From Lump-Sum to Lift Off: Better Outcomes with a Managed Cap Program

Our Canadian tech client knew their lump sum program wasn’t cutting it. While it offered simplicity, it left high-need employees—like those relocating with families or over long distances—underserved. They were open to increasing the lump sum amount to fix the problem, but we had a better idea: let’s upgrade the whole approach.

Enter the Managed Cap Program: a solution that keeps the best of lump sum (flexibility and cost control) while fixing its biggest flaws. Here’s why we recommended this approach and how it made a measurable impact:

Tax Efficiency: The Cost Game-Changer

In Canada, managed caps — often referred to as “managed lump sums” — are favored due to CRA guidelines that make most relocation expenses non-taxable. That means no gross-ups, which were inflating our client’s costs significantly.

That’s a $13,000 savings per move! Multiply that by the number of employees relocating each year, and the financial impact is substantial.

Cost Control + Employee Support

With a managed cap, employees receive a fixed budget overseen by a relocation counselor. They work together to prioritize needs and select from vetted services—ensuring support stays within budget, without waste or guesswork.

Duty of Care

Unlike lump sum programs, managed caps empower companies to actively track and support the relocation journey. That means better alignment with legal and ethical responsibilities to employee safety and well-being.

Better Employee Experiences

Employees still retain choice and flexibility: they select benefits that matter most to them, but with expert guidance to avoid costly missteps. This is especially valuable for first-time relocations or complex moves.

The transition from a lump sum relocation program to a managed cap approach delivers better support, enhanced cost control, and substantial cost savings by eliminating the need for gross-ups. Beyond that, a structured and supportive relocation experience that enhances employee satisfaction and well-being also aligns with a company’s duty of care to its workforce (which bodes well for strengthening retention and recruitment).

For our client, it wasn’t just a cost play—it was a strategic upgrade that brought structure, personalization, and efficiency to every move. Now that’s a mobility upgrade worth getting behind.

Ready to Re-Think the Lump Sum?

The Weichert Advisory Studio® helped this client reinvigorate their approach to lump sum mobility, ensuring their program remained competitive, supportive, and cost-effective! To learn how we can transform your program, go here.

Discover more about the ins and outs of a managed cap program by checking out our Managed Cap Strategy Guide.