What are the Benefits of Outsourcing Relocation Programs?
What are the benefits of outsourcing relocation programs? Companies that want to stay ahead of their competitors and attract highly qualified employees offer a well-designed corporate relocation program. Employees are looking for relocation programs to provide a wide range of benefits and services to ensure they have an easy and smooth relocation process. Companies that offer a relocation program that is managed entirely in-house face several challenges in trying to meet the demands and expectations of a widespread workforce. There are many benefits to outsourcing relocation programs that companies should consider as they review their offerings.
There are five key in-house relocation program challenges, and five crucial benefits that outsourcing provides to help company relocation programs be successful:
1. Program Managed by Various Locations or Individuals
Local HR teams may have different interpretations of programs and policies, so variations may impact the benefits transferees receive.
Outsourcing Benefit: When choosing to outsource, company relocation programs benefit from central program management with local support. At all times, a consistent and coherent program is administered and fully supported in all locations, with no variations by locale or individual interpretation.
2. Employees or Local HR Assume Additional Responsibilities
A company choosing to offer an in-house relocation program must rely on current employees and local HR teams to assume additional responsibilities. Some current employees may not have experience with relocation programs, so there may be a learning curve requiring additional time and training.
Outsourcing Benefit: Teams of fully trained relocation experts handle the interpretation and delivery of policies, ensuring employees receive the same benefits across the board.
3. Frequent Exception of “Special Deals”
In-house relocation programs are susceptible to frequent exceptions of “special deals” when employees try to find ways to help transferees and their families with unique challenges. Companies often do not have the resources to understand the unique challenges posed with relocation and how they have been addressed by other companies, likely resulting in unforeseen and unbudgeted obligations.
Outsourcing Benefit: Relocation experts with significant industry experience can use their knowledge to help companies understand how best to manage exceptions, minimizing expenses and process disruptions.
4. Relocation Costs not Effectively Tracked
Over 70% of companies that manage relocation in-house are not aware of their program’s internal operating costs. Without effective relocation program expense tracking, the true costs are hidden and thus cannot be effectively controlled or minimized.
Outsourcing Benefit: “Best of the Best” providers are utilized so transferees and their families receive exceptional services while costs can be fully identified, tracked, and reviewed for budgetary impact and program performance.
5. Increased Likelihood of Assignment Failures
Companies offering a relocation program hope their transferees have a successful relocation. However, the likelihood of assignment failure is high due to the in-house team’s lack of experience and knowledge when helping transferees and their families understand and address the unique challenges they face during the relocation process.
Outsourcing Benefit: Companies can benefit from an outsourced solution that specializes in unique relocation needs including tax issues, visa applications, and compliance reporting. Working with relocation experts who have extensive experience in these and other areas can help a company avoid risk related to transferee’s requests for guidance and advice.
The most successful companies outsource their relocation programs so employees and their families have access to industry-leading resources and expert guidance. The corporate relocation experts at Global Mobility Solutions (GMS) help our clients understand how to create and administer a relocation program that gives them a competitive advantage and provides the highest level of relocation benefits and services for their employees.
To learn more about the many benefits outsourcing your corporate relocation program can provide for your company and employees, contact our team of experts online, or call us at 800.617.1904 or 480.922.0700 today.