NEI conducted a pulse poll in the January Mobility Trends and Hot Topics newsletter where we asked our subscribers whether they enforce payback agreements from employees who leave the company after relocating. Of those responding, 43 percent Enforced All Paybacks, 37 percent Enforced Case by Case and 20 percent are Not Enforcing paybacks. This indicates that 80 percent of those polled enforce some kind of payback.
Similarly, in 2021, our Global Mobility Strategies (GMS) department conducted an internal analysis of client practices to determine repayment collection practices and found that 96 percent enforce signed agreements from all or some of their employees.
In the article NEI Repayments & the Great Resignation from April of 2021, data indicated that 76 percent use a 24-month payback approach; 19 percent use a 12-month payback approach with 67 percent allowing prorations on all or a portion of the agreement.
The article continues on to recommend consistent enforcement for each employee, including company collection procedures; when follow-up efforts occur; and when legal/collections agencies should be engaged to ensure a fair and equitable administration of policies.
Other NEI articles related to payback agreements include Domestic Mobility Strategies for Managing Costs and Professional Collection Services for Repayment Agreements. Should you have additional questions about payback agreements, please reach out to your NEI representative.