September 24, 2015

Structuring a Permanent Transfer Relocation Policy

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Structuring a Permanent Transfer Relocation Policy

Permanent transfers, defined as a one-way relocation from one country to another for a permanent or indefinite period of time, are being used by companies as a way to offer more flexibility in their relocation programs, while also focusing on cost containment.

Why Are Companies Using Permanent Transfers?

Evidence of the growing popularity of permanent transfers is that, according to the Cartus 2014 Global Policy & Practices Survey, the majority of companies (85%) said that they offer permanent transfers as an assignment type, and 66% indicated that they have a permanent international transfer policy in place. The most common reasons given by companies for relocating employees permanently are that skills are not available locally (58%), the employee initiated the permanent transfer (56%), and permanent moves are part of the company’s globalization strategy (51%).perm-transfer-table

When it comes to relocating employees indefinitely or permanently to another country, many factors need to be considered, including the tenure of the employee, whether they are nearing retirement, the destination market, salary and pension schemes, and more. Although most companies still primarily cover the relocation expenses to another country, some have also incorporated a “local plus”-type approach, providing additional transitional benefits scaled down over a period of time following the move.

Find Out More About Developing a Permanent Transfer Relocation Policy

Cartus has developed a white paper that highlights the factors that should be considered, and the areas that need to be addressed, when developing a permanent transfer relocation policy. The coverage within each benefit can vary depending on the amount of flexibility and budget available for each move. Please contact your Cartus representative, or email us at if you would like to view this white paper.

You might also be interested in our extended business travel, short-term assignment, long-term assignment, and localization solution papers, which explore the various assignment benefits and how and why they may vary depending on your company’s culture, assignment needs, and employee profile.

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Posted By

Cindy Madden

About Cindy

Cindy Madden is Director of the Cartus Consulting Solutions practice, which supports clients and prospects in the areas of Global Policy and Program Design, Group Moves, Destination Location Research, and the development of customized mobility websites. Cindy has more than 25 years’ experience in the relocation industry in a variety of roles, including account management and sales.

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