According to Worldwide ERC® data, relocation assistance is the single most expensive HR benefit a company can provide to its employees. This means it’s critical for you to understand the associated fees, along with knowing potential revenue opportunities, so you can evaluate the return and be the expert on your company’s relocation investment.
You need to work with a relocation provider that discloses all operating costs. This ensures you are focusing on the total expenditure and can take advantage of any potential revenue opportunities. It also prevents mismanagement of your relocation program, making sure your provider’s fee structure doesn’t result in lost productivity from your talent.
Here are 4 ways to tell if your relocation provider is being transparent about your relocation program’s costs.
1. Ask About Your Relocation Program’s Referral Fee Structure
Do you collect referral fees on departure and destination home sales, or does your service provider?
And has your provider disclosed what they are collecting, or offered a share in these fees?
2. Ask About Hidden Fees
Are there mark-ups added to third-party services?
For example, does your provider collect a commission from household goods moves? Do appraiser fees come through as a direct pass-through expense, or is there a
What about other expenses, such as destination service providers, title companies, and so on?
3. Ask About Other Revenue Sources
Are there connections to other third-party services where referrals or rebates are offered, unbeknownst to you?
4. Ask If Your Provider has Affiliations
Relocation providers with affiliations (or formal partnerships with select real estate brokerages, appraisal companies, temporary housing firms, and so on) may try to tout these partnerships as beneficial for you and your transferees. While these providers may have conducted extensive due diligence to make sure they were partnering with suppliers at a mutually beneficial discount, it doesn’t mean there aren’t better options for you and your employees to consider outside of these affiliations.
As an independent company, WHR Group does not operate under affiliations or formal partnerships with third-party relocation suppliers. This means our clients have
Take these four items into consideration when evaluating your current relocation provider’s business and especially before you enter into future contracts.