[NL] Job offers w/ substantial relocation package

[gentop3a]

Hello

This question is mostly related to people living in the Netherlands but any opinion is welcomed.

This will be the first time for me changing jobs in the Netherlands but also moving to a more expensive location (from a small town in the east to the center of the country - Amersfoort or Utrecht). I work in engineering sector earning yearly 41.4k. I currently have 2 job offers. The first one is offering 6% salary raise and 5k for relocation (all at once). The second one is offering 3% salary raise and 7k for relocation paid in 24 months. The recruitment agency is telling me both are pretty good deals, which I doubt, since the market is paying between 40k to 60k and I was expecting 15% to 20% salary raise at least. I have a couple of questions:

• Is it common in NL that companies offer this kind of deal, where the relocation package is used to make a difference? I feel they are taking advantage of this subsidy and want to give me a lower salary.
• In your opinion should I accept any of these offers? I am paying 500eur/month for an apartment and going to Utrecht or Amersfoort I am expecting to pay 800eur/month, plus the stress and expenses to find something there.
• Any suggestions on the arguments to use when I make a counteroffer?

Thanks

 

[arhcc]

@gentop3a Here's what I would suggest:

First off, come up with your own amount that you'd expect for relocation. You're mentioning the stress and expenses of finding something at the new location - try to put an amount on these. Ask yourself: If someone approached you today and told you: "I'll give you 2000€ to look for an apartment in Utrecht and to move all of your stuff there" - would you accept that offer? Would you do it for less or for more? If you've made up your mind about this, you basically know the ideal amount of your relocation package.

Next, you'll want to assess your monthly pay/expenses in detail. You mention a 6% salary raise for one job - this would come out to ~2500€ per year (or significantly less if the amounts are pre-tax). On the other hand, you say you're expecting to pay ~3600€ per year more for rent.

I'd suggest being open about this with your potential future employers. Tell them you'd need a higher salary in order to compensate for your higher cost of living, but also let them know you'd be willing to compromise on the relocation package (if you're indeed willig to do so). If the employers are unable to provide a higher salary I would not take the job.

 

[gentop3a]

@arhcc Now you made me think

 

[bcjammerx]

@gentop3a I know multiple big companies who offer a hefty relocation instead of a joining bonus. The key benefit is that relocation allowances are tax free (up to a limit)

 

[gentop3a]

@bcjammerx Do you know the limit here in the Netherlands? (Any reference would be nice)

 

[manh2000]

@gentop3a IIRC it's the actual transport costs of moving household stuffs plus max 7750 euro.

If I were you I wouldn't take the offer as is unless I really like the job or hate the current one. Agencies want to get their money so they will convince you it's a good deal (as you already suspected yourself, it really isn't that good of a deal solely based on your description). Depending on your employment status, switching employer might also mean you'll be worse off in terms of job protection in the event of dismissal because they'll take into account how long you've been with the company.

If you're confident that they need you, don't hesitate to make a counter offer, explaining how their current offers do not make much sense for the troubles you need to get through, and try to have it in your base salary and not as one off extra (as someone else has mentioned in the thread, you'll most probably end up earning less after factoring in the rent expenses increase, which is a solid argument). I did this when I had to relocate when I changed job to my current one, and I managed to get more than 30% raise, without relocation bonus. (I had to move to Amsterdam and it's quite easy to argue about this given how crazy the housing market is here. At the end of the day, after factoring in the extra living costs associated with the relocation, my net income increased only by about 10%)

 

[marycominassi]

@gentop3a I think the relocation packages are fine. They allow two months of rent, a van to move your stuff, money to pay a broker and some money to redecorate. I've moved myself various times and usually spend 1-2k at most.

The salary increase is not too impressive. If you enjoy your job and city and need to be compensated for that loss, it's not very much and I'd reject. But if you'd like to live in a bigger city anyway and like change, it's a nice little bonus, isn't it?

In any case, always negotiate. I've never had an employer say nevermind if you wanted to talk salary, unless there are indications of low-interest or high-competition. But it seems they like you. Why not try to go higher? Let them know you've received multiple offers.

Third, what are the alternatives? If the market really is paying up to 60k, then start applying now and get that job. Or are they just indicators on a shitty website, and reality is different? Find that out ASAP. Of course it makes no sense to accept this if you can really go up to 50-60k, that's something you need to look into right away.

In any case, the second offer seems meh. After 12 months and 24 months and any time after, you'll have collected more from the former than the latter. After all, the former pays you 1.25k more each year than the latter, forever. The latter pays you $2k more over 2 years, or $1k average per year, but only for two years. i.e., the latter is never a good deal, whether you quit before or after 24 months.