Managed Cap vs Lump Sum – Key Things You Need to Consider
As a mobility manager, lump sum payments might seem like the fastest and easiest method of providing your employees with the funds they need to move. However, when looking at managed cap vs lump sum, lump sum payments come with their own unique set of problems. Some of the challenges include:
- Transferees often left alone in the relocation process
- No cost controls and often budgetary overages
- Limited process or service structure
- Non-taxable benefits are lost
- Frustrated transferees mean elevated HR involvement and escalations
Fortunately, a managed cap program alleviates many of the problems associated with a lump sum. It also provides:
- The desired simplicity and predictability of a lump sum program
- Enhanced employee tax benefits, resulting in more dollars for relocation.
Let’s see the difference between a $15,000 lump sum payment and the same $15,000 from a managed cap program:
A Winning Scenario
The Managed Cap Program provides the transferee with $4,351 more for relocation services!
Modern Mobility Made Easy™
What this means for you and your relocating employees
A Managed Cap program will ensure that your transferees get the most out of their relocation dollars and that you will reduce the amount of administrative burden dealing with exceptions. Global Mobility Solutions – a leader in mobility management since 1987 – has expert relocation consultants who understand how a Managed Cap program can benefit you and your company. Contact Global Mobility Solutions and learn how we can quickly implement a managed cap program custom-tailored for your needs. Request your complimentary managed cap program demo to see how much you can be saving.
Sam Hoey | CRP, GMS
Senior Vice President, Global Account Management Sam joined Global Mobility Solutions in 1996 and has a unique perspective with her 25 years of industry experience. Samantha offers her clients relocation expertise and a commitment to excellence in her. Her proficiency in orchestrating the BVO and GPO Programs, as well as relocation policy design and implementation, are invaluable assets to the accounts she manages. Her experience in administering Pre-Decision Relocation services to enhance the recruiting process further demonstrates her unique abilities to service her clients. Samantha’s diverse experience, leadership, and outstanding communication skills enable her to manage the relocation process for her clients with finesse and polished professionalism.
