If you’ve ever created a Request for Proposal, or RFP, for employee relocation services, you understand how stressful and time-consuming this process can be.
Most companies have detailed timelines for when they need to send out RFPs, receive questions from bidders, respond to questions, and receive completed responses from bidders. However, the timeline doesn’t always account for how long some of these items take to complete. Sometimes, RMCs will have dozens of questions that require responses, which can take a lot of time to address. This could then result in extensions and delays that you did not anticipate when going out to bid.
That’s why we’ve outlined nine of the most common questions that RMCs ask after receiving an RFP. The trick is to answer these questions upfront in your RFP before ever sending it to an RMC. This will save you a significant amount of time in the Q&A process and enable each bidder to provide you with a quote that accurately addresses your needs, virtually eliminating additional fees not anticipated in the RFP or resulting bid.
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What are your submission instructions?
Some companies prefer one electronic submission from each RMC, while others prefer bound hard copies or USB drives. Additionally, some companies create custom portals for the RMC to use when submitting a response. Whatever your preference, clearly state your parameters such as font size, the number of pages, and the inclusion of company brochures. Remember, you have to read these responses, so you’ll want to ensure the RMC doesn’t use a font that’s hard on the eyes or have a response that’s 100 pages when you were only looking to read 20 per response.
What are your relocation policies?
Provide all of your relocation policies or a detailed summary so that prospective bidders know exactly what you need and can submit a more accurate proposal. Some RMCs may even suggest policy changes that will better suit your needs and your budget without adversely impacting the employee’s transition.
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Do you have a preferred pricing methodology?
Most RMCs and companies focus on cost-plus models in which your company pays for the cost of the service plus a set fee. Other RMCs and companies prefer a fixed-price model in which your company pays a flat fee. Each option is viable as long as you know exactly what services are included.
What is your referral fee structure?
Your company may retain the referral fee from your in-house broker simply because you have always done so. Did you know that you can keep the overall costs down by allowing your RMC to handle the transactions for you and retain the referral fee? Depending on the number of relocations your company handles per year, this simple change could add up to a significant saving.
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What is your annual volume?
When answering this question in your RFP, include the number of homes sales per year, the number of renters you relocate, whether you primarily relocate internationally or within the U.S., and any other relevant information. A clear transition profile results in a more accurate bid.
What type of home sale benefits does your company offer?
Do you offer Buyer Value Options, Appraised Value Options, Amended Value Options, Guaranteed Buyouts, Direct Reimbursements, or Marketing Assistance Only? If so, how many of each do you typically offer in a given year? This information tells the RMC what areas and processes to focus on in their response as well as provide the most accurate pricing structure. An experienced RMC will also help you to evaluate each method and determine which is most beneficial for your company.
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What are your relocation challenges?
RMCs are well-acquainted with the myriad of challenges that occur when relocating employees. Letting them know your pain points in your RFP provides them with the opportunity to suggest solutions that improve the process for you and your employees.
What are your historical locations?
Listing your top departure and destination locations allows the RMC to scout volume discounts, especially if you have frequent moves to the same location. Additionally, the RMC will be able to share their knowledge and familiarity with the locations you list and provide your company with a list of highly recommended vendors for services in that area.
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What is the average home sale price?
This information is especially important if you cater more to homeowners rather than renters. Knowing the average home sale price helps each RMC determine a fee structure for your home sale program. Additionally, providing the average home purchase price gives the RMC a good idea of the type of home you are interested in finding for your employee.
While including all of these points in your RFP doesn’t guarantee a completely smooth bidding process, it will make the responses more uniform, reduce the number of questions from the responding RMCs, and ensure that you are comparing similar quotes.
Relocation Request for Proposal (RFP) Generator
Take 3 minutes to complete a questionnaire about what matters most to you for your Relocation Request for Proposal (RFP).
