Cost Coverage – Overall & Specialized Assistance for Homeowners/Renters

As relocation packages grow more customized to employee and company needs, combined with the use of assistance tiers most commonly based on job/grade level or position/job title factors, for the second year we continue to look into how this impacts individual cost coverage. We asked responding firms about the composition of their relocations – what percentages were considered executive/top level, mid-level and entry level positions over the past year. Firms continue to estimate that around half of relocations were for mid-level jobs, a little more than a fourth were for executive/top level positions, and roughly a fifth were for entry level jobs, across company size. Larger firms do more relocation volume than smaller firms overall, however the employee level compositions are similar, with relocations for mid-level positions happening roughly twice as often as moves for executive/top level or entry level employees.

 
Question 23-3
In 2016, what percentage of your company's relocating employees were...
Chart Q23-3
-- click to enlarge --
 

Employee Level Impacts Offerings

As was expected and discovered last year, cost coverage for specific items overall trends more likely to be offered for mid-level and executive/top level relocations than for entry level positions. Overall, the likelihood of firms’ simply offering lump sum and not paying for specific line items did not vary significantly across relocation level at firms of the same size. The biggest differences occur when company size and relocation level are analyzed together: for entry level moves usage of lump sum payments only is similar across relocation assistance categories – it is at the mid and executive level where small and mid-size firms are more likely to elect to only use lump sum only or not reimburse costs than large firms (22% and 17% vs. 7%, mid-level; 20% and 13% vs. 7%, executive).

  • Among firms, individual cost coverage offering levels vary little across company size for entry level relocations, indicating there is a uniformity to lesser coverage for these types of moves across company size.
  • Variance in offerings for mid-level relocations is much more pronounced; large firms are much more likely than mid-size or small firms to offer cost coverage for packing all items (73% vs. 48%), moving an automobile (70% vs. 52% and 50%), moving a second automobile (47% vs. 27% and 29%), custom unpacking (46% vs. 36% and 28%), moving unlimited weight (43% vs. 26% and 31%), and containerized shipments (41% vs. 29%). Additionally, large firms are more likely than small to indicate covering full unpacking (42% vs. 28%) and moving recreation and lawn equipment (38% vs. 26%), while small firms are more likely than large to cover picking up goods from a secondary residence at this level (27% vs. 16%). Coverage levels are similar across company size for mid-level relocating employees for moving exercise equipment, carrying items down from the attic, moving pets, moving highly valuable objects, offering permanent/extended storage, and moving boats.
  • Differences between company sizes are less pronounced at the executive/top level, with cost coverage levels similar across more than half of the items listed. Exceptions where large firms are much more likely than mid-size or small to offer cost coverage are for packing all items (82% vs. 60% and 56%), moving an automobile (78% vs. 59% and 53%), moving a second automobile (65% vs. 44% and 43%), partial/custom unpacking (51% vs. 38% and 36%), and carrying items down from attic (49% vs. 38% and 35%). Both mid-size and large firms are also much more likely than small to cover moving exercise equipment (49% and 53% vs. 38%), and large firms are the most likely to offer unpacking of all items (57%).
 
Question 28-1
Does your company reimburse/pay to...
Chart Q28-1
-- click to enlarge --
Question 28-2
Does your company reimburse/pay to...
Chart Q28-2
-- click to enlarge --
Question 28-3
Does your company reimburse/pay to...
Chart Q28-3
-- click to enlarge --
Question 28-4
Does your company reimburse/pay to...
Chart Q28-4
-- click to enlarge --
Question 28-5
Does your company reimburse/pay to...
Chart Q28-5
-- click to enlarge --
Question 28-6
Does your company reimburse/pay to...
Chart Q28-6
-- click to enlarge --
Question 28-7
Does your company reimburse/pay to...
Chart Q28-7
-- click to enlarge --
Question 28-8
Does your company reimburse/pay to...
Chart Q28-8
-- click to enlarge --
 

Specialized Assistance for Homeowners/Renters

The majority of firms, regardless of size, continue to offer assistance to homeowners/renters. To deepen our understanding of these benefits, for the second year we asked firms what types of assistance they offered across employee levels, regardless of transferee or new hire status.

Homeowners

Generally, homeowner assistance for specific items trends more likely for mid-level and executive/top level relocations than for entry-level positions. However, the overall likelihood of firms simply offering a lump sum or no homeowner assistance varied little across relocation levels. The biggest differences occur by company size. Small firms are the most likely across levels to use a lump sum or to not offer assistance, with roughly a fourth doing so, regardless of employee level.

