Introduction to Lump Sums


A lump sum is cash in hand to cover relocation-related expenses. Lump sums offer flexibility 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 two most common types of lump sums. These two 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 a cash payment intended to cover specific expenses in addition to one or more other expenses or services paid by the employer. Paying a lump sum and paying for a household goods shipment is a great example of
the latter, often referred to as lump sum plus.

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