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Household Goods Moves and Your Relocation Management Company

Household Goods Moves and Your Relocation Management Company

Transferees and new hires often require household goods moves from their current location to their new location. Usually this move must adhere to a specific time schedule. It is in the employer’s best interest to ensure that the transferee has a positive and successful relocation experience. A qualified Relocation Management Company (RMC) can ensure that household goods moves are conducted professionally within specific timeframes, and provide service guarantees.

What might transferees and new hires experience by arranging their own household goods moves?

Transferees and new hires that arrange their own household goods moves face several challenges. They may need to set aside a significant amount of time to research qualified transportation options. Once they complete this research, they must obtain estimates for their move. While the Federal Motor Carrier Safety Administration has a number of excellent resources, tips, and guidelines to help people as they look into household goods moves, many employees have little time to spare doing the requisite amount of work to choose a reputable moving company. Additionally, while helpful checklists are useful to understand the basic processes, it may be challenging for an employee to fully understand and be able to compare the information and responses they receive from several moving companies. In some cases, employees may be inadvertently exposed to less than professional services by disreputable moving companies.

How can your RMC help with household goods moves?

Employers should work with a qualified RMC that can provide guidance and assistance for household goods moves. Transferees and new hires should be able to focus on their new position. Also, they should take care of their family and professional responsibilities. A qualified RMC should obtain multiple bids for household goods moves, to ensure best pricing. Also, RMCs should have programs in place to ensure they meet service levels and suppliers meet specific performance criteria.

Global Mobility Solutions’ team of global relocation experts, in a major corporate initiative led by Ann Knapp, Director of Transportation Services, created Curbside Manner™, which is the standard of quality that all GMS Transportation Partners are measured against. Curbside Manner™ requires transportation partners to always treat each customer with the utmost fairness and respect throughout their relocation process. Also, every member of the transportation team must treat each move with the highest level of professionalism, decorum, and service.

What should employers do?

Employers should ensure that transferees and new hires have access to a qualified RMC. The RMC can obtain multiple transportation estimates and arrange household goods moves. They can ensure the highest level of professional courtesy and performance. The RMC will manage household goods moves, so the employee can focus on their new responsibilities.

Conclusion

Global Mobility Solutions’ team of global relocation experts helps thousands of our clients with household goods moves for transferees and new hires. As a result, we can help your company understand how to utilize the full range of Pre-Decision Services, including moving cost estimates, to help ensure successful relocations. Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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Business Services Choosing a Relocation Company Relocation Management

Does Your Relocation Management Company Provide a Customized, Right-Fit Program?

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Companies achieve the most success with a customized, right-fit program for relocation that is specifically designed to meet their unique requirements. Employees and their families expect a broad range of services to help them during their relocation process. How can you be sure your company is competitive with your relocation program and able to attract and retain the best talent?

Here are five questions you should ask your Relocation Management Company (RMC) to ensure you receive a customized, right-fit program:

Why You Should Choose Global Mobility Solutions for your right-fit program

Does Your Program Align With Our Needs?

Your RMC should thoroughly review and understand your company’s mobility needs, objectives, move patterns, locations, and any other specific requirements. Ask your RMC how the program they provide will address each of these areas. Ask them how it will be in full alignment with your company’s worldwide mobility needs.

Does Your Program Provide Dedicated Account Management and Mobility Consulting?

You should have dedicated account management for your company so you can be sure your needs are met quickly and efficiently. Ask your RMC if they provide mobility consulting so Human Resources, Procurement, and Recruiting team members can have access to expert advice and guidance.

Is There a Single Point of Coordination?

Ask your RMC if they provide a single point of coordination for your employees and their families. Relocating employees should have a dedicated advocate who understands their specific needs. A single point of coordination allows for ease of communication and provides assistance for employees throughout their relocation process.

Does Your Program Provide Access to a World-Class Partner Network?

Your company should have access to a world-class partner network of providers. Employees and their families should receive the best service during their relocation process as it promotes successful relocations. Ask your RMC how they can assure your company receives the highest levels of quality at the lowest cost on a worldwide basis.

What Global Technology Does Your Program Provide?

Your employees and their families should have access to user-friendly tools and features so their relocation process is smooth and easy. Ask your RMC what technology they provide on a global basis. Your employees should always have access to the tools and resources they need, when and where they need it.

