BEST PRACTICE IN LUMP SUM POLICY

     

MOVE Guides works extensively with lump sum policies at companies across the world. Learn how companies are using lump sums and MOVE Guides to support young professionals.

 

As companies continue to expand their reach globally and hire talent from further afield, the costs of traditional relocation have increased dramatically. The rapid globalization of business has seen companies expanding into new locations, often sending teams on assignments to oversee the opening of a new office and ensure a smooth transfer of skills to local hires. These short or long term assignments come at a cost though, and the potential of a failed assignment due to a poor relocation experience comes with a hefty price tag attached.

 

Additionally, with a skills shortage in many markets, employers are choosing to hire candidates from different cities and countries in order to fill the skills gap and hire talented and driven candidates to help grow their business. With an interstate or international job offer, most candidates will expect some level of relocation assistance, all of which adds up. Ensuring that your mobility policy reflects your changing requirements is key to controlling costs and setting your employees up for success.

 

Here at MOVE Guides we have seen a trend emerging of companies shifting their policies to accommodate their changing work practices. Many are now offering transfer employees and new cross border hires a lump sum relocation package instead of a full relocation service. This approach offers employers the security of a single line item on their balance sheets, with no unexpected cost overruns.

 

The downside of this approach is that although employees enjoy the autonomy and choice associated with managing their own budget and move, many struggle with the unexpected time drain and challenges faced when organizing their own relocation. It is estimated that employees relocating spend 130 hours of productive work time planning their move, indicating a significant loss in productivity for the business from their high performance employees.

 

Furthermore, although costs are contained for Mobility departments, many of the HR and Mobility managers we speak to are faced with increased administration relating to employee relocation queries. By putting the onus onto the employee to self-manage, the unexpected result was that employees feel they have no dedicated resource to answer their questions about their new destination, so these fall to their Mobility manager or Recruiter.

 

Here at MOVE Guides we recognized the dilemma that Mobility teams face, and developed a unique platform through which you can give your lump sum employees the best of both worlds. MOVE Guides lets you offer your employees great relocation support, whilst giving them transparency, autonomy and choice, all while reducing the administration for your own team.

 

Our comprehensive city guides help your employees to familiarize themselves with their new city ahead of their move, whilst our comparison and booking pages allow employees to plan and book services based on their individual requirements and budgets. Our dedicated team of MOVE Managers is on hand to answer employee questions via email, phone or live chat, helping to eliminate the huge volume of relocation queries HR and Mobility teams receive.

 

Get in touch today to learn how MOVE Guides can help you to offer your employees relocation support for their lump sum moves!

About The Author

Brynne Herbert

CEO and Founder