The way large companies manage employee relocations is undergoing a significant shift. In recent years, especially since 2020, many organizations have started outsourcing global mobility tasks by giving employees lump-sum relocation allowances rather than coordinating every aspect of an international move. This trend is changing how expat employees plan their moves and how the moving industry connects with these expats. Below, we explore the rise of lump-sum relocation benefits, how this approach alters expat behavior in searching for moving services, and what it means for HR teams and international moving companies.
The Rise of Lump-Sum Relocation Benefits (Post-2020)
In the wake of the pandemic and evolving workforce trends, lump-sum relocation packages have become increasingly popular. Under a lump-sum policy, a company provides a relocating employee a fixed amount of money to cover moving expenses, instead of managing the move or reimbursing specific costs. This approach gained momentum after 2020 as companies sought more flexible, cost-effective mobility solutions. Surveys confirm that more employers are adopting lump-sum allowances as part of their relocation policies:
Table 1: The percentage of lump-sum relocation within global corporations
A 2022 corporate relocation survey found that the use of lump-sum benefits increased significantly in 2022, alongside a rise in outsourced relocation services (Group, Atlas World, 2023). Many firms trimmed other special relocation perks, relying more on lump sums to support moves.
According to Mercer’s latest global mobility research, lump-sum payments have jumped in prevalence – now ranking among the top five relocation benefits, up from eighth place just a year prior (Mercer, 2023). This indicates a swift climb in popularity for lump-sum support in international assignments.
Companies are also embracing more flexible mobility policies overall. An April 2022 industry survey reported that 42% of organizations now use a “flexible” approach to relocation benefits – and among those, 69% rely on a fixed lump-sum allowance for assignees due to its simplicity and ease of management (Browne, 2022). In other words, nearly 70% of companies with flexible mobility programs give employees a set cash amount to organize their move as they see fit.
Why Are Lump-Sum Packages on the Rise?
Several factors are driving this trend:
Cost Predictability and Control: Lump sums let employers cap relocation spend up front. This predictability is valuable when budgets are tight (a scenario many faced post-2020). Instead of open-ended moving expenses, the company’s cost is fixed (Bennett, 2024).
Administrative Ease: Simply cutting a check (or direct deposit) to the employee is administratively simpler than coordinating movers, housing, and myriad vendors. HR teams save time by not managing detailed logistics (Bennett, 2024).
Employee Flexibility and Fairness: Lump-sum allowances give transferees freedom to choose services according to their needs. Everyone gets a similar stipend, which can feel fair and empowers the employee to prioritize what matters to them (Bennett, 2024). For example, tech giants like Google reportedly offer a lump-sum “relocation bonus” option that many employees prefer for the flexibility it provides (Arc Relocation).
Scalability for Global Workforces: As international assignments scale up again (many firms saw relocation volumes rebound in 2022), a lump-sum approach makes it easier to deploy a standard policy across a large, globally mobile workforce. It’s a one-size-fits-all solution that can be adjusted by level or distance without redesigning entire packages for each move (Group, Atlas World, 2023).
Real-World Example
In the tech industry, lump sums have become a norm. Google, for instance, allows relocating staff to choose a lump-sum payment to cover all moving-related costs – giving them control to budget for movers, housing, travel, and other needs as they see fit (Arc Relocation). Most IT companies use variable lump-sum amounts tailored to the employee’s role, location, and family size rather than managing every expense directly. This exemplifies how modern employers are shifting responsibility (and freedom) to the employee.
However, while lump-sum relocation policies offer simplicity and cost efficiency for employers, they are not without challenges. Some relocation experts note that lump-sum moves tend to earn the worst feedback from employees when no support or guidance is provided (Bennett, 2024). Essentially, handing over cash alone can leave transferees feeling adrift. This is where the next phase of the trend comes in – understanding how employees behave under lump-sum programs, and ensuring they have the right tools to succeed.
