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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?

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.

Supplier Diversity is Not a Function of HR

I know, I know. So, why am I bothering to tell you about it? Well, we’ve been covering a lot of supplier diversity topics lately and I think this is an important point to make. Supplier diversity is not a function of HR BUT that does not mean that HR can’t embrace supplier diversity as an option when looking to outsource projects. What is does mean, however, is that there is a fine line between selecting a  supplier because they are diverse and  selecting a supplier because they are the best and happen to be a diverse supplier.

What’s the Difference Between a Tier I and a Tier II Supplier Diversity Spend?

As many know, XONEX Relocation is proud to be certified by the Women’s Business Enterprise National Council as a Women’s Business Enterprise. I’m lucky enough to get to go to all the conferences. It’s a great group of people and we learn a lot from each other about supplier diversity and its impact on organizations. As such, I get asked a lot of questions about Tier I and Tier II supplier diversity spending in organizations. So much so that I recently wrote a whitepaper on supplier diversity trends. We received a lot of good feedback and it dawned on me that a blog post on Tier I and Tier II spending would be of interest to our blog readers. 

HR Interview: The Relationship between HR and Procurement

HR Interview

Andrew Ikall, UCB Pharmaceuticals

Anyone involved in the relocation industry knows that there is a new seat at the relocation table: procurement.  This has been quite a shift for relocation professionals and human resources managers alike because, historically, relocation has been strictly a function of HR.  In recent years, however, cost-cutting measures have caused more companies to charge procurement with sourcing the relocation vendor, which has changed the nature of the business and the relationship between key relocation players (third parties, HR, transferees, finance and so on).  This isn’t necessarily a bad thing. Most companies remain focused on implementing strategic HR practices that will benefit transferees and the company as a whole. We all need to work together to build the best relocation team and subsequent program.

Relocation is Not a Widget

Relocation is Not a WidgetLately I’ve noticed that procurement representatives and relocation companies are having a hard time appreciating each other – or at least getting on the same page when it comes to moving transferees. This is an issue when it comes to implementing strategic HR practices that will benefit transferees and the company as a whole. We all need to work together to build the best relocation team and subsequent program.

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