9 Items to Include in Your Next Relocation Management RFP
If you have ever been through the Request for Proposal, (RFP) process for employee relocation services, you know how stressful and time-consuming it can be.
An integral part of every RFP is the detailed timeline.
This timeline explains when the RFP was sent, the due date, when questions are due from bidders, when you are to respond to questions, and dates for the next steps (presentations, start date, and more). However, the timelines often underestimate how long some items take to complete.
Sometimes, Relocation Management Companies (RMCs) will have dozens of questions requiring responses, which can add several business days to the process. This often results in extensions and delays that you did not anticipate when going out to bid.
In this post, we have outlined 9 of the most common questions that RMCs ask after receiving an RFP.
The 9 questions below are actual questions
from RMCs in actual RFPs from the past 24 months.
The goal should be to answer these questions up front in your RFP before ever sending it to an RMC.
This will save you a significant amount of time during the Q&A process and enable each bidder to provide you with a response that more accurately addresses your needs.
1) Can you please provide copies of your relocation policies?
This is the most commonly asked question.
RMCs want to look at your policies to tailor their responses and pricing to your program. It helps to provide all of your relocation policies or, at a minimum, a detailed summary of your original bid package so that prospective bidders know exactly what you are looking for.
Some RMCs suggest policy changes that suit your needs and budget without adversely impacting the employee’s transition.
2) Do you have any preferred or company-designated third-party suppliers or vendors? If so, can you please provide the company names?
Typically, RMCs will work with client-designated service providers.
However, they expect your provider(s) to meet their quality standards to maintain a consistent, excellent experience for your relocating employees.
Describing any existing relationships and specific requirements in the RFP gives the RMC an opportunity to demonstrate how they will interact with your existing preferred providers and disclose any associated management fees that may occur.
3) What is your annual volume?
When answering this question in your RFP, include:
- Number of homes sold per year
- Number of renters you relocate
- Any short-term domestic assignments
- Lump Sums
- Internship programs
- Other relevant information
A precise transition profile results in a more accurate bid response.
4) What type of home sale benefits does your company offer?
Do you offer Buyer Value Options (BVOs), Guaranteed Buyouts (GBOs), Direct Reimbursement (DR), or marketing assistance only?
-
- If so, how many of each do you typically offer in a given year?
This information tells the RMC what areas and processes to focus on in their response and provides the most accurate pricing structure.
An experienced RMC will also help you to evaluate each method and determine which is most beneficial for your company.
5) What is your average home sale price?
This information is essential if you offer home sale benefits to your employees.
- Knowing the average home sale price helps each RMC determine a fee structure for your home sale program.
Additionally, providing the average home purchase price gives the RMC a good idea of the type of home you are interested in finding for your employee.
6) What are the top challenges that you have with your current program?
RMCs are well-acquainted with the myriad of challenges that occur when relocating employees.
- Do you need help with exceptions or failed relocations/assignments?
Letting the RMC know some of the problems you are having and the areas you would like to see improved in your RFP allows them to suggest solutions that will enhance the process for you and your employees.
7) What are your historical locations?
Listing out historical information allows the RMC to scout volume discounts, especially if you frequently move to the same location.
- What are your top departure location(s)?
- What are your top destination location(s)?
- Do you have locations that have been historically challenging?
(e.g., remote/small towns.)
Providing these details enables the RMC to share their knowledge and familiarity with the locations you list and provide any creative solutions to meet the needs of your relocating employees.
8) Will the RMC be taking over any existing files?
- Primary considerations for the RMC include where the employee is in the process
- Domestic – is there a home sale involved?
- International – how much time is left on the assignment?
9) If you have international assignments, does the global scope of work include any compensation services?
Compensation services would include:
- Creating the compensation calculations and balance sheets
- Updating the balance sheets
- Tracking the compensation data
- Working with your payrolls to ensure proper payment and reporting
- Providing the year-end compensation summary report to your third-party tax provider to prepare the assignee tax return
By providing as much detail as possible about this, the RMC will provide you with its capabilities, processes, and appropriate pricing for this service.
Including all of these points in your RFP does not guarantee
that there will not be any questions.
However, it will make the responses more uniform, reduce the number of questions from the responding RMCs,
save you some time, and ensure that you are comparing similar responses.
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