Relocation Reimbursement/Payment

 

Multiple Methods Still Favored, Less Full Coverage

As assistance grows more tailored to the specific needs of employees and employers, a multitude of reimbursement methods remains in place. For the second year, full reimbursement of expenses for new hires (36%) falls to the lowest level historically, remaining out of favor in comparison to lump sum payments (45%). Full reimbursement for transferees dips lower compared to last year (55% vs. 66%) and matches the lowest level measured in the past thirteen years (2007). While the offering level of full reimbursement to transferees is similar to 2006-2007, 2010, 2011 and 2014 (55%+) it is well below historically higher levels of nearly two-thirds or more of firms providing this type of reimbursement. Popularity of other reimbursement methods for transferees is similar for almost all of the past eight years, with close to half using lump sum payments and roughly four out of ten using partial reimbursement.

  • Small firms are least likely to offer full reimbursement to either transferees or new hires, but they are much more likely to extend it to current employees as opposed to new hires (47% vs. 25%). Large firms are the most likely to offer full reimbursement to transferees (64%), followed by mid-size firms (55%). By comparison, large and mid-size firms are much less likely to offer this to new hires (45% and 38%).
  • While near the lowest levels historically, nearly half of large firms still use full reimbursement for new hires, far more than the fourth of small firms. More than a third of firms, regardless of size, use partial reimbursement for either transferees or new hires.
  • Use of lump sums for either transferees or new hires dips slightly overall but remains similar to nearly all of the past eight years. The biggest shift appears among mid-size firms. More than half used lump sums for transferees over the last five years, as they did five of the last six years for new hires. However, their usage in 2016 drops to 42% for transferees and 38% for new hires. The use of lump sums among small and mid-size firms are near historical eight-year norms.

Companies estimate roughly half of their relocations were either partially reimbursed or paid by lump sum only. Before the turn of the century, full reimbursement was by far the method used most for both transferees and new hires. Differentiating for full reimbursement continues, with 55% flexing the option for transferees, 36% for new hires. While lump sums or partial reimbursement have more similar usage levels for transferees and new hires, current employees appear to have a better chance of receiving full coverage of costs.

Question 31-1
Extent company reimburses relocation expenses of transferees/new hires
Chart Q31
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Question 31-2
Extent company reimburses relocation expenses of transferees/new hires
Chart Q31-2
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Question 32-1
What approximate percentage of your relocations were...
Chart Q32-1
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Question 41-1
Are carrier transportation expenses paid directly by the company or paid by the employee and then reimbursed?
Chart Q41
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Question 41-2
Are carrier transportation expenses paid directly by the company or paid by the employee and then reimbursed?
Chart Q41-2
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