Cost Coverage – Overall & Specialized Assistance for Homeowners/Renters

 

Similar to the past two years, around eight out of ten firms reimburse or pay a portion of relocation costs for transferees or new hires. Over the previous ten years, nine out of ten firms typically covered some costs. This change reflects a continuing preference among small firms to either not cover costs or to offer lump sums instead. Although large and mid-size firms appear far less affected, the shift away from covering costs for specific items is stronger this year than in the past two. Items once covered as “standard,” regardless of employee status, may no longer be guaranteed as firms flex to stay within budgets.

Question 28-1
Does your company reimburse/pay to...
Chart Q28
-- click to enlarge --
Question 28-2
Does your company reimburse/pay to...
Chart Q28-2
-- click to enlarge --

Specialized Assistance for Homeowners/Renters

Most firms continue to offer specialized relocation assistance for homeowners; however, small firms remain less likely than mid-size or large firms to do so. The percentage of firms that offer this assistance remains similar to the past two years and slightly lower overall compared to 2007-2012. Although the percentage of small firms offering assistance has increased slightly, those which do not offer it or offer lump sums instead are primarily responsible for the downward shift. The percentages of large and mid-size firms offering this assistance also trend lower than historical highs.

  • The percentages of firms offering individual homeowner-assistance items fall to further historical lows for most items and significantly below past highs for nearly all. Much of these drops are fueled by fewer mid-size and large firms offering specific coverages to the homeowner, regardless of employee type. In the past, roughly half or more of large firms offered each type of assistance, with few exceptions, to homeowners; now, only four of these items are offered with such frequency. With the shift in reimbursement policies for new hires this year and an easing of the crisis in real estate, it is perhaps unsurprising to see homeowner-assistance levels dropping further.

Most firms continue to offer specialized assistance for renters; small firms remain least likely. Similar to the past two years, the percentage of firms doing so is lower than during the previous decade. This shift is largely driven by small firms offering assistance or, alternatively, lump sums, although the percentages of large and mid-size firms offering assistance trend lower than historical highs as well.

  • Overall, many percentages of firms offering each type of renter-specific assistance remain similar or dip compared to last year. But more firms are offering to pay for hook-up fees (26% vs. 14%), security deposits (26% vs. 14%), furniture rental (14% vs. 6%) and rental subsidies (12% vs. 8%), nearing historical norms. However, far fewer firms pay for home finding trips (36% vs. 46%) or temporary housing allowances (44% vs. 57%), falling to historical lows. These shifts are evident across firms of all sizes. Again, with greater discrepancies in methods of reimbursement by employee type, a drop in blanket assistance for renters while lower-cost items edge up is understandable.

Overall, while homeowner-assistance levels have fallen substantially, especially for the top five items, renter assistance has been slightly less affected. While it has fallen markedly from last year for temporary housing allowances (44% vs. 57%) and home finding trips (36% vs. 46%), it remains far more stable for lease cancellation reimbursement (50% vs. 54%), storage (37% vs. 38%), and apartment search/finder’s fees (30% vs. 27%).

Question 29-1
When a relocating employee is a homeowner, who will be buying, does your company...
Chart Q29
-- click to enlarge --
Question 29-2
When a relocating employee is a homeowner, who will be buying, does your company...
Chart Q29-2
-- click to enlarge --
Question 30-1
When a relocating employee will be renting, does your company...
Chart Q30
-- click to enlarge --
Question 30-2
When a relocating employee will be renting, does your company...
Chart Q30-2
-- click to enlarge --