Is your company still using lump sum relocation
programs? Perhaps it’s time for a change. Use Relocation Management Worldwide’s relocation cost estimator to see how you can make relocation more cost-efficient. Visit our website to find more about our relocating tools that you can use. You may also call us at 1-(866)-815-8300 to request a demonstration schedule.
There are many approaches to relocating an employee, one of them being lump sum relocation. This refers to a pre-negotiated, one-time, fixed payment that companies provide their relocating employees. The money is supposed to cover all moving-related expenses, and the employee has complete control of how to spend it. The next approach is reimbursement. The company can typically set a maximum amount that it is willing to reimburse for the employee’s moving-related expenses (usually open the presentation of receipts). The third approach is direct billing, which is when the company pays all moving expenses directly.
Though lump sum relocation works in some cases, it might be less cost-effective in the long run. A combination of lump sum and another approach is often best. Many of the most successful companies in the world today opt instead to use third party relocation services. They outsource employee relocation services to a company or broker that provides coordination and management for all services required by the move. These services may include relocation guidance and counseling, marketing assistance for the home sale, storage arrangements in the destination city, temporary housing or rental arrangements, and even spouse employment assistance.
It’s easy to see why many companies choose to switch from a lump sum relocation model to outsourcing all relocation concerns to a third-party corporate relocation expert. This arrangement does not only lessen the stress of the relocating employee—it also has the added benefit of oversight and cost control. For top-notch corporate relocation services, call Relocation Management Worldwide at 1-(866)-815-8300.