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How Often is the Core-Flex Approach Used in Global Mobility?

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.

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Maximizing Your Relocation Package: Essential Considerations for Assignees

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How to make sure you’re not leaving relocation benefits on the table

Relocating for work can be an exciting yet challenging journey. As companies increasingly offer lump sum payments to facilitate employee relocations, assignees need to plan and strategize to make the most out of these funds. If you’ve just received a lump sum for your move, here’s a comprehensive guide on what to consider to maximize your budget without sacrificing time and quality service.

Work with an RMC to Create a Relocation Plan

The first step in ensuring a successful move is developing a detailed plan. As each relocation is different, consider your family’s unique needs. Working with a relocation management company (RMC) can help get you on the right track. Many RMCs will assign moving employees a relocation coach, who can help outline a plan—but getting ready for the move on behalf of you and your family, ask yourself:

  • Housing Needs: Will you need to break a lease, pay security deposits, or cover home sale/purchase costs? Understand the local housing market to make informed decisions.
  • Final Move Costs: Factor in expenses related to your final move, including transportation (driving or flying), meals, and accommodation during transit. These costs can add up quickly if not accounted for early on.
  • Relocation Tax Implications: Be aware that lump sum payments may be taxable. Consulting a tax professional can help you understand how these funds will impact your overall tax situation.
  • Time Considerations: Planning your moving arrangements can be time-consuming. Be realistic about how much time you can devote to organizing your move while balancing work and personal commitments.

Make a Detailed Budget

Creating a comprehensive budget is essential once you have a plan in place. Outline all anticipated expenses related to your move, ensuring you include:

  • Moving Supplies: Boxes, tape, and other packing materials.
  • Transportation Costs: Fuel, flights, or vehicle rental.
  • Temporary Housing: Costs related to short-term rentals or hotels.
  • Miscellaneous Expenses: These include utility connection fees and pet care.

Establishing a detailed budget can help you track your spending better and identify areas where you can cut costs without compromising quality.

Optimize Your Shipment

When shipping your belongings, consider using a full-pack shipment managed by a Global Mobility Solutions (GMS) provider. Here’s why:

  • Expert Support: A GMS provider offers professional packing and handling, ensuring your belongings are safeguarded throughout the move. In the event of damages or losses, having professional assistance can be invaluable.
  • Reducing Shipment Costs: While saving money by managing your shipment independently may be tempting, a GMS provider often has established relationships with shipping companies, leading to better rates and less hassle.

Leverage a Destination Services Provider (DSP)

A Destination Services Provider (DSP) can be an indispensable asset during relocation. Here’s how they help:

  • Local Expertise: A DSP offers insights into the local area, helping you find suitable housing, schools, and amenities tailored to your family’s needs.
  • Advocacy Upon Arrival: It is crucial to have a local advocate. They can navigate challenges, ensuring a smoother transition into your new community.

Plan for Budget Holds

As you prepare your budget, consider including budget holds for unexpected expenses. Here are some common areas where extra funds might be necessary:

  • Customs Fees: If you’re relocating internationally, customs can be a significant expense.
  • Shuttles and Logistics: Don’t overlook transportation from the airport or rental car services.
  • Unexpected Carry Costs: If your new home isn’t easily accessible, you may incur additional costs for moving your belongings from the moving truck to your new residence.

By anticipating these potential costs, you can avoid the stress of overspending or being caught off guard.

Weigh Temporary Housing vs. Airbnb

Finally, when considering where to stay during your transition, weigh the pros and cons of temporary housing versus Airbnb.

  • Temporary Housing: Often offers more space and amenities, making it a comfortable choice for families. However, it may come at a higher cost and involve longer-term commitments.
  • Airbnb: Provides flexibility and can be a more economical option. Still, consider the trade-offs regarding space and amenities, especially if you’re moving with a family or pets.

GMS Gets Employees from Point A to Point B

Relocating with a lump sum requires thoughtful planning and budgeting. You can maximize your lump sum by creating a comprehensive relocation plan, making a detailed budget, and utilizing the resources available to you, such as GMS. Always think ahead to account for unexpected costs and weigh your temporary housing options wisely. With careful consideration, you can ensure a smooth transition into your new home without compromising the quality of your relocation experience. 

