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Core/Flex: What It Is, What It Does
Core/flex plans offer greater control for employers than lump sum, while still allowing employees a personalized move. As the name implies, core/flex benefits are split into two buckets:
- Core Benefits – This includes most essential services—typically housing arrangements and moving household goods, at the least—which are covered entirely by the employer.
- Flex Benefits – A menu of less-essential benefits that employees pick and choose from, such as household goods storage (if closings are delayed) pet transportation, etc.
For employees, core/flex plans:
- Do cover most or all relocation costs.
- Do simplify the relocation process. Typically, vendors are provided and paid directly by the employer, simplifying things for employees.
- Are likely to help employees and families acclimate faster, because everything goes more smoothly.
For employers, core/flex plans:
- Are likely to deliver positive results for employees, because the plan helps ensure a consistently well-managed experience.
- Are cost effective, because employers—generally through their relocation provider—can leverage group discounts with trusted, go-to vendors.
- Are not as easy to administer as lump sum. For this reason, most employers outsource these programs to relocation providers.
- Are easier to monitor, manage and improve, because the relocation provider handling each transaction is (or should be) tracking expenses, exceptions, etc. In fact, software-based providers can share this data with employers in real-time.
So, with core/flex plans, employees are significantly more likely to have a positive relocation experience—while employers get a cost-effective program they can monitor and improve. That said, they’re likely to require the services of a relocation provider to handle the admin—and that, of course, is another set of choices!
Takeaways for Employers
Given the current labor shortage, a competitive relocation program is more important than ever. And given your bottom line, cost-effectiveness is very important, too.
The reality is, what was a great relocation program five years ago may no longer be your best option.
That’s why now is a great time to learn what’s out there, talk to multiple experts and pick their brains for ideas and insights.
And if you’d like to pick ours, we’re here for it. Just ask.