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