Relocating employees have different needs. A single parent moving across the country, a young professional moving for a first role and a couple relocating abroad will each value different kinds of support. A core-flex relocation package gives organisations a structured way to meet those needs while keeping costs under control.

This guide explains how a core-flex relocation package works, which benefits to include and how to design a policy that suits your organisation.

What is a core-flex relocation package?

A core-flex relocation package is a relocation approach that gives every eligible employee a set of essential core benefits, plus a flexible budget or menu of additional benefits they can choose from. It combines the consistency of a managed policy with the choice of a lump sum.

How core-flex relocation works

Core-flex relocation works in two parts: the core benefits every relocating employee receives and the flex benefits each employee selects based on their circumstances.

1. Core benefits every relocating employee receives

Core benefits are the essential services the organisation provides for every move at a given tier. They usually cover the costs that matter most to a successful relocation, such as the household goods move and final travel.

2. Flex benefits and how employees choose them

Flex benefits are optional services or allowances an employee can select within a set budget. This allows a family to choose school search support, for example, while a single employee may choose extra temporary housing.

3. Points-based vs budget-based flex models

Flex benefits are usually offered through one of two models.

Model	How it works
Points-based	Each flex benefit has a points value, and employees spend an allocation of points
Budget-based	Employees receive a set budget to spend across eligible flex benefits

Core-flex vs lump sum vs managed relocation

The table below compares core-flex with the other two common relocation approaches.

Area	Core-flex	Lump sum	Managed
Employee choice	Balanced	High	Lower
Cost predictability	High	High	Varies by move
Essential services guaranteed	Yes	No	Yes
Administration	Moderate	Low	Higher
Best suited to	Mixed workforces and growing programmes	Early-career and simple moves	Senior and complex moves

Typical core and flex benefits

The benefits below are commonly included in core-flex relocation packages.

Core benefits	Flex benefits
Household goods move	Additional temporary housing
Final travel to destination	House-hunting trip
Initial temporary housing	Destination services and home finding
Move counselling	School search support
Policy and move briefing	Language and cross-cultural training

Benefits of a core-flex relocation package

A core-flex relocation package offers advantages for both the organisation and the relocating employee.

For	Benefits
Employers	Predictable costs, consistent essential support, a policy that scales with different employee needs
Relocating employees	Choice over the support that matters most, clear guidance and guaranteed essential services

How to design a core-flex relocation package

Designing a core-flex relocation package involves a few clear steps.

1. Define eligibility tiers

Eligibility tiers group employees by level, move type or household size. Each tier has its own set of core benefits and flex budget.

1. Set the core benefits

Core benefits should cover the services every employee in a tier needs for a successful move. Many organisations base these on the costs that cause most difficulty when left to the employee.

2. Build the flex menu and budget

The flex menu lists the optional benefits employees can choose, and the budget sets how much they can spend. Benchmarking data from WERC and AIRINC helps set budgets that are competitive and realistic.

3. Agree a tax gross-up approach

A tax gross-up approach sets out whether the organisation covers tax on relocation benefits. This should be agreed with the organisation’s tax adviser and applied consistently to core and flex benefits.

[Internal link: Is a relocation bonus taxable? US and UK rules, gross-up]

4. Communicate choices clearly to employees

Clear communication helps employees understand their options and make good choices. Simple guides, a self-service portal and access to a move consultant make the process easier.

Common challenges and how to plan for them

Core-flex packages work best when common challenges are planned for in advance.

• Unused flex budget: decide whether it is forfeited, carried over or paid as cash
• Choice overload: keep the flex menu focused on the most valued benefits
• Tracking spend: use a central system to track core and flex spend by employee
• Policy drift: review the policy annually against benchmarks and employee feedback

How MovePlus supports core-flex relocation programmes

MovePlus helps organisations design and operationalise relocation policies that are clear, scalable and aligned with destination-specific considerations. MovePlus offers full-service and self-service options, so employees can access core services and choose flex benefits with ease.

The MOVEPLUS™ platform centralises relocation data and supports policy-aligned expense management, giving HR and mobility teams visibility of core and flex spend across every move.

Frequently asked questions

1. What is the difference between core-flex and lump sum relocation?

A lump sum is a single payment the employee spends as they choose. Core-flex guarantees essential core services and adds a flexible budget or menu for additional support.

2. Can unused flex budget be paid as cash?

Some organisations allow this, while others forfeit unused budget. The approach should be set out in the policy and reviewed with a tax adviser, as cash payments are often taxable.

3. Which employees suit a core-flex relocation package?

Core-flex suits organisations relocating a mix of employees with different household sizes, career stages and move types.

4. Is core-flex suitable for international moves?

Yes. Many organisations use core-flex for international moves, with core benefits covering shipment, travel and immigration coordination, and flex benefits covering destination and family support.