Companies of various sizes, across all industries, relocate employees domestically and internationally. When moves are infrequent, it is efficient for individuals within human resources or procurement departments to assume the role of managing the company’s relocation program. With growth, adding numerous moves to their other responsibilities multiplies the workload. Depending on the frequency and complexity of relocation needs, managing this program can easily become overwhelming.
If this sounds familiar, here are 15 signs you may need to outsource your relocation and assignment management program to a Relocation Management Company (RMC), and how outsourcing could benefit you.
If you would like to explore what outsourcing may look like for your organization, let’s talk.
|Your new hire is managing their own move.
||An RMC partner will manage the relocation process for your new hire and ensure your employee starts with a safe and positive experience.
|You are answering questions about commute times, neighborhoods and schools. Sometimes, you leave the office to give new employees a tour of the town.
||Outsourcing relocation management relieves administrative burden and allows human resources or procurement teams to focus on their core responsibilities.
|You spend time reviewing estimates and setting up vendors for payment.
||An RMC partner handles all vendor management for you and provides an audit trail.
|You are involved in resolving claims or service issues or find yourself managing disputes between service providers and your employees.
||An RMC partner will handle service issue escalation and resolution for you.
|You spend time sourcing household goods movers, temporary housing facilities or apartment complexes.
||RMCs have established relationships with service providers and will find the best fit for your relocating employee.
|You do not believe you are getting competitive pricing from service partners.
||RMCs can leverage their volume to procure better pricing for their clients.
|Your policy is outdated, or your competitor’s relocation program offers better benefits, and you are losing potential candidates.
||A quality RMC partner will benchmark and review your policy, help you update to current industry best practices, and find the right policy type and benefit offerings to match your budget, talent acquisition needs and company culture.
|Your CFO wants to know how much you spent on relocation last year, what the most common exception requests were and what your projected costs are for next year, but you don’t have relocation financial data readily available.
||An RMC partner will provide customized reporting with a high degree of accuracy and give recommendations for budget and policy changes.
|You have trouble gathering information from all sources regarding compensation accumulation for your expatriate population.
||An RMC can gather this information, and the more expenses the RMC pays on your company’s behalf, the easier it is to compile and forward to your international tax partner.
|Your employees are asking about the tax liability of relocation costs and you are not sure how to answer them.
||RMCs can provide accurate, up-to-date tax information to stakeholders and employees.
|You are challenged to find information about best practices, policy models and other relocation topics.
||An RMC partner can provide accurate cost estimates to help talent acquisition professionals and hiring managers make informed decisions.
|Your company recruiters are trying to figure out which equally qualified candidate will be the least expensive to relocate.
||An RMC partner can provide accurate cost estimates to help the business properly plan talent acquisition expense.
|An expatriate employee of your company could not start an assignment because immigration agents stopped entry.
||An RMC partner can manage the immigration process to ensure compliance when moving employees across borders.
|Your global mobility team was downsized and remaining team members are handling multiple tasks.
||An RMC can be a true extension of your team, allowing you to become strategic rather than being involved in daily tactical activities.
Leah Johnson is Sterling Lexicon’s Director, Client Solutions, and has worked in the global mobility industry for more than 20 years. She has held management positions in business development, operations, account management, and consulting, and had the opportunity to live and work in Tokyo and Hong Kong for six years. She initiated destination services in Hong Kong for a relocation management company and directed global mobility for Goldman Sachs in the APAC region. She graduated from Colgate University, earned an MBA from the University of Alabama in Huntsville, and maintains a Senior Certified Professional (SCP) certification from SHRM.