Pre-Decision Services and Why They Matter | Whitepaper
Relocating employees, whether for a temporary assignment or a permanent move, can be a complex process that requires careful planning and consideration to ensure success for both the company and the employee.
Many mobility professionals have faced failed relocations, often due to misaligned expectations or mismatches between the employee and the new role. Including a pre-decision benefit in your policy can help mitigate these risks.
Pre-decision services play a vital role in the selection process, offering a reliable framework that aids both employees and employers in navigating the complexities of relocation. These services include a variety of assessments and resources that empower employees to assess their readiness for a new assignment and make informed decisions.
Whitepaper includes:
Overview of Pre-Decision Relocation Services
Pre-decision services, offered by relocation management companies (RMCs), assist employees during the early stages of the relocation process. These services typically begin once an employee is identified as a potential candidate for relocation or an assignment and continue until a final decision is reached. Their primary purpose is to provide holistic support, considering both personal and professional factors that influence the employee’s decision.
Relocation is a significant life change, impacting not just the employee but their family as well.
Pre-decision services help address emotional, logistical, and financial concerns, easing anxiety and facilitating a smoother transition.
By conducting a pre-decision assessment, companies can proactively identify and resolve potential challenges, minimizing disruptions and ensuring a smoother experience for both the employee and their family.
9 Pre-Decision Services typically provided by an RMC
1) Needs Assessment/Benefit Overview
A pre-decision call is typically conducted via phone or a virtual platform like Teams or Zoom, involving the Relocation Management Company (RMC) counselor and the prospective or current employee before they accept a relocation offer.
This conversation allows the RMC counselor to outline the relocation benefits provided by the employer and address any questions or concerns the employee may have:
• Helps set clear expectations
• Establishes timelines
• Reassures the employee of the support available from both the employer and the RMC throughout the relocation process.
This call can significantly influence the employee’s decision to accept the role, thereby aiding in recruitment and retention efforts. Additionally, the RMC commits to transparently communicating any
potential issues or concerns back to the employer’s global mobility or talent acquisition team.
2) Cost Estimate/Cost of Living Adjustments (COLA)
Obtaining a cost estimate along with cost-of-living information gives the company a clear understanding of the financial implications of the relocation. This information helps with budgeting for relocation expenses, as well as potential adjustments to salary or benefits. Understanding the cost of living in the new location is crucial, as it directly affects the employee’s financial stability and overall quality of life.
Variations in transportation costs, housing and daily expenses can significantly impact the employee’s financial comfort and willingness to relocate. By considering these factors, employers can make informed decisions that align with both their budget and the well-being and retention of their employees.
3) Mortgage Pre-Approval (US only)
Including mortgage pre-approval in the pre-decision process gives the employee a clear understanding of their financial capacity and how much they can borrow, allowing them to set realistic expectations for housing options in their new location. This is especially valuable in markets with fluctuating prices, as it enables the employee to act quickly and confidently when suitable property becomes available. For the employer, this helps streamline the transition by reducing potential delays in securing housing, allowing the employee to focus on their new role without the added stress of housing uncertainties.
4) Real Estate Evaluation/Broker Market Analysis
The RMC collaborates with a real estate agent or destination service provider to offer employees valuable information and resources. This may include insights into the local housing market, such as current listings, average home prices, rental costs, and neighborhood trends, helping employees understand their housing options and budget. Beyond housing, they also provide details on community resources like schools, childcare facilities, healthcare services, and recreational activities, enabling employees to assess the overall quality of life in the area.
5) Destination Information
The RMC collaborates with a real estate agent or destination service provider to offer employees valuable information and resources. This may include insights into the local housing market, such as current listings, average home prices, rental costs, and neighborhood trends, helping employees understand their housing options and budget. Beyond housing, they also provide details on community resources like schools, childcare facilities, healthcare services, and recreational activities, enabling employees to assess the overall quality of life in the area.
6) Travel Assistance
Travel management covers expenses like airfare for preview trips, hotel stays, rental cars, and more. These services are usually handled by a company’s internal travel team to take advantage of corporate discounts and travel programs.
RMC can also manage travel arrangements, typically for an additional fee.
7) Preview Trip
A preview trip gives the employee a chance to gather firsthand information about the prospective location, including the local culture, work environment, living conditions, and overall atmosphere.
During the visit, a Destination Service Provider will meet with the employee to address questions about living in the area, schooling, and housing options. This allows employees to raise any concerns or preferences they may have before making a final decision about the relocation or assignment.
Whether related to family needs, safety, or logistical challenges, proactively addressing these concerns helps employees feel more confident and supported in their decision-making. This firsthand experience enables the employee to determine if the assignment aligns with their personal and professional goals, increasing the chances of a successful relocation.
8) Expense Management
Expense management is a critical component of pre-decision services as it provides the employer with clarity and control over relocation costs.
RMCs can provide expense management services and collaborate with employers to reimburse eligible expenses for the employee, such as flights, mileage, hotel stays, and more.
For employees, understanding reimbursement policies, relocation allowances, and potential tax implications enables employees to make informed choices about their move, enhancing their overall experience.
9) Vacant Property Management
For international assignments, a key consideration for employees is managing their current home while they are away. RMCs can provide global vacant property management services during the assignment. The RMC will connect the property with an appropriate real estate or rental management office, along with a dedicated real estate or property management agent. These services cover essential tasks, including overseeing repairs, managing maintenance contracts, and handling emergency issues, lawn care, and snow removal.
Property management can be administered regardless of whether the property is occupied or vacant.
Pre-Decision Services Benefits
Personal Fit/Quality of Life
Pre-decision services allow employees to assess whether the new location matches their personal preferences, including climate, culture, community, and recreational options. This helps them determine if the move aligns with lifestyle and well-being.
Financial Considerations
Relocating to a new location involves several financial factors, such as cost of living differences, taxation changes, housing affordability, and potential relocation expenses. Pre-decision services help employees understand how the move will impact their budget and long-term financial goals.
Family and Social Support:
For employees with families or dependents, their well-being is a key consideration. The pre-decision process helps evaluate factors like access to healthcare, schools, social support networks, and the overall quality of life for their loved ones.
Retention and Engagement
Relocation is a major life change that can affect employees’ job satisfaction and engagement. A pre-decision program shows the company’s commitment to supporting employees during this transition, boosting retention rates and maintaining morale.
Cost-Effective Relocation
Investing in pre-decision services can lead to significant long-term savings for organizations. By selecting the right employees for relocation, companies can reduce turnover, minimize costs from failed relocations, and improve the effectiveness of their talent mobility strategies.
Alignment with Business Goals
Pre-decision services ensure that employee decisions are in line with organizational objectives. By preparing employees and boosting their confidence in relocation, companies can optimize talent deployment strategies and drive business success.
Summary of Pre-Decision Services and Why They Matter
The integration of pre-decision services into an employee relocation program is essential for fostering a positive experience for your employees.
As an employer, investing in pre-decision services not only enhances workforce planning but also contributes to reduced turnover rates. These services not only ease the transition for the employee, but also support broader business goals, resulting in better outcomes for both individuals and the organization.
When employees feel supported and well-informed about their relocation options, they are more likely to commit to their new roles and environment. Ultimately, embracing pre-decision services as a core component of your relocation strategy will lead to better outcomes positioning your organization for greater success in your talent mobility initiatives.
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Interactive Repayment Agreement
Domestic Relocation Policy Designer
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RFP – Relocation Request for Proposal Generator
