Altair Global recently concluded the U.S. Domestic Lump Sum edition of the Momentum Survey Series and findings reveal clear productivity impacts of providing a lump sum-only policy to support employee relocations. Altair introduced the Momentum Survey Series in 2015 as a way to measure and assess the lost productivity that an employee experiences when undergoing a relocation or assignment. The latest edition provides insights into the employee profiles most likely to receive a lump sum relocation package. Also interesting are comparisons with the results of earlier Momentum surveys of employees who received more comprehensive policy support. Respondents included 169 employees from 9 companies who had all recently relocated under a lump sum-only relocation package.
The survey data shows the typical recipient of a Lump Sum relocation package to be moving without family and as a part of their first employer-sponsored relocation consistent with the common application of lump sum-only policies to entry-level, less experienced employee profiles. Slightly less than half of respondents reported having to spend personal funds to cover relocation-related expenses after exhausting their lump sum. The most common expenses respondents utilized personal funds to cover included:
When compared with the productivity impact results of Altair’s Momentum surveys of U.S. Inbound employees (20 lost days for homeowners, 15 lost days for renters) and International employees (24 lost days), the Lump Sum employees experience a consistent number of lost productivity days (22 for homeowners and 15 for renters). The data from the Lump Sum survey indicates homeowners receiving a lump sum lose more days of work productivity; however, renters seem to lose the same amount of work time. Some of the factors behind this, as identified through the Lump Sum survey data and the post-survey telephone interviews, include employee expectations and perceptions. Employees responding to the Lump Sum survey were not necessarily expecting to receive a full menu of relocation benefits and some didn’t perceive themselves as being formally “relocated” by their employers.
The full Momentum U.S. Domestic Lump Sum report will be released later this year. If you would like to be one of the first to receive a copy, please let us know by emailing GCS@altairglobal.com.