What's the Deal With Lump Sum?

UB URBANBOUND, presents what's the deal with LUMP SUM? Lump sum policies are a great solution for your relocating employees and new hires. However, it is important to understand the numbers behind how lump sums can work for your company's relocation needs. You want to present an attractive offer, but do you know what competitors in your space are offering? Understanding the nuances of lump sum application will help you craft the best relocation policy possible. So here are... answers! TO ALL OF YOUR LUMP SUM QUESTIONS ARE COMPANIES Yes! In 2014, 22% RELOCATING EMPLOYEES? of companies expect their relocation budget to INCREASE. ARE COMPANIES USING LUMP SUMS? Yes! Roughly half of companies, regardless of size, offer lump sums. This year, 49% 50% of companies will use lump sums to reimburse transferees. will use lump sums for new hires. WHO RECEIVES LUMP SUMS? 59% of new hires 42% of transferees 39% of renters 28% of homeowners receive lump sums. WHAT ABOUT LUMP SUM ALLOWANCES? 54% of executives 81% of experienced hires 92% of current employee hires receive lump sum allowances. WHAT LUMP SUM ALLOWANCES DO EMPLOYEES USUALLY RECEIVE? On average, lump sum allowances are... $34,364 for executives. $11,305 $12,441 for current for employee transfers. experienced hires. WHAT ARE THE RANGES OF LUMP SUMS TYPICALLY OFFERED? For those offering lump sum payments, companies small, large, and in between extend a variety of cost coverages to their relocating employees and new hires. mid-size companies companies compănies small. large. less than 50O 500-4,999 salaried employees 5,000+ salaried employees salaried employees TRAVEL EXPENSES small company mid-size company large company No lump sum 22% 37% 23% Less than $2,500 42% 21% 32% $2,500 - $4,999 8% $5,000 or more 8% 9% RENTAL ASSISTANCE/TRANSACTIONS small company mid-size company large company No lump sum 38% 42% 40% Less than $2,500 21% 19% $2,500 - $4,999 5% 6% 8% $5,000 or more 4% 2% 9% TEMPORARY HOUSING small company mid-size company large company No lump sum 36% 37% 21% Less than $2,500 24% 15% 9% $2,500 - $4,999 10% 10% 21% $5,000 or more 6% 19% HOUSEHOLD GOODS SHIPPING/STORAGE small company mid-size company large company No lump sum 22% 40% 43% Less than $5,000 31% 15% 11% $5,000 - $9,999 12% 6% $10,000 or more 12% 15% 9% REAL ESTATE ASSISTANCE/TRANSACTIONS small company mid-size company large company No lump sum 49% 56% 45% Less than $5,000 21% 10% 8% $5,000 - $9,999 0% 4% 2% $10,000 or more 4% 11% ENTIRE RELOCATION COST small company mid-size company large company No lump sum 13% 31% 21% Less than $5,000 27% 17% 11% $5,000 - $9,999 24% 15% 25% $10,000 or more 22% 29% 19% UB URBANBOUND. www.urbanbound.com Sources: 47th Annual Atlas Corporate Relocation Survey Booklet http://www.atlasvanlines.com/relocation-surveys/relocation/pdf/2014survey.pdf Runzheimer International Mobile Workforce Blog https://www.runzheimer.com/Solutions/Relocation/Lump-Sum-Allowances-Are-a-Win-Win.aspx