Relocation Reimbursement

Continued Use of Multiple Methods, Differentiation Between Transferees & New Hires

The continued use of multiple methods for reimbursement shows how companies tailor assistance to the needs of employees and businesses. For a sixth year, full reimbursement for new hires (39%) remains near the lowest levels historically (36%-38%, 2015-2016), out of favor in comparison to lump-sum payments (58%). Full reimbursement for transferees remains higher than in 2016 (62% vs. 55%) and similar to highs of the past 13 years (63%-66%). We note a trend in the continued resurgence of partial reimbursement for new hires or transferees among nearly half of firms for the fourth year in a row. This number was closer to one-third during the previous five years; it remains at levels seen for new hires from 2009-2011 (45% vs. 45%-51%) and remains at the historical high for transferees (48%) for a third year in a row, similar to the previous high in 2011 (47%). Lump-sum usage for transferees remains near last year’s record high (54% vs. 56%) and similar to the previous high in 2017 (55%). Usage of lump-sum payments for new hires matches the highest level recorded in 2018 (58%).

1 in 4 firms surveyed state some relocations (transferee or new hire) receive no reimbursment of expenses

Before the turn of the century, full reimbursement was by far used most frequently to cover costs for both transferees and new hires. As seen in recent years, firms continue to differentiate between current employees and new hires for full reimbursement (62% for transferees vs. 39% for new hires overall). Use of partial reimbursement remains similar for transferees and new hires overall, but it is far more likely to be leveraged for transferees at mid-size and large firms than small (54% & 53% vs. 37%), while mid-size firms use partial reimbursement for new hires more frequently than those larger or smaller companies (54% vs. 40%). Current employees have a far greater probability of receiving full reimbursement than new hires overall and at mid-size or large firms specifically. Additionally, lump-sum payments continue to be popular and offered with equal frequency to new hires or transferees over the past two years.

Companies overall estimate that roughly half of their relocations were either partially reimbursed or paid by lump sum only in 2019. Small firms were more likely to have paid entirely by lump sum compared to larger firms (34% vs. 22%). Roughly half of relocations were fully reimbursed at mid-size or large firms, while around one-third were fully reimbursed at small firms. One out of ten relocations at firms across size were employee-paid and received no reimbursement.

Question 31

Extent company reimburses relocation expenses of transferees/new hires