For many years organizations have used a Lump Sum payment to assist new hires or transfers with moving expenses. From 2018 through 2020 the Lump Sum approach was, by far, the most common way an employer would provide financial assistance to a relocating employee. But “the times they are a-changin’.”
The wane of DIY Move Programs
Lump Sum programs allow employees to control their relocation and related expenses with a predetermined amount of money. But the simplicity of this approach is contributing to its wane in popularity. By their very nature, Lump Sum programs place high expectations on the ability of a transferring employee to make informed decisions, stay within budget and work within set time frames. Fallout from a DIY move program rests on the shoulders of the Human Resources department and results in a lackluster experience for transferring employees.
A top priority for recruitment and retention strategies should be to curate a fulfilling employee experience. For companies who are not currently in a position to increase relocation support, shifting from a Lump Sum payment program to a Managed Cap relocation program may help to secure employment with a potential candidate who is likely comparing offers. Managed Cap programs provide additional support with predictable relocation budgets, leading to a more successful and positive relocation experience.
The Best of Both Worlds
A Managed Cap program for relocating employees represents the best of both worlds – for the employer and the employee. It is easier to manage for the employer, provides greater control over total costs and when administered by a Relocation Management Company gives the employee access to a vetted network of movers and suppliers. All with personalized guidance from a professional Relocation Consultant.
A Managed Cap is a relocation benefit program that sets a maximum limit on the total amount that an organization will spend on an employee for relocation expenses. It takes job level, relocation distance and family needs into consideration and can be structured as a line-item list with caps – amounts that benefits cannot exceed. Managed Cap funds are typically administered by a Relocation Management company who is responsible for coordinating services, tracking expenses, and making disbursements to vendors.
A supportive work culture is a crucial differentiator for employers competing for talent in today’s job market. The Managed Cap program supports a more personalized approach to meeting the needs of relocating employees while still allowing companies to be cost conscious. HomeServices Relocation’s Managed Cap program helps organizations stay current with the demands of a changing workforce, achieve recruitment goals, and improve the relocation experience for your new hires and transferring employees.
The Top 5 Benefits of Managed Cap Relocation Program:
- Assists employers with talent acquisition. Recruiters are elated to hear that they can offer candidates professional relocation support
- Enables a strong focus on cost containment
- Eliminates the risks associated with moving related fraud and other “do-it-yourself” relocation pitfalls that cause stress, waste time, and increase costs
- Quick and easy implementation
- Requires limited quality assurance management and involvement by HR
HomeServices Relocations’ mobility policy management services are designed to help you spend time managing your business with confidence that your recruitment and retention goals are being supported by a professional and trusted relocation partner.