How do you balance relocation costs?
Effective relocation cost management is a balancing act that requires a clear understanding of the various cost aspects of a relocation program. It’s important to identify the way these costs interact with, and affect, one another. For example, a company may feel secure because they negotiated an agreement with a relocation management company for very low service fees that saves them $1,000 per move. However, they don’t realize that one poorly managed inventory property can cost them more than $80,000. Or, a company may decide to eliminate a benefit, such as home sale services, but end up paying much more for temporary living or other program exceptions that still result in an expensive program – one that doesn’t meet the needs of either the employee or the company.
In the automotive world, publications calculate the “True Cost to Own,” a particular model that factors in the original purchase price, depreciation, and ongoing maintenance costs. A relocation program is very similar in that there are both hard and soft costs that can have a profound effect on the “True Cost to Manage” your relocation program.
Let us help you explore concepts in program design and management that maintain a balanced view of relocation costs. Contact us today for more information!