  • Offering levels for homeowner assistance vary little across company size for most entry-level relocations, although there are differences in some categories. Similar to last year, far more mid-size and large firms offer storage (27% and 31% vs. 18%) or temporary housing allowances (30% and 32% vs. 21%) compared to small firms. This year they are also more likely to offer cost coverage for home-finding trips as well (31% and 27% vs. 19%). Large firms remain more likely than small firms to offer home marketing assistance (25% vs. 14%), and this year they are roughly twice as likely as mid-size or small firms to reimburse/pay for federal tax liability (20% vs. 11% and 12%).
  • For mid-level employees, similar to last year, large firms are much more willing to provide homeowner assistance across categories. The one exception is mortgage subsidies or allowances, offered by about 20% of firms across company size. Mid-size firms are much more generous than small firms across a handful of categories: offering home finding trips (52% vs. 35%), paying for home sale costs (34% vs. 22%), paying home purchase costs (31% vs. 18%), and offering buyer-value option for origin home (20% vs. 12%). But they share a similar likelihood of offering all other types of assistance for homeowners.
  • Trends in assistance for executive/top level homeowners and mid-level homeowners are similar; large firms are the most likely to offer individual types of assistance across nearly every category. The only exception: assistance levels for mortgage subsidies or allowances are similar regardless of company size, with around a fourth of firms offering this (similar to last year). While mid-size and large firms show a similar propensity for temporary housing allowances (66% vs. 56%), they are much less likely to offer the majority of other assistance items (yet they are much more likely to offer them than small firms are). Mid-size firms share similarities with small firms for: paying home purchase costs (37% vs. 27%), loss-on-sale (28% vs. 24%), mortgage subsidies/allowances (25% vs. 24%), home marketing assistance (34% vs. 25%), offering a qualified home sale program (26% vs. 19%), bonuses/incentives for employee-generated home sales (23% vs. 21%), and duplicate housing assistance (25% vs. 23%).
 
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 29-3
When a relocating employee is a homeowner, who will be buying, does your company...
Chart Q29-3
-- click to enlarge --
Question 29-4
When a relocating employee is a homeowner, who will be buying, does your company...
Chart Q29-4
-- click to enlarge --
Question 29-5
When a relocating employee is a homeowner, who will be buying, does your company...
Chart Q29-5
-- click to enlarge --
Question 29-6
When a relocating employee is a homeowner, who will be buying, does your company...
Chart Q29-6
-- click to enlarge --
Question 29-7
When a relocating employee is a homeowner, who will be buying, does your company...
Chart Q29-7
-- click to enlarge --
Question 29-8
When a relocating employee is a homeowner, who will be buying, does your company...
Chart Q29-8
-- click to enlarge --
 

Renters

Generally, renter assistance for specific items trends more likely for mid-level and executive/top level relocations than for entry-level positions. However, the overall likelihood of firms simply offering a lump sum or no renter assistance varied little across employee levels at similar size firms. The biggest differences occur by company size. Small and mid-size firms are the most likely across levels to offer only lump sum or no assistance, with roughly a fifth doing so regardless of employee level.

  • For entry-level relocations, two-thirds of the renter-assistance types are offered at similar levels across company size. However, large firms are more likely than small firms are to pay for lease cancellation (38% vs. 24%) or apartment search/finder’s fees (28% vs. 18%), while mid-size firms are more likely than large firms to reimburse for hook-up fees (22% vs. 11%).
  • For mid-level relocations, similar to last year, large firms are by far the most likely to offer most renter-assistance categories. Additionally, the same four renter-assistance exceptions are offered at similar frequencies across firm sizes: rental subsidies/allowances (19% vs. 21% and 22%), reimburse/pay hook-up fees (21% vs. 29% and 26%), reimburse/pay security deposits (25% vs. 27%), and reimburse/pay for furniture rental (15% vs. 17% and 18%).
  • For executive/top level employees, mid-size and large firms offer the majority of renter-assistance categories roughly half the time or more, with large firms offering them far more often than mid-size or small firms overall. However, three assistance types are offered at similar levels, regardless of company size: paying for hook-up fees (25%-29%), security deposits (24%-31%), and rental subsidies or allowances (22%-25%). The one type of assistance mid-size firms offer more often than large or small firms: reimbursement/payment for furniture rental (27% vs. 15% and 17%).
 
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 --
Question 30-3
When a relocating employee will be renting, does your company...
Chart Q30-3
-- click to enlarge --
Question 30-4
When a relocating employee will be renting, does your company...
Chart Q30-4
-- click to enlarge --
Question 30-5
When a relocating employee will be renting, does your company...
Chart Q30-5
-- click to enlarge --
Question 30-6
When a relocating employee will be renting, does your company...
Chart Q30-6
-- click to enlarge --
Question 30-7
When a relocating employee will be renting, does your company...
Chart Q30-7
-- click to enlarge --
Question 30-8
When a relocating employee will be renting, does your company...
Chart Q30-8
-- click to enlarge --