Work with GMS to create comprehensive relocation packages. These packages can be tailored to meet your specific needs, whether you require assistance with finding a new home, settling into a new community, or managing the logistics of the move itself. GMS offers various services, including home search assistance, school search support, and cultural training for those relocating to a new country.

Remember, relocating is not just about moving your belongings; it’s about starting a new chapter in your life. Embrace the change, and don’t hesitate to seek support from friends, family, or professionals during this time. With the correct planning and resources, you can turn what may seem daunting into an exciting opportunity for growth and adventure.

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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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How to Negotiate a Relocation Package

two women discuss relocation packages in a job interview
The mature adult female business owner smiles encouragingly at an unrecognizable female job applicant.

When interviewing for a new job, make sure your relocation needs are met

Negotiating a relocation package involves understanding what is covered, discussing expectations with your employer, and being willing to compromise. Read on for a comprehensive look at arranging a relocation package with your employer so you can confidently navigate your move with ease and peace of mind.

Understanding what is covered in a relocation package is crucial before negotiations. Typically, a relocation package includes moving costs, temporary housing, transportation, and even assistance with selling or renting your current home. It is essential to clearly understand what expenses will be covered and what will not be so that you can plan your budget accordingly.

Negotiating a relocation package requires a certain level of flexibility and compromise. While it is essential to advocate for your needs, it is also crucial to understand that your employer may have limitations or constraints. Be open to discussing alternatives or finding creative solutions that benefit both parties. For instance, if your employer cannot cover certain expenses, they may be willing to provide a higher salary or additional benefits to compensate.

Remember, maintaining a positive and collaborative attitude is critical to successful negotiations. Approach the conversation with a willingness to find common ground and reach a mutually beneficial agreement. Be prepared to provide supporting documentation or evidence to justify your requests, such as cost estimates for moving services or rental prices in the new location. This will demonstrate that you have done your research and are making reasonable demands.

Here are some points to cover when negotiating for relocation assistance:

Understand What Relocation Expenses are Covered

Employers typically offer a relocation package to assist with the costs associated with moving. This package can encompass various expenses, such as:
– Costs relating to travel, including transportation and hiring professional movers.
– Assistance with selling your current residence or purchasing a new one.
– A lump sum of money is provided to cover general moving expenses.
– Support in obtaining a work visa if necessary.

It is crucial to clarify which expenses will be covered when negotiating your relocation package with your employer. Understanding the specifics beforehand will allow you to plan accordingly and ensure a smoother transition during the relocation process. Whether you must pay for these expenses upfront or are eligible for reimbursement, having this information beforehand is essential.

Discuss Your Expectations

Being honest and open with your employer regarding your expectations and desired outcomes is crucial. Communicate the specific assistance you require from them, and provide any relevant information that could impact their decision-making process. Additionally, it is advisable to inquire about the company’s policy on relocation and the usual support provided. By clarifying these details, you will better understand the extent of their offer and determine the level of additional support you may need. For example, you might need extra time off for the relocation or other funds to cover temporary living expenses.

Do Your Research

After you have clearly outlined the particulars of your relocation and thoroughly discussed your expectations with your employer, it is crucial to delve into the specifics. Take the time to research the cost of living in your prospective new city, and be ready to request additional assistance if it significantly surpasses your current location.

It is advisable to be upfront and straightforward about your specific requirements for the relocation package, whether it be extra time off, a salary increase, or supplementary funds to cover expenses.

One crucial aspect to consider when negotiating your relocation package is the cost of living in the new location. Research the average housing prices, groceries, transportation, and other essential expenses to understand how far your relocation package will stretch. This will help you determine if the financial assistance provided by your employer is sufficient or if you need to negotiate for additional support.

Be Open to Compromise

After you have clearly outlined the particulars of your relocation and thoroughly discussed your expectations with your employer, it is crucial to delve into the specifics. Take the time to research the cost of living in your prospective new city, and be ready to request additional assistance if it significantly surpasses your current location.