How Lump-Sum Policies Changed Expatriate Behavior
Under a traditional full-service relocation, an employee’s move might be handled end-to-end by the company or a relocation firm – from booking international movers to arranging temporary housing. With a lump-sum allowance, expatriate employees suddenly become project managers of their own moves. They must budget the allowance and procure services (shippers, movers, storage, etc.) themselves. This shift has fundamentally changed expat behavior, especially in how they search for and select moving services:
DIY Planning and Online Research
Lump-sum recipients today are far more likely to research moving options online, since the onus is on them to find cost-effective solutions. Many start by searching for international moving companies, reading reviews, comparing quotes, and looking up destination-specific tips. The rise of guides and blog posts like “7 Ways to Stretch a Lump Sum Relocation Package” aimed at relocating employees is telling – expats are actively seeking advice on how to make the most of their allowances (PODS for Business, 2023).
“Private” Customers with Corporate Backing
From the perspective of moving companies, these expats appear as typical private customers shopping for a mover. In reality, they often are corporate transferees using company funds. As one industry executive observed, many so-called private moving customers are actually “corporate assignees” who received a lump-sum for their move (FIDI business). In practice, this means a surge of individual inquiries coming from employees of large firms, rather than from corporate mobility managers directly.
Price Sensitivity and Comparison Shopping
Because any cost savings from the move might be pocketed by the employee, expats with lump sums tend to be price-conscious. They often solicit multiple quotes and use comparison websites to get the best value. An HR manager might give a relocating employee $10,000 and whatever the employee doesn’t spend, they keep – naturally, the employee will try to spend wisely. This has led to expatriates behaving more like savvy consumers, hunting for discounts on packing, shipping, or temporary accommodation.
Seeking Guidance (or Feeling Lost)
On the flip side, employees without relocation support may feel overwhelmed by the complexity of an international move. They are not relocation experts, yet they suddenly must deal with customs regulations, visa coordination, pet shipping, and other details that were formerly handled by specialists. This has increased the likelihood of expats turning to online forums, expat communities, and third-party platforms for help. In fact, even with flexibility to “do it yourself,” many employees still need guidance to streamline their relocation (Group, Atlas World, 2023). Without advice, some make suboptimal choices that lead to delays or extra costs – confirming the importance of providing resources alongside the cash.
For HR departments, recognizing these behavioral shifts is crucial. If a company chooses a lump-sum approach, it should also ensure employees know where to find reputable service providers and information. Simply put, expats don’t want to be left on their own to reinvent the wheel. This opens an opportunity for HR teams to partner with platforms that guide relocating employees – for example, by referring them to a trusted online marketplace of moving services.
From the employee’s perspective, those given a lump sum often appreciate the freedom but also face a learning curve. They must become smart consumers in a global moving market. This new reality has ripple effects on the moving industry as well.
Implications for International Moving Companies
The growing cohort of lump-sum relocators has not gone unnoticed by the moving and relocation industry. International moving companies are seeing more direct inquiries from individual transferees who, in earlier years, might have had their employer handle everything through a corporate contract. To thrive in this evolving landscape, moving companies are adapting their sales and marketing strategies to capture and serve these self-directed expat customers. Key ways moving companies are responding include:
Boosting Digital Presence and Marketing: Today, “the channels to get to the customer are more subtle than ever before”, and marketing often takes precedence over traditional in-person sales (FIDI business). Moving companies are investing in SEO (search engine optimization) so that when an expat Googles “best international movers”, their company appears. Pay-per-click ads, informative blog content (targeting keywords like "international relocation" or "moving overseas tips"), and active social media engagement have become essential to attract lump-sum movers who begin their search online.
Leveraging Lead Generation Platforms: Just as consumers use travel aggregators to compare flights, relocating employees often use digital platforms to request quotes from multiple movers. Forward-thinking moving companies are partnering with online relocation marketplaces and lead generation services to ensure they are in the mix when an expat seeks quotes. By signing up on reputable lead platforms, movers get access to qualified leads – typically employees of large firms who have lump-sum budgets and are actively seeking help. This expands a mover’s reach beyond their own marketing. It also levels the playing field: even smaller moving firms can compete for corporate-sourced relocations by responding to these digital leads.
