Sometimes, upholding tradition is a wonderful thing. Take cherished family and cultural traditions, for example.
But when it comes to corporate relocation plans, preserving traditions doesn’t serve anyone. The industry is evolving. To stay competitive, your relocation offerings must, too.
A little unclear on what’s old and what’s new? This three-minute update is for you.
3 Traditional Relocation Plans—and Their Pitfalls
Today, most traditional policies fall under these three categories. They have some pros, but major pitfalls, too.
Lump Sum Allowance
Under lump sum plans, the employer gives the employee a single, upfront payment toward their relocation costs. No strings attached, but no support either!
- Pros: Flexibility for employees; simplicity for employers.
- Pitfalls: Without guidance, some employees make poor relocation decisions, which leads to bad experiences. And because employees keep any leftover funds, they’re motivated to take chances and go with their cheapest option.
Simple Reimbursement
Here, the employer reimburses employees for agreed-upon expenses up to a certain max, once documentation is provided. Again, there’s no support.
- Pros: Employees still have flexibility; employers have more control.
- Pitfalls: Employees must front their expenses, which doesn’t sit well. Plus, there’s more admin all around. And employees are still on their own (gee, what could go wrong?).
Fully Covered Plan
Under fully covered plans, the employer pays for the employee’s entire move, enlisting a relocation company to manage the admin and help guide the process.
- Pros: Employees love these plans. Not only are their expenses covered, consultants help ensure a smooth move.
- Pitfalls: These are very expensive for employers, which is why they’re typically reserved solely for top management.
5 Game-changing Relocation Innovations
Fortunately, there is an alternative to inefficient, expensive traditional plans. Modern relocation plans avoid these pitfalls by incorporating a number of innovative elements. Here’s our top five.
1. Managed Budget Plans
Under managed budget plans, employees have the flexibility to personalize their relocation, but they also receive support from professional relocation consultants, ensuring a well-planned move. It’s the best of both worlds.
Furthermore, expenses are often paid directly by the relocation company—and any leftover funds stay with the employer, so they’re more cost effective for employers.
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2. Online Relocation Technology
These days, employees want and expect tech-based services, period. They’re convenient, they facilitate better planning, and they eliminate reams of paperwork. If your company isn’t using a software-based relocation solution, you’re projecting an outdated image.
Beyond offering a recruiting edge, tech-based relocation solutions save employers big bucks. For example, when businesses switch to UrbanBound, they can shrink their relocation budgets by up to 66%.
3. A Network of Carefully Vetted Suppliers
Look, there are tons of moving companies and real estate agents out there. Without putting in hours of legwork, it’s tricky for employees to make smart choices. This is especially true in the moving industry—a magnet for bad actors.
Modern relocation companies solve this problem by developing and maintaining their own rigorously-screened supplier networks. Then, when employees choose in-network suppliers, they’re ensured a smooth experience. (To see how it’s done, click here.)
4. Curated Content about the New Area
The more a relocating employee knows about their new city and workplace, the more-informed their choices will be—and the faster they’ll acclimate. But the Internet is a big, often-untrustworthy source of information for employees to sift through on their own.
One of the best things employers can do is to connect incoming employees with meaningful, curated content about their company and location, and when you use a tech-based relocation solution, this is a snap. You can even include insider tips from coworkers—advice new employees particularly covet.
5. Discounts, Not Commissions
One of the worst features of outdated relocation arrangements is that some providers add hidden commissions—aka “markups”—to every service they touch, adding thousands to the cost of a single move!
But modern relocation companies do the exact opposite. Case in point: at UrbanBound, we charge transparent fees based on an employer’s actual usage. Instead of tacking on commissions, we negotiate discounts with our preferred suppliers, which they happily agree to in return for a greater volume of business.
Time to Start Some New Traditions?
At UrbanBound, our traditions include saving our clients’ time, headaches, and money, while providing their employees with a smooth, happy relocation experience. If those traditions sound good to you, let’s start a conversation.