It is advisable to be upfront and straightforward about your specific requirements for the relocation package, whether it be extra time off, a salary increase, or supplementary funds to cover expenses.

One crucial aspect to consider when negotiating your relocation package is the cost of living in the new location. Research the average housing prices, groceries, transportation, and other essential expenses to understand how far your relocation package will stretch. This will help you determine if the financial assistance provided by your employer is sufficient or if you need to negotiate for additional support.

Final Negotiation Tips

Additionally, it is crucial to familiarize yourself with the local laws and regulations of the new city or country. This includes understanding the visa requirements, tax obligations, and other legalities affecting your relocation. You can avoid any surprises and ensure a smooth transition by being well-informed.

Furthermore, don’t hesitate to reach out to colleagues or contacts who have previously relocated to the same destination. They can provide valuable insights and advice based on their own experiences. They may also recommend reliable real estate agents, schools, or other services to assist you during your move.

Lastly, remember to take care of yourself throughout the relocation process. Moving to a new place can be emotionally and physically draining, so prioritize self-care. Stay organized, maintain a positive mindset, and lean on your support network for assistance.

In conclusion, negotiating a relocation package requires thorough research, practical communication, and a clear understanding of your needs. By following these steps and considering all the necessary factors, you can ensure a successful and stress-free relocation experience.

Global Mobility Solutions (GMS) has provided clients with the best relocation services since 1987. Our expert team can assist in getting employees from point A to point B, no matter how far the move is. Contact us today to set up a free policy review!

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Company Relocation Policy Checklist for 2024

Use this checklist to perform a review of your company relocation policy
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Things to keep in mind when reviewing Relocation policies

Offering relocation benefits to new or promoted employees is a great way to ensure that your company can hire the most qualified candidate for the position. As the new year is now upon us, HR managers should start to review their company’s relocation policies. Most relocation assistance companies recommend checking and renewing policies annually, usually in Q4. As the global mobility industry sees continuous change over time, reviewing policies at least once per year helps ensure that the relocation policies offered are still competitive within your industry, and ensure cost efficiencies are adapted to your current business environment. 

Whether you are going out to bid for a new relocation company or just want to ensure that your relocation policies are above the standard, use this 2024 relocation policy checklist to ensure all of the joint pain points are met.

Our recommendations for global mobility planning cover both short-term and long-term initiatives. Here is the 2024 relocation checklist:

Short-Term Assignment Policy Review Points

  1. Identify all instances relating to immediate and upcoming needs for your relocating employees, including visas, work permits, immigration status changes, and cross-border travel. Determine appropriate action plans for each case.
  2. Document policy exceptions relating to the pandemic. Consider adjusting the company relocation policy or adding an addendum to account for the effects of the pandemic and other major relocation disruptions.
  3. Review all assignments that were placed on hold during 2022 and 2023. Determine if they are still critical to corporate objectives for 2024. If yes, implement a talent acquisition plan.
  4. Examine all data sources and information flows for integrity and accuracy. Form a relocation integration program project team to Identify instances that can be automated with effective relocation advanced programming interfaces (APIs).
  5. Identify current short-term assignments that can be further extended in support of corporate objectives. This will reduce costs relating to repatriation and re-assignment.

Long-Term Assignment Policy Review Points

  1. Determine areas in the relocation process where the company owes a higher duty of care than previously expected. Examples include programs and costs relating to transferees unable to return to their original locations due to pandemic-cause restrictions.
  2. Correlate talent acquisition and management programs to ensure consistency in achieving objectives across the company.
  3. Leverage virtual relocation solutions that enhance the transferee’s experience and provide added value to the company.
  4. Focus on process simplification and cost reduction. Use the lessons from 2020’s expanded virtual relocation solutions to modify your company relocation policy to adopt new technologies and procedures.
  5. Look to future corporate initiatives to determine appropriate company relocation policies, plans, and budgets. Ensure alignment with company objectives relating to growth, expansions, mergers, acquisitions, and divestitures.

