Employee relocation is a very common practice now a day. A more connected world and lack of skilled executives force corporates to relocate their skilled employees to places. Employees get relocation benefits and most companies offer a relocation package to them. The relocation package may be different for all companies but as employee relocation is a very frequent process in every corporate, companies have tie-ups with best rated national moving companies to ease the process for their employees.
Employee relocation is a complicated process as it includes many aspects including tax policy, the intersection of talent, and/or immigration regulation in case of an international move. Employees need proper guidance and assistance while relocating and a good relocation management company can ease their work. While the right relocation company can help a moving employee in many ways, a wrong one can cause a lot of harm too.
An organization needs to see the warning signs and find a good relocation management company if they face the issues given below:
Poor Feedback of Employees
Poor employee feedback for a relocation management company is one of the most important reasons to say goodbye to your current relocation partner. Make sure you get feedback from your employee who has experienced with your relocation partner. If your relocation partner is failing in providing the right services then it is time to find a new one as the core purpose of this partnership is to provide comfort to your employees and keep their satisfaction levels high.
Cost Vs Budget
Many times Relocation companies recommend policy improvements at frequent intervals. Make sure that you are paying a reasonable amount to the company by doing enough market research. It is recommended to keep a check on your organization’s relocation budget and spending. If you find a huge difference between your budget and cost, it is time to go out and bid for a new relocation management company.
Taxes are a Concern
When it comes to handling finances, your relocation management company should be a pro. Many relocation companies are proved to be a disaster when it comes to handling taxation. Certain benefits are treated differently and considering taxes. A mishandles taxation process can create big financial havoc to you as you may have to pay penalties during a tax audit by the Internal Revenue Service of the U.S. This is a matter of all time concern to keep your financial records intact and well to save your organization’s reputation so if the current relocation company is not capable of handling your taxes, it is time to review their performance and replace them with a better company.
How to Bid for a New Relocation Management Company
Actions to be taken before issuing a Request for Proposal
Employee retention is the main motive of any company and a good relocation management company helps you in providing the best support to your employees. Make sure you engage the right and best relocation management companies while preparing for your process of Request for Proposal. You can keep the following points in mind while going through the process of Request for Proposal.
Thoroughly Understand Your Current Relocation Program:
Make sure you understand your current relocation program thoroughly to know your expectations from the new company. Understand the size and scope of your current relocation program and for that, you should be aware of the approximate number of employees to be moved per year. Learn about the type of services that your employees may need at the time of relation. All this information will help you create a better Request for Proposal.
To understand your current policy better, it is advised to take suggestions and feedback from your relocation activity team about the previous relocations and their success. And if you have no past experience of dealing with a relocation management company then make sure you consider the unique requirements of your company before you start the process. Also, know your position in the industry if you are a leader, competitive or conservative identity. It is wise to know the packages and offers that your competitors provide to their employees.
Involvement of Right Authorities in Deciding the Right Relocation Management Company
Make sure that the right people are involved when you are deciding on a program and partnership with a relocation management company. It is advised to designate a corporate relocation manager to handle the entire process of relocation of employees, right from the appointment of the right Relocation Management Company.
Figure out the three top relocation companies from the bidders and ask them for a presentation. Generally, companies highlight their services and packages in the best possible way during their presentation so a presentation helps you in understanding their proposal better. Make sure you ask all the necessary and relevant questions during the presentation to clear your doubts about their services. You can ask them a variety of questions like how do they handle after-hours calls and emails, their employee satisfaction rate so far, how do they handle odd situations during a move, and about the time taken on expense reimbursement, etc.
Once you are done with the presentations, request some more information from the chosen companies and select that is ready to provide you the maximum number of services needed for your organization.
Selection and Signing of Agreement
Once you select the best fit company for your employee relocation program, inform other bidders about the same. Don’t just agree to all the points mentioned by the winning bidder in their boilerplate agreement. Make sure you edit the agreement to come up with a synced agreement for both the organization and where you can work together for a mutual benefit. It is highly recommended to have an elaborated talk through any sticking points to sort a more positive way.
Now, that you have already signed the contract, let your new Relocation Management company handle all the relocation process along with your employees who are currently in the transition process. This will make the entire process easier and offer your employees a healthy relocation experience.