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Relocation lump sums

Are they a good fit for your business?

Any business with a global mobility strategy will want their prized assets to settle into their new role as quickly as possible. To achieve this, employers often offer employees a lump-sum package – an allowance given to the assignee to cover the cost of relocating overseas. According to a recent survey by the Society for Human Resource Management, lump-sum payments are the single most popular relocation benefit offered by companies.

Before negotiating a package with the assignee, however, employers should understand the advantages and disadvantages of paying a lump-sum. Failure to offer the necessary support to assignees throughout the relocation process could result in a loss of talent.

Advantages of relocation lump sums

Disadvantages of relocation lump sums

Payment of lump-sum relocation packages

Lump-sum relocation packages are typically paid in one of three ways:

Whatever payment method you choose, the third-party support offered by a relocation specialist can prove invaluable to your business and the assignee.


Relocation specialists like Simply London have a wealth of experience helping assignees to manage lump-sum packages. They can use their extensive knowledge of the local environment – rental market, utilities, school system – to help your assignee implement a relocation strategy that maximises their budget, allowing them to focus on settling into their new role and surroundings.