If your company currently manages its relocation program in-house, you are missing out on several benefits that relocation program outsourcing provides. Your relocation program provides significant value in several areas. Effectively managed relocation programs help companies achieve corporate objectives and reach the highest levels of success in talent acquisition and retention!
More importantly, your new hires and transferees are looking for a number of benefits and services to support their relocation process. Relocation Management Companies (RMCs) have extensive knowledge and experience. As a result, RMCs help companies understand what is important to candidates and their family members going through a relocation—and RMCs have the solutions they want!
The Benefits that Relocation Program Outsourcing Provides
Relocation program outsourcing provides both direct and indirect benefits. When you work with a qualified and knowledgeable RMC, your company will save costs, gain expertise, and reduce administrative burdens.
1. Expertise
RMCs have extensive experience in the relocation industry and will provide policy recommendations that generate cost savings in several areas including:
- Fees versus in-house operational costs
- Home sale costs and the Buyer Value Option
- Household goods shipments
Did you know? Local HR teams and employees do not have experience with relocation programs, home sales, household goods shipments, spouse and partner support, and other relocation services. This means new hires and transferees are at risk for relocation failure!
2. Cost Management
Robust expense tracking and management software such as GMS’ MyRelocation® Technology effectively identifies and tracks relocation costs. As a result, companies can determine the true budgetary impact of relocation, thanks to relocation program outsourcing. Also, they can easily determine how their relocation program is performing to goals and key corporate performance indicators.
Did you know? The vast majority of companies that manage their relocation programs in-house (over 70%) are not aware of the true extent of the program’s internal operating costs!
3. Relocation Program Outsourcing Reduces Exceptions
Experts in the relocation industry are intimately familiar with exceptions and will know how best to handle issues that may arise. RMCs focus on minimizing expenses and reducing disruptions while improving transferees’ experiences.
Did you know? Beyond direct cost issues, policy exceptions may cause:
- Compliance risks
- Adverse impacts on your relocation policy
- Increased taxes
- Additional administrative time and effort
- Increases to the true budgetary cost
4. Centralization
Relocation program outsourcing ensures a centralized approach to relocation program administration. Centralization offers a significant number of benefits and cost reduction opportunities. Also, transferees are assured of a consistent application of superior relocation services.
Did you know? In our Case Study on Decentralization, we found that decentralization of a relocation program leads to higher operating costs, inconsistent reporting, and varying polices across an organization. Don’t let this continue to be your company’s story!
5. Assignment Success
Talent acquisition program managers recognize strong and effective relocation policies are critically important to the success of new hires and transferees. RMCs have depth of experience and know how to find solutions for unique relocation needs.
Did you know? Companies that manage in-house relocation programs experience a high degree of assignment failure!
What Should Employers do About Relocation Program Outsourcing?
Employers should examine the benefits and cost reduction opportunities that relocation program outsourcing provides. By outsourcing their relocation program, employers can pursue corporate objectives and important initiatives while gaining all the benefits outsourcing provides.
Employers should work with a qualified Relocation Management Company that has significant knowledge and a wealth of experience in the relocation industry.
Conclusion
Our corporate relocation experts will help your company understand how to leverage relocation program outsourcing. Your company will gain the maximum benefits and services in the most cost-effective manner possible.
GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS sets the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.
Contact our experts online now to learn how your company can gain with relocation program outsourcing, or give us a call at 800.617.1904 or 480.922.0700 today.
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