Paying the freight

Jetting from California to Indiana to start her new job, Lisa Bostock had some feisty baggage to take along: 2-year-old twin boys and an 8-month-old daughter.

Because her husband had to stay behind to wrap things up on the West Coast, her company, Dow AgroSciences, bought plane tickets so Bostock’s mom, who lives in Nebraska, could land in California and then take the plane ride to Indiana and help out with the kids.

“They’ve been really flexible, especially when it comes to what we really need,” said Bostock, who recently moved into her Zionsville, Ind., home to start her new job with Indianapolis-based Dow. “With the kids, they’ve done whatever we’ve asked pretty much to help us out.”

That’s one of the perks of making a geographic move to work for Dow — full reimbursement of relocation costs, plus a month’s salary for miscellaneous expenses. But for many companies nationwide, the level of relocation reimbursement is a benefit that is beginning to dwindle, according to the 2006 Corporate Relocation Survey released by Atlas World Group.

Just 50 percent of companies surveyed said they would offer full reimbursements for transfers and new hires to cover moving expenses in 2006, compared with 62 percent in 2005. Partial reimbursement seems to be the new trend. Forty percent of firms said they would offer a tiered benefit based on salary, position and tenure, compared with 26 percent a year ago.

“There are still economic realities that keep the pendulum from swinging entirely in the favor of employees,” said Greg Hoover, senior vice president and chief marketing officer for Evansville, Ind.-based Atlas. “Fully reimbursed move packages are becoming a thing of the past — just like full coverage of health care and other amenities.”

Experts say moving costs are often one of the first perks to be downsized when managers look to cut budgets — and for good reason. Companies pay on average $49,469 to relocate an employee who owns a home and $14,001 for renters, according to the Employee Relocation Council.

Unlike 30 years ago, when companies began moving employees around on a whim and paying in full for the move, Dow is taking a more conservative approach.

“We don’t want anyone to get rich off of the move,” said Bettye Ellison, Dow’s international relocation partner. “We do want to make them whole.”

In relocation lingo, making employees “whole” means ensuring that they aren’t put out financially when making a move for the company.

At larger companies, packages seem to be remaining steady and whole, Hoover said. At smaller companies, however, changes are taking place. Rather than reimbursing or hiring movers, many small companies are offering lump-sum payments.

Overall, 32 percent of companies said they would offer lump-sum payments for relocation in 2006 compared with 26 percent in 2005.

Often a lump sum for companies turns out to be cheaper and less time-consuming than doing the work themselves. Employees don’t mind a pocket of cash, either.

At health benefits company WellPoint, the company isn’t necessarily looking for employees to profit, but it is doing everything it can to ensure transfers and new hires don’t lose a cent on the move.

“We knew there was a trend going on in relocation to curtail benefits,” said Randy Brown, senior vice president of human resources for WellPoint. “We want a lot of mobility, people who are willing to broaden themselves, so we decided to consciously not curtail benefits.

“When someone says, ‘I’m willing to move for you,’ we think that’s a big deal,” Brown said. “It’s not a place we think cutting back adds real value. We think it’s an investment.”