First, let’s take a step back….Electric cars, artificial organs, the internet, and iPhones- things we see and touch everyday were non-existent 50 years ago. It was in the 1960’s that computers were commercialized for business use. From there we went to the world wide web, to the laptop, to social networking sites, and now we are able to do virtually everything on our smartphones. A few short decades ago relocation providers pretty much focused on the home sale and home finding aspects of a move. From there we went to full outsourcing- managing all that is needed in moving a family from one location to another. Today, the standard offerings for a fully outsourced US domestic move usually include a home finding trip, temporary living, moving services, final move expenses, and a relocation allowance for other miscellaneous expenses not otherwise addressed in the relocation policy. Over the last decade or so we have seen a shift in the employee base where one size may no longer fit all. If a client has a relocation policy in place they are looking to update, I ask them to first look at their company culture. What are they doing today that works, and what needs improvement? Is their current program meeting their employee needs? What are their industry competitors offering to fight for the same talent?
The other thing that changed in the US in 2018 is virtually all relocation expenses paid by the employer became taxable income to the employee. As a result, some clients are revisiting their relocation program offerings. This is when that lump sum question comes into play! For a less complex move I feel that a lump sum can be a perfectly adequate solution. The key is to carefully consider the intent of what expenses the lump sum should cover, otherwise it can be a surefire way to miss the employee’s expectations. Evolved from this is a ‘managed cap move’. This is where a client has specific services they would like to offer the employee as part of their relocation program, and they would like to limit the expense of those services to a certain amount. Some clients still determine a need for a more traditional program offering of services they want to include with no maximum expense limit.
I was recently at an industry conference in Northern California where a panel of relocation management companies described the challenges they experience as a result of changing technology. Their consensus was that clients now expect “push reporting” (meaning certain reports will be sent at a specified frequency to the client vs. the client having to request these reports on an ad hoc basis or pull the reports themselves), data analytics (tell me what my data means vs. just giving me data), and more strategic discussions relative to the goals of their program. The voice of the customer has also never been as important as it is today. Clients are competing for talent, so must listen to what the talent says! At the conference, one panelist spoke about how they are looking at ideas from everywhere. This includes their clients, their customers, supplier partners, and their own employees. They said nothing is dismissed, but if they explore an idea that is not taking them anywhere they need to be flexible enough to pivot quickly to the next idea. Some relocation management companies also struggle with data integrity. If you are collecting data from various sources, how do you compile it to make something meaningful for your client? Also, how old is data when it is no longer considered good data? Another provider spoke about the necessity of the human element in today’s environment. They are currently looking at an “Amazon Alexa” type of interface with the customer and although we are not there yet, stay tuned. Relocation management companies agree that there is more reliance on supplier partners than ever before, eliminating some of their own internal steps to streamline the process for the customer, and reduce costs to the client.
Mobility Empowered has a platform that utilizes the most current technology available, while always continuing to innovate. If you have a segment of your population that has limited benefits, you have the option of using a 24/7 chat feature rather than being charged for a full time consultant assigned to each move. Conversely, if you have a group of executives or more complex moves where a full time consultant is needed that is also available to you. Our suppliers are fully vetted based on performance, geographic capabilities, and experience. Each client decides on what options they want to make available to each employee. The employee gets to decide who will provide services for them. This may be based on costs, familiarity, or any other reason. We do see that the more control an employee has over their move, the higher their satisfaction rating. Of course the added benefit to the client is more control over their costs.
Having been in the industry longer than I care to admit (I do remember sharing a fax machine with over 100 people when they first came out if that gives you a clue…) I have seen so many changes in how we interact with our clients and customers. It is interesting to see how we will continue to navigate between the human element and technology as we progress. I invite you to contact me directly should you wish to continue the discussion!