Rapid Response and Customer Service: When a lump-sum customer reaches out (whether via an online form or phone call), moving companies are learning that speed and helpfulness win the day. Industry experts advise responding to inquiries immediately and with a consultative approach. As one moving executive put it, the moment a private customer contacts you, “call immediately and... convert the lead into a booking” (FIDI business). Companies are training their sales teams to handle these individual clients with the same care as corporate accounts – providing clear quotes, explaining services, and guiding the expat through options (packing, insurance, storage, etc.). Empathy and education go a long way, since moving is stressful and many expats are unsure about how to proceed. Being a responsive, informative partner converts more of these leads into business.
Tailoring Services for Lump-Sum Movers: Some international movers are adjusting their service offerings to better suit self-managing customers. This might mean offering more à la carte services or packaged deals. For example, a moving company might create a “lump-sum special” package that covers door-to-door moving of household goods with a set price, making it easier for an expat to know if it fits their allowance. Others provide online tools like move calculators or shipment tracking, giving tech-savvy customers transparency and control – features that appeal to those managing their own relocation. The goal is to make hiring the mover as convenient as possible for someone comparing options on their laptop after work.
Staying ahead of the curve: The moving companies that succeed in this era tend to be those embracing technology and new sales channels. Utilizing CRM systems to track leads and customer interactions is now common practice (FIDI business), ensuring no inquiry slips through the cracks. Companies are also paying attention to their online reputation – since lump-sum expats heavily rely on reviews and peer recommendations, maintaining high service quality (and thus positive reviews) directly impacts lead conversion.
Notably, even traditional corporate relocation providers (Relocation Management Companies or RMCs) have begun introducing digital solutions for lump-sum clients, such as self-service portals or curated lists of preferred suppliers. This further validates that the industry recognizes the need to support lump-sum transferees in a tech-driven way. Moving companies that collaborate on such platforms, or at least ensure they can seamlessly accept jobs referred from them, will capture more of this growing market segment.
Embracing the Lump-Sum Era: A Call to Action for Movers
For international moving companies, the message is clear: meet your customers where they are now. Today’s expats are searching online, expecting quick answers, and relying on digital tools to make decisions. By investing in online lead generation and partnering with platforms that connect you to lump-sum movers, you can tap into the flow of corporate-sponsored moves that come disguised as individual customers. The companies that adapt – through agile marketing, rapid response, and customer-centric service – are turning this trend into a steady pipeline of business.
Importantly, lump-sum relocation is not just a passing fad – it’s a fundamental change in how global mobility is managed. The trend is growing, and it benefits all parties to adapt. Companies get cost control, employees get flexibility, but neither should go it completely alone. Platforms that connect expats with trusted moving companies (and other relocation services) are the glue holding this new model together. By embracing these tools, HR teams can confidently offer lump sums knowing their assignees are in good hands, and moving companies can thrive by directly engaging the very expats who need their help.
Ultimately, successful relocation in the lump-sum era comes down to smart partnerships – between HR and service platforms, between expats and movers, and between moving companies and digital lead sources. Those partnerships ensure that even as relocation programs become more hands-off, no one is left unsupported. With the right strategy, lump-sum policies can truly be a win-win: giving employees freedom in their move while still delivering the guidance and quality outcomes that everyone wants.
Sources
Mercer. (2023). "Alternative" international assignment (AIA) policies and practices survey. Mercer.
Browne, O. (2022). How is provision of relocation benefits changing? ECA International.
Bennett, P. (2024). Cash Doesn't Cut It - Eight Reasons Why Lump Sum Relocation Policies Aren't Fit for Purpose. PerchPeek.
Arc Relocation. (n.d.). Does google offer a relocation package? Arc Relocation.
Group, Atlas World. (2023). Corporate Relocation Survey 2023. Atlas World Group.
PODS for Business. (2023). 7 Ways to Stretch a Lump Sum Relocation Package. PODS.
FIDI business. (n.d.). Sales force: how to sell better in moving. FIDI Focus.
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