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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.


Do any of the following statements ring true?


Costs are going down –  As the housing market improves throughout the country, the days on market for homes is going down.  Homes selling faster means less need for temporary living, less loss on sale, less storage,  less home trips, and less exception requests, to name a few.


You are overworked – The great recession, saw more and more HR departments cannibalized to make them leaner. When the level of relocation activity was moving slower, it was manageable. Now, as mobility needs are growing and the process is picking up in speed, the time to breathe, let alone tweak the system is limited.


Complaints are down –  As your relocating population moves more briskly through the pipeline, the flow of activity puts them where they need quicker, with less aggravation and inconvenience.


So, if things are going better, why change anything?  Well, in case you didn’t notice, all of the improvements I noted have absolutely nothing to do with the performance of your RMC.  They are merely a result of an improved economy.


Depending on the last time you structured your RMC agreement, there were a variety of factors pressing in that moment.  In the last 8-10 years, the focus has been on cost reduction and outsourcing much of the transferee and sub-vendor interactions.  While this is still the major focus for those entering the process today, it’s time to take things out of the sterile and apples to apples world of Procurement and put it back in the hands of the program manager.  Rather than a focus on the visible fees of the RMC and the extensiveness of their “vendor Network”, it is time to determine if your relocation partnership is structured to efficiently manage your business at a reasonable price, or if their aggressive pricing structure is offset with hidden revenue streams that are not necessarily the most advantageous and least expensive option for you.


Offsetting expenses to the company can be a very helpful on cutting program costs, so long as it is done in a way that does not impact the quality or number of available options.  Additionally, vendors may be padding their charges to the company, whereby negating any apparent discounted RMC fees.


When was the last time you evaluated your current RMC?

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VP, Client Services

VP of Business Development Northeast Region


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