Everything You Need to Know About Lump Sum Moves in 2023

Written By

Machaela Casey

Lump sum moves are a relatively new concept, but they have become increasingly popular in recent years. These type of moves occur when you provide an employee with a single lump-sum payment after he or she moves to a new area after corporate relocation. An average relocation package lump sum will benefit employees if they cannot claim back moving expenses.

What is a Lump Sum Relocation Package?

Lump sum moves cover a wide range of costs associated with corporate relocation. These might include:

• The cost of rent or purchasing a new home.
• Moving expenses (hiring a moving company, for example).
• Legal expenses.

How Do You Calculate Lump Sum Moves?

Business owners calculate lump sum moves in different ways. You need to decide what’s right for you, your employee, and your organization.

You could, for example, hand over a lump sum payment to an employee before corporate relocation. However, your employee might experience additional costs during their move, and you might not have allocated enough money for these expenses.

In other circumstances, you might want to hand over a lump sum relocation package amount after an employee has moved.

Calculating a lump sum move will also depend on factors like your lump sum relocation policy, company budget, and the length of time an employee has been working for your organization.

Distance will also influence lump sum move costs. Typically, employees who are relocating further away receive higher payments than those who don’t.

How Do Employees Receive Funds?

You can allocate a lump sum payment in the following ways:

• Provide an employee with a company credit card.
• Include funds in an employee’s payroll check.
• Wire funds to an employee’s bank account.

Why Should You Hire Lump Sum Movers?

The best corporate moving companies will facilitate your lump sum move and streamline the entire process. These companies will transport your employee’s belongings to the intended destination and even unpack them on the other side.

If your employee has a large vehicle or fragile items, lump sum movers can take care of these items safely and securely, too. This provides you and your employee with peace of mind. Using a reputable moving company can also save you money in the long run.

These movers will also calculate the distance of your corporate move and provide you with a quote based on your circumstances, so you don’t need to do the hard work yourself.