Recent Tweets

Follow Me on Twitter

Powered by Twitter Tools

cost management

Employee Retention Pitfalls after Relocation

We’ve talked quite a bit on this blog about payback agreements. Oh, the payback agreement. We both love it and hate it at the same time. Is it a necessary evil? Perhaps. We certainly don’t believe that companies should spend thousands, if not hundreds of thousands, of dollars on a relocation if there is a risk that the transferee will resign before the contracted period is up. Putting aside financial concerns for just a moment, however, I think we need to take a closer look at why payback agreements are so prevalent (94% of companies require them) and if there is a better, more effective way to ensure that talent stays on board after a transfer or assignment.

To Stage or Not to Stage?

We all know time is money.  When it comes to real estate, this couldn’t be truer. While the sales price of a home may

Staging a Home

Photo credit: HGTV

not change, obtaining a sale quickly can save a considerable amount of money in the form of carrying costs and even loss on sale if the market is in decline.  One way to give prospective buyers a perception of the depth and functional usage of space is to furnish the home. As such, transferees may request additional monies for staging the home as a part of the home marketing benefit. Should you comply?

Managed Cap Program Managers: Yay or Nay?

Like corporations, employee relocation service providers have had to adapt to shrinking program budgets, less company gatekeepers, and ongoing pressure to simplify the process. Some companies, in response to budgetary constraints, and just not having the personnel to administer multi-benefit programs have switched (especially with Managed Cap Programstheir lower level and rental programs) to a lump sum or managed cap program. Both these programs offer the companies more budget certainty and uniformity. Noting this, some relocation providers have entered the market with a stripped down, limited scope approach. Whereas the traditional service provider had previously geared their approach toward homeowners, with modifications scaling back benefit levels for the renters, and college recruits, these new companies focus on the growing population of less defined relocations.

Last Minute Moves are Relocation Budget Killers

In our most recent relocation whitepaper, discussed the nature of last minute relocations and the impact it has had on relocation budgets, as well as the transferee’s overall relocation experience. For one reason or another, there seems to be a growing trend towards last minute hires. As such, there were many cases where transferees were initiated in the same week as their start date, leaving very little time to adequately counsel the transferee and effectively set up relocation benefits.

The Rise of the Hybrid Lump Sum Relocation Policy

Lump sums are all the rage. And, they will continue to be a hot ticket item. Yep, we said it. While we are not the lump sum’s greatest fan, we wholly accept that many employers will be working to combine as many relocation services as possible into a lump sum component.  Predictability is, understandably, very important for managing budgets. But, on the other hand, predictability does not automatically translate into cost savings.  In fact, it could do just the opposite.

Free Whitepaper: How to Talk to Your CFO about Relocation

Out of all the executives in the c-suite of an organization, the Chief Financial Officer (CFO) can be the most intimidating. We’ve all been there, right? You are running a program that goes over budget and, all of a sudden, the CFO has taken notice and is knocking on your office door. As your brain starts to work on calculations and an explanation all at once, you may find yourself a bit…panicked.

When to Make an Exception the Rule

The increase in exceptions over the past several years is a good indication of the pressure employers are feeling to address the concerns of skilled talent. Unfortunately, over time, managers and previous transferees often share commonly granted exceptions with new transferees as if they are a staple of the program. Consequently, unexpected relocation expenses start to spring up frequently.

Solutions for Managing Temporary Living in Remote Areas

We manage a wide variety of relocation programs for firms in a wide variety of industries. Sometimes, we are charged with moving employees to very remote locations with few relocation resources. With a little creativity and patience we can always make it work, but there are some relocation benefits that present a greater challenge than others. One of the most common issues we deal with (as well as a frequently asked question) is finding adequate and budget-friendly temporary living in remote areas with few options and high prices. So, how do we solve the temporary living problem?

To Stage or Not to Stage?

We all know time is money.  When it comes to real estate, this couldn’t be truer. While the sales price of a home may not change, obtaining a sale quickly can save a considerable amount of money in the form of carrying costs and even loss on sale if the market is in decline.  One way to give prospective buyers a perception of the depth and functional usage of space is to furnish the home. As such, transferees may request additional monies for staging the home as a part of the home marketing benefit. Should you comply?

Top 10 Most Expensive Cities for Expats (and What HR Can Do About It)

Are you relocating employees to Moscow, Tokyo or Luanda, Angola? If so, we feel for you…and them. Apparently, these are the top three most expensive cities for expats and, if they are a part of your global mobility program, then they are likely a top three on the headache list for you.

Mercer recently released their 2013 Cost of Living Survey, which analyzes the cost of living across 214 cities across five continents. They survey compares the prices of more than 200 items in these cities, including real estate, goods and services, to the cost of these items in New York City. Why New York? Well, New York City is the most expensive city in the U.S., so it serves as a good barometer for cost of living comparisons around the globe – especially if your expats are moving from the U.S. to an international destination.

Search

Site Tags

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |