3 Truths About Outsourcing Your Relocation Program

As you know, there’s a lot that goes into relocating an employee – you have to coordinate the move, administer expenses, review and approve exceptions, audit invoices, and manage third-party suppliers.  You have to stay up-to-date on real estate market trends, immigration laws, and tax reforms. And all the while, you are responsible for truly guiding your employees and their families through the entire relocation process.  

It’s a lot. We get it.  

We have no doubts that you can handle the relocation process on your own, but you don’t have to. The relocation industry exists to help you provide your relocating employees and their families with the best – the best service, the best suppliers, and the best processes.  

relocation management

Partnering with a relocation management company (RMC) not only helps you get your best and brightest talent to wherever they need to be, it also: 

Reduces Risk 

You aren’t confined to just one moving company, temporary housing provider, or realtor because any RMC worth its salt will have a certified network of global suppliers available to you. No more online searches for untrustworthy companies, just quality vendors determined to provide you with fantastic service and competitive rates. 

Controls Cost

There’s a common misconception that hiring an RMC will cost a significant amount more than running your program in-house. However, the reality is, RMCs are constantly moving high volumes of transferring employees for multiple clients every year. This means they are building strong relationships with suppliers, receiving volume discounts that don’t change, even during peak season. You can also be assured your policies are reviewed regularly to avoid unnecessary dollars spent. 

Saves Time

In-house relocation programs tend to rely on multiple departments – accounting, payroll, recruiting, HR – all requiring a say in how the relocation is managed. In most cases, relocation isn’t their primary job function, and when this happens, oversights can occur, resulting in unforeseen delays. Overpayments, billing errors, and invoicing mistakes can all take additional time to sort out – time your employees just don’t have.  

Managing a relocation program is difficult enough without also having to review another department’s involvement. RMCs do one thing and one thing only: manage relocations. This means they can anticipate your employees needs before they even know what they are themselves. Your employees will experience more consistency in their relocation packages and you’ll enjoy having a simplified process.

 

At the end of the day, we all want the same thing – happy, stress-free, productive employees that are ready to get to work in the new location. And to get there, we need to make sure they get the white-glove service they deserve. Let’s face it, relocation is one of the most stressful events your employees and their families will ever experience. We can’t let them down. 

See what type of relocation solutions WHR Group can offer your program today.

Partnering with your RMC – The Importance of Cultural Fit

Selecting a Relocation Management Company, or RMC, is about more than just finding the right supplier for your company; it’s about finding the right partner. Your RMC is going to be in direct communication with your relocating employees, which means they should share your company’s values and principles. For instance, if your company values transparency, you wouldn’t want to work with a mobility company that hides details from you or your employees, would you?

Cultural fit is one of the most important factors in selecting an RMC, and yet, we don’t often see this as a high priority qualifier. Most global relocation companies have no problem handling different levels of volume or services, and pricing is generally similar. However, companies that partner together to relocate employees should fully understand and appreciate one another’s values. When corporate cultures align, it enables two companies to build stronger and better business relationships.

The Importance of Cultural Fit

Many corporate and government organizations choose to go out to bid for a relocation provider in the form of a Request for Proposal (RFP). This allows them to compare service offerings, find the best pricing, and fully vet each RMC based on factors that are most important to them.

Generally, most corporate relocation RFPs don’t ask culture-related questions, which is unfortunate because this makes it difficult for companies to ascertain whether the RMC would be a good match. During the RFP process, it’s important to narrow down the list of potential RMCs to those that can give relocating employees the information, support, and overall level of service they need in a way that supports your own company’s philosophies.

As you research RMCs, ideally, you don’t want to solicit dozens of bids but try to pinpoint the companies you can see yourself building a strong and long-term relationship with and focus on hiring one of these.

How to Assess Cultural Fit

It’s imperative to find a partner you can trust. If both partners don’t see value in the relationship, it’ll never work and, before long, you’ll find yourself back at square one. If the RFP doesn’t really address culture, you’ll want to ask yourself some questions to help you to determine if you are selecting the right RMC for your business.

  • What is the RMC’s mission and vision?
  • Are the RMC’s values compatible with my company?
  • Does the RMC share the same values/principles as mine, and do the company’s employees exemplify these values?
  • Do any differing philosophies clash or are they workable?

As you start the selection process, try to find out each RMC’s story. Each company is unique and no two will share the same exact culture; however, by taking the time to go the extra mile to find compatibility, you’ll save yourself a lot of time and expense. Strive to research the roots of each one and learn where they are heading – if they are traveling a path that aligns with your principles, you’ll save yourself a lot of headache down the road. You can liken it to a Goldilocks philosophy. Don’t go for an RMC that is too large or too small, you want to find one that is “just right.”

