For most organizations, flexible work locations and schedules are here to stay, and work strategies developed as a result of the global pandemic have adjusted how employees and employers think about where work gets done.
With more opportunities to find and hire talent, including bringing jobs to employees, vs. employees to jobs, there are growing demands to clearly demonstrate a return on investment for moving employees. You may find that now is the time to re-evaluate your policies and your partner.
There are times when contracting with a new vendor without utilizing the tender process can be an expedient answer. These may include service level shortfalls by the incumbent, reports that the employee experience has diminished, or a lack of responsiveness to your evolving business priorities. Under these conditions, you will still want to:
Build a business case to support a no-bid contract by framing your organization’s specific business issues
Talk with references from potential supplier(s) who can attest to their capabilities and service levels
Relocation services are not the most complex category to source, but your company’s requirements must be carefully considered – the elements of your relocation or mobility program will impact business unit costs, talent management plans, and employee experience. The request for proposal (RFP) process can be time-consuming and expensive, for both the company issuing the proposal and the respondents.
A request for information (RFI) will allow you to assess whether potential partners can meet your needs, and while an RFI does not ask for pricing information, this process may save you time and money by identifying the partners who can meet your company’s needs, helping to winnow the number of organizations invited to complete your RFP.
Anecdotally, we see companies issuing an RFI to eight to ten RMCs, which helps to narrow the field to about five companies asked to respond to your RFP.
RFI or RFP?
Relocation services are not the most complex category to source, but your company’s requirements must be carefully considered – the elements of your relocation or mobility program will impact business unit costs, talent management plans, and employee experience. The request for proposal (RFP) process can be time-consuming and expensive, for both the company issuing the proposal and the respondents.
A request for information (RFI) will allow you to assess whether potential partners can meet your needs, and while an RFI does not ask for pricing information, this process may save you time and money by identifying the partners who can meet your company’s needs, helping to winnow the number of organizations invited to complete your RFP.
Anecdotally, we see companies issuing an RFI to eight to ten RMCs, which helps to narrow the field to about five companies asked to respond to your RFP.
You’ve Decided to Issue an RFP
Given the time and money invested in an RFP, and the uncertainty of the current environment, organizations would be well served to consider several important steps, which may include all or some of the following:
Review potential relocation partners to screen their ability to be consultative and solutions-based
Meet with relocation management companies prior to issuing a tender, or forwarding an RFI first, to answer basic questions about their capabilities and to make your priorities known
Look at companies that offer flexible options for all levels of relocating employees, using technology to enhance the employee experience while providing business intelligence and analytics to support decision-making.
We have resources and tools that can help you get started.
When is it the right time?
Contractual terms and different guidelines around review cycles will vary by company, but there are some general rules around knowing when it’s a good time to go to an RFP.
It’s definitely a good time to issue an RFP when:
You are experiencing unfortunate service failures affecting the employee experience, too many staff changes at your RMC, or a lack of advisory services and outreach
Your organization’s internal talent strategy has changed, prompted by such events as a merger or acquisition, entering new markets, revising or adding policies, adding new employee populations or skill sets, or engaging in cost-containment or reduction initiatives
The reporting and/or technology offered by your current provider is not meeting your needs
There are new solutions in the marketplace to explore
When is it not the right time?
Alternatively, it might NOT be worth the time and expense to issue an RFP if:
Your employee and mobility team satisfaction ratings are high and there are few complaints
Your current provider has the right team in place, right technology, and offers proactive advisory services and industry thought leadership
You are still conducting discovery or defining your priorities
You have a need to explore supplier capabilities through introductory conversations
A price check is the key driver – if there is no need for consultation on how your policy fits your talent management priorities, a Request for Quotation (RFQ) may be sufficient
Need additional help deciding the next best steps for you and your procurement team?
See our resource: Top RFP Questions to Ask
Read now
Is Now the Right Time for an RFP?
See our blog on current conditions
Ready to learn more about Sterling Lexicon’s personalized approach to employee mobility?
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