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Analytics and the Review Process

Reviewing your mobility program requires more than an overview of numbers. It needs to include a deeper dive into why those numbers may be changing.  In addition to helping you determine if exceptions are getting out of control, or one cost center is being more generous that others, sometimes, a statistical change can be misinterpreted if not looked at from every angle.

Recently, a client reached out, concerned that, although initiations had not increased, the year to date expense had taken a notable spike.  On the surface, their conclusion was correct.  While expenses increased over 16% over the same period last year, overall initiations were actually down almost 7 percent.

 

The first thing I did was break out the expenses by category.  Immediately, I could see the culprit.  While other category expenses stayed in line with the previous year, the homesale expenses increased significantly, mirroring the year over year expense variance. Additionally, while there was a small increase in average sale price, this uptick in homesale expenses was more due to the number of sales completed during the two periods.

 

This is where I found the good news.  Looking at the average days on market for each home that sold over the past two years, I was able to see a positive trend. Homes are selling faster.  In the past 12 months, homes sold in an average of 32 days on the market, verses 59 days in the previous year.

 

Additionally, I found the average program cost went down almost 30 percent over the same period!  Logically, this makes sense, if you think about it.  The biggest drag on a relocation program is the homesale piece.  In addition to typically being the biggest ticket item, it also impacts other benefits when the market is soft.  When transferees cannot sell their home, you find they need to use more temporary living, home trips, loss on sale benefits and exceptions.

 

analytics over review

 

So, in the example above, what appeared to be a negative program development, is in actuality a sign of an improving economy and an indication of future savings.

 

Should this positive trend continue, employers should look at those benefits used to entice potential candidates in a slower, uncertain market and grant them by exception, or remove them outright. By removing these benefits (which no longer make the difference between accepting or refusing the move), employers can cut costs further.

 

When you look at your historic program data, do you have a clear understanding on the cause of trends?

Why You Really Need to Review Your RMC

“If it ain’t broke, don’t fix it!”  That’s how the expression goes.  But, it’s time to evaluate the definition of broken.  I’m willing to bet that there are a number of factors why you have postponed reviewing the job your relocation management company is doing.

The Low Down on Temporary Living Expenses

Temporary living can be a doozy of a line item in a relocation budget.

Real Estate Round Up

Ever since I began working in the relocation industry, I’ve had a deep fascination for all things real estate. Makes sense if you think about it, right? We help transferees move all over the world! Selling and buying (or renting) a home is obviously an integral part of the relocation process and so I like to keep up on real estate trends both in the country and out. I typically like to choose one specific topic to share my take on but this morning, during my daily scour of the New York Times, I found too many great articles offering amazing advice and insight. So rather than share my take on one, I’ll just share the articles themselves.

Tips for Managing Summer Relocation Stress

It’s that time of year again – the middle of the busy summer moving season. We can sort of (maybe, kind of?) see the light at the end of the tunnel of the busy season but stress is still high from all the moving volume. Of course, we love what we do. But, by this time, a moment to catch our breath is a welcome treat. 

Top 50 Relocation Questions: Part 5 of 5

Today is the day! Part five of our five week series to go over the 50 most common questions we receive from transferees and the answers that we provide on a regular basis. This week, to close out the series, it’s time to go over questions 41-50.

Top 50 Relocation Questions: Part 4 of 5

Welcome to week four of our five week series to go over the 50 most common questions we receive from transferees and the answers that we provide on a regular basis. This week, as promised, it’s time to go over questions 31-40.

Top 50 Relocation Questions: Part 3 of 5

Welcome to week three of our five week series to go over the 50 most common questions we receive from transferees and the answers that we provide on a regular basis. This week, as promised, it’s time to go over questions 21-30.

Top 50 Relocation Questions: Part 2 of 5

Last week, we began a 5 week series to go over the 50 most common questions we receive from transferees and the answers that we provide on a regular basis. This week, as promised, it’s time to go over questions 11-20.

Top 50 Relocation Questions: Part 1 of 5

Every year, we move thousands of corporate transferees around the globe. Some are homeowners, some are renters, some are domestic and some are international. We handle group moves, family moves, individual moves, temporary moves and even permanent moves. As you can probably imagine, we have fielded just about every transferee question pertaining to relocation there is … even some real stumpers! As we are gearing up for the busy relocation season, it dawned on us that we should be documenting all of the questions we receive and the answers we provide so that we can share it with you, as well as our transferees. If you have ever wished for a desk reference of frequently asked relocation questions so that you can respond to your employees, this five week blog series is for you.

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