Schedule In-Person Meetings

While details may look great on paper, it’s important to schedule some in-person meetings before finalizing your contracts. This step is as important, if not more important, as the RFP itself because by meeting with the RMC you’ll be better able to size up if your two companies are truly a good culture fit. You’ll often have to use your gut when signing on a new business partner, so it’s a good idea to set up meetings early in the process and be sure to communicate often. As with any relationship, there are bound to be a few bumps along the way; however, by establishing a solid partnership from the beginning, any obstacles that emerge can be solved more easily by working together.

At WHR Group, we believe it’s essential for organizations to find the right cultural match when selecting a global mobility company. We value hard work, trust, empathy, and proactiveness and have been working for more than 24 years to provide our customers with the services they need. Our core values are real, which is why we incorporate them into everything we do, from how we interact with our clients, to how we interact with relocating employees, to how we interact with each other.  To learn more about the services we offer and our company’s culture, contact us today.

Choosing a RMC: Why Bigger Isn’t Always Better

Moving is never easy.

There. It’s out in the open – a truth that your employees will certainly recognize. While there are many factors you cannot control in the process of transitioning your company’s most precious resources – its people – from one place to another, the relocation provider you select is, and the decision is of critical importance. Your relocation management company must be an extension of your culture and share in your commitment to your employees. After all, the relocation company will be delivering your company’s policy, essentially becoming the “face” of your brand.

rmc relocation, WHR Group

It might seem as though choosing one of the high-powered major national firms would be your best bet but think again. Experts say smaller relocation companies – sometimes called “boutique” or “right-sized” firms – can provide better service, adapt more easily to your company’s corporate culture, and deliver a better value for the price over their larger competitors.

Service With a Personal Touch

Whether your employees are moving across town or across the globe, it’s certainly going to be difficult for them to keep their heads in the game business-wise with dozens of details in flux – especially when there’s a family involved in the move. Thanks to their lithe structure and employees empowered by fewer layers of approvals, these smaller relocation companies are uniquely capable of providing the type of responsive service that will help allay those moving jitters, and in turn, enable your team members to maximize their productive time.

“With smaller companies, the consultants typically handle smaller caseloads than do larger relocation firms,” says Brenda Sunoo of Workforce magazine. “They’re likely to deliver on their promises for consistent, customized, flexible, and personalized services. With the more complicated relocation cases, the staff at smaller companies will be accessible and quick to solve unexpected problems.”

A second point many leading experts mention regarding service is that with a “right-sized” firm, your employees are more likely to have their needs met by a single point of contact, generally backed up by a second team member, at all times. Most employees in the midst of a move find it troubling to have to keep up with the details from so many different inputs. Having a single point of contact is much easier on the nerves, returns your employee to productive time, and leaves him/her with a more positive experience of the relocation as a whole.

A Better Cultural Fit

Customization is another point of differentiation. While colossal multinational relocation companies may well have all the bells, whistles, and tools you’re looking for to serve your employees, will they pick up on important nuances of your business that may require altering those tools in order to help them best serve you?

If the answer to that question is no, this can mean exponentially different degrees of frustration for your employees, and your in-house team could be dealing with processes that should take minutes but can turn into hours. Smaller, “right-sized” providers have the ability to absorb important details about your company culture and fine-tune their services, working hand-in-hand with your team to effectively become your partner in relocating your employees. Many times, individual counselors bond with the employees they’re working with and form real relationships that go well beyond the job.

A Difference at the Bottom Line, Too

While these personal touches are the all-encompassing hallmarks that will matter to your employees, you’ll generally also see a bonus when it comes to the bill: Smaller relocation companies characteristically work on a streamlined operational framework, which in turn means cost savings. Plus, you’ll find that these companies’ suppliers operate in a similar manner, meaning competitive quotes and decreased costs when it comes time to pay the bill.

Additionally, you can be confident the vendors your relocation company chooses are chosen strictly on their merits – not because your relocation company also holds a stake in the van line, the storage company, or another provider within the supply chain.

So, there you have it: When it comes to corporate relocation companies, very good things come in small packages. Much like the concierge at a fine hotel, this job is truly about service, and that “servant’s heart” is at the foundation of success. Coupled with the kind of flexibility in customization that only an agile, right-sized team can offer, it’s the “it” factor that makes them truly the force to reckon with in the relocation landscape.

