Technology changes everything. And that includes relocation management.
As is often the case, technology has divided the relocation management industry into two service models: pre-tech and post-tech. The traditional, pre-tech camp remains heavy on human interaction and manual labor. The modern, post-tech camp is digital and largely automated.
The question is: which approach better serves employees and employers—and will going forward? Better yet, is there best-of-both-worlds solution…and if so, where can you find it?
People have been relocating for work for hundreds of years—for exploration, colonization, trade etc., without the benefit of relocation assistance.
However, after the Industrial Revolution began in the late 1700’s, manufacturers started offering basic relocation assistance—housing and transportation—to incent workers to migrate from rural to urban areas.
Then, following World War II, the post-war economic boom led to the rise of corporate relocation as we know it today. This sparked the development of third-party relocation management companies, or RMCs.
For decades, RMCs managed relocation the same way. Today, traditional RMCs continue to use many of these same processes.
Under the traditional relocation service model, people—specifically, relocation consultants/specialists—do most of the heavy lifting.
Here’s how it works: when an employee accepts a job offer or promotion with relocation benefits, the employer’s RMC assigns one of its relocation consultants to the case. That consultant helps the employee plan their relocation, connects them with providers (movers, realtors, etc.), explains their benefits, and keeps a running tally of expenses.
Communication largely takes place via phone call, video chat, email and other traditional methods. While it’s reassuring for employees to have access to a dedicated professional, the process is time-consuming and can involve a frustrating volume of back-and-forth (especially when working across different time zones).
In addition, employers may not always be current on the status of each relocation—not to mention their program spending—due to lags in recordkeeping and reporting.
As you’d expect, all this highly-personalized service is quite expensive—especially since most RMCs add commissions to every service they arrange.