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Pit Crews and Policies

I originally wanted to name this post, “Everything I learned about Mobility, I learned from NASCAR,” but it was so cliché and I’ve learned so much more from my career in mobility to devalue the experience. But, I thought it would be a “fun read” to look back on my former experience in motorsports marketing to compare some common traits about the sport and the mobility industry.

Why an RFI is More Important Than an RFP

As a seasoned sales professional in this industry, I have worked on my fair share of RFP exercises spanning both small and large opportunities across corporate America. It still amazes me that in this world of emojis, texts and Instagram, it takes a monolithic research assignment to choose a business supplier partner. As much as I respect a diligent research process for purchasing any product or service (for both consumers and B2B), I think the industry has taken its eye off the ball when it comes to focusing on the three main reasons to work with a specific partner – Team, Culture and Achievements. Unlike traditional RFIs that seem to ask a range of general questions, focus on these three key areas.

The Difference Between Tier 1 and Tier 2 Supplier Diversity Spend

Companies privy to the importance of implementing a Supplier Diversity Program seek to expand their programs to include both Tier 1 and Tier 2 spends. So what is the difference? Let me break it down a bit today.

Supplier Diversity: What & Why

We all know that supplier diversity is important, right? But ask yourself … do you really know exactly what that entails and more importantly, do you understand WHY it’s so vital for a percentage of a company’s annual spend to be centered on diverse suppliers? Simply put, a supplier diversity program is a business program that proactively encourages the use of minority-owned, women owned, veteran owned, LGBT-owned, service disabled veteran owned, historically underutilized business and Small Business Administration (SBA)-defined small business concerns as suppliers. Okay, that makes sense, right? But what’s this all about and why is it important?

Lump Sums… A Moving Target

So, you just hired two great candidates for two new assistant manager positions in headquarters.  New Hire 1, we’ll call him Jim, is married with 2 kids.  New Hire 2, we’ll call her Mary, is single.  They both have about 800 miles to travel to their new location.  Your relocation policy for their job level allows for a lump sum of $6,000.

 

How’s that working for you? How does that make the transferee feel about their new job?

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. 

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RICK CALANNI
VP of Business Development Northeast Region

 

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