Go In-Depth Into the Importance of Culture When Selecting a Relocation Management Company

The Pros and Cons of Going Out to Bid for a Relocation Supplier

Read the updated version of this article here.

So, you have made the decision to outsource your employee relocations to a Relocation Management Company, or RMC. If only that was where the work ended!

Now, you must choose the one RMC that best fits your workplace culture, employee needs, company budget, and any other criteria that you require in a supplier. With so many RMCs to choose from, the question becomes how do you find the right one?

relocation suppliers

The Procurement Process

When selecting a relocation supplier, it really comes down to two options: Going out to bid (competitive procurement), or selecting a supplier on your own (non-competitive procurement).

Procurement Option 1

Going out to bid, also known as competitive procurement or open tendering, occurs when you send out a bid request, typically in the form of a request for proposals (RFP). RMCs can choose to respond to your request and submit a proposal explaining their company, capabilities, and pricing. Once you receive the proposals, you will compare each against your most important evaluation criteria. This process can include multiple rounds of meetings or bidding.

Procurement Option 2

If you’ve already decided which RMC you want to pursue based on your research and previous communications, then you don’t need to open your search to other suppliers. This non-competitive procurement process, also known as sole sourcing, occurs when you choose an RMC without a bidding process. However, in some instances, a company will choose two or three RMCs to reach out to, resulting in a smaller, more intimate bidding process.

Each procurement process has its own pros and cons, so it’s essential that you choose the path that best suits your company’s and relocating employees’ needs.

Advantages of Going Out to Bid

  1. It encourages competition: Typically, when you go out to bid, you will have a greater pool of RMCs to choose from, and those responding are likely to offer you their best pricing right away. Another consideration is you may learn about other benefits or service offerings that you didn’t think to ask for initially.
  1. Advocates transparency: The idea behind the bidding process is each RMC will essentially lay all their cards on the table: They show you their pricing, services, and value-adds, and you choose a supplier based on those responses. This results in a fair selection process while offering you a clear vision of what is most important to your company.
  1. Easily compare different RMCs: Having RMCs follow a certain format, and each answering the same questions, allows you to easily compare answers and rule out any RMCs that don’t meet your immediate requirements.
  1. Fully vet your options­­: Creating an RFP lets you choose what you want to learn about the responding suppliers. This helps you fully understand what each RMC has to offer and allows you to ultimately choose the company that best fits your needs.

Disadvantages of Going Out to Bid

  1. It can be time-consuming: The bidding process can take anywhere from 2 – 6 months, or even longer, depending on your internal decision-making process. It also involves several intricate steps from RFP development to initial bids and follow-up questions to final presentations and on-site visits to help you make your decision.
  1. Associated costs: It will undoubtedly cost more to go through the RFP process than to simply choose an RMC to work with. The cost of developing the RFP, screening suppliers, reviewing responses, and follow-ups can take a toll on your company’s time and budget. Typically, a company’s relocation program accounts for 90-95% of the relocation “spend”, with only 5-10% being paid out to the RMC.
  1. Eliminating the wrong suppliers: There are many viable RMCs that simply don’t participate in competitive bidding opportunities. The reasons vary from high associated costs to having a different pricing structure that does not compare easily in an “apples to apples” review process. You could be missing out on an RMC that would be your ideal fit.
  1. Promises of unattainable pricing: For some RMCs, winning new business is more important than upholding your needs throughout a long-term partnership. These RMCs will solely bid for your business to undermine competitors, even if their proposed pricing is unattainable for their own bottom line. This can cause a headache during the implementation process, or result in a requested fee increase in the first or second year.

Choosing Non-competitive Procurement

If going out to bid doesn’t sound like the best option for your company, the other option is the non-competitive procurement process.

You can select a supplier you know will best service your relocation requirements based on your research and prior communications. This process really works best if you know one or two RMCs that already fit your needs and company culture.

This option also works best if you are working within a small window of time. You won’t have to review multiple in-depth proposals—just the pricing proposals from the RMCs of your choosing.

Next Steps

So, ask yourself, what is in the best interest for your company? Do you have the time to fully vet RMCs through a competitive procurement process, or do you need an RMC now? Do you have a couple RMCs already in mind, or do you need more information on other options out there?

Selecting an RMC is an important business decision for your company. You want to find an RMC that best meets your company’s needs, whether that be high-quality support for your relocating employees, lowest cost, the most advanced technology, or a combination of all three.

8 Things to Look for in a Relocation Supplier

There are many reasons you could be looking for a relocation supplier right now. Maybe your company has outgrown managing its relocations in-house. Maybe your procurement department is driving a need to go out to bid. Or maybe you’re just unhappy with your existing relocation supplier.

