Lump Sum Relocations

A stand-alone ‘no frills’ lump sum package may not be the most attractive option if other companies are offering more focused and personalised relocation plans. In assessing the merits of their current and / or future employers the younger generation are placing high importance on company culture. A lump sum relocation offer, subject to PAYE may not communicate they are highly valued by the employer.

It’s well known that moving home is one of life’s most significant stressors. Employees offered a lump sum relocation are unlikely to be fully aware of the actual costs. There is a lot to consider including PAYE, removals, storage, insurance, real estate costs, travel, transit accommodation, pets, vehicles, cleaning, bonds etc. Many will either scrimp on costs or face a monetary shortfall. In the event of cost blow-outs there is the possibility of a corresponding negative impact on the employment relationship.

When employees are busy trying to organise and manage their relocation it leaves little time to concentrate on doing their job or preparing for a new position. Without guidance and access to company pricing they will not have the same benefits or level of priority their employer can achieve through a managed programme. This can result in higher costs, lost productivity, and additional sick or leave days being taken to ‘self- manage’ their move.