Most companies have developed a formal relocation policy (or policies) that outline the specific guidelines and benefits available to an employee in conjunction with a job-related move or assignment. This policy typically details the types of relocation packages available, the scope of services offered, and the eligibility criteria for receiving assistance. Employers may offer different types of relocation packages based on the employee’s level, job role, or distance of the move.

Common relocation packages include the three options below, including: comprehensive full-service relocation plans, lump-sum payment and direct reimbursement.

1) Full-Service Relocation Package:

• • This comprehensive option may cover all aspects of the move, from hiring professional movers to providing temporary housing and helping with home-finding services. For high-level employees, this can also include additional support like spousal job search assistance and school placement for children.

2) Lump-Sum Payment:

• • A lump sum payment provides the employee with a set amount of money to cover their relocation expenses. It offers flexibility but places the responsibility on the employee to manage their moving costs within the given budget. The employee is responsible for any costs over and above the lump sum provided.

3) Direct Reimbursement:

• • This type of relocation support is not as common as those listed above. With a direct reimbursement package, a company will reimburse the employee for their moving-related expenses. Spending limits and the types of incurred costs covered for reimbursement are defined in the relocation policy. These costs are paid by the employee up front and reimbursed by the employer.
    
    
    • For U.S. Domestic assignments, benefits included in these packages might include travel allowances, home sale assistance, and the cost of temporary lodging until the employee finds a permanent residence.
    • For an international assignment, benefits may also include immigration assistance, destination services, and cultural/language training assistance.

RFP – Relocation Request for Proposal Generator

1) Internal Resources and Time Commitment

• • Personnel Involvement: The RFP process often requires input from HR/mobility, finance, legal, and procurement departments. Each department may need to review proposals, assess the RMC’s capabilities, and coordinate meetings. Depending on your organization’s structure, this can be a resource-intensive process.
  • Time Investment: The process typically takes several months, depending on the complexity of your relocation program, the staff’s schedules, and the number of proposals received.

2) RMC Selection Process

• • Evaluation: Companies must establish criteria to assess RMCs’ capability of managing their programs, including service offerings, reputation, and past performance. Some organizations do this through a formal Request for Information process.

3) RFP Preparation and Administration

• • Document Drafting and Design: Preparing the RFP requires a comprehensive understanding of your company’s relocation program needs and may include the help of specialized consultants or internal subject-matter experts.
  • Reviewing and Responding to RMC Questions: Clarification questions are part of the RFP process. Upon receipt of the questions from potential RMCs, the company will consult with relevant internal teams and/or subject-matter experts to craft the responses.

4) RMC Proposal Evaluation

• • Time spent reviewing proposals: Reviewing multiple RMC proposals requires time and careful consideration. This is especially true if numerous individuals are involved in the review process. Organizations may allocate time from various departments, including HR/Mobility Managers, Procurement Officers, and finance experts
  • RMC Presentation Costs: In most cases, shortlisted RMCs are invited to present their proposals in person or via virtual meetings. Cost considerations include time spent by internal resources planning and attending the presentation. This includes follow-up discussions.
  • Contract Negotiation: Once the RMC is selected, a detailed contract negotiation occurs, which may involve legal counsel reviewing terms and conditions.

5) Estimated Process Cost

While the cost of the RFP process can vary, companies should be prepared for an investment of anywhere between $30,000 – $40,000 (or more), depending on the scope and complexity of the relocation program being outsourced, the level of internal resource involvement, consultants/advisors involved, and any 3rd party procurement platforms used. For smaller companies with fewer relocations, the cost may be lower. Larger organizations with a high volume of moves may see higher costs due to more complex programs, detailed evaluations, and vendor negotiations.

6) Other Cost Considerations:

• • Opportunity Costs: While more challenging to quantify, the company should also consider the opportunity cost of dedicating resources to the RFP process. During the time spent managing the RFP, these resources may not be available to focus on other vital projects, such as supporting ongoing employee relocation efforts or other core business operations.
  • Consulting or External Expertise Fees: In some cases, companies may hire external consultants or experts to assist with drafting the RFP, evaluating proposals, or providing industry insights. This can add additional costs to the process, ranging from a few thousand dollars to tens of thousands, depending on the level of support required.
  • Software & Tools: If the company chooses to utilize software or platforms to help streamline the RFP process (such as automated RFP platforms, vendor management systems, or third-party procurement tools), there may be additional subscription fees or costs associated with these tools. Depending on the platform, these costs can range from hundreds to several thousand dollars.

Issuing an RFP for relocation services can be a substantial financial and time investment for a company.

However, the benefits often far outweigh the costs when the process is conducted strategically by investing the time to evaluate multiple providers and choosing a partner that offers value, high-quality services, long-term flexibility, and better alignment with your company’s needs.

These savings, combined with improved employee satisfaction and retention, can yield a significant return on investment, particularly as your relocation program scales over time.