Certified Relocation Professional (CRP) Practice Exam

What is a relocation program that provides specific benefits to a certain category of transferees called?

1. Cafeteria style relocation plan

2. Tiered relocation plan

3. Temporary assignment relocation plan

4. Lump sum relocation plan

The correct answer is: Tiered relocation plan

A tiered relocation plan is designed to provide specific benefits tailored to different categories of transferees based on their unique needs and circumstances. This type of program recognizes that employees may have varying levels of experience, job seniority, or the complexity of their relocation, and thus requires a more structured and differentiated approach. In a tiered relocation plan, benefits can be structured in levels or tiers, often correlating to factors such as the employee's position within the organization, length of service, or destination. This means that higher-tier employees might receive more comprehensive relocation services, like home sale assistance, whereas lower-tier employees might receive more basic support. This targeted approach helps employers manage costs while also ensuring that employees receive the benefits most relevant to their specific situations, thereby enhancing the relocation experience and aiding in employee retention. The other options, such as cafeteria style, temporary assignment, and lump sum plans, do not specifically focus on categorizing transferees for tailored benefits in the same way that tiered plans do.