Because it's a _package_ that includes multiple benefits and not just a single reimbursement of a "moving van receipt and that's all you get."
A good relocation package from a major corporation will include many expenses besides the cost of the moving van.
This was my relocation package:
+ airfare for 2 trips for house hunting
+ lease cancelling fees (which was about $1800 since I broke my lease 3 months early to take the new job)
+ professional packers to come in a box everything up (this is very helpful as you don't have to lift a finger. E.g. They will take all dishes from the cupboards and silverware from the drawers, wrap everything in paper, and box everything up with a label.)
+ the car was also packed into a truck and shipped
+ the moving truck itself
+ professional crew to unpack everything at the destination
+ all hotels and meals while traveling during the move
+ repairs to furniture if anything was broken
That was my package for an engineer. The relocation package for managers such as directors got a few more things... like 3 trips for house hunting instead of 2 and the purchase of the old home if the real estate agent couldn't sell it in time, etc. If it's CxO level executives (CEO, senior vice presidents, etc), the relocation package will often be negotiated on a case-by-case basis to include more reimbursements.
The total came out to about $26k. In a quirk of USA tax law, relocation expenses are counted as additional income but the company was generous to "gross up" extra income on top of the relocation reimbursement to cover the extra tax payment. The amount of money spent on employee relocation may seem excessive but the rationale is that they want the new employee to be immediately productive on the new job instead him wasting time and worrying about how to round up uncles and siblings to help pack and move. Therefore, you provide as much of a "white glove" moving experience as reasonably possible.
That was my relocation experience in 1998. It would be interesting if a relocated employee from Google/Facebook/etc can talk about what today's packages from Silicon Valley companies look like.
I went through a relocation a while ago, to the tune of about $6k. Far and away the most expensive part was staying in an Airbnb for 10 days while looking at apartments and then waiting to actually have keys in hand for my chosen apartment. Short term accommodation costs much more per night than a long term lease - I could not have afforded a 10 day "vacation" in this insanely expensive city just days after college.
$30k does seem high; maybe it was international shipping for a large house full of stuff?
My allowance excluded "stuff for the new home" (transportation for your existing stuff was of course allowed) and was specific about reimbursable pre/post move flights.
Here's a few other costs we've found and we find more every day:
- Legal and processing fees for filing immigration paper work, doctor's visits, travel to interviews
- One way airfare or multiple airfares if I move first and family comes later so I can see them
- Getting all our belongings packed up and moved by a reputable mover
- Assistance with job placement for my wife since she also works
- Realtor fees for buying/selling ourt homes
- Some assistance with furnishing the new home
It can go on and on.
I wouldn't have said this if the offer level was, say $10k or $20k. But $30k seems pretty good even if you have decided that you require the ability to buy a house (not everybody has that privilege; you should feel lucky, and not take it for granted).
It is an offer. It gives you and your family certain benefits. You may also have certain costs. Those are your business. Just deal with them, or not.
You can take it or leave it. If coming to California is worth it for you and your family, take the offer. If not, don't. Not every opportunity in life is cost-free for you. For some of them, you have to step up and pay some of your own contribution.
That being said, your concerns are all valid. These are all things you need to consider, and it's good you're thinking it through. Maybe you can present them to your prospective employer as inputs to your decision. Just don't give them the feeling that you have a very entitled attitude, although you seem to, because that could backfire either with a withdrawn offer, or feelings of rancor later.
Why do you say that?
It sounds like he doesn't want to be out of pocket for a relocation.
He has an upper middle class job and lifestyle and is moving for an upper middle class role. So he wants an upper middle class relocation package.
The cost of relocation is the cost of relocation. That's any cost incurred by the process of relocating. In that person's case, it includes rent. Your case is different. End of story.
Yes, it's possible to move with an economy class ticket and a backpack. Indeed that's how I moved to the US, but expecting your employees to do this is typically not considered a good way to attract talent.
Simple, it could all be arranged within days.
My employer paid for my flight (at £80 or so, including my bike, on the nice airline), plus the cost to move my furniture.
The paperwork was putting my new address on a form, and ticking the box labelled "EU citizen".
Looks like they covered $10,111 + a tax gross-up. That included two months of rent at my NYC apartment, plus the lost deposit, for terminating my lease early. They paid the application, reservation, move-in and pet fees at my new apartment. They covered movers and a car rental.
Since I was already travelling to the site regularly, they didn't need to cover a special trip to look at places, but they did have me expense some extra train tickets so my wife could come look at apartments.