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Lump Sum Allowances - One Size Does Not Fit All

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Ever purchase clothes labeled "one size fits all?" Chances are you found them either too big or too small. Now let's say you're a transferee receiving a fixed lump sum to cover your transferee's home finding, temporary living and final move expenses. That fixed lump sum is the same one that most transferees receive. Do you think it'll be the perfect fit for all your needs? Without considering geographical distance and human dynamics, a flat lump sum will never be the perfect fit. The allowance will be too small or too big. And you'll likely only hear about the ones that are too small. Let's explore why a distance-based lump sum approach may not be a good fit and how a calculated, geographically sensi ve lump sum may be just right.

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