Get in Touch with GMS for More Helpful 2022 Tips

At GMS, we understand that each company runs differently, meaning everyone will have different needs regarding relocation benefits. Our team has been helping companies construct some of the most competitive relocation packages for over 25 years. With 2024 now here, it’s time to ensure all your bases regarding relocation are covered. GMS recommends that clients thoroughly review their company relocation policy every 12 to 18 months. Following all the impacts of the COVID-19 pandemic on relocation, this review is critically important to ensure your company can respond effectively for regulatory, tax, and reporting purposes.

If you found this company relocation policy checklist useful, please refer to our Knowledge Base for more helpful blogs, case studies, and industry news. If you want to continue success with your employee relocation program and relocation packages, please feel free to reach out to Global Mobility Solutions for all your corporate relocation needs. 

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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What Should be Included in New-Hire Relocation Packages?

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What does an employee relocation package typically include?

There are numerous approaches to take when putting together employee relocation packages, but in the end, every company is trying to do the same thing; that is, to find the perfect middle ground on relocation benefits that don’t blow the company’s budget while also being lucrative enough to attract the right candidate for the open position. 

It’s not uncommon for a company to try to construct relocation policies on their own before realizing they are in over their head and need the assistance of a relocation management company (RMC). RMCs give insight and can provide statistics and studies that help companies form relocation packages that land in that happy middle ground mentioned before. 

But even working with an RMC, it can be hard to know what should be included in talent mobility options offered to newly hired employees. So here’s a look at some of the common aspects that should be covered in relocation packages:

House-Hunting Trips

That’s why it is recommended that companies cover at least one or two house-hunting trips. These trips allow employees to scoop out their new destination and view some homes with a specialized relocation agent. Employees can also check out some schools for their kids.

Temporary Housing

Temporary housing, also known as corporate housing, is usually given from 14 to 90 days. This can help the employee transition to the moving process. There are a few different factors that require a new-hired employee to need corporate housing. The most common is if the relocating employee’s new home isn’t ready. Another common is if the employee could not purchase a place to live within the timeframe given. 

RMCs can help companies set up corporate housing leases with apartment complexes or townhome owners so that it is affordable for the company and extremely helpful for the transferee.

Family and Spousal Support

It’s not always just the employee moving, and it can be their whole family. Language and spousal career support add some family assistance benefits to relocation packages. Language training is an obvious one for those who are relocating internationally with kids. Giving them the resources to learn a new language can help them in school. 

And the transferee’s spouse may have to leave their job when the relocation occurs. This is why it can be beneficial for the family if the relocation policies include career services such as help with the job hunt and resume review assistance.

Real Estate Assistance

Employees’ main stress points about relocating are selling and buying a home. Real estate transactions can take weeks or months, making it a scary process when the move takes place in a short period. Any reputable RMC would recommend relocating employees with some home buying and selling programs. 

Three of the most used real estate assistance programs RMCs refer to are Direct Reimbursement, Buyer Value Option (BVO), and Guaranteed Purchase Offer (GPO). Of course, each will have different advantages depending on the transferee’s needs. But giving the new-hired employee some help in either buying or selling their home can help assure they can get to their new destination promptly.

Shipping of Household Goods

When people think about the relocation process, it is the only part that comes to mind but moving a transferee’s household goods is a crucial stage so it should not be overlooked. Packing, moving, and storing the employee’s furniture and belongings should be done by a reliable moving professional who can provide a great price. Every transferee’s nightmare is that the movers will not show up on the right day or their stuff will get broken. 

Any knowledgeable RMC will get multiple quotes from moving companies for the transferee. This way there are options to assure both the company and the employee are being taken care of for costs and customer service.

How Much Should Companies Spend on Relocation Packages?

That is the age-old question that is hard to answer. Too many variables must be reviewed before a realistic quote can be given on how relocation costs should be allocated. Some variables on this include number of relocations per year, distance on the moves, what relocation services the company is willing to cover, and visa and immigration services needed? 

One of the best ways to keep relocation costs under control is to update relocation policies every 12 to 16 months at a minimum. Service prices change so much that if companies are not updating their relocation packages, they could be spending unnecessary money or in some cases, they might not be spending enough money, forcing qualified candidates to walk away from the job.

