What is a Lump Sum? A lump sum is cash in hand to cover relocation-related expenses. As the lump sum concept continues to expand in employee mobility programs, the benefit provides more flexibility and creativity when designing policies to meet the needs of relocating employees while allowing employers to contain costs and simplify their employee mobility programs.
The term lump sum is now used in more ways than ever before. The survey includes data on the different methods in which employers utilize lump sums. These methods involve making a payment to the relocating employee that is meant to be spent on relocation-related expenses. A lump sum may be the only relocation benefit paid to a relocating employee, or it may be mixed with some additional services, support, or expenses paid by the employer.
What this survey does not include are managed lumps sums; this has become a common term to describe situations in which the employer places a spending limit (also referred to as a cap) on the relocation, which the relocation management company or relocating employee must manage through expense tracking to make sure the total cost of the relocation does not exceed the limit.
Below is a sneak peek of the Lump Sums Survey.