Lump Sums

Pulse Survey – Lump Sums

A lump sum is cash in hand to cover relocation-related expenses. In the context of this survey and results, lump sum payments are the only benefits provided to relocating employees. 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.

This survey does not include miscellaneous allowances or managed lumps sums. A miscellaneous allowance (sometimes referred to as a relocation, incidental, or settling in allowance) is also a type of cash payment; however, it is intended for a wide variety of incidental and out-of-pocket expenses. A miscellaneous allowance is typically one benefit among a list in a managed relocation package (services and actual expenses). A managed lump sum is not actually a lump sum payment at all; instead, it is a reference to available funds from which the employee may draw to pay for services or reimbursement of actual expenses. Managed lump sums are often referred to as capped cost relocations. Both miscellaneous allowances and managed lump sums (capped cost relocations) are included in other Aires research publications.

Below is a sneak peek of the survey.