Relocity recently hosted a virtual event as part of our corporate roundtable series: Moving Forward. Our corporate roundtables gather mobility professionals to engage in open conversations and benchmarking around key topics. On April 24, we welcomed Victoria Smith, Director of Global Mobility at Rivian Automotive, and Katie Oden, Global Mobility Lead at Sensata Technologies, to discuss the digital evolution of lump sums in mobility programs. Read on to understand how mobility leaders are addressing the need for both employee empowerment and strategic insights. 

Understanding program design priorities

Victoria Smith and Katie Oden shared insights into their respective companies' mobility programs. Smith highlighted Rivian's focus on prioritizing employee experience and cost efficiency. Rivian offers flexibility and choice to employees, allowing them to tailor their relocation experience while managing costs effectively. Oden emphasized Sensata's commitment to cost predictability and adapting to the evolving business landscape. Sensata aims to provide clear cost estimates and streamline the relocation process to meet business managers' expectations.

Exploring Lump Sum "Plus"

The term "lump sum plus" was discussed, referring to additional support provided alongside cash payments in relocation packages. Sensata's approach includes supplementary benefits such as household goods shipping support, enhancing the relocation experience beyond financial assistance.

Providing flexibility with Managed Caps 

Managed cap programs offer employees a set budget for relocation, providing flexibility and transparency. Taylor introduced managed caps as an evolutionary alternative to lump sums, granting access to tools or consultants at a relocation management company (RMC). Sensata, recognizing the demand for cost consistency, is exploring this option to cater to evolving employee preferences while maintaining predictability. Oden highlights the program's potential benefits, including cost transparency and employee accountability. Sensata's pilot phase allows for policy experimentation before widespread implementation.

Enhancing the Mobile Employee Experience

Rivian and Sensata prioritize creating positive mobile employee experiences. Rivian observed a trend of employees opting for cash payments over fully managed moves, leading to a choice-based approach that empowers employees while driving cost savings. Sensata leverages technology and education to empower employees in decision-making, ensuring a smooth relocation journey.

Leveraging technology solutions

Both companies utilize technology to provide value in data insights and employee experiences. Rivian leverages Relocity Guide, offering destination-specific information and discounts to employees. Sensata utilizes Weichert’s Sumplicity, powered by Relocity Guide, and platforms like Pivt to facilitate smoother relocations and enhance employee engagement.

Looking ahead

The roundtable highlighted the importance of listening to employees' needs and building flexible relocation programs. Relocity is excited to continue facilitating discussions on mobility digital transformation in our next roundtable in June 2024.

In summary, the digital evolution of lump sums in mobility programs presents opportunities for companies to prioritize employee experience, enhance cost predictability, and leverage technology for smoother relocations. Relocity remains committed to supporting global mobility leaders in addressing their challenges and driving innovation in the industry. By leveraging technology, lump sums and managed caps can empower employees with flexible relocations and support at their fingertips.

Want a closer look at how technology can improve the employee experience and duty of care for lump sum and managed cap programs before you finalize your program updates? Let’s chat!