Relocation Reimbursement

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

The continued use of multiple methods for reimbursement shows how companies tailor assistance to the needs of employees and businesses. For the fifth year, full reimbursement for new hires (36%) remains near the lowest level historically (36%-38%, 2015-2016), out of favor in comparison to lump-sum payments (56%). Full reimbursement for transferees remains notably higher than in 2016 (64% vs. 55%) and similar to highs of the past twelve years (63%-66%). We note a trend in the resurgence of partial reimbursement for new hires or transferees among nearly half of firms for the third year in a row.

This number was closer to a third during the previous five years; it remains at levels seen for new hires from 2009-2011 and 2018 (46% vs. 45%-51%) and matches 2017-2018's peak for transferees (48%), similar to the previous high in 2011 (47%). Lump-sum usage for transferees also surpasses 2017’s record high (56% vs. 55%). Usage of lump-sum payments for new hires remains near the highest level recorded in 2018 (56% vs. 58%).

1 in 4 small/mid-size firms state some relocations (transferee or new hire) receive no reimbursement 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 (64% for transferees vs. 36% for new hires overall). While use of partial reimbursement remains similar for transferees and new hires across firm size, current employees have a greater probability of receiving full reimbursement than new hires overall and across employee types at large firms specifically. Additionally, lump-sum payments have grown in popularity and are now offered with equal frequency to new hires or transferees (56% vs. 56%).

Companies across size estimate that roughly half of their relocations were either partially reimbursed or paid by lump sum only in 2018. Roughly half of relocations were fully reimbursed at large firms, while around a third were fully reimbursed at mid-size and small firms. One in seven relocations at mid-size or small firms were employee-paid and received no reimbursement.

Question 35

Extent company reimburses relocation expenses of transferees/new hires