the data behind lump sum

A STAT BOOK FOR

LUMP SUM

Based on Atlas’ 47th

Annual Corporate Relocation Survey

A Publication of

You’ve heard us give advice about lump sum.

What to do, what not to do…

A FEW TRICKS OF THE TRADE.

But sometimes, you need to back all of that up with

HARD DATA

So, to solve that problem:

Atlas’ 47th Annual Corporate Relocation Survey Results

LET THE NUMBERS DO THE TALKING.

RESULT

1For what types of relocation costs are lump sum

payments typically offered to relocating employees (transferees

OR new hires)?

53% Miscellaneous Allowances

47%

42%

41%

32%

31%

Travel Expenses

Entire Relocation Cost

Temporary Housing

Household Goods & Storage

Rental / Real Estate Assistance

5% Other

This data should show you your lump sum policy can be flexible. If you don’t want to cover the entire relocation cost (which can get pretty pricey), talk to your employees and see what matters the most to them. If you offer them the option to choose which part of their relocation they want monetary assistance for, you will save money and they will feel respected and supported by you. It’s win-win!

What does this mean?

RESULT

2What types of relocating employees most commonly receive lump sum payments?

59% New Hires

50%

43%

42%

41%

39%

Experienced Professionals

Entry Level Employees

Transferees

Executives

Renters

28% Homeowners

Don’t assume that simply because you are relocating someone that has a higher title or level of expertise, they can’t use a lump sum reimbursement. Everyone is eligible for a lump sum reimbursement – just make sure you offer it with with some sort of assistance. Lump sum is becoming more and more popular trend to all levels of your company’s pyramid, it can be extremely effective.

What does this mean?

RESULT

3For the applicable cost types below, what

are the typical ranges of lump sums offered?

$5,000-$9,999 Entire Relocation Cost

$2,500 – $4,999

$2,500 – $4,999

$1,000-$2,499

$1,000-$2,499

Miscellaneous Allowances

Temporary Housing

Travel Expenses

Rental Assistance

$2,500 – $4,999 Household Goods Shipping

Relocating employees doesn’t have to break the bank. In fact, if budgeted and monitored properly, there doesn’t have to be a whole lot of wasted money. While allowance plans like this (typically known as flexible allowance plans), require a lot of receipt keeping and expense tracking on your company’s part, not all relocations have to fall into the tens of thousands of dollars. Be sure to take into consideration cost differences, though.

What does this mean?

RESULT

4How many of your employees were relocated in

2013?

4% None

38%

12%

9%

9%

1 - 9

10 - 19

50 - 99

100 - 199

9% 20 - 49

7%12%

200-399

400 or more

Relocation is important. You don’t have to relocate hundreds of people per year in order to justify taking your relocation policy seriously. Whether you relocate 5 people per year or 50 people per year, it is important to have a well thought out, thorough, and effective relocation policy. It will be useful as your company scales and you find yourself relocating more and more of your employees.

What does this mean?

RESULT

5What percentage of your relocations were…

51% Fully Reimbursed

22%

23%

Partially Reimbursed

Lump Sum Only

4% Not Reimbursed

Offering no help at all to your transferees is not a great route to take. As you can see from the information provided in this presentation, you don’t have to offer every benefit under the sun, but some sort of assistance is going to be crucial for your employee relocations. They will not only feel like a valued member of your company, but they will likely take to the location much better (which helps your retention numbers!)

What does this mean?

THERE YOU HAVE IT.

Now, of course there is much, much more data about lump sum than

that which is provided here.

But this should give you a good base-point of where to start with your lump

sum policy.

More questions? Check our our

eBook on lump sum

!