Cost Coverage – Overall & Specialized Assistance for Homeowners/Renters

Customizing relocation packages continues, with assistance most often based on job/grade level or position/job title.

OVERALL & SPECIALIZED ASSISTANCE FOR HOMEOWNERS/RENTERS

Across company size, firms estimate that around half of relocations were mid-level jobs and roughly a fifth were entry-level, similar to the past three years. Mid-size and small firms estimate around a third of their relocations last year were for executive level moves, similar to 2017 and higher than just over a fourth in 2015-2016, while large firms estimate 27% of relocations were in this top tier. While mid-size and large firms see more volume than small firms do, their employee-level compositions remain similar, with mid-level moves occurring than twice as often as entry-level moves.

Question 27-3

In 2018, what approximate percentage of your company's relocating employees were...

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EMPLOYEE LEVEL IMPACTS OFFERINGS

As we expected and found over the last three years, coverage for specific items is more likely for mid-level and executive/top level positions than for entry-level.

Overall, the likelihood of a lump sum or no reimbursement did not vary significantly across employee levels.

The exception was large firms, where entry-level employees were much more likely to see lump sums or no reimbursement offered than were mid-level employees or executives (24% vs. 14% & 9%). The biggest differences appear when analyzing company size and employee level together: small and mid-size firms are more likely to use lump sum only or to not reimburse costs for mid or executive level relocations compared to large firms (38% and 29% vs. 14%, mid-level; 31% and 20% vs. 9%, executive).

For a second year in a row, small firms are more likely to use this option for entry-level employees than large firms are (40% vs. 24%). Also worth noting, the percentage of small firms using this option remains nearly double since 2017 for entry level (40% vs. 21%) and mid-level (38% vs. 22%) relocations, and it remains elevated for executives (31% vs. 20%).

Unsurprisingly, executives see higher levels of coverage for individual categories than do lower-level relocations overall.

However, half or more of both mid-level and executive moves cover the top two (pack all items and move an automobile), far more than for entry level relocations (fewer than a third). Mid-level moves also trend higher in coverage for most individual categories compared to entry-level moves. Exceptions: close to a third or more across employee levels cover containerized shipping and moving pets.
Company size plays a role in coverage. Large firms are much more likely to cover packing all items for entry-level relocations than are smaller firms (48% vs. 24%+). The same holds true for automobile relocation (39% vs. 20%+). Other coverages for entry-level employees are similar across firm size. Coverage for mid-level and executive moves trend more generous across most items at large firms, giving them an edge in recruitment for higher-level positions.

Question 32-1

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Question 32-6

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Question 32-8

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HOMEOWNERS

Generally, homeowner assistance for specific items is more likely for mid-level and executive/top level relocations than for entry-level positions.

However, the biggest differences occur by company size. Small firms are the most likely to offer a lump sum for entry-level employees or to offer no assistance (43% vs. 29% large & 31% mid-size). Around a third or more of both mid-size and small firms use lump sums or do not offer assistance for mid-level or executive homeowners, far more than large firms (21% & 13%).

Across nearly every category, homeowner assistance is more likely to be offered for mid-level or executive relocations, rather than entry level. This is most pronounced at mid-size and large.
Even though most assistance categories are offered less often at the entry level, smaller firms offer certain benefits more often than do large firms (e.g., reimburse/pay for home sales costs: 21% small & 31% mid-size vs. 12%; offer mortgage subsidy or allowance: 18% small & 16% mid-size vs. 4%, etc.). Since small and mid-size firms tilt toward more new hires than large firms do, this may indicate certain incentives are simply necessary to get needed talent.

SPECIALIZED ASSISTANCE FOR HOMEOWNERS/RENTERS

Most firms continue to offer special types of assistance to homeowners/renters, with shifts that began last year remaining solid trends. For the fourth year, we asked what types of assistance are offered across employee levels, regardless of status (transferee or new hire). While the vast majority of mid-size and large firms offer specialized assistance, roughly four in ten small firms offer only lump sums or no specialized assistance at all, similar to last year and notably above 2015-2017 levels.

Question 33-1