The relocation industry is comprised of a diverse set of businesses. Between third-party relocation management companies (RMCs), real estate experts, finance gurus, brokers, appraisers and more, service partners come in all different shapes, sizes, styles and personalities. This is great news, because corporations are equally diverse and all the different options make it possible to find perfect pairings. Over the course of my blogging, I want to take a look at different criteria to see what, if anything, matters most.
Size is often a hot topic during the RFP process. It usually goes something like this: robust programs require a big provider, mid-sized programs are suited to mid-sized companies and smaller programs are either handled in-house or with small relocation outfits. As I contemplate this model, I have to question its validity. When has relocation ever been that black and white? Never.
So, when it comes to finding a relocation services provider, does size really matter?
In my attempt to answer this question, I reached out to Jack Jampel, a friend of mine who currently manages domestic relocation for a leading medical technology corporation. For a number of years, he also managed global mobility for a major pharmaceutical company. Although he is not a client of ours, we have always appreciated his honest and professional approach to relocation. With more than fifteen years of experience managing relocation partners of all sizes, Jack’s insights on this issue are invaluable. Please enjoy our interview below:
Thanks for agreeing to speak with me today Jack. First, can you describe your experience in the relocation industry?
You are most welcome! I’ve managed both domestic and international relocation programs for corporations for approximately 15 years. Prior to my experience with relocation, I was heavily involved with other aspects of human resources, as well as the business itself. I find my experience outside of mobility to be a great advantage, because I have a better understanding of the direct impact that mobility has on the business and the entire company. I don’t look at things from only the mobility perspective. In fact, I look at it quite the contrary since we are here to support the business.
You are often responsible for retaining relocation services providers. Without mentioning any names, what types of relocation companies have you partnered with in the past?
I have worked with both large and mid-sized companies over the years, and both with RMC companies and other third parties. The majority of my career in mobility has been spent working with your larger RMCs, but, most recently, I’ve been working with a mid-sized firm and there are differences.
So, size does matter then?
Yes…and no. I don’t think that large companies should only go with large RMCs, or that small companies should only work with small firms. What really makes a relocation company successful is how well they manage their third party providers. That said, I do believe that some of the larger RMCs may be better equipped to handle those corporations that have high volume and more complex relocation programs.
In my experience, I do feel that small-mid-sized firms offer a more personal touch – especially for corporations that would be considered a larger client. Smaller relocation companies need to work extra hard and tend to bend over backwards to make sure transferees and their clients are satisfied because they know that, for the most part, companies still believe in the large to large and small to small RMC model. So, your mid-sized companies that have worked hard to gain the trust of larger companies are now going to go the extra mile to make sure they keep them.
I’ve also noticed that mid-sized companies have fewer layers of management and smaller client teams. This tends to lead to a better understanding of the clients’ big picture. Fewer layers also mean that mid-sized companies tend to have a quicker response model in certain areas. For example, customization of reporting is critical to the business and mid size companies seem to be able to accomplish this more quickly.
This all brings me back to what I said earlier regarding your question: does size really matter? I don’t think there should ever be a service difference between large and mid-sized companies. To me, excellent service is a reflection of corporate culture, managing third party partnerships, proper training and development opportunities – and not the size of the RMC. Global Mobility is a very stressful business. While I understand that there will always be issues, relocation companies of all sizes should always take the best possible care of both the clients and transferees.
What are the three most important things you look for from your suppliers today, regardless of their size?
Is there anything else you think our readers would find interesting?
Suppliers need to be an extension of the client company. The responsibility of maintaining this relationship successfully is mutual. In fact, I have stopped calling relocation companies suppliers – now I call them business partners. We should strive for great service from our business partners but, given the stressful nature of our business, RMCs should never feel intimidated or threatened. This would prohibit them from giving us the honest and reliable service. If there is discomfort in the relationship, then mobility managers should examine their role as well – honesty and trust on both sides are imperative for an optimal partnership.
Thank You Jack for taking the time to speak with me today!
Are you a corporate HR person who has had experience with both large and small to midsize relocation management companies? What are the differences you see? Does size matter? Leave your thoughts below.
Great post..
I run a small relocation company and I love nothing more than being in total control of how my clients and assignees are looked after from beginning to end. I often consider growing my business but although I am small I still work directly with very large global corporates who are always very impressed with the level of service provided.
Thanks for your comment Sally! You hit it right on target with honesty, integrity, good communication, and attention to detail!!
I agree with the comments made – the most important things, regardless of size, is honesty, integrity, good communication and attention to detail, qualities we pride ourselves on at Straight Home. The most important person is the employee relocating, getting things right for them and making sure their move is as stress-free as possible.
Hi Rajan, Thanks for your comment! Size shouldn’t dictate if you and/or your company are to be considered as a potential service provider. Quality, knowledge, experience, great customer service, competitive pricing, among other things are what should be considered! When clients rate you as “the best” then that speaks for itself! Thanks again!
