs he is facing in the proposed move. Rather, I'm trying to figure out a market average for what companies actually pay.

Honestly. Should I face a higher cost just because he owns a home?

Let's hear about some actual packages that you guys have seen for ASA's. There must be some that are worse than paying $9,000 (before taxes).
__________________
Still spinning our wheels...
Reply With Quote
  #9  
Old 10-15-2004, 03:50 PM
Loner's Avatar
Loner Loner is offline
Member
 
Join Date: Dec 2001
Location: The Third Half
Posts: 35,980
Default

Why are you asking a question when you don't want to hear the answer?
Entry level people get squat for relocation because they're coming out of college and expecting to relocate anyway.
__________________
2012 AO Rap Battle Champion
Co-Legend of the Water Cooler(TM)
Reply With Quote
  #10  
Old 10-15-2004, 03:53 PM
Acting As Herb Acting As Herb is offline
Member
 
Join Date: May 2004
Posts: 88
Default

Quote:
Originally Posted by Loner.
Why are you asking a question when you don't want to hear the answer?
I do want to hear the answer, but I'm skeptical--how could it be that my thoughts on what a fair relocation package are so out of line with what you guys think?
__________________
Still spinning our wheels...
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 06:07 AM.


Powered by vBulletin®
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.33152 seconds with 7 queries