Employees move. Whether it’s a new hire just starting their career with your company or a veteran changing locations, it’s bound to happen. When it does, you should be ready. Employers reap dividends by investing in relocation programs that help employees say yes with confidence to job offers. But the offer only works when it’s the right fit for the company and the employee. So, what’s the best relocation option for your company?

Gone are the days of employers paying for services directly, or employees sending in receipts for reimbursement. Companies now use lump sum allowances. These allow organizations to control costs while reducing the administrative burden of processing file folders full of expense receipts for any one employee.

Every lump sum program hinges on identifying which relocation costs are covered, an amount employees receive up-front and then allowing employees the freedom to use the funds at their discretion. An effective lump-sum tool will break down the costs of home finding, temporary living and final move into an easy to digest report.

IDENTIFYING THE BEST APPROACH

WHAT GOES INTO A LUMP SUM PROGRAM?

HOW THE LUMP SUM APPROACH WORKS FOR RELOCATING EMPLOYEES

An effective lump-sum tool will break down the costs of:

Home Finding

Temporary Living

Final Move

The first part of relocating: Finding a place to call “home.” Most companies pay for travel to the new city, a place to stay and meals when there. Mitigating factors include distance between destination and current location, duration of the visit and accommodation options available.

The second part comes when the employee has moved to their destination and begun working, but hasn’t quite moved into their permanent residence. Companies often pay for lodging and sometimes transportation and meals.

The final part comes when the employee moves their belongings and family to their final destination. Companies will generally cover meals, travel and lodging for this last piece of the relocation.

Every employer and every employee has different needs. The most important part of figuring out the best relocation plan? Accurate data. If you find yourself in that position, take a look at our report, The Lump Sum Approach to Relocation Costs. With it you can learn more about what steps other companies are taking to ensure their employees are relocated with the proper financial support.

HOME FINDING

TEMPORARY LIVING

FINAL MOVE

DIVING INTO LUMP SUM RELOCATION DATA

86% of organizations with lump sum programs offer home finding expenses for the employee and one adult.

The most common temporary living expenses covered are lodging (92%), airfare (64%) and meals (60%).

Deciding between mileage or airfare, most companies provide airfare if the move is at least 500 miles.

Home finding trips typically range from 4-6 days.

39% of employers offer policies for 30 days of temporary living though it is common to have multiple policies in place, often offering longer stays of 60 days for executives and home owners.

Employers typically allow 1 - 3 days for them to make their final move.

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