Mobility Strategy - Market Practices

U.S. Domestic - Lump Sum Plus

Issue link:

Contents of this Issue


Page 0 of 1

1 © 2022 Graebel Companies, Inc. All Rights Reserved. This document contains CONFIDENTIAL information. Reproduction and distribution of this document in any manner or for any purpose is prohibited without the express written permission of Graebel Companies, Inc. U.S. Domestic Lump Sum Plus – Market Practices Provision Market Practices Definition > Lump Sum Plus programs are defined as providing a cash lump sum in addition to a handful of managed services, such as household goods shipment, final move expenses and/or temporary living. > The lump sum provided is intended to cover relocation expenses not otherwise provided under the company's relocation program. Eligibility > Eligibility for Lump Sum Plus programs is identical to other programs; many companies offer this policy to more junior-level transferees as a way to provide service at a lower overall cost than a standard homeowner policy or renter policy Pre-Decision Counseling > Many companies will provide a pre-decision consultation to help the employee understand the Company's relocation benefits and financial impact of the relocation. > This pre-decision assessment is very important for understanding the current housing market in both the departure and destination locations; understanding home values can be essential for employees when considering relocating. > Cost estimates created for budget and/or accrual purposes can be very useful for the business as well. Lump Sum > The one-time cash payment is intended to cover some, but not all, relocation expenses. > Some companies offer a set amount such as $5,000 USD to all lump sum plus- eligible employees, while others will customize the lump sum amount based on a variety of factors such as employee level, distance of the move, homeowner vs. renter status, and/or family size. > Some companies will develop a lump sum "calculator" and apply a customized calculation to all lump sums provided. This ensures there is some "logic" behind the lump sum amounts. The calculator is often developed in partnership with the RMC. > The lump sum is intended to cover relocation expenses including, but not limited to: o Home finding trip o Temporary living o Destination services o Pet transportation o Travel to the new location Household Goods Transportation > Most companies will provide a household goods shipment to Lump Sum Plus employees, separate from the lump sum payment. > A full pack, load and ship may be offered, with or without weight or cost caps > Some companies will only provide a self-move option, where the employee receives assistance with moving household goods via a rental truck or a pod service.

Articles in this issue

view archives of Mobility Strategy - Market Practices - U.S. Domestic - Lump Sum Plus