“But we’ve always done it this way”

How many times have you heard “but, we’ve always done it this way!” proclaimed in your organization regarding your processes or service offerings? Change is hard. And regardless of whether we’re motivated by our negative emotions, or simply underestimate the process of change, it ultimately seems easier to stay with the status quo.

But we can’t.

From the business standpoint, we need to be willing to change, to grow. If we don’t, someone else will come up with something new, something innovative, and put us right out of business.

Historically, this happens all the time – new players emerge that make others irrelevant or less attractive.

But… how exactly does this apply to the relocation supply chain?

When it comes to change in the relocation supply chain, innovation typically takes place in the form of technological advancements. For example, when shipping household goods, there have been some changes in terms of electronic logs, video surveys, and truck technology; however, the physical logistics of the move are still very much the same as they’ve always been. Physical labor is needed to collect the goods, put them on trucks, transport them, and unpack them in the new location.

Most corporations that relocate employees have contracts with household goods carriers. Those corporations then allocate moves on a rotational basis between the carriers, which seems like a reasonable approach, but what happens when a carrier is too busy or doesn’t have the equipment available for that particular move? They have to either pass on the move, accept the move and “figure it out,” or call in a partner through their network. While this can work, it is not the most efficient or most practical approach.

MMP™ and the Impact to Vendors

When van lines agree to moves that they simply can’t handle, it can cause serious issues for your relocating employees. That’s exactly why WHR developed an advanced technology platform, MMP™, that allows household goods carriers to choose moves that work best for their time frames and traffic lanes. Rather than send orders out to movers, our technology grants movers the opportunity to select moves deemed most desirable to them. It is really an “opportunity board” that gives movers choice and provides them with a strategic advantage to view shipments before accepting, allowing them to avoid deadheading and overbooking.

One of the most expensive costs a trucking company frequently absorbs is “deadheading,” or driving an empty truck back to its home base. WHR’s opportunity board allows dispatchers to view open moves so they can schedule loads that will work for return trips. The elimination of deadhead trips means trucks become more productive and profitable.

The MMP™ Impact to Clients

The client benefits are tremendous. Since implementing MMP™, WHR’s clients save 26-42% per move with 43% lower move claims average, and 98% employee satisfaction ratings. This system allows our specialists to select the best carrier option based on price and historical performance, for each employee’s unique move needs. Supplier performance standards include employee satisfaction rating, timeliness, and performance.

With MMP™, everybody wins. Your employees receive the best dedicated crews for service compliance, and you receive best-in-class pricing for all household goods moves.

Yes, change can be hard. If there’s a better approach to doing things, wouldn’t you rather work with the person embracing that? Companies must be willing to change and grow in order to stay relevant, which is exactly what WHR is doing. We see a potential problem or complicated process and implement a solution, regardless of whether that is in the form of a technological advancement, new process, or service offering.

Click here to learn more about MMP™ or contact us today to find out other new and innovative ways WHR Group is helping advance the relocation industry.

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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.

State of the Canadian Housing Market

Overvaluation and price acceleration continue to plague the Canadian housing market. According to the Canada Mortgage and Housing Corporation (CMHC), the housing market continues to have a high degree of vulnerability for the seventh consecutive year. The Housing Market Assessment (HMA) analyzes four main factors to determine vulnerability, or imbalances, in the housing market: overheating, price acceleration, overvaluation, and overbuilding.

Bob Dugan, Chief Economist with CMHC, states “our market assessment continues to show a high degree of vulnerability at the overall national level due to moderate levels of price acceleration and overvaluation existing together.”

Only weak signs of overbuilding and overheating were detected for Canada as a whole, with both indicators well below their threshold levels. However, the sales-to-listings ratio lies above the threshold of overheating and has for at least two quarters over the last three years.

What this means for individual markets

Victoria, Vancouver, and Toronto all scored high vulnerability in overvaluation, indicating that house prices are elevated compared to price levels supported by personal disposable income, population, interest rates, and other fundamentals. And with Amazon’s recent announcement to expand its Vancouver tech hub, housing prices could soar. Vancouver’s supply of available rentals has remained below 1 percent for three years in a row.

Calgary, Edmonton, Saskatoon, and Regina exhibited high evidence of overbuilding. In Edmonton, imbalances in ownership and rental markets were detected. The inventory of completed but unsold units also continued to drift around threshold level, while the apartment vacancy rate remained at threshold level.

