Moving Women with Purpose

Gender inclusion is a very real issue in the workplace. And not just in the US.

PricewaterhouseCoopers recently released a study detailing how much of an issue gender inclusion remains across the globe and related to international relocation opportunities.

While you may not offer international assignments to your employees, the study highlights key knowledge that every company should consider when crafting relocation policies:

  • Are you formally aligning your company’s diversity inclusion goals with your relocation program goals?
  • Are you offering equal relocation experiences amongst employees?
  • Are you offering relocation experiences to your most deserving employees, and not just to employees you believe most likely to accept the position?

View the full infographic for more information on creating an equal and prosperous relocation program for all involved:

emplooyee relocation

A Deep Dive into Program Transparency

Transparency is a key component in understanding how the third-party supply chain is being compensated for services related to moving your employees.

employee relocation

Transferring human capital is an expensive proposition, especially considering the status level of employees being moved—typically key leaders and future leaders of an organization. Plus, the majority of these employees are going to sell their largest investment: Their home. That’s a lot of dollars riding on the fate of a successful move experience.

Providing a reliable, professional relocation experience is of the utmost importance when transitioning top talent from one city to another. It is only common sense that a relocation provider utilize the absolute best third parties in assisting with moves—such as top-performing real estate brokers, appraisers, home inspectors, and household goods movers.

We recognize that referral fees exist in leveraging these third parties, but to what extent are these suppliers being pushed for higher fees in exchange for business?

Transparency in Relocation

As an example, one large relocation provider just implemented a minimum 40% referral fee on real estate brokers. Implementing high fees can be a short-term win for the relocation provider, but do the best real estate agents even want or desire this business? Not likely, as agents want business that doesn’t continuously erode their margins.

As another example, if your organization provides a Guaranteed Buyout, then you know appraisers are used in determining the value of an employee’s home. A common approach for some relocation providers (that you may not be aware of) is to add service fees on top of the appraiser fee, or pay a fee where the lead appraiser has to leverage a “rookie” to perform the valuation. This often occurs when the fee the relocation provider is willing to pay is simply too low. An employee’s home is likely his or her single largest investment, so wouldn’t you want a lead appraiser to perform the valuation and pay the full fee for his services?

Third-party relationships are critical to get right—not only for transferring employees whose new career positions ride on successful move experiences, but also for the employer in the event properties needs to be sold out of inventory.

These are just some reasons why transparent pricing should matter to your relocation program. There is nothing wrong with referral fees, but having an understanding of what level of professional and satisfactory service you and your top talent receive is, ultimately, reliant upon what is being charged.

You would be well served in knowing the fees being charged and understanding the potential implications of high fees: Low service and potentially failed relocations.

Is Your Relocation Management Company Transparent?

Cost transparency. Every relocation company promises transparent pricing and fees, but how do you know your current provider is disclosing all costs and revenue streams to you?
relocation management company, relocation management companies

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 mark-up?

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 choice when it comes to suppliers and a better opportunity of finding suppliers with higher service or lower cost than affiliates currently provide.

Take these four items into consideration when evaluating your current relocation provider’s business and especially before you enter into future contracts.

How Millennials Really Feel About Relocation

With an estimated one in three U.S. workers belonging to the “Millennial” generation, corporations have been paying special attention lately to fulfilling these young employees’ relocation needs.

The drive to prove themselves in their first “real-world” job, high student loan debt, and an interest in travel and exploring new cultures has driven many Millennials to search outside their hometowns and marked them perfect for a traditional lump sum policy. They’re willing to relocate to begin their careers wherever they can find work. Place the move experience online to complement Millennials’ love of technology, and even less involvement is needed from the employer and Relocation Management Company to manage these moves.

But are these assumptions? Generalizations? Are these factors true for every relocating worker aged 18 – 34?

We asked a few Millennials—who have never moved for a job before—how they would define a quality relocation experience. What are the most important aspects they’re looking for in a move? Their responses might surprise you, and question whether a traditional lump sum is really perfect for this generation.

The Impact of Airbnb on Employee Relocation Costs

Each year, there seems to be a handful of new services that steal the media spotlight for their innovative business models and trending popularity amongst consumers. Last year it was Uber; this year it’s Airbnb—the online marketplace for people to list, find, and rent unique and personal lodging all over the world.

We’ve weighed the pros and cons of incorporating Airbnb in your employee travel policies, so you can be the judge of whether or not the “Worldwide Accommodations Leader” is a suitable replacement for your employees’ business travel, as well as relocation, needs.

relocation costs

While founded in 2008, Airbnb has been steadily gaining interest from corporations for business travel. According to CNNMoney, the number of corporations using Airbnb today for business travel is at least 1,000, and with the startup’s recent launch of its “Airbnb for Business” portal, which includes a centralized billing system and a dashboard for tracking employee spend, the number of corporate users is only anticipated to continue growing.

Like any successful startup, however, there’s a question of whether or not Airbnb, especially when provided as a service to your employees, is merely a trending perk or an impending addition to HR and relocation policies that’s here to stay.

What Airbnb Offers Business Travelers and Relocating Employees

  • Significant cost savings for large group travel
  • More flexible accommodations, such as parking spots, full kitchens, and office or meeting spaces for groups
  • More control over neighborhood location and the accommodations that work best for your employees
  • Can easily be added to your employees’ relocation Lump Sum policy for destination trips or temporary housing

Important Considerations for Business Travelers and Relocating Employees

  • Employees must feel comfortable and safe renting a personal home or apartment and with the neighborhood or street location
  • Particularly, female employees must feel comfortable and safe in the space if traveling alone
  • Opportunities for misleading accommodation information exists due to regulation issues, especially concerning shared parking spaces; use of Wi-Fi or cable or phone; A/C or heating capabilities; and safety features, such as smoke detectors, fire extinguishers, etc.
  • Property damage is possible (only certain items are covered under Airbnb’s insurance)
  • Unresponsive or fraudulent hosts have led to double-booked spaces or spaces rented out not by the actual owner

Whether your company is an Airbnb fan or not, special considerations must be taken before any new service is added to employee policy.

Helping Relocated Families Prepare for School

For employers and transferring families, making sure the kids feel comfortable in their new school is critical, as ensuring the support and backing of the employee’s family is what can make or break the overall success of a transfer. After all, isn’t it “family first”?
relocation

Remember: A move isn’t over when all the boxes are unpacked, so here are 6 tips to help recently relocated families with kids of all ages get off on the right foot at school.

1. Get Organized

Any parent knows a smooth start at school begins with organization—knowing pick up times, drop off times, and after school activity times. This year, have the employee take things a step further by creating a family scheduling center. This should be something placed in the kitchen, mudroom, or other common area that houses everyone’s schedule for the week or even the month. List important contact information, and try color-coding for each family member. While the employee will be starting a new schedule at work, the spouse and children will have their own new routines to get used to as well. Stick to the schedule and keep it visible for everyone.

2. Stock Up

The weekend before the first school day, do some meal prepping and stock the refrigerator with school-friendly foods: snacks on the go, paper bag lunch items, and have employees consider stocking up on the family’s favorite foods. They call it “comfort food” for a reason! Nothing will help family members feel more at home than their favorite meals. Better yet, have the kids join in on grocery shopping and stocking of the fridge. It will give them a sense of control in their new surroundings.

3. Map It Out

How will the kids get to and from school? Suggest the employee plan any pick up or drop off routes ahead of time. While it may be as simple as a bus route or mobile navigation system in the car, it’s always a good idea for parents and the kids to know how to get from point A to B without any outside help, should any emergencies occur. Take a drive and really get to know the new area.

4. Get Involved

Lots of parents enjoy getting involved in school activities, but for new families to the area, it’s even more important. For the parents as well as the children, getting involved means surrounding themselves with others their age in the hopes of making community ties stronger and easier. However, if a tight time schedule makes getting involved at school for your employees more difficult, there’s always getting to know the neighbors. A recently relocated family should never underestimate the feeling of support from building a stable community of friends.

5. Think Ahead

For an even stronger chance of settling in at a new school, think beyond just getting through the first weeks. Have the employee ask his or her kids to set personal goals to accomplish by the end of the term. This can be a sport in which to participate, grades they want to achieve, or activities they’d like to do outside of school with new friends. Setting goals places a positive spin on a new situation and will give everyone something to look forward to while settling in.

6. Expect Roadbumps

Finally, make sure employees understand that—no matter how organized they feel about their family getting back into the swing of things—there will always be the unexpected. The best way to deal with the unexpected when the kids are still adjusting is to experience the associated feelings—anger, “home” sickness, etc.—so everyone can understand what is causing the most discomfort. This will help you make a plan to move on. Some things will be out of their control, but working through it together is the key to keeping everyone on the right track toward feeling at “home” again.

Getting ready for a new school year following a big move doesn’t have to mean chaos. The more you can prepare ahead of time at home to make things go smoothly, the fewer opportunities there are for things that can go wrong.