2024 International All-Benefits Survey Key Takeaways
NEI Global Relocation (NEI) recently completed our 2024 International All Benefits Survey that covered all components of a typical International relocation program, including policy overview, pre-assignment, relocation, on-assignment, allowances & finances, end of assignment, and tax & compensation areas.
For the survey, 47 international policy components were included, focusing on short- and long-term assignments and permanent transfers with highlights covering several other program types. Of 108 participating companies, the top industries included Technology, Manufacturing, Life Sciences, Consumer Goods & Services, Food & Beverage, and Energy & Utilities.
Key Takeaways
NEI’s full report contains recent trends in types of international policies and the prevalence of benefits offered. Key takeaways include:
1) Overall Program Overview:
- Intra-country and Intra-Region Americas & LATAM Policies: While our 2024 survey indicates companies are increasing their intra-country and intra-region Americas & LATAM policies, the front-runners for the most common assignment program types by surveyed companies remain clear: 90 percent of companies had a permanent transfer policy; 81 percent a long-term assignment policy; and 73 percent a short-term assignment policy.
- Repayment Agreement Terms: 2024’s survey saw a decrease in the number of companies requiring repayment agreements for permanent moves (88 percent) compared to 2022 (94 percent), while agreement requirements for short-term (59 percent) and long-term assignments (75 percent) remained consistent with 2022. NEI saw a significant uptick in companies that prorate some or all repayment funds (80 percent, up from 62 percent in 2022) and those using a 24-month required repayment agreement term (83 percent, up from 61 percent in 2022).
- Lump Sum-Only Policies: These are rarely used for international moves by surveyed companies: only 11 percent of companies offered such for permanent moves and less than one percent offered for short- and long-term assignments. This is not surprising as an international relocation, whether temporary assignment or permanent move, can be much more challenging for employees. Providing a lump sum to cover all relocation expenses may seem to offer flexibility, but employee planning and stress can be overwhelming without support from a seasoned professional or Relocation Management Company.
2) Support for Families:
- Pet Transport: Most pet owners consider their pets as part of the family and would be hesitant to move without them, thus it is not surprising to see an increase in 2024 surveyed companies offering pet transport for long-term assignments (39 percent compared to 30 percent in 2022) and permanent transfers (34 percent to 23 percent in 2022). Companies focusing on cost reduction offer a capped pet transportation benefit to keep costs down but provide families peace of mind.
- Spouse / Family Assistance: This year’s survey also reports, over the past few years, a noticeable shift from career assistance to family acclimation services for international assignments. By expanding the benefit, it helps address the whole family’s needs. Long-term assignments offering Spouse / Family Assistance rose from 61 percent in 2022 to 74 percent in 2024 and offering it to permanent transfers rose from 51 percent in 2022 to 55 percent.
- Host Country Transportation: A common benefit that continues in both short-term and long-term assignment policies, assistance provided varies with almost half of surveyed companies offering assistance based on the location or local practice.
- Host Country Housing: Most assignees live in a rented apartment or flat throughout their assignment. Of 2024 surveyed companies, 99 percent of short-term policies and 93 percent of long-term policies provided host country housing eligibility and, for permanent moves, only 20 percent of 2024 respondents provided it (not to be confused with interim temporary living). For all companies, 85 percent have housing paid by the company or their RMC on behalf of employees on short-term assignment and 62 percent on long-term assignment.
- Global Health Insurance Plans: NEI saw a significant shift of companies this year providing a global plan approach for short-term (56 percent) and long-term (65 percent) assignees, a change from our 2022 survey when 71 percent of companies used a home-based approach for short-term assignees and 57 percent for long-term.
3) Cost Impact of Policy Changes:
- Furniture Allowance in Lieu of Shipment: As costs of household good shipments continue to rise, NEI’s seen an increase in companies offering a furniture allowance in lieu of a household good shipment. For short-term assignments, 54 percent of surveyed companies offered one compared to 38 percent in 2022. For permanent assignments, 48 percent offered one in 2024 compared to only 37 percent in 2022. Though some companies may adopt a furniture allowance to support sustainability initiatives, analysis completed by NEI determined that the sustainability variance is minimal and, in some cases negative, due to emissions from manufacturing, shipment of furniture from the plant, and disposal of furniture at assignment end.
