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Lump sum moves and managed lump sum relocations

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Lump sum moves and managed lump sum relocations

With many companies reporting a year-on-year increase in the number international assignments and the pressure on in-house Global Mobility teams to support these demands, the rise in the number of employers using lump sum policies to meet this demand and keep administration to a minimum was inevitable. This has been useful for employee-initiated assignments, local international transfer hires or as part of the onboarding of international hires.

Gerson Relocation’s survey of Global Mobility functions identified that 2 in 5 employers operate a lump sum option as part of their Global Mobility suite of offerings to support employees relocating overseas. More details of the finding of this report can be found in our Managed Lump Sum Moves Report.

Download the Lump Sum Policies’ guide to get everything you need to create effective Lump Sum Policies for your International Relocation teams. Get in touch for more information on crafting the right policy for your organisation: Find out more about the latest trends in lump sum policies for global mobility.

What is a lump sum move?

A lump sum move refers to the practice of companies providing either; a cash lump sum payment as a benefit in advance to their employee to cover the cost of their relocation; or the employee pays and reclaims the cost of the relocation services as a relocation expense reimbursement to the employee. The employee is responsible for the transaction and making managing their own relocation booking.

Lump sum programmes commonly operate outside the main global mobility programme.

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Managed lump sum moves

While some employers may prefer to provide the cash lump sum payment to the employee and then let them find their own way, many employers and their Global Mobility teams feel that they would prefer to apply a level of control over the process. Not least to maintain visibility of their mobile employees, but also to ensure that they arrive on location ready and focused on their role. Whether your company offers its employees “Managed-Cap”, “Core-Flex”, “Variable Lump Sum”, “Fixed Lump Sum”,  or something else, we can help you set up your policy, advise on how to roll out your offering internally and set up the package for you.

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Add international moving as a flexible benefit offering

We can agree a corporate rate which can be used by your employees for their lump sum or private moving requirements. Talk to us about setting this up as a flexible benefit offering for your employees of get us added on your Flex-Ben platform.

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Setting up funding options

We can help develop the lump sum package to work with your preferred funding option:

Your assignee pays directly using a pre-funded payment

Any employees you direct to us, if they identify you as their employer in the enquiry form, then we can apply a negotiated corporate rate which could help them save money and it will automatically enable you to track and report. We will invoice them directly and your employee can pay online and track their move. This ensures your employees receive the service of our accredited global service so they can focus on their move and you benefit from reduced administration.

Your assignee pays and you reimburse the relocation expense

The same as the assignee paying directly, as the contract will be with your employee, however there is the opportunity to create a specific package and website landing page for your employees to receive a more tailored service. We can also help you set up a relocation expense reimbursement process.

You provide pre-paid credits to a relocation company and your employee selects the services they prefer.

This blurs the lines between a simple core-flex relocation contract, but it can be implemented in a way that it removes the administration from the Global Mobility team. You simply direct them to our web page and then we take it from there, dealing directly with your assignee. Or we can set up a specific web enquiry for you to offer via your website which enables them to select from a range of core and flexible relocation options, all drawing from their credit allowance.

Setting up funding options

Fixed lump sum amount

This is where you provide a set amount for your employees and this is capped. Depending on your business this may be a flat amount for all employees or be different per employee depending on a range of variables such as seniority, hardship destination, etc.

Fixed lump sum amount

Core and flexible options

We work with a number of employers from a range of sectors from education to finance to provide a validated managed lump sum option for their employees looking to move.

Full relocation service capability and flexibility

Managed lump sum core service package options

  • A landing page optimised for your company and employees
  • Video surveys
  • Household goods moving
  • Temporary accommodation
  • Home finding
  • Housing fees
  • Schooling fees
Surveyor discussing details of house move

Recommended additional options

  • Set-up lump sum moves as an employer offering on your employee Flex-Ben platform
  • Expense reimbursement set up
  • Spousal support
  • Orientations
  • Groupage and mini move options
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Benefits of our Managed Lump Sum service

  • Improve your assignee experience
  • Your employee will be focused on their role, not distracted by relocation issues.
  • No contract means that your employees can move with Gerson even if you are under a long-term contract for your primary assignee population.
  • Reduced administration for your department
  • Ability to track and report on your lump sum employees
  • Accredited international service from a verified global network
  • Reduces the risk to your employees
  • The ability to set up an international moving service as part of your employee flex-ben employee offering.

Global Mobility Consulting Services

Our panel of Global Mobility advisors are independent and will advise you on:

  • Establishing a budget for your lump sum allowances
  • How to set lump sum service menu items
  • Funding approach
  • Policy benchmarking and development

Need to find a reputable company to support your lump sum employee moves? Talk to Gerson Relocation

Great customer Experiences start here

Very pleasent and helpful. Nothing too much trouble.

Mr M H moved from London, UK to Toronto, Canada

Very helpful and patient even when things got packed that we had to get out again!

Mr M E moved from Enfield, UK to Dorset, UK

Thanks to Graham, Nick and the entire crew!

Mr C D M  moved from UK to Singapore

Friendly and helpful crew.

Ms T W moved from USA to Cambridgeshire, UK

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