Why lump sums and lower relocation allowances will be the growing norm for major cities, while full assignments will continue in frontier markets.

As remote parts of the world modernize with help from businesses, we’re seeing fewer and fewer untouched cities. This means that places like Guangzhou are seeing an influx of professionals and the city must rapidly establish the necessary infrastructure to absorb them. When expats set off to make their mark on China, it is incredibly useful to offer them a full service relocation package – otherwise if left to their own devices… well, we’re just saying it’s easier to have a lot of help when going to a frontier city!

On the other hand, expats have been moving to San Francisco, São Paolo, and even Bangalore for decades. These cities have the right infrastructure to enable employees to take more ownership over their moves, handle more of their relo-admin, and generally do more with fewer resources. Plus, employees report that they like being able to choose from a selection of reliable suppliers with local knowledge of the city.

When refining your relocation policy, you already know to tier your offering based on employee’s levels, but have you considered tiering your offering based on their destination? Have you reviewed all the market data to determine the most appropriate policy to support your company culture?

Interested in developing a tiered relocation policy? Get in touch today.

Brynne Herbert

About the author

Brynne Herbert

CEO and Founder

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