Conclusion

The most successful corporate relocation programs are customized, providing a right-fit that aligns with company objectives and employee’s expectations. Global Mobility Solutions (GMS) provides its clients with a Freedom of Choice™ model that sets the industry standard of excellence. For example, we have no affiliation with any service provider. As a result, we make supplier selections by using performance ratings and guaranteed savings. We provide a customized program that is a “Right-Fit” to our client’s needs and requirements.

Our Team of corporate relocation experts can provide a customized, right-fit program for your company. Contact our team of relocation experts to request a presentation, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Relocation Models for 5 Major Industries

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Traditional vs. Lump Sum Relocation Programs

Which is best model for your company?

There is more than one way to get your relocating employees to their new assignments. Many companies opt for either a traditional relocation program, a lump sum/managed cap program, or a combination of the two, depending on the position of the transferee and other special circumstances.

What are the Differences?

With a lump sum or managed cap model, relocating employees are given a pre-determined amount of money to cover all aspects of their move. From the shipping of goods to temporary housing, the transferees are responsible for researching and obtaining all the services needed to get them to their new destinations. There is no tracking or reporting available to HR or finance departments to let them know whether their relocation policies are too generous, costing the company more money than necessary to relocate their employees, or too limited, forcing transferees to pay out of pocket unnecessarily. This approach leaves the entire move is managed by the transferees, many who might not have any prior moving experience.

Conversely, a traditional relocation model is managed by a relocation management company (RMC). The RMC coordinates everything for the transferees. This includes, but is not limited to, home selling, household goods movement, temporary living, and home purchasing. The RMC sets up the various services with reputable, vetted network partners. Since the RMCs use direct billing back to the client companies, the transferees rarely have to open their wallets. HR and finance departments receive detailed expense reports from the RMCs that capture all the costs related to relocating their transferees.

Based on comprehensive relocation surveys, here are findings of how companies in five different industries utilize either traditional, managed cap/lump sum, or a combination of these relocation programs:

Relocation Models by Industry: Energy, Healthcare/Medical, Manufacturing, Retail, Technology

The figures above illustrate that across all the industries in this survey, traditional relocation programs are used more frequently than lump sum or managed cap programs. However, in all the industries, there is a large percentage of companies that utilize a combined approach. A best practice consideration is to adopt a combination of traditional and managed cap relocation models.

Modern Mobility Made Easy™
Helping you manage your relocating employees

Global Mobility Solutions, an innovative leader in corporate relocations since 1987, can analyze and create mobility management programs customized for your unique needs. Additionally, we have compiled benchmarking studies and relocation best practices for numerous industries. To learn more about what type of relocation model would fit best with your company, get the full relocation benchmarking study for your specific industry:

Download your industry benchmarking study

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Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Relocation Best Practices Relocation Challenges Relocation Management

Managing Mobility Costs

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Department heads all over the globe are constantly asked to identify cost-saving opportunities within their departments. Human resources, employee mobility, talent acquisition, and procurement are no exceptions. As you scrutinize your budget, try utilizing these three steps to help better manage and ultimately reduce your relocation expenses:

Cost Estimates

Managing mobility costs starts with understanding what those expenses are. First estimate what costs should be involved with your vision of a successful mobility program. A cost estimate will provide you with a clear picture of the potential costs of individual relocation assignments. You can then use these cost estimates to correctly establish a budget prior to initiating any relocations.

One effective way to determine your cost estimates is by utilizing cost estimate technology. There are many software programs that by using the latest upgrades will help you:

  • Save time
  • Reduce human error
  • Ensure compliance

Policy Reviews

By reviewing your relocation policies, either internally or with an outside relocation management company (RMC), you will be able to identify cost-saving opportunities and eliminate expensive exceptions. When reviewing your mobility management policies, you should:

  • Do so in conjunction with cost
  • Benchmark against other companies within your industry
  • Leverage technology for key services (i.e. Virtual destination tours, online school reports, etc.)

Example:

Using online language tools can reduce relocation costs by roughly $5,000 - $20,000.

Tracking and Reporting

Lastly, you want to ensure that you are continuously tracking all expenses and reporting any overages or savings. Get a detailed account of how your cost estimates match up with your actual spending. Then the whole process repeats itself. Once you have your data:

  • Take action – Make any necessary adjustments to your budget, policy, or both
  • Review – Go over the detailed reports to identify more cost-saving opportunities
  • Incorporate technology – Save time and money by offering key services online

Global Mobility Solutions (GMS) is an award-winning RMC and, since 1987, has been helping companies save time and money with regard to their corporate relocations. As a courtesy service, GMS will review your current relocation policies and provide expert feedback to ensure that your policies are competitive within your industry and to identify any cost-saving opportunities, so you can focus on managing mobility costs.

