NEI’s Global Mobility Strategies consulting department recently completed its 2022 U.S. Domestic All Benefits Survey, which covered over 30 topics and was separated by five (5) tier levels. It generated a strong level of interest with 215 participating companies from various sizes and industries.
The full report contains recent trends in types of policies and the prevalence of benefits offered. NEI’s top five key findings include:
- Partial Lump Sum Programs
Partial lump sums – providing the employee with upfront funds to cover specific relocation related expenses – continue to be favored by the majority of surveyed firms. They have increased or remained similar to previous years across all tiers, especially Executives, Director/Sr. Manager, Supervisor/Manager, and Professional/Intermediate-level employees. Partial lump sums typically:
- Minimize exception costs
- Offer greater employee flexibility and ability to retain unused funds
- Improve accuracy of pre-move budget
- Reduce the administrative burden for HR professionals
- Buyer Value Option (BVO) Home Sale Programs
The BVO home sale program can be a cost saving alternative to direct reimbursement, if treated as non-taxable to the employee. BVOs remain a strong option for Director/Sr. Manager and Supervisor/Manager level employees. For higher, Executive-level employees, the Guaranteed Buyout Option (GBO) benefit also continues to be very popular.
- Home Purchase Benefits for Renters
Although many organizations require that the recipient of the new home closing cost benefit be a homeowner at origin, companies also are starting to extend this benefit more frequently to current renters. Offering home purchase benefits to first time home buyers can create a distinct competitive advantage in attracting and retaining skilled professionals. In the past, most clients required employees to be homeowners in the former location to receive the new home closing costs benefit. In our 2022 survey, 37 percent of companies now offer this enticing benefit, bringing a significant increase in the availability of relocating renters to receive home purchase benefits.
- Managed Cap Programs
Only 19 percent of companies surveyed in 2022 use an overall dollar cap on at least one policy tier. A capped move places a limit or ceiling on the available funds used to pay for relocation expenses and services. Of the few clients who did use a dollar cap, Duplicate Housing, Tax Assistance, COLA and Home Sale were at the top of benefits excluded from the cap.
- Tiered Approach vs. Core/Flex Style Programs
The survey showed more companies are using a tiered approach combined with a partial lump sum compared to using core/flex style programs. Both programs provide flexibility to transferring employees today which is essential for company recruiting and retention efforts.
Driving Unique Solutions for Each Client
NEI recommends all companies determine which unique solutions will work best for their company and we are here, ready to discuss relocation-related possibilities with you.
Thank you to all companies who participated in our 2022 U.S. Domestic All Benefits Survey. A link to the complete report can be accessed HERE. Please note that the focus on NEI’s next all benefits survey will be International.
If you would like to discuss this topic or other trends further, or if you have questions, please reach out to your NEI representative at any time.