Published on August 29, 2011

savings resized 600Lump-sum packages are growing in popularity due to three major benefits over reimbursing employee's relocation expenses.

Gain a better understanding of lump-sum packages with our free guide.

Benefits of a Lump-Sum Corporate Relocation Package

  • Ability for the company to better control relocation costs
  • Ease of administration
  • Flexibility for relocating employee to choose their own relocation service providers

However, within the parameters of a lump-sum corporate relocation policy, several variables exist:

  • Partial or full lump-sum payments
  • Fixed or variable payments
  • How lump-sum payments are calculated

A Mobility Magazine survey uncovered some interesting facts about how companies are managing their lump-sum corporate relocation packages.

  • Most partial lump sums are a fixed amount for every employee.
  • Most lump-sum-only payments vary based on a number of factors, including individual needs or the employee's level within the company.
  • Fixed payments are more common with entry-level employees
  • An executive relocation package usually varies based on a number of factors.
  • In a complete, variable lump-sum corporate relocation package, whether the employee is a renter or homeowner was a big factor in calculating the lump-sum amount. In a partial lump-sum payment, homeowner or renter status was rarely taken into account.

If you're structuring (or re-structuring) your corporate relocation policy with lump-sum packages, benchmarking can help you set payment amounts. A full-service corporate relocation firm can help. 

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