- Storage Benefits Decrease: NEI’s seen the storage benefit decrease for all policy types in the last year, most likely due to companies’ cost containment measures. Offering 15-to-30 days of storage is most common for both long-term assignments and permanent transfers.
- Relocation Allowance Usage Increase: This year, NEI’s noted an increase in companies offering the allowance across all policy types. Companies are also shifting more towards offering a flat amount per assignee vs. percentage of employee salary. For allowance eligibility, short-term assignments rose from 45 percent (2022) to 68 percent (2024); long-term assignments increased from 74 percent to 87 percent; and permanent moves rose from 76 percent in 2022 to 87 percent.
- Tax Gross-up Vary by Benefit & Assignment Type: Year-over-year, NEI saw an increase in companies including state insurance, social security, social and local, and city income taxes in the hypo tax. Historically, most companies provide both tax consultation to set upfront expectations and tax prep assistance throughout the assignment. This is consistent with 2024’s survey.
Driving Unique Solutions for Each Client
We recommend all companies determine which unique solutions will work best for their company and NEI is ready to discuss all relocation-related possibilities with you.
NEI’s Global Mobility Strategies Team would be pleased to assist you in determining if a benefit is the right fit for your program. We believe reviewing program intent and benchmarking against industry peers and best practice can help you build a strong talent acquisition / retention strategy.
Thank you to all companies who participated!
About NEI Global Relocation
With headquarters in the U.S. and regional offices in Switzerland and Singapore, NEI is a certified Women's Business Enterprise dedicated to providing full-service global relocation and assignment management solutions. Supporting well over 200 clients, including numerous Fortune 500 and Fortune 1000 companies, NEI is committed to meeting diverse supplier goals and addressing the unique challenges of global talent mobility. For more information on NEI's services and to explore NEI All-Access, visit www.neirelo.com
The above article is provided for informational purposes only. Please consult your tax, legal, immigration or accounting advisors before making any decisions or transactions.
2024 International All-Benefits Survey Key Takeaways
NEI Global Relocation (NEI) recently completed our 2024 International All Benefits Survey that covered all components of a typical International relocation program, including policy overview, pre-assignment, relocation, on-assignment, allowances & finances, end of assignment, and tax & compensation areas.
For the survey, 47 international policy components were included, focusing on short- and long-term assignments and permanent transfers with highlights covering several other program types. Of 108 participating companies, the top industries included Technology, Manufacturing, Life Sciences, Consumer Goods & Services, Food & Beverage, and Energy & Utilities.
Key Takeaways
NEI’s full report contains recent trends in types of international policies and the prevalence of benefits offered. Key takeaways include:
1) Overall Program Overview:
- Intra-country and Intra-Region Americas & LATAM Policies: While our 2024 survey indicates companies are increasing their intra-country and intra-region Americas & LATAM policies, the front-runners for the most common assignment program types by surveyed companies remain clear: 90 percent of companies had a permanent transfer policy; 81 percent a long-term assignment policy; and 73 percent a short-term assignment policy.
- Repayment Agreement Terms: 2024’s survey saw a decrease in the number of companies requiring repayment agreements for permanent moves (88 percent) compared to 2022 (94 percent), while agreement requirements for short-term (59 percent) and long-term assignments (75 percent) remained consistent with 2022. NEI saw a significant uptick in companies that prorate some or all repayment funds (80 percent, up from 62 percent in 2022) and those using a 24-month required repayment agreement term (83 percent, up from 61 percent in 2022).
- Lump Sum-Only Policies: These are rarely used for international moves by surveyed companies: only 11 percent of companies offered such for permanent moves and less than one percent offered for short- and long-term assignments. This is not surprising as an international relocation, whether temporary assignment or permanent move, can be much more challenging for employees. Providing a lump sum to cover all relocation expenses may seem to offer flexibility, but employee planning and stress can be overwhelming without support from a seasoned professional or Relocation Management Company.