For the fifth straight quarter, vulnerability in the Montreal housing market remained low. The level of personal disposable income, combined with the accelerated population growth among young adults, indicated that home prices have remained at justified levels. Still, given the marked tightening of supply and demand, the Montreal resale market is moving ever closer to overheating, which is putting a strong and steady pressure on prices.

“We just have our eye on [Montreal] to see whether price growth remains sustained and maybe spreads to more neighborhoods within Montreal,” said Dugan.

Business Travel During a Winter Storm: Improvements at JFK Airport

Ever hear of a snow ‘bomb cyclone’? Well, if you traveled by plane in January of 2018, you know what we’re talking about. The harsh winter storm that hit the northeast United States left hundreds of travelers stranded and in the dark on what to do next. The Port Authority, the joint venture that manages LaGuardia Airport, John F. Kennedy International Airport, Newark Liberty International Airport, and other transportation infrastructures, reacted slowly to close terminals causing mass confusion and chaos.

But there is good news for business travelers.

The Port Authority announced on Monday that JFK Airport has implemented new procedures to follow during winter storms that will mitigate impact. “The measures announced [Monday] represent another critical step to enhance performance at JFK in future winter storms,” said Port Authority Aviation Director Huntley Lawrence.

These new measures include:

  • A new planning procedure for airlines that will establish a specified “storm window.” This window will be used to determine if flights will be cancelled.
  • The JFK Emergency Operating Center (EOC) was established in January and operates on a 24/7 basis during all winter storms.
  • JFK created an airport-wide inventory of equipment to be used during winter storms, which will be deployed as necessary to airlines, terminal operators, or ground-handling organizations.
  • New baggage service obligations were implemented, which includes a baggage service office that meets international best practice standards.
  • Operators are required to certify that all relevant equipment is fully fueled and checked for storm readiness.
  • JFK will now provide employees access to heavy duty buses prior to, and during, winter storms, ensuring they can get to the airport on time.
  • The airport will spend $3.5 million on four snow blowers and $1.4 million on four snow plows prior to the 2018-19 winter storm season.

From a logistics perspective, The Port Authority is confident that these measures will ensure smooth travels during the 2018-19 winter storm season. Lawrence said, “what happened in January cannot and will not happen again.”

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

5 Simple Ways to Cut Relocation Costs

It’s no secret that employee relocations are expensive. While we’ve spent the last 24 years finding ways to save our clients tens of millions of dollars on their relocation programs, there are other things you can be doing right now to save on your relocations.

Here are 5 simple ways to cut relocation costs right now.

 

Review, Review, Review

When was the last time you really took a hard look at your relocation program? If you’re thinking it’s been more than a year, it may be time to complete a review. Ask your current relocation provider for recommendations if they aren’t already providing them proactively.

Plus, when’s the last time you benchmarked your program against your peers? To stay competitive in the war for talent you need to know how your policy stacks up against others in your industry.

Have you considered introducing caps?

If it’s policy to offer benefits like a home sale bonus or a loss on sale allowance for your employees, consider placing a cap on these items if you aren’t already doing so. Caps will help reduce allowances in excess and simplify the benefit across all employees.

Two words…Exception Management

Your current relocation provider should be analyzing your company’s exception requests, and if not, it’s time to ask. At WHR Group, our Client Services Managers track and report on exceptions on an ongoing basis. We review commonalities and offer solutions based on our findings. You should ask: Are the exceptions being requested “wants” or are they “needs”? These are all things that need to be addressed when handling exceptions for your transferees.

Add a little competition

Ask yourself, does your relocation provider use certain vendors all the time? Conversely, does your relocation company have a vested interest in using those specific vendors? If so, is your provider being transparent with you about these revenue sources? At WHR Group, we’ve found that by being independent we can use vendors that offer the best service at the most competitive price. That’s why we introduced our Move Management Platform, or MMP™, so our clients can save even more without compromising the white glove service standard WHR Group is known for.

Make sure you’re receiving all available tax benefits

There has been a lot of tax changes this year. While moving expenses are no longer tax exempt, there are still areas within the relocation industry where you can still receive certain tax benefits, especially if you are offering a home sale program. Offering a direct reimbursement of home sale expenses may sound like the easiest option, but with no tax benefit, it may not be the best option for you or your employee. You may be better off using the Guaranteed Buyout or Buyer Value Options. And, as long as these programs adhere to IRS requirements, your company can still benefit from certain tax savings.

 

Interested in learning about the other ways WHR Group is helping our clients save money? Contact us today at [email protected] or 800-523-3318.

Learn More about Exception Management and How Being Flexible Can Help Ease the Transition of Your Employees