Policy Administration
Highlights:
- Nearly half of companies utilize tier systems based on Job Position/Title primarily.
- Based on role, most companies relocate mainly Mid-Level employees (44%), followed by Executive/Top-Level Employees (36%), with Entry-Level Employees being relocated least often (27%).
Tier Policies/Lump-Sum Benefits
Given the complexity of employee and employer needs when relocating, it’s possible that companies could benefit from adding layers of flexibility and customization to lump-sum offerings. For employees receiving a lump-sum benefit, a loss of overall workplace productivity and an increase in complexity during the relocation process may result. For employers, lump-sum benefits are often based on an employee’s assigned tier. While a norm across the industry, it’s possible that tier-based lump sums neglect to address individual assistance needs that can help facilitate a successful relocation. Employers can support flexibility with multiple tiers, and address employees’ unique situation to help customize relocation plans and ensure they receive all necessary support during relocation.
Policy Changes
The significant changes in 2021 by all company sizes were the expansion of core/flex policy (69%), financial assistance for Covid-related expenses (62%) and prioritizing essential relocations while limiting others (61%).
By 2022, companies expect policy changes on extension/allowance for temporary housing (56% of companies), expanded use of lump sums (53% of companies), and extended business travel (EBT) or short-term assignments (53% of companies). These improvements can potentially assist with international relocation delays and cost issues, giving more flexibility to employees to use their benefits.
Recommendation:
- Companies can customize their mobility support and control costs to serve employees better and achieve objectives. When it comes to lump-sum reimbursement, while assessing factors impacting relocation, there may be opportunities to pursue more customized, flexible reimbursement plans to meet the specific needs of employees without sacrificing employee productivity (e.g., time lost working to house hunting, addressing child and elder care needs, or spousal relocation, etc.).