While relocating employees to new job opportunities can be stressful, selecting a relocation management company to ease the process doesn’t have to be.

Relocation management companies, or RMCs, ease the stress of moving employees on your own. RMCs organize employees’ departures, help them find new homes, move their belongings, and assist with settling into their new communities.

If this is what you’re looking for, how do you know which RMC is the best choice for your company and employees?

relocation management, WHR Group

Before You Choose a Relocation Supplier

Before you even begin looking for a supplier, you and your company’s other decision-makers need to define what you’re looking for most in an RMC.

Make a list of your top wants and needs, and stick with this list throughout your selection process.

Start by considering your own company: Is cost your company’s most important motivator? Is service satisfaction? Is it both, or something else entirely—like the RMC’s management structure or years of experience?

Also take into consideration your company’s size and anticipated number of relocations per year. RMCs range in size from thousands of employees across multiple continents or companies located in one office to streamline delivery and communications. Do you want to be a small fish in a big pond, or do you need to be a big fish in a smaller pond? Really get to the heart of what your company values most in a supplier.

Note: Contrary to what you hear, all RMCs are not the same. While they might offer similar services and guarantees, it’s in their delivery where you find their differences. This is where you will want to keep your “list of wants” handy, so you find the RMC that best fits your needs.

Want some help getting started? Here are 8 things to look for when selecting an RMC.

8 Things to Look for When Selecting a Relocation Supplier

1. Partner Mindset

First and foremost, you’ll want to make sure the supplier you choose is more of a partner. Long-term partnerships with an RMC will yield better and more consistent service plus significant cost savings. (WHR Group’s longest client has saved over $22 million throughout our partnership.) The RMC you choose should uphold a commitment to long-term partnerships with incentives such as ongoing policy consulting and proactive recommendations for your relocation program.

2. Flexibility and Responsiveness to Change

The key to any well-oiled process is flexibility and responsiveness to change. If your business opens a new location, is the RMC experienced in managing group moves? If your management structure or culture changes, is your RMC flexible enough to incorporate these changes into your existing relocation policies?

Don’t forget about incorporating your business into the RMC’s technology and reporting tools. Can they make the data customizations you need—and quickly—to keep you productive in your role?

3. Comprehensive Support

How does the RMC define relocation “success”? Look for commitments to helping you succeed in your role and easing the relocation process for your employees, too.

How does the RMC set you and your employees up for success?

4. Above-and-Beyond Customer Service

What experience does the RMC have with not just maintaining but improving satisfaction of employees’ moves? How can they truly guarantee your company stress-free relocations?

Ask about their service delivery structure, how they motivate their own employees to deliver top-notch relocation experiences, and how they keep customer service as a core offering—not a commodity.

5. Marrying Service with Cost Savings

Working with an RMC that offers stellar customer service doesn’t mean you have to pay extra. In fact, working with a service-first company often leads to less exception requests in your policies, less fires to put out, and more money saved in the long run.

You’ll want to be aware of two things:

  • How does the RMC structure its fees? Far too many RMCs have hidden program costs that will never be discussed with you. Collection of fees from downstream providers, mark-ups, and non-compliance fees are just a few of these hidden costs, so be sure to ask about fees and transparency with your RMC.
  • Collect proof: Ask what innovative tools or processes the company has implemented to increase cost savings for clients.

6. Supply Chain Management

What is the RMC’s own supplier management process? RMCs manage their own network of suppliers, like brokers, appraisers, movers, and international service providers. What is the RMC’s selection and qualification process for consistency across all touchpoints in employees’ experiences?

Are RMCs affiliated with their suppliers in any way, limiting the options your employees have to work with? There should be a clear mechanism in place to choose the best supplier for each employee and every service.

7. Network Coverage

Network coverage is also key. Really, no one RMC can be located in all areas your employees are moving in and out of. That’s why it’s important to work with an experienced supplier with a vast network and the capability to streamline services across their offices, or better yet one point of administration for ultimate control in service delivery.

Ask how many brokers and appraisers in particular the RMC can work with. This is especially important to know for the more rural locations your company may have.

8. Company Management Structure

A final factor to consider is the RMC’s own management style, how they operate, and how they treat their employees. Make sure the RMC has a solid training and education program in place.

Are their employees real estate licensed to assist with homeowners? Has the company been voted a Top Workplace or similar? After all, happy relocation counselors mean happy employees on your end.

 

For more information on how WHR Group can take your relocation program to the next level, please call 800-523-3318 or email [email protected].