You count on your relocation management company (RMC) to move your employees smoothly and cost-effectively. But do you have a clear sense of how good a job it’s really doing?
For example, you know how much you’re paying your RMC, but do you know if you’re getting good value for the money? Or, conversely, how much it’s saved you? Or the quality of the service your people receive?
While most corporations hold their various vendors accountable using one set of measurements or another, some are strangely passive when it comes to evaluating their RMC’s performance.
Don’t be. Your relocation program is a significant financial investment that helps you attract and leverage valued talent. If you don’t know how or what to look at in order to evaluate your RMC’s performance, that’s an easy fix. Start by reviewing these five key areas.
Many relocation management companies promise to deliver cost savings when they’re wooing your company, but many will go on to encourage fully-covered, uncapped benefits.
The truth is, many traditional relocation management companies don’t really have a vehicle for effectively tracking cost savings, let alone sharing that data with employers.
Nor do they have a means of reimbursing lower-cost suppliers outside their vendor networks, so employers miss out on potential cost savings.
If your relocation management company can’t easily tell you how much it’s saved you on a particular move or for a given time period, you should wonder how hard they’re trying.
Of course, you eyeball your RMC’s invoices before you sign off on them. But how closely do you review each line item? Have you ever questioned an expense?
There’s no question: mobility managers are incredibly busy, and long, itemized invoices are labor-intensive to review. However, when employers fail to audit their bills, RMCs inevitably benefit. After all, from double billings to basic math miscalculations, errors happen.
Another common issue: some suppliers may lowball their quotes by underestimating, say, the weight of the household goods to be moved. However, after the move, the actual weight, distance or other variables may seriously drive up the final costs. If this happens routinely, something’s wrong. But you won’t know unless you’re comparing the numbers.
One drawback of using traditional RMCs is that they require employees to use their own partners, even when it’s not a good fit. It’s no secret that relocation management companies earn a commission based on sending business to their partners, which is why your relocating employees may not always get choices or even the services they need most.
As a result, for example, employees with minimal belongings may be forced to use a full-service van line with weight minimums when a different option would have been more appropriate.
If your RMC doesn’t offer a flexible approach to suppliers, chances are, it’s costing you.