2) Support for Families:
- Pet Transport: Most pet owners consider their pets as part of the family and would be hesitant to move without them, thus it is not surprising to see an increase in 2024 surveyed companies offering pet transport for long-term assignments (39 percent compared to 30 percent in 2022) and permanent transfers (34 percent to 23 percent in 2022). Companies focusing on cost reduction offer a capped pet transportation benefit to keep costs down but provide families peace of mind.
- Spouse / Family Assistance: This year’s survey also reports, over the past few years, a noticeable shift from career assistance to family acclimation services for international assignments. By expanding the benefit, it helps address the whole family’s needs. Long-term assignments offering Spouse / Family Assistance rose from 61 percent in 2022 to 74 percent in 2024 and offering it to permanent transfers rose from 51 percent in 2022 to 55 percent.
- Host Country Transportation: A common benefit that continues in both short-term and long-term assignment policies, assistance provided varies with almost half of surveyed companies offering assistance based on the location or local practice.
- Host Country Housing: Most assignees live in a rented apartment or flat throughout their assignment. Of 2024 surveyed companies, 99 percent of short-term policies and 93 percent of long-term policies provided host country housing eligibility and, for permanent moves, only 20 percent of 2024 respondents provided it (not to be confused with interim temporary living). For all companies, 85 percent have housing paid by the company or their RMC on behalf of employees on short-term assignment and 62 percent on long-term assignment.
- Global Health Insurance Plans: NEI saw a significant shift of companies this year providing a global plan approach for short-term (56 percent) and long-term (65 percent) assignees, a change from our 2022 survey when 71 percent of companies used a home-based approach for short-term assignees and 57 percent for long-term.
3) Cost Impact of Policy Changes:
- Furniture Allowance in Lieu of Shipment: As costs of household good shipments continue to rise, NEI’s seen an increase in companies offering a furniture allowance in lieu of a household good shipment. For short-term assignments, 54 percent of surveyed companies offered one compared to 38 percent in 2022. For permanent assignments, 48 percent offered one in 2024 compared to only 37 percent in 2022. Though some companies may adopt a furniture allowance to support sustainability initiatives, analysis completed by NEI determined that the sustainability variance is minimal and, in some cases negative, due to emissions from manufacturing, shipment of furniture from the plant, and disposal of furniture at assignment end.
- Storage Benefits Decrease: NEI’s seen the storage benefit decrease for all policy types in the last year, most likely due to companies’ cost containment measures. Offering 15-to-30 days of storage is most common for both long-term assignments and permanent transfers.
- Relocation Allowance Usage Increase: This year, NEI’s noted an increase in companies offering the allowance across all policy types. Companies are also shifting more towards offering a flat amount per assignee vs. percentage of employee salary. For allowance eligibility, short-term assignments rose from 45 percent (2022) to 68 percent (2024); long-term assignments increased from 74 percent to 87 percent; and permanent moves rose from 76 percent in 2022 to 87 percent.
- Tax Gross-up Vary by Benefit & Assignment Type: Year-over-year, NEI saw an increase in companies including state insurance, social security, social and local, and city income taxes in the hypo tax. Historically, most companies provide both tax consultation to set upfront expectations and tax prep assistance throughout the assignment. This is consistent with 2024’s survey.
Driving Unique Solutions for Each Client
We recommend all companies determine which unique solutions will work best for their company and NEI is ready to discuss all relocation-related possibilities with you.
NEI’s Global Mobility Strategies Team would be pleased to assist you in determining if a benefit is the right fit for your program. We believe reviewing program intent and benchmarking against industry peers and best practice can help you build a strong talent acquisition / retention strategy.
Thank you to all companies who participated!
About NEI Global Relocation
With headquarters in the U.S. and regional offices in Switzerland and Singapore, NEI is a certified Women's Business Enterprise dedicated to providing full-service global relocation and assignment management solutions. Supporting well over 200 clients, including numerous Fortune 500 and Fortune 1000 companies, NEI is committed to meeting diverse supplier goals and addressing the unique challenges of global talent mobility. For more information on NEI's services and to explore NEI All-Access, visit www.neirelo.com
The above article is provided for informational purposes only. Please consult your tax, legal, immigration or accounting advisors before making any decisions or transactions.
