6 Ways to Cut Relocation Costs

Cutting employee relocation costs is a primary focus for most Mobility and HR professionals. With costs increasing across the board, and constant pressure to do more with less, it's super important to focus on areas you can reduce spend. Relocation benefits are essential to attracting and retaining top talent, but reducing those costs is often an area of focus. That's why we're sharing our top 6 ways to cut relocation costs:

Address Hidden Markups

Most Relocation Management Companies (RMCs) markup multiple aspects of every relocation - from household goods shipments to short-term housing, and even tax gross-ups! Talk to your RMC to make sure you understand exactly what fees and markups you're paying, and how you can reduce these to cut costs.

Insist on Multiple Bids from a Range of Suppliers

It's easy to get comfortable and we all like working with people we like, right? But if your RMC is always using the same suppliers for every relo, it's time to hold them accountable. By getting multiple bids from different suppliers you can make sure you're paying a fair price, and potentially find cost savings using alternative suppliers.


Switch to a Managed-budget Policy

Managed budget policies are extremely popular because they provide flexibility and service. Managed budget policies mean unspent funds are returned to the employer, unlike lump sum, and the employee still gets full support for their relocation. By combining the best of both worlds (lump sum and traditional full relo), you can cut costs while still providing an exceptional employee experience. 

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Track Your Relocation Program Analytics

Only about half of US companies actually track their relocation costs, but it's the best way to find cost savings. Knowing how much you're spending, how it compares to your budget, and how it breaks down by policy, tier, location, etc. lets you spot trends and potential savings. Are your suppliers meeting budget or are they consistently lowballing the quotes and charging much higher rates on the final invoice? Tracking your metrics will help you find these issues.

Rethink Your Policy's Guidelines

Once you're keeping track of your relocation spend, you may also want to revisit your policy guidelines. Sometimes, loosening or tightening limits can provide huge costs savings. For instance, if you find that you're constantly overspending on short-term housing and storage because employees are having trouble finding a place to live, adding or increasing home-finding trips can create a huge cost savings overall.

Upgrade to a Tech-based RMC

Using a tech-based relocation partner helps you cut relocation costs while still taking excellent care of your employees. The technology reduces admin burden by streamlining workflows, taking care of tax calculations, and generating automated reports so this doesn't have to be done manually. Less man-hours also means less cost, whether from your own admin time savings or from paying your RMC to handle these manual tasks. It also helps you quickly and easily identify cost-saving opportunities within your relocation program itself.

These are some great places to start looking at ways to reduce relocation costs, but if you'd like more detail we've got an entire eBook with 13 ways to Cut Relocation Costs, not Employee Satisfaction

Human Resources Today