Cost Coverage
Customizing relocation packages continues, with assistance most often provided 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 one-fifth were entry-level, which is similar to the past four years. Mid-size and small firms estimate around one-third of their relocations last year were for executive-level moves, similar to 2017-2018 and higher than just over one-fourth in 2015-2016. Large firms estimate 28% 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 more than twice as often as entry-level moves.
Question 23-3
In 2019, what approximate percentage of your company's relocating employees were...
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EMPLOYEE LEVEL IMPACTS OFFERINGS
As we expected and true to what we found over the last four years, coverage for specific items is more likely for mid-level and executive/top-level positions than for entry-level positions.
Overall, the likelihood of a lump sum or no reimbursement policy is much more likely for entry-level moves compared to executive (34% vs. 21%), with mid-level moves at the mid-point (28%).
Around half of small firms say lump sums or no reimbursement is their policy for entry-level or mid-level employees, while only around one-third of them use this policy for executives. Mid-size firms are roughly twice as likely to use lump sums or no reimbursement for entry-level or mid-level moves compared to executive as well (36% & 30% vs. 17%). Additionally, while one in four large firms also have this policy in place for entry-level employees, lump sums or no reimbursement are far less likely to be offered to mid-level employees or executives (24% vs. 12% & 10%).
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 not reimburse costs for entry-level or mid-level relocations compared to large firms (45% and 36% vs. 24%, entry-level; 43% and 30% vs. 12%, mid-level). Small firms are also two to three times more likely to use this approach than larger firms for executives (36% vs. 17% mid-size & 10% large). For a third year in a row, small firms are more likely to use this option for entry-level employees than large firms (45% vs. 24%). The percentage of small firms using this option remains nearly double 2017 for entry-level (45% vs. 21%) and mid-level (43% vs. 22%) relocations, and it remains elevated for executives (36% vs. 20%).
Unsurprisingly, executives see higher levels of coverage for individual categories than do lower-level relocations overall.
- However, roughly 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 (one-third). Mid-level moves also trend higher in coverage for most individual categories compared to entry-level moves. There is one notable commonality — close to one-third of firms, across employee levels, cover containerized shipping.
- Company size plays a role in coverage. Large firms are much more likely to cover packing all items for entry-level relocations than smaller firms (47% vs. 24%+). The same holds true for a single automobile relocation (45% vs. 26%+), containerized shipments (37% vs. 23%+) and moving a second automobile (24% vs. 13%+). Other coverages for entry-level employees are more similar across firm size.
- Coverage for mid-level moves trend more generous across many items at large firms, however, those offering unpacking all items, moving recreation and lawn equipment, partial/custom unpacking, carrying items from the attic, permanent/extended storage and picking up belongings from a second residence saw similar levels across company size. This trend indicates a slightly more competitive landscape for mid-level positions.
- While executives saw far more large companies offering to pack all items, move an automobile, second automobile or pick up belongings from a second residence, mid-size firms essentially met or exceeded the percentages of large companies offering nearly every other individual cost coverage item for relocations. So even though far fewer small firms offered individual cost coverage items comparatively, this indicates a highly competitive environment between mid-size and large firms for key executive talent.
Question 28-1
Does your company reimburse/pay to...
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Question 28-2
Does your company reimburse/pay to...
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Question 28-3
Does your company reimburse/pay to...
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Question 28-4
Does your company reimburse/pay to...
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Question 28-5
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Question 28-6
Does your company reimburse/pay to...
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Question 28-7
Does your company reimburse/pay to...
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Question 28-8
Does your company reimburse/pay to...
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SPECIALIZED ASSISTANCE FOR HOMEOWNERS/RENTERS
Most firms continue to offer special types of assistance to homeowners/renters, with shifts that began two years ago remaining solid trends. For the fifth 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, which is similar to 2018-2019 and notably above 2015-2017 levels.
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. Nearly half of small firms say lump sums or no reimbursement is their policy for every employee level. They are also the most likely to flex this option across company size. Mid-size firms are roughly twice as likely to use lump sums or no reimbursement for mid-level or executive moves compared to large firms (35% vs 17%, mid-level: 22% vs. 10%, executive).
- Across nearly every category, homeowner assistance is more likely to be offered for mid-level or executive relocations, rather than entry-level. This difference is most pronounced at mid-size and large firms.
- Even though most assistance categories are offered less often at the entry-level, smaller firms do offer benefits at similar levels to mid-size firms across almost every assistance category. Small firms offer benefits at similar levels to large firms at roughly half of assistance categories. This data indicates that the competitive landscape is more similar across size for entry-level hires.
Question 29-1
When a relocating employee is a homeowner, who will be buying, does your company...
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Question 29-2
When a relocating employee is a homeowner, who will be buying, does your company...
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Question 29-3
When a relocating employee is a homeowner, who will be buying, does your company...
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Question 29-4
When a relocating employee is a homeowner, who will be buying, does your company...
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Question 29-5
When a relocating employee is a homeowner, who will be buying, does your company...
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Question 29-6
When a relocating employee is a homeowner, who will be buying, does your company...
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Question 29-7
When a relocating employee is a homeowner, who will be buying, does your company...
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Question 29-8
When a relocating employee is a homeowner, who will be buying, does your company...
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RENTERS
This year overall, the likelihood of renter assistance being offered is similar across employee level. However, company size plays a role. Lump sum or no assistance is more likely for employees at small firms compared to larger companies across every employee level. Roughly four out of ten small firms and one out of four mid-size firms offer a lump sum or no renter assistance across employee levels. Only at large companies does this pattern shift, where this policy is more likely to be used for entry-level employees vs. executives (26% vs. 14%).
- Home finding trips, storage, and apartment search/finder’s fee reimbursement are more likely to be offered for mid-level or executive relocations than for entry-level moves overall. Most other categories are similar across employee level.
- Company size is impactful. Mid-size and large firms are far more likely to offer temporary housing allowances and storage across employee levels. Mid-size and large firms are also far more likely to offer apartment search/finder’s fee reimbursement for entry-level and mid-level moves, and home finding trips to mid-level employees. Large companies are more likely than mid-size or small firms to offer lease cancellation reimbursement for both mid-level and executive moves, as well as temporary housing allowances, home finding trips, and apartment search/finder’s fees reimbursement for executives.
Question 30-1
When a relocating employee is a renter, does your company...
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Question 30-2
When a relocating employee is a renter, does your company...
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Question 30-3
When a relocating employee is a renter, does your company...
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Question 30-4
When a relocating employee is a renter, does your company...
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Question 30-5
When a relocating employee is a renter, does your company...
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Question 30-6
When a relocating employee is a renter, does your company...
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Question 30-7
When a relocating employee is a renter, does your company...
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Question 30-8
When a relocating employee is a renter, does your company...
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