GMS Will Help Put Together the Best Relocation Package

Global Mobility Solutions (GMS) is the industry leader in employee relocation. Our expert team has been assisting companies put together comprehensive and competitive relocation packages for 30-plus years. We listen to your needs and then tailor relocation policies that best suit those needs at a cost-efficient price so that you can get your employees from point A to point B in a seamless transition. In addition, we will make sure that all the relocation services you need are included in all new hire’s offer letters.

GMS strives to be the best in customer service, so we will assign a relocation coach to each of your employees to help in the relocation process every step. If you’re ready to hear more about how GMS can help, contact us today to schedule a free consultation. And to get other questions you may have about talent mobility answered, check out our Knowledge Base.

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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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A Complete Guide to Relocation Services

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The City of London, financial district of the Metropole, just after sunset with illuminated buildings and cloudy sky, United Kingdom

Moving Out-of-State for Work? Everything You Need to Know About Relocation Services

There’s little question that today’s job market is becoming more competitive. Many qualified job seekers receive multiple job offers, weighing the pros and cons of each. Employers who can offer the best compensation and benefits typically land the best talent. Typically, many people think of common benefits, such as health coverage, dental insurance, or 401k options. However, a benefit that is often overlooked when extending an offer to out-of-state job seekers is relocation assistance.

 

When sending out offer letters to job candidates, companies should consider including relocation services. Relocation benefits may be the deciding factor for your preferred candidate as moving their family out-of-state is not cheap. With the right relocation package available to them, the employee can feel at ease knowing the company has their best interests in mind. HR departments that help relieve the employee of the burden of moving by including relocation services in the hiring process note increased job acceptance rates and employees that arrive at their destination ready to work. 

 

Oftentimes, companies will work with a relocation management company (RMC) to develop and manage their relocation programs while delivering a wide range of relocation services. From the packing and shipping household goods to the delivery of visa or real estate assistance, there is a lot that goes into family moves. A reliable RMC can help companies have competitive relocation packages ready and will coach the moving employee and their family through the entire process. 

 

Additionally, for companies that provide their employees a lump-sum relocation package (in lieu of a comprehensive relocation policy), having an RMC on your side can be a great benefit. The relocation company can provide value-added assistance to the employee by helping them manage their lump sum budget, source vetted vendors, such as household goods movers, and provide access to technology that will assist the employee with their self-managed relocation.

Advantages of Relocation Services

There are plenty of advantages to leveraging relocation experts when utilizing relocation services in your talent acquisition efforts. The first and foremost benefit is a reduction of stress on your workforce. Moving across town is hard enough to coordinate but managing an out-of-state move while trying to start a new job is even more difficult. Relocation Consultants (Relocation Coaches at GMS) can help with the coordination of the move, allowing the employee to focus on their new job position and the onboarding process.  

 

Cost savings is also another advantage that both the company and the employee will enjoy. For the employee, relocation costs can represent a significant financial burden. Largely, companies that offer relocation benefits include expense management as a core portion of their relocation policies, essentially providing financial assistance for a range of approved benefits related to the move. 

 

Additionally, companies themselves can realize savings on the cost of relocation services through the usage of an RMC with a vetted and competitive network of providers. The usage of a multiple-bid process allows the RMC to “shop around” to obtain competing quotes of key services, such as household goods transportation. This results in a more cost-efficient program and increased customer satisfaction. 

 

Time management is another huge advantage. RMCs have helped thousands of people move before with established processes and technology, so they are prepared to make it as time efficient as possible. The RMC will perform the coordination of services, such as booking short-term housing, setting dates with movers, and assisting with the sale of the employee’s home. 

 

This time savings is beneficial to a relocating employee as they may only have a few weeks to get to their new destination. By allowing a quality relocation management company to orchestrate the relocation, you can mitigate the risk of delays, which could potentially push back an employee’s start date.

What Is a Relocation Package?

Relocation packages, also known as relocation policies, are benefits and support that companies offer employees who are transferring to a location for a position. These policies cover a range of supporting benefits spanning a wide range of relocation-related services. These may include visa/immigration assistance, real estate/rental assistance, the shipment of the employee’s household goods, global tax services, culture/language training, temporary housing assistance, spouse/partner career support, miscellaneous expense allowances, and more. 