Click here for your free relocation policy review

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Corporate Relocation Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Global Mobility Global Relocation Global Relocation Tips Global Relocation Trends Relocation Best Practices

Pre-Decision and Best Practices for Global Mobility

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Pre-decision Best Practices: Why do many companies have a 50% rate for assignment rejection? It is primarily because the potential transferees do not have a clear understanding of the destination location and the support available for their families.

The top 3 reasons cited for rejecting relocation assignments are housing/mortgage concerns, trailing spouse/partner employment concerns, and overall family concerns. Pre-Decision Best Practices

Assignment rejection and failure can be very costly to a company. Firms spend an average of half a year’s salary in recruiting and training when onboarding a new employee. For high-level executives, the expense can be six to nine months of their salaries. However, according to the ERC, it can be as high as three-times an annual salary for international executives. If assignments are rejected, or fail after a move – which adds much more to the financial loss – companies must go through the expense of onboarding and training new staff.

 

How can companies ensure that they get the right people in the right place at the right time and for the right price?

The answer is to use pre-decision programs. Global Mobility Solutions (GMS) is the pre-decision pioneer and we continue to develop new, innovative features for pre-decision programs.

Although the number is growing, currently only 22 percent of companies around the world are utilizing pre-decision programs. However, when working with an RMC, nearly 60 percent choose to incorporate pre-decision into their mobility management solutions.

Employees decline relocation assignments due to housing, family, and spousal/partner employment concerns. Many firms had a 50% rate for assignment rejection. 32% housing/mortgage, 55% spouse/partner employment, 69% family issues. By using pre-decision, companies increase assignment acceptance, reduce failed relocations, save money, and project a progressive and employee-friendly image.

Going back to the reasons cited for assignment rejection, let’s see how the in-depth questioning and available services of pre-decision can address each of those concerns.

 

Housing

Candidates are interviewed to learn about community and lifestyle preferences. Candidates are presented with destination spotlights that highlight the cost of living and attractions of the assignment location. Area tours are arranged. Candidates are pre-approved by participating mortgage lenders. Candidates are provided with home selling and home buying assistance.

Spouse/Partner Employment

The pre-decision interview includes an employee’s spouse or partner. Pre-decision best practices programs offer a career assessment to develop an action plan that will help the spouse or partner adjust to the new location. This can include resume services, aggressive job searching, and more.

Family

Through the pre-decision interview process, the specific needs of the family are determined. To help candidates better understand the new location before moving, they are presented with school reports and detailed community information. Community tours are arranged so that transferees and their families can see schools, hospitals, and centers of culture and entertainment prior to moving.

 

The talent acquisition program manager of a large healthcare company said, “By using pre-decision to initiate relocations prior to the face-to-face interview, we know that transferees have arrived more quickly, have settled better, and stayed longer.”

Benefits of utilizing pre-decision programs include reduced time to acceptance, reduced overall costs to the company, an increased acceptance rate, and an increase in successful assignments.

Because of how it engages relocation candidates and their families, increases assignment acceptance and success, and saves companies time and money, pre-decision best practices should be utilized when it comes to mobility management.

Learn more about how pre-decision programs can benefit both you and your transferees.

 

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Corporate Relocation Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Global Mobility Global Relocation Global Relocation Tips Global Relocation Trends Relocation Best Practices

Why Benchmark?

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Relocations can generate a lot of excitement as companies eye the potential for increased revenue, organizational growth, and the development of their employees. It is important for those managing workforce mobility to know if their company’s relocation policies make sense in today’s evolving, global business environment. It is critical for all the stakeholders in employee relocation – talent acquisition, human resources, procurement, finance, legal, etc. – to fully understand the best practices to ensure that their policies are competitive, compliant, and effective.

Here are the top 5 reasons you should be reviewing your relocation program and policies:

  • To ensure competitiveness within your industry in order to attract and retain the best talent
  • To identify enhancement and cost-saving opportunities (i.e. process, service cost, exception reduction, etc.)
  • To maintain alignment with your overall mobility objectives across key disciplines
  • To educate internal stakeholders on current best practices and trends
  • To learn about innovative ideas for managing a changing workforce mobility environment

Policy Benchmarking Options

A best practice across all industries is to conduct program and policy reviews every 12 to 18 months, depending on an individual company’s relocation volume, size, and scale of programming. You can receive expert guidance and award-winning service by submitting a request for contact.

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