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5 Ways to Avoid Lump-sum Relocation Traps

What does lump sum mean in the context of relocation? A lump sum is a set amount of money given to an employee or new hire for relocation. The money is intended to help them move to their new job location. The lump-sum amount varies depending on the company, employee level, or any number of other factors.

While lump sums sound easy for the employer, they can cause some serious issues. In fact, lump sums can often be more problematic than the alternatives.

For example, lump-sum programs can lead to issues such as:

  • The income tax bite
  • The cost-control dilemma
  • The time-commitment conundrum
  • The negative employee experience
  • The accountability inevitability