July 14, 2019
Success Story: Large Financial Technology Company
How a Large financial technology company saved $1.1 million in HHG shipping costs
A financial technology company based in San Francisco, California, moves between 100 to 150 domestic employees each year. In 2016, the organisation switched from a lump sum programme to a full-service move programme to enhance the employee experience.
In 2018, tax law changes, unexpected rate increases and inconsistent service led the organization to look for alternatives to their program.
The company began using Sterling Lexicon’s small shipment solution, Sterling Xpress. The program, which combines the convenience of full-service moving with containerized shipping, has saved the company more than $1 million in household goods and gross-up fees within one year.
- Reduced claims to zero resulting in less noise for HR professionals and company cost savings.
- Reduced delivery windows and guaranteed pick-up and delivery times enhanced the move experience for transferees and increased productivity.
- Saved company an average of $9,000 per move.
Prior to partnering with Sterling Lexicon, the company experienced two to three-week delivery windows, making it difficult to plan transitioning from temporary housing to permanent. Now, household goods are shipped directly to the destination making planning simple and saving the company in per-diem costs.
The company’s relocation and tax manager said since his organization switched to Sterling Xpress, he has experienced zero employee complaints, escalations, or exception requests, and employees are in their destinations faster, which means they can quickly be productive in their new roles.
The financial technology company was 25% under budget for relocations despite increased relocation management costs, and realized an average cost savings of $9,000 per move. This doesn’t include savings attributed to the time, energy and productivity of employees who were able to focus on their roles and be in their destination faster.