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relocation budget

What Does Your Payback Agreement Look Like?

Before I get into anything, I think it’s important to note that payback agreements vary widely. Every company approaches the payback agreement differently and that can be confusing for HR, senior management and transferees alike.

How to Project Relocation Costs More Efficiently

With relocation busy season around the corner, relocation managers are probably dusting off their policies and taking a good look at relocation budgets. But, how realistic are those budgets? One of the biggest challenges that human resources and procurement managers face is the difficulty of designing a proper relocation budget and then sticking to it when the rubber hits the road. That’s why clear cost projections are the linchpins that connect cost containment with adequate relocation benefit delivery. In order to ensure clear projections, its critical to get the most accurate view of anticipated costs right out the gate, preferably before an offer has been extended to the potential transferee.

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.

Key Performance Indicators for Relocation Programs

Not long ago, we released a whitepaper titled, “How to Talk to Your CFO about Relocation.” One of the things we stressed in the piece was the important of honesty – especially when it comes to home inventory costs and risks. We also stressed that strategic HR and relocation managers should be ready to talk numbers. It’s easy to shy away from providing cost estimates to your CFO because you either don’t have them or you don’t want to dissuade buy-in due the expense. This tactic, however, is a sure fire way to breed mistrust. Most CFOs do not want surprises.

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.

Three Relocation Exceptions to Watch Out For…

Back in February, we discussed how important it is for relocation managers to be as consistent as possible when granting exceptions. Inconsistent exceptions not only pit employees against each other, but they can also bloat the overall relocation budget. That’s why a lot of savvy HR and relocation professionals are adamant about documenting the details behind the exceptions they grant. Later on when a similar situation comes up, or even at the end of the year when you are planning budgets, it’s just too hard to remember the rationale behind certain decisions.

How to Manage Inconsistent Exceptions to Your Relocation Policy

How to Manage Relocation Policy ExceptionsLately, we have been hearing a lot about exceptions. After several years of an unpredictable relocation environment, it makes sense that relocation managers would be struggling to create policies that have the right level of benefits to accommodate transferees in uncertain times. As such, exceptions surrounding temporary living and other benefits around housing are common.

Fixed Fee Relocation Policies Are No Quick Fix

Fixed Fee Relocation Policies Are No Quick FixWith the economy still sputtering and the housing market in the dumps, companies are looking for ways to better manage relocation costs and risk. Lately, there has been much debate about which relocation policies are well suited towards the current market. Not surprisingly, fixed free programs have played a role in many of these conversations.

But, does a fixed fee homesale program really guarantee cost containment?  Maybe, but it’s kind of like wearing bigger pants – you won’t spill over anymore, but you’re not really in better shape.

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RICK CALANNI
VP of Business Development Northeast Region

 

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