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6 Signs That You Should Outsource Your Employee Relocation Program

September 1, 2015 11:47:50 AM EDT | By: Pam Buchanan, GMS

Signs you should outsource your relocation programFor many growing companies, there comes a time when handling your employee relocation program internally becomes a struggle. Whether you're struggling with compliance problems or you're growing too quickly to keep up, it may be time to get help. But how will you know that the time is now? These six signs are a good indication that you may need to outsource soon.

1. Your HR department no longer has the time for managing relocations.

Is everyone in human resources pulling out their hair with every new relocation? HR is busy with so many other tasks that relocation often gets overlooked. If your HR team once handled employee relocations but no longer has the time or resources, you should look into hiring a relocation management company. By doing this, you’ll be able to rededicate your HR team to areas where they have a higher impact and allow them to focus on their core responsibilities. Teaming up with relocation experts means your program incorporates all the best practices and you and your employees are in compliance with tax and other changing immigration requirements.

2. You’re spending too much money.

It can be tricky to keep a relocation program on budget, especially when it has been pieced together over time to keep up with company growth. One of the huge benefits of hiring a relocation management company is their ability to strategize your program’s policies and processes, ultimately saving you money. Outsourcing can also save you money thanks to added benefits like:

  • Cost savings passed on from using a supplier network
  • Consolidated payment and billing
  • Access to technology and other tools with no investment of your own (check out Lexicon’s capabilities!)
  • Replacement of fixed costs with variable fees
  • Accounting for taxes to prevent issues with the overall bottom line
  • Your own time saved by having a dedicated partner

If your company is having a hard time wrangling that relocation budget, think about seeking outside help.

3. Tracking your employees abroad is a huge headache.

Employee relocation headacheKnowing where every employee is and where they’re headed can be a struggle, especially if you’re sending people to multiple countries. Tracking those employees is essential to making sure your company is following the many immigration and employment rules that vary by country. Compliance is a huge part of global mobility, but it can be challenging if you struggle to keep up with the changing rules and/or don't have the software that can give you full visibility into all the many components of international relocation.

Noncompliance can result in excessive costs for fees, penalties and fines. Companies could also risk having their business shut down in some countries, their employees banned from entry and even jail time. Companies that specialize in international relocations and global mobility can give you peace of mind, ensuring that your company is compliant for each and every relocation.

4. Reporting is a mess.

Providing the accurate reports at the proper time to the right people can be a struggle for even the most organized team. Most companies don’t even have the system capabilities to track and report on relocation-related information. But relocation management companies should make reporting a breeze.

Third party software eliminates manual reporting and collection that can take hours out of your day. They can compile every facet of your global mobility program into a report for you, since they’re handling all of the pieces. We believe in customizing reports to meet every client’s individual needs, helping take that burden away from HR.

5. Your suppliers aren’t delivering.

Maybe you’ve had one too many missed deadlines with your household goods provider or you’re tired of immigration issues or you’re bearing the burden of too many homes still on the market. Trying to juggle the many suppliers necessary for a successful global mobility program can become too much, especially if those suppliers aren’t performing well.

By transferring that burden and outsourcing your program, you’ll no longer have to deal with each piece of the puzzle. Not only will you receive the service of tested and proven providers, but you will also know that there are backup providers in case of issues. Suppliers should be carefully selected, measured against benchmarks for quality and trained to meet your standards.

6. You have more relocations with exceptions than without.

If you’ve developed your own relocation policies but never seem to stick to them, you may benefit from some outside help. Your policies may need to be rewritten to better meet your employees’ needs, or you may need to add additional provisions for different situations. A relocation management company should be up-to-date on trends in the industry and be able to advise you on how to incorporate those into a plan that suits your needs. When is the last time your program was evaluated?

Maybe the program isn’t the problem but the administration of it. By having an independent team provide detailed policy briefings to your relocating employees, you’ll cut down on exceptions and have overall better policy adherence.

Overall, hiring global mobility subject matter experts means you’ll have additional support and expertise that spans the globe.

It’s not just relocation management companies that know the benefits that come from partnering with them – in fact, a large percentage of companies believe that outsourcing can improve their relocation policies (see more about this topic here). With businesses expanding internationally and markets becoming more global, relocations will only become more complicated. Don’t be afraid to reach outside your office for assistance.

Topics: global mobility, employee relocation, relocation companies, relocation policies, HR

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