A financial technology company based in San Francisco, California, moves between 100 to 150 domestic employees each year. In 2016, the organization switched from a lump sum program to a full-service move program 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. In July, Sterling Lexicon began providing all household goods shipping. Since then, the financial services company is on track to save more than $1 million in household goods and gross-up fees within one year (based on current policy shipping limits).
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 Lexicon, he’s 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 services company was 25% under budget in 2018 for relocations despite increased relocation management costs, and realized savings of between $3,000 and $15,000 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.
Southern Company knows change is needed