 

There are a variety of different relocation packages that a company may offer an employee, with differing levels of support that are aligned by the employee’s position, their assignment, or other factors, as determined by the employer. As every company has differing needs and objectives related to their workforce mobility program, the specific structure and benefits offered in their policies will vary from company to company. However, it is common practice across many industries to utilize a multi-tier program, generally separated by employee level.

What Should a Relocation Package Include?

The most common relocation services will include most of the basic relocation needs including:

 

Moving services: The transportation of the employee’s household goods is one of the most needed relocation services. Safely packing, shipping, and storing the employee’s household goods is a critical relocation benefit offering. 

 

Short-term housing: Also known as corporate housing or temporary housing is a benefit that typically includes 30, 60, or 90 days in a furnished apartment while the relocating employee finds a full-time home in their new area.

 

Real estate & rental support: Buying and selling houses can be a confusing process. Most relocation service providers urge companies to include real estate assistance in their packages. Home sale programs allow employees to have options when it comes to selling their current home. Assistance with home finding is also commonly provided, allowing the employee to tour their destination and look at properties that align with their needs. For renters, benefits may include lease break assistance with their current apartment, tours of communities at their destination, and lease negotiation services.

 

Visa and immigration support: For companies that move employees internationally, assistance with the visa and immigration process is important. With the complex range of laws, visa types, and reporting rules, leveraging your RMC’s immigration experience will ensure your company is compliant with international laws.

 

Other benefits: Apart from the above, most companies decide to include the following relocation services: pet moving specialists, automotive transportation, destination services, travel assistance, family support programs for spouses and school-aged children, expense management services, and more.

How Much Do Relocation Services Cost?

The cost of relocation services and packages will depend on the policies that the company is willing to offer for new or promoting employees. It can also depend on the specific needs of the employee who is moving. How many family members is the employee relocating with? What size is their home and what support is needed to move their personal items? Does the company feel the need to cover auto transportation? Does the employee have a home to sell or a lease to break? Is the employee receiving a comprehensive benefits package or a streamlined lump sum?

 

Depending on the answers, the total costs can vary. It is important to have a conversation with your relocation management company regarding program costs, methods of cost control, and when and where to use certain relocation benefits. Robust and detailed reporting should be provided by your RMC to ensure you have complete visibility into your program’s total spend and where that money is being spent.

How to Address Relocation Costs

Relocation packages have a range of what they can and cannot cover. Some of the more common methods used to address relocation expenses include:  

 

Direct Billing: The RMC will source, coordinate, and pay the vendors hired in the relocation process. Invoices are handled and later paid by the employee’s company. This type of expense management can be pricey for the company but ensures the moving employee gets the most bang for their buck. 

 

Expense Reimbursement: This solution is set up to where the employee pays for all relocation expenses upfront, then receives compensation checks from their employer after the move is complete. This type of package can be tricky to handle if the benefit is not written by a professional RMC. 

It is also common to see a blend of direct billing (for large-ticket items, such as HHG transportation costs) and expense reimbursements (for smaller relocation expenses that may be covered by a miscellaneous allowance provided by the company).

 

Lump Sum: A lump sum relocation policy is basically a set amount of money given to the moving employee upfront to handle any moving costs as they see fit. Usually, the most popular type of relocation package due to its ability to provide simple controls over costs and easy budgeting, this method also provides the least amount of support to the employee and exposes them to potential risk.

 

Core-Flex: Some RMCs can offer core-flex relocation packages, where the relocation policies incorporate a core relocation benefit section, along with a menu of optional benefits. For example, a core relocation benefit may be HHG moving assistance. An optional “flex” benefit might include spouse/partner career transition assistance.

GMS Specializes in Relocation Services

Since 1987, Global Mobility Solutions has assisted companies and employees with all their relocation service needs. From creating relocation policies to coaching employees through the process, our experienced and talented team can assist in any way. We are always available to field your questions, contact us today to get all your corporate relocation or international relocation questions answered.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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