Total Rewards Manager, Meridian Health Systems
Tessa Iversen· Compensation Manager, Lumen Biosciences
Asked in Global & Mobility ·
Lump sum or managed relocation for an 18-month move from Warsaw to Dublin?
We are a financial technology company with about 800 employees. We are moving six product managers from Warsaw to Dublin for 18 months to build a new team, after which they are expected to return. Most are in their late twenties or early thirties, two have partners, none have children.
Our long-term policy uses a relocation provider for household goods, temporary housing and home search, and costs around EUR 38,000 a move. That feels heavy for this group. The alternative on the table is a lump sum of EUR 12,000 and let them sort it out.
Has anyone run lump sums for moves of this length, and what went wrong?
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Accepted answer· by Amara Larsen
A lump sum is right for shipping and travel, but do not leave them alone on housing in Dublin. Finding a rental there is very hard and landlords prefer tenants with local references. Our first group of lump-sum movers spent up to 11 weeks in short-term lets at their own expense, and two went home. What we do now is a core-plus-cash design: the company provides 60 days of temporary accommodation and a home-finding service, about EUR 7,000 in all, and the employee gets EUR 8,000 for everything else. Check also whether the lump sum is taxable in either country; ours was partly, and we grossed up that part.
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