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Enhancing Relocation Success: The Role of HR and Supply Chain Managers in Selecting the Right Management Companies

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In today’s fast-paced global market, businesses often need to relocate employees. This can happen for many reasons, like tapping into new markets or retaining talent. However, relocating employees isn’t always simple. It can be complicated and often requires a strong partnership between Human Resources (HR) and Supply Chain Managers. Together, they can choose the right Relocation Management Companies (RMCs) that meet both the business’s goals and employees’ unique needs.

This post explains how HR and Supply Chain Managers can effectively team up to find and work with RMCs. This collaboration aims to create a smooth relocation experience for everyone involved.

Understanding the Role of Human Resources in Relocation

HR and Talent Management professionals are at the heart of addressing the needs of relocating employees. In addition to primary duties, they are often called on to make sure the relocation process is efficient, supportive, meeting budgetary requirements, and the relocating employees’ needs. Here are some key responsibilities HR and Talent Management professionals, when it comes to relocation

  1. Employee Relocation Support: HR provides support to employees and partners with the preferred Relocation Management Company (RMC), who is responsible for coordinating in-scope services on behalf of the company. HR and Talent Management professionals are often responsible for managing the RMC relationship.
  2. Policy Development: HR partners with the RMC to revise or create clear relocation policies. For example, in a recent survey, 78% of employees stated that understanding relocation benefits upfront made them feel more confident about relocating, underscoring the importance of a right fit policy approach.
  3. Budget Management: Working alongside the RMC, HR and Talent Management professionals often work with internal stakeholders to set a clear budget for relocation costs, keeping spending in check and avoiding surprises later.
  4. Talent Retention: A well-managed relocation process can lead to increased employee retention rates, making it essential for HR and Talent Management professionals to focus on getting it right. Oftentimes, HR and Talent Management professionals leverage pre-decision or hire services to assist in validating each candidate for relocation, so costs, roadblocks and needs are fully understood prior to investing in a relocation transfer.

By grasping these responsibilities, HR and Talent Management can communicate effectively with Supply Chain Managers about employees’ needs during the selection of RMCs.

The Role of Supply Chain Managers in Relocation

Supply Chain Managers are often responsible for ensuring that the purchasing of the relocation services that align with the companies identified goals and objectives for growth, cost-containment, process and more. Their key responsibilities include:

  1. Vendor Selection: They assess and choose RMCs based on their experience, reputation, and how well they fit the company’s needs.
  2. Cost Management: Supply Chain Managers study costs from various RMCs and negotiate contracts to get the best deal for the organization. For instance, an effective strategy might lead to savings of up to 30% on relocation costs.
  3. Process Optimization: They aim to streamline relocations, keeping operations efficient and minimizing disruptions. This focus can lead to cycle time reductions and efficiency savings.
  4. Risk Management: They partner with internal stakeholders to identify potential risks in the relocation process and formulate strategies to tackle them. This can significantly decrease relocation-related issues.

Working closely with HR and Talent Management enables Supply Chain Managers to select RMCs that meet logistical needs while also considering employee satisfaction.

The Importance of Collaboration Between HR, Talent Management and Supply Chain Managers

Collaboration between HR, Talent Management and Supply Chain Managers benefits the organization in various ways:

  1. Holistic Approach: By teaming up, HR, Talent Management and Supply Chain Managers can look at relocations from all angles, making decisions that satisfy both logistical and employee needs.
  2. Enhanced Communication: Strong collaboration fosters better communication. This ensures that everyone involved— from employees to leadership—stays informed throughout the relocation process.
  3. Improved Decision-Making: Working together allows for a thorough evaluation of potential RMCs. This kind of joint decision-making leads to choices that effectively serve the organization and its employees.
  4. Increased Efficiency: Collaborating makes it easier to address challenges quickly, reducing delays and improving the relocation experience.

Common Criteria for Selecting Relocation Management Companies

When choosing RMCs, HR, Talent Management and Supply Chain Managers should consider a few essential factors:

  1. Experience and Expertise: RMCs should have a solid track record, especially in regions relevant to the organization. For instance, if a company is expanding to Asia, choosing an RMC with experience in that market is crucial.
  2. Service Offerings: The range of services provided matters a lot. Some RMCs offer detailed destination services, home finding, and even cultural training — all of which can make a smoother transition for relocating employees.
  3. Technology and Tools: RMCs that use advanced tools and technology can improve the relocation experience. For example, integration, flexible automated workflows, real-time tracking and AI features can keep employees informed about their relocation status.
  4. Cost Structure: Understanding how RMCs structure their pricing helps in creating and sticking to budgets. Transparency in costs is essential for smooth financial management.
  5. Customer Service: The level of support employees get during their relocation is critical. RMCs must be responsive and attentive to employee needs to ensure a positive experience.

Engaging with Relocation Management Companies

After identifying suitable RMCs, it’s time to engage with them effectively. This typically includes:

  1. Request for Proposal (RFP): HR, Talent Management and Supply Chain Managers should send out an RFP, clearly laying out the organization’s needs and expectations.
  2. Interviews and Presentations: Conducting interviews with potential RMCs allows the team to gauge their capabilities and cultural fit.
  3. Site Visits: If possible, visiting the RMC’s operations can be a great way to understand their processes and capabilities directly.
  4. Reference Checks: Checking references from other companies that have used the RMC can help validate their effectiveness and reliability.

Building a Long-Term Partnership with RMCs

Choosing the right RMC is just the first step. Building a long-lasting relationship is vital for ongoing success. Here are a few ways to achieve this:

  1. Regular Communication: Keeping communication open ensures that both organizations are aligned on expectations, and any issues can be dealt with quickly.
  2. Performance Evaluation: Regularly assessing how well the RMC performs can highlight areas that need improvement, helping refine processes further.
  3. Feedback Mechanisms: Creating a way for relocating employees to share their experiences can provide valuable insights into how effectively the RMC is meeting their needs.
  4. Continuous Improvement: Collaborating with RMCs to enhance processes yields better relocations and happier employees.

Ready to work with GMS?

The partnership between HR, Talent Management and Supply Chain Managers is critical for the effective selection of Relocation Management Companies. By working together, these departments can ensure that relocations are efficient and meet the unique needs of employees.

Navigating the complexities of employee relocations requires strong partnerships with RMCs. By focusing on communication, collaboration, and continuous improvement, organizations can create seamless relocation experiences that benefit both the company and its employees

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