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6 Ways To Save Money On Relocation Programs

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For businesses to find, develop, and place talent where it is most needed, relocation is essential. For many HR professionals, it can also be a source of difficulty because they must optimize their human capital while also being careful with how they use their financial capital. 

Depending on the type of relocation program your firm offers, there are a number of options you might explore for possible savings.

As the budgeting season approaches, we have developed a list of the top six ways you can cut moving costs on your relocation assistance program.  

By following it, you could contribute to your company’s 2022 being full of successful relocations that suit the demands of your employees while remaining within budget. This applies to any type of move – a local move, a state move, a cross-country move, etc.

Compare quotes and fees

If you have experience with relocation for a long enough period of time, you are aware that different costs may be charged at various stages of the relocation procedure (such as costs for cardboard boxes, packing tape, other packing supplies, closing costs, etc.) 

However, did you know that depending on the professional moving company you choose, the moving cost might vary significantly? 

Because of this, it’s crucial to compare line-by-line quotes from each professional mover and relocation service provider. To guarantee you are getting the greatest deal in the moving process, you should carefully compare all expenses, including administrative and paperwork ones. 

This is also true for moving companies, where many of the fees used to figure out your moving quote are based on terms used in the moving industry.

In order to understand what the costs are for, it’s crucial to not only carefully compare quotes but also become familiar with the industry-specific jargon. You can accomplish this by asking a moving company for a copy of something called a “tariff.” Tariffs are not taxes but rather a breakdown of all a moving firm’s expenses, charges, and pricing strategies.

Fixed-fee house sales

Home selling programs are crucial tools for businesses looking to eliminate any obstacles to top employees accepting a relocation offer. Relocation programs are proving to be differentiators for high-demand professionals who are deciding between offers in today’s competitive employment market. 

Home sale programs relieve a migrating employee’s concern about the tedious, expensive, and time-consuming process of selling their own home. Instead, the corporation and the relocation service split the risk and work involved in selling a home. 

The types of home sale programs that some relocation companies offer have undergone improvements more recently. These initiatives are referred to as “fixed-fee” house sale programs. 

Compared to conventional programs, businesses using fixed-fee home sale programs reduce risk, make costs more predictable, and enjoy tax advantages.

Fixed-fee house sale programs require the company to pay the relocation provider one sum all at once for the sale of a certain home. This is in contrast to standard home sale programs that entail different fees to be paid out at various points along the home selling process. 

This makes expenditures more foreseeable, allowing you to plan your moving expenses and moving budget. 

The reduction in taxable assets and the risk mitigation provided by fixed-fee home sale schemes are further financial advantages. 

In conventional house-selling programs, if a home is not sold within a predetermined deadline, it becomes a taxable asset on the employee’s company’s books, which raises the tax burden on the business. The business must then continue to pay the fees and expenses related to trying to sell the employee’s house. 

Fixed-fee house-selling programs may be a wonderful choice to keep costs predictable and reduce your company’s taxable assets, depending on your relocation policy and needs.

Lump sum pros and cons

Over the past year, lump amounts have become more and more popular. By providing an employee with a predetermined amount of cash upfront to finance their move, lump sums can offer a degree of financial certainty and require less human capital than full-service relocation services. 

There are certain drawbacks, though. 

Employees must become consumers in the relocation marketplace, frequently with little to no assistance or education, unlike relocation programs managed by a professional supplier. 

Employees may find this stressful, especially if they also need to carry out their job tasks and arrange their transfer, which is a process that many people are unfamiliar with. 

As a result, the individual who will soon be moving may experience diminished productivity. Although there isn’t a clear-cut financial loss here, depending on the employee’s position within the company, decreased productivity could have an effect on the bottom line.

Lump sum payments made by employers to relocating employees are taxed as income. This means that the lump sum amount is liable to federal income tax and, to a lesser extent, state income tax. 

As a result, many businesses now have to contribute more money, often known as “gross-ups,” to help balance this increased tax burden. 

Examining how much your lump sum migrations have cost this year may be worthwhile, depending on the number and size of your relocations. It can be more financially advantageous to employ relocation programs offered by providers for more of your 2022 relocations rather than using lump sum payments as often.

Small shipping options

Some workers might not need a traditional move involving packing boxes, loading, and driving. Employees who have a one-bedroom apartment that is completely furnished or a two-bedroom apartment that is just minimally furnished may be able to transfer all of their belongings using a modest cargo option. 

Small shipping options are a terrific approach to provide lump-sum workers with more comfort and less uncertainty.

Check your HHG policy

When it comes to what is and isn’t covered in a move for a relocating employee, the answer might be found in the fine print of your household goods insurance. What kind of boat transportation services do you offer? What about home saunas? 

The answers to these and other queries regarding what is covered may differ depending on the company’s culture, the location of the business, and the employee. 

As was said before, however, movers may charge a wide variety of expenses, each of which may be incurred during a single relocation. It’s up to your organization to decide what things it’s okay to charge extra for and what things are beyond the ordinary. 

Keep in mind that moving employees’ household goods is a major expense. That’s why it’s important to check your household goods insurance policy every year to make sure you’re not paying for coverage of anything that would drive up the cost of your relocation.

Diverse supplier programs

There has been a steady increase in the popularity of diverse supplier programs. These initiatives give businesses access to diverse perspectives from outside the company’s existing stakeholder groups. 

A diverse supplier program is when a company actively seeks out and works with external businesses that are run by women, minorities, or veterans. 

The formality and depth of these programs vary widely from one business to the next, yet all of them offer numerous advantages.

Finding varied suppliers can help you save money on your relocation program in several ways, including direct costs and indirect taxes. 

Relocating employees is a great way to find new, diverse vendors for these kinds of projects, but it’s often ignored. 

However, real estate, storage, and household goods moving are only a few of the many relocation-related services where businesses can locate experienced workers who are also accredited as women-owned, veteran-owned, or minority-owned firms.


It’s no secret that the HR, relocation, and procurement experts have a lot on their plates when it comes to relocating employees. While relocation programs might be expensive, many choices are now available to help reduce expenses and keep people on the move. 

Be aware of the fees that may be levied by providers as you establish relocation programs and budgets for 2022. Also, look into small shipping alternatives and reevaluate the true costs of your lump-sum programs and HHG policies. In the long run, you’ll save money if you use these measures. 

Additionally, your business might lessen its tax liability associated with relocating by using alternative suppliers and moving to a fixed-fee house sale program.