Since 1994, WHR has been helping its clients contain costs and lower relocation program expenses. Although there are many ways, below we share just three easy suggestions to lower organizational expenses. Explore three practical tips, from auditing your program to monitoring exceptions and staying ahead of industry trends. Discover how tailoring your approach to real-life experiences can minimize expenses while ensuring a smooth relocation for your employees.
1. Audit Your Relocation Program
Does your program reflect the real-life experiences of your relocating employees? Go through each step of the relocation process and analyze both quantitative and qualitative data. Look at the numbers from previous moves, but also survey employees who went through the relocation process and uncover which benefits were truly meaningful to them.
It’s often said that relocating is the 3rd most stressful experience in a person’s lifetime, just after death and divorce. While it’s critical for employees to have a suite of relocation services to choose from, your company may not be in the financial position to provide certain ancillary benefits. It may be helpful for your global mobility team to stack rank which benefits are most critical to your employees, with the intention of cutting the least-critical services.
Here is a sample stack ranking from most to least-important:
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- Immigration
- Tax Consultation/Preparation Assistance
- Tax Gross Up Assistance
- Reimbursement of Final Move Expenses
- Household Goods Shipment
- Temporary Housing…
- …Language Lessons
- Cultural Training
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2. Monitor Policy Exceptions
When the unexpected occurs during a relocation, you can bet it will impact the logistics throughout the rest of the process. These exceptions result in higher costs. The first step to minimizing exceptions and the impact to your bottom line is by designing a thoughtful and data-driven relocation program. The more your program reflects the actual experiences of your transferring employees, the better you can plan around exceptions. The program execution is equally important.
WHR trains our Relocation Counselors to anticipate needs before they are requested, set expectations upfront, and regularly check in with transferees throughout the move. Should an exception be required, our Counselors review all possible alternatives first. Can a closing date be moved? Is there a more cost-efficient storage alternative? Can the cost be covered by a miscellaneous allowance?
3. Stay on Top of Trends
To find relocation cost savings, look at the dollars…and the pennies! With a little creativity and by staying current on what’s happening in the industry, you’d be surprised at the cost savings you can find.
Consider home sale bonuses, for example. Ten years ago, companies would offer employees $10,000 as motivation to sell their homes quickly. This is not required in today’s real estate market since homes are selling quickly as demand greatly outweighs the supply of available inventory.
Your Relocation Management Company can provide you with Benchmark studies and reporting identifying gaps or redundancies in your policy, as well as opportunities for savings.
While a relocation benefit is a significant investment, there are ways to implement it thoughtfully in a way that keeps your employees happy and minimizes costs. Tailoring your program to the real-world experiences of your transferring employees, monitoring exceptions, and staying aware of industry trends ensures a smoother move experience for your employees and helps keep your expenses down.
If you’re interested in learning more ways to cut costs, contact WHR Global.