As an individual who went at it alone as a Destination consultant 3 years back, the bigger co’s do not even consider me , but very happy with my clients who have rated me the best in whatever services that I have provided and still come back to me for advise.
Hi Rajan,
My husband and I have just launched our business as a small Destination Service Provider in Yorkshire and I found your comments very interesting.
Hi Michael – thanks to you too for your comments and thoughts! I really appreciate it and as a small business owner you can truly relate to this discussion. Customers and their transferees needs have to come first! If we put our own agenda first then the partnership is not a true partnership! “Client for life” is one of my mottos!
Great Post…
I’m glad to see that some people really do get it. I also believe that a smaller company will provide a better service to all. Larger firms seem to care more about their internal layers of management then their customers. I own a small third party company and we always put our customers and their transferees needs first.
Hi Michael
Thanks for your comments! It really all comes down to how you approach your business partner relationship. If you take the business approach only and lack true partnership, I believe is a recipe for failure.
Great article.
I have worked for small, medium and large suppliers in international moving and relocation for 17 years in China and the UK. In some cases the HR / Mobility professional with 1-5 assignments a year have been more demanding than a team of 30-40 a year, and I’ve found that understanding them individually (being a true business partner) no matter what size company I have been with, have helped me and the assignees sail in the right direction.
I am at a small supplier now after 7 years at a global provider, and I certainly agree with the reduced layers and more personal touch mentioned in the article.
James
Hi James!! Thanks for your note and it does all come down to being a good business partner regardless of the size of your organization. With that being said I believe since our size has fewer labels and we are all empowered to make decisions, we get things done quickly. Problems are not like fine wine – they don’t get better with age!!
Hi Tom, totally agree with you and in Jack’s words: “Being a True Business Partner!”
Thank you both. Tom
First let me start off by stating I am not an HR person but work with 100’s of them as well as numerous 3rd party relocation companies. As Jack stated being a true business partner to each and every one of them has worked out well for me. As the economy is changing I feel you need to give a little extra and love your customer. Working as a team for the benefit of the relocating employee. – Tom
Thanks for your comments Tom. Couldn’t agree with you more.
Jack
Hi Mike!! Thanks for the nice comment and I’m glad you enjoyed reading the interview! I’ve known Jack for quite some time and he is a true professional who definitely “gets it”! And I agree with you, we are in this together as a team with our clients and supplier partners. If we all pull together everything happens the way it is stupposed to and if not it falls apart. Thanks again Mike! Laura
Hello Laura – Thanks for the article. It is refreshing to meet Jack Jampel (who I do not know), but a person who understands and “gets it” that a relationship has two sides. Some of the powerhouse RMC’s need to take a hard look at their management style and understand it makes zero sense to bite the hand that feeds you. Recognize that we are in this together as team. It takes everybody pulling on the same oar at the same time to make it happen. Nice work. – Mike McCarthy
Hi Michele! Thanks so much for your comments! This has also been a discussion point for us. Small to Mid Size companies tend to be able to be more custom, fluid, and flexible! Laura
I like this article! It has been a discussion point and dilemma for the past 25 years I have worked in the relocation industry. One of the major issues is the drilling down that goes on with larger relocation companies. Getting an assignment from a Relocation Management Company may well mean at least 4 layers of process and responsiblity before you touch the person who really needs the support! Forget getting immediate decisions for crisis situations, what with time differences and the relocation heirachy-it takes way too long! Now I am hearing from my Clients that some European Relocation Companies prefer not to have RMC’s as clients as it takes too long to complete numerous forms to prove what has been happening and to whom! So I have opened a global online relocation service and I hope that many of these issues will dissapear and size will not matter, just good old fashioned service!! Michele
great post- loved the answer about small relocation companies giving higher touch
Hi Brad – thanks for your note and I definitely agree. Small-Mid Sized companies tend to be more flexible and quicker to respond to requests/changes, etc. Thanks again!
Hi Brad,
Thanks for your comments. I think an important point that I was trying to illustrate was that the mid size company model tends to provide a better overall service model that I believe is by default, as a result and correlates directly to their size. Less layers of management allows for more quick decisions and more personalized service appears to provide more customized solutions. That being said, your categorization as a mid size RMC by itself, does in no way guarantee nor should it be construed that every mid size company provides good service. More importantly it is how your company executes it’s mid size business model. Let’s be honest about it. It’s safe to say that most, not all, mid size companies would like to gain business, grow and become a larger RMC then what they currently are. However the learning should be, how do you continue to deliver the mid size service model as you grow and become a larger RMC? Or on the contrary, if I am a larger RMC, how do I customize my service model based on my individuals client’s culture, values and business needs and not get caught up only on your own company’s culture, your own company values and your own company’s business model? Remember, your client truly needs to be your business partner and wants you to succeed in your service to their company.
Maybe my next blog should be to discuss collaboration methods between Relocation Managers and Service Provider to improve their business partner relationships.