GMS Breaks Down Everything You Need to Know about Core-Flex Relocation Packages
When moving for a new job, a company may provide relocation assistance to assist the employee with moving costs and make the moving process easier. Typically, larger companies will offer various relocation packages tailored to the employee’s position, the scope of the move, and whether family members are involved. One type of relocation policy that is gaining popularity among companies is the core-flex model. Core-flex relocation policies comprise a core section offering essential relocation benefits, along with a selection of flexible, optional benefits that can be chosen based on the employee’s specific needs.
Core-flex relocation programs do not grant employees complete freedom regarding moving costs, unlike typical lump-sum global mobility packages. However, core-flex options eliminate stress associated with relocating employees, such as the hassle of hiring suppliers, service quality issues, expenses, and tax overruns.
Are Core-Flex Relocation Packages Common?
Traditional and capped programs are commonly used in corporate relocation. Still, core-flex policies have become increasingly popular for their flexibility in meeting the varied needs of transferees while controlling costs. A recent benchmarking study and survey of transferees’ satisfaction with different programs revealed that traditional policies were the most satisfying, followed by capped and core-flex policies. Transferees who received a lump sum were the least satisfied. This highlights the importance of offering a range of options to accommodate the diverse needs of relocated employees.
Companies must prioritize the satisfaction of transferees during their relocation process. Happy transferees experience less stress during the transition and are more productive in their new location. Companies can expect improved critical thinking, problem-solving abilities, and reduced errors by ensuring transferees are content. Providing a relocation policy that meets the needs of transferees is the first step in achieving their satisfaction and success in the new location.
What Are Some Common Relocation Benefits?
A core-flex policy typically includes:
Core Benefits – All transferees are offered a comprehensive package of necessary benefits to support their move, including a Miscellaneous Expense Allowance (MEA), temporary accommodation, household goods shipping, and travel for the final move.
Flexible Benefits—Transferees can select from a range of benefits that suit their specific requirements and situations. These benefits may cover expenses such as a trip to find a new house, early lease termination, financial aid for renting at their new location, buying or selling a home, relocating pets and vehicles, storing household goods, and supporting spouses.
Does A Core-Flex Package Help or Burden the Relocation Process?
Companies can effectively control and forecast relocation costs by offering a combination of standard and personalized benefits. Core-flex policies aim to balance managing expenses and give employees the freedom to select benefits that suit their individual needs. Tailored support offerings can enhance the relocation process and boost employee retention rates.
By offering a core-flex package, companies can cater to the individual needs of their employees during the relocation process. This helps reduce the stress and burden associated with relocating to a new location, ensuring that employees feel supported and valued by their employers. The flexibility provided by core-flex policies allows employees to make choices that align with their specific circumstances, ultimately leading to a smoother transition and a more positive relocation experience. In the long run, this can contribute to higher employee satisfaction and retention rates, benefiting both the employee and the company. Overall, a core-flex package can be valuable in streamlining the relocation process and ensuring a successful outcome for all parties involved.
Christina Urrutia
Christina oversees Global Business Development for LATAM markets. Christina brings with her over 15 years of experience in helping clients build mobility solutions in a variety of roles such as Relocation Counselor, VP of Global Sales, Manager of Business Development and Strategic Partnership Manager. Christina holds key industry certifications including Global Mobility Specialist with a talent accreditation (GMS-T) and Certified Relocation Professional (CRP) designation from Worldwide ERC. She also holds a 120-hour English as a second language teaching certification (TESOL) and has completed over 400 class hours helping students achieve their fluency goals. Christina’s passion for Duty of Care and Employee Wellbeing has led to countless speaking engagements within the industry and has fueled her own networking group, Women of Global Mobility to inspire and encourage the growth of Women within the industry.
