Relocation Reimbursement/Payment

Full Reimbursement Use Remains High, Multiple Methods Still Favored

The percentage of firms using full reimbursement for transferees remains near previous highs (63% vs. 69%+) and is the most popular method overall. Use of lump sum payments by about half of companies is consistent with findings over the past few years. The percentage using partial reimbursement has declined to 36%, down from nearly half in 2011, yet still close to levels seen in 2008 to 2010. Small firms are less likely than mid-size and large firms to offer transferees a lump sum option (42% vs. 51%), and large firms remain the most likely to offer full reimbursement (75% vs. 51% of small and 63% of mid-size firms).

For new hires, full reimbursement remains the most popular (53%) by a slim margin and near previous highs (54%+). It is nearly tied with lump sum payments (51%) which roughly half of firms have used since 2008. The percentage of firms using partial reimbursement falls further from 2011 (37% vs. 51%) to its lowest level since 2006. Among all firms, full reimbursement and lump sum are the top two choices. Small and large firms have a distinct preference for these methods over partial reimbursement (43% and 47% vs. 30%; 62% and 57% vs. 40%).

  • A shift in the composition of how relocations are paid is evident when participating firms answer what percentages of their relocations were fully reimbursed, partially reimbursed, lump sum only, or not reimbursed. Across company size, very few firms indicate relocations were not reimbursed and around half or more relocations were fully reimbursed in 2011 and 2012. However, while less than a fifth of relocations done by large firms were partially reimbursed either year, the average percent of small and mid-size firms using this method drops from over a fourth to under a fifth on average, while the proportion of lump sum only relocations substantially increases among small firms from less than a fifth in 2011 to more than a third of relocations in 2012.
  • Overall, the majority of companies prefer to pay carrier transportation expenses directly, especially mid-size and large firms (89%+). However, around a third of small firms indicate they are reimbursing transferees or new hires for these expenses, roughly double or more the frequency of firms larger than 500 employees.
Question 32-1
Extent company reimburses relocation expenses of transferees/new hires
Chart Q32
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Question 32-2
Extent company reimburses relocation expenses of transferees/new hires
Chart Q32-2
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Question 33
What approximate percentage of your relocations were...
Chart Q33
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Question 42-1
Are carrier transportation expenses paid directly by the company or paid to the employee and then reimbursed?
Chart Q42
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Question 42-2
Are carrier transportation expenses paid directly by the company or paid to the employee and then reimbursed?
Chart Q42-2
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