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 and future projections
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:
Behavior Aspect | Before (Traditional Full-Service Relocation) | Now (Lump-Sum Relocation Packages) |
|---|---|---|
Planning and Coordination | Handled by the employer or relocation company from start to finish. | Employee manages their own move, looking for good price-focused solutions. |
Service Procurement | The company arranges movers, housing, and logistics. | Employees must research, select, and book all services independently. |
Use of Online Research | Because of the reliance on their employer, online research is minimal. | Employees search online, read reviews, compare quotes (through Relocately) and seek relocation tips. |
Price Sensitivity | Less sensitive, this is because the expenses are covered by the company. | Employees aim to save money, often pocketing unspent funds. |
Need for Guidance | Professional support provided throughout the move. | Many employees feel overwhelmed, seek advice on forums, blogs, or third-party platforms. |
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 rise of lump-sum relocators—individuals managing their own moves with employer-provided relocation stipends—is reshaping the international moving industry. Where companies once coordinated every aspect of an employee’s move, today’s transferees often seek out services independently. As a result, international movers are evolving their marketing and service strategies to meet this growing demand.
Enhancing Digital Marketing and Online Visibility
Lump-sum customers typically begin their moving journey online, prompting companies to prioritize digital outreach.
Key strategies include:
SEO investment: Ensuring their websites rank for search terms like “best international movers” or “moving overseas tips.”
Pay-per-click advertising: Reaching potential customers actively searching for relocation help.
Content marketing: Publishing helpful blogs and guides tailored to self-managed expats.
Social media engagement: Using platforms like Instagram, Facebook, and LinkedIn to build brand trust and visibility.
These tactics help movers attract expats who rely on digital research rather than traditional referrals.
Partnering with Lead Generation Platforms
Like travelers using flight comparison sites, lump-sum movers use relocation marketplaces to gather multiple quotes. To stay competitive, moving companies are:
Joining digital quote platforms: Tapping into tools that connect them with active relocation leads.
Accessing corporate-linked clients: Many users are employees of major firms with lump-sum packages.
Expanding market reach: Even smaller firms can win high-value business through these platforms.
This approach allows movers to gain exposure beyond their own marketing efforts and compete more effectively across the industry.
Prioritizing Speed and Service
For lump-sum movers, the first impression often determines who gets the business. Moving companies are focusing on rapid, personalized responses.
Best practices include:
Immediate follow-up: Contacting leads promptly to convert interest into bookings.
Consultative selling: Explaining options clearly and offering tailored advice.
Empathy and education: Recognizing that moving is stressful and guiding customers through unfamiliar decisions.
This responsive, customer-focused approach helps build trust and increases conversion rates.
Customizing Services for Self-Directed Clients
To meet the unique needs of lump-sum movers, many companies are revising their service offerings.
Common adaptations:
À la carte pricing: Allowing customers to choose only the services they need.
“Lump-sum special” packages: Bundled services with transparent, flat-rate pricing.
Digital tools: Offering move calculators, tracking features, and online scheduling.
These features appeal to expats managing their own relocations and help simplify the decision-making process.
Embracing Technology and Innovation
Success in the lump-sum segment often hinges on tech adoption and digital readiness.
Trends among leading movers:
CRM systems: Tracking leads and communications to ensure prompt responses.
Online reputation management: Actively seeking reviews and maintaining high service standards.
Collaborating with RMCs: Participating in self-service portals or preferred supplier lists curated by Relocation Management Companies.
Even traditional relocation providers are adjusting, offering digital tools to support lump-sum clients. Movers that align with these platforms gain a valuable edge in an increasingly self-directed market.
By embracing these changes, international moving companies position themselves to serve a new generation of globally mobile professionals—on their terms, and on their timelines.
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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