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While lump sum plans are easy for employers to administer and offer great flexibility to employees, their lack of guidance can result in botched relocation experiences—aggravated by the fact that, because employees can keep unspent funds, some tend to choose cheap, unreliable vendors.
The modern alternative: employers can still offer lump sum policies, but augment them with relocation assistance, provided through the aforementioned platforms. Or, they can convert those lump sum plans to managed benefit plans, which offer equal flexibility and support, but leave unspent funds in the employer’s account, benefiting everyone.
Status-Quo Fail: Too Many Rules
Lump sum policies were developed as a more flexible alternative to an even older relocation policy—one that divides expenses into rigid little buckets, each with its own rules and maximums. It’s thought that this helps control costs, which is why employers still offer them.
But everyone’s moving needs are unique; rarely do they fall in neat little buckets. And when employees don’t have the leeway to plan their move as needed, frustration soars—and employers are deluged with exception requests. Inevitably, someone ends up spending more than they planned. And no one is happy.
The better option: updating to a modern relocation policy that allow employers to strike the right balance of flexibility and cost control. Like lump sum plans that include support, managed benefit plans, or other options like core/flex plans that benefit both employers and employees.
Time to Let Go of the Status Quo?
Admittedly, change can be hard, at least initially. But that’s not a good reason to stick with a relocation policy that is hurting your recruiting efforts and depriving your employees of the positive relocation experience they deserve.
At the end of the day, if everyone else is moving forward and you’re standing still, the end result is…you’re falling behind. But you can fix that. And we can help.
Let us show you how to replace your past-its-prime relocation plan with modern relocation benefits that will wow candidates and employees (and save money, too). It’s easier than you think. See what our clients say, and when